A loyalty program links repeat actions to points or tier benefits. The point is to create a reason to return, not simply to accumulate a bigger number.
In the demo, each purchase adds points and crossing a threshold unlocks a tier. Real programs need clear rules for earning, using, and expiring benefits.
Rewards can raise costs without creating additional purchases. Compare incremental behavior against reward expense.
When to use
Use it to encourage repeat use while controlling reward costs.