Loyalty programs were initially developed as marketing tools that would encourage a consumer to buy from the same service which with entitle them to certain kinds of rewards and discounts.In the year 2012, it was found that the loyal program membership rate has seen an overall rise of 26.7% with almost 26.7 million people having an active loyalty membership in various sectors.
It has also been seen that in the retail sector, most departmental stores had a loyal following of about 70% while drug stores had a 45% loyal following in the United States. In the entertainment sector, there are about 35% loyal members while in the telecommunication sectors the percentage of loyal member is almost 34%