What is a customer loyalty program, and how is such a program accounted for?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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  • What is a customer loyalty program, and how is such a program accounted for?
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Customer loyalty program:

A customer loyalty program is a program run by a company that offers benefits to frequent customers. Those benefits may be in the form of discounts, rebates, free products, or other promotions. An effective customer loyalty program rewards customers who buy from a business on a regular basis, encouraging the customer to return frequently.

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