Question

Customers receive rewards points based on the purchase type. What is the purpose of these rewards points?

1) To encourage customers to make more purchases
2) To provide discounts on future purchases
3) To earn cashback on their purchases
4) To redeem for gift cards or merchandise

Answer 1

The purpose of rewards points for customers is to encourage more purchases, provide discounts on future purchases, earn cashback, and redeem for gift cards or merchandise.

Step-by-step explanation:

The purpose of rewards points for customers is to:

1. Encourage customers to make more purchases: Rewards points incentivize customers to continue shopping with a particular business by offering them a benefit for doing so. By accumulating points, customers are motivated to make additional purchases in order to earn more rewards.
2. Provide discounts on future purchases: Rewards points can often be redeemed for discounts on future purchases. This serves as an incentive for customers to return to the business and continue shopping.
3. Earn cashback on their purchases: Some rewards programs offer customers the ability to earn cashback on their purchases. This provides a financial benefit to the customer, making them more likely to continue shopping with the business.
4. Redeem for gift cards or merchandise: Rewards points can also be redeemed for gift cards or merchandise. This allows customers to choose a reward that they find valuable and further encourages them to remain loyal to the business.