What is a loyalty program designed to do?

A loyalty program is primarily designed to encourage repeat purchases from customers. The core idea behind such programs is to create a relationship between the customer and the brand, fostering loyalty through various incentives. These can include points that accumulate with each purchase, exclusive offers, or member-only discounts that motivate customers to return to make additional purchases. By rewarding repeat business, loyalty programs effectively increase customer retention, enhance customer satisfaction, and ultimately drive long-term business growth.

The other options, while they may touch on aspects of customer engagement or business performance, do not capture the primary objective of a loyalty program as effectively as the correct answer does. For instance, providing discounts on large purchases may be part of a promotional strategy but is not the central focus of a loyalty program. Similarly, rewarding employees for their performance addresses workforce motivation rather than customer relationship management.