# What is the purpose of a rewards program?

What is the purpose of a rewards program?

##### Post Metadata
- Posted at: about 4 years ago
- Author title: Pinned by G2 as a common question



## Comments
### Comment 1

The main purpose of a rewards program is to attract and retain customers by rewarding them for their loyalty. When customers enjoy special perks, discounts, and exclusive experiences with a specific brand, it deepens the emotional connections with a brand. 

The value of the rewards program is not only for the customer... A business that operates a rewards program gains the advantage of building a customer database that they can then market to directly with personalized offers that will help grow revenue and keep customers engaged with the brand. An excellent rewards program can increase revenues by up to 55% YOY, when operated well. An existing customer is worth 5X more than a new customer.

##### Comment Metadata
- Posted at: almost 4 years ago
- Author title: Chief Revenue Officer (CRO) at Kangaroo Rewards




## Related Product
[Kangaroo Rewards](https://www.g2.com/products/kangaroo-rewards/reviews)

## Related Category
[Loyalty Management](https://www.g2.com/categories/loyalty-management)

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