Loyalty marketing is another name for frequent-buyer or retention programs that reward consumers for subsequent future buying. This marketing approach is strategic in nature and focuses on growing and retaining existing relationships by rewarding behavior with a reward incentive.

Loyalty programs help individuals make a subjective assessment of the integrated combined value of the reward incentive offered and the consumer proposition (marketing loyalty, branding, and product marketing) in determining if the effort on their part is justified to repeat the behavior desired by a brand.