What is the difference between discount based and rebate based loyalty programs?
Discount based programs (sometimes referred to as two-tiered pricing models) create a situation where program members pay a lower price than non-members. (Instantly) Rebate based programs allow members to accumulate rewards based on specific performance. These rewards can be accumulated and redeemed at some time in the future at the awarding business or according to program rules. Either discounting, rebating, or a balance between the two, will be the right choice for the basis of a business’s loyalty program. Which one depends on many different factors and is something that our loyalty consultants are experts in figuring out. The wrong choice can insanely expensive and ineffectual for a business.
