Patronage discount
Patronage discount, also known as loyalty discount, is a marketing strategy used by businesses to incentivize repeat customers. By offering discounts or special offers to customers who continue to patronize their products or services, businesses can increase customer loyalty and retain their customer base.
For example, a coffee shop may offer a loyalty card where customers receive a free coffee after purchasing a certain number of drinks. This encourages customers to return to the coffee shop and make more purchases in order to earn their free drink.
Another example of patronage discount is a subscription-based service that offers a discount to customers who renew their subscription for another year. By rewarding customers for their continued patronage, businesses can increase customer retention and reduce churn rates.
Overall, patronage discounts can be a valuable tool for businesses looking to build customer loyalty and encourage repeat business.
For more information on patronage discounts, please visit Wikipedia.