Glossary: Loyalty, Customer Retention & Incentivization
Key terms related to loyalty programs, customer retention and incentivization – clearly explained by PRODATA, a full-service agency since 1991.
Loyalty Program
A loyalty program is a structured system that rewards repeat customer behavior to increase retention and revenue. PRODATA develops loyalty programs covering strategy, software and operations – since 1991.
Customer Retention
Customer retention refers to all measures that strengthen the business relationship with existing customers and increase their value over time. PRODATA makes customer retention measurable using KPIs such as repeat purchase rate and customer lifetime value.
Sales Incentivization
Sales incentivization includes incentive systems that motivate sales teams, channel partners or employees to achieve defined goals. PRODATA delivers strategy, rewards and the digital platform.
Rewards Shop
A rewards shop is the digital redemption platform of a bonus or incentive program where participants redeem collected points for rewards. PRODATA implements rewards shops including reward logistics and fulfillment.
Customer Lifetime Value (CLV)
Customer lifetime value is the value of a customer expected over the entire business relationship. PRODATA’s loyalty programs aim to increase CLV in a predictable way.
Gamification
Gamification applies game mechanics to non-game contexts to increase engagement. PRODATA uses gamification specifically to activate loyalty participants.
Omnichannel Loyalty
Omnichannel loyalty connects customer retention across all channels – online and in-store – into a seamless experience. PRODATA designs the associated processes and portals.
Headless Commerce
Headless commerce separates the frontend (presentation) from the backend (commerce logic) and enables flexible customer experiences. As a Shopware partner, PRODATA delivers headless solutions.
