Customer Reward and Loyalty Programs: History
Most reward and loyalty systems were initially launched by airlines, hotels and their additional services. Presently, hotels, restaurants, coffee shops and various stores provide services as customer rewards to persuade these customers to use their services again.
In 1980, American Airline announced that it would reward passengers based on the total distance traveled. Whenever the total distance traveled by a passenger reached 10 thousand miles, a free ticket from New York to Chicago would be given to the passenger. Whatever is attractive to the customers will be conveyed to others through word-of-mouth advertising and it will create a wave that persuades others to use your products and subscribe to your services.