Patronage Rewards

Posted in Marketing and Strategy Terms, Total Reads: 11749
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Definition: Patronage Rewards

Awards provided by companies to promote and encourage the purchasing of their products are called patronage rewards. Patronage rewards aim to keep the customer engaged and connected with their brand & induces repeat purchase among them. These patronage rewards also help in building customer loyalty towards the brand.


This tactic of having patronage rewards helps the companies in promoting their product by giving rewards to the customer for every purchase in form of points. These points can be later redeemed for different rewards specified by the company. These points, discounts, freebies etc are collectively strategized as a loyalty program by companies. Such loyalty programs helps in building a stronger relationship with the customers and helps in promoting brand loyalty. Patronage rewards give the customers a sense of belonging and helps them feel attached to the product & service even when they are not using it. Their customer loyalty is highlighted by the fact that they help in spreading brand awareness with their friends & family.


Examples of Patronage Rewards

Patronage rewards are given by companies based on the strategies they devise for the customers. Some examples are as follows:

1. Airlines use frequent flyer miles for its regular customers which you can redeem for a free air ticket. The more the customer travels using their airline, the more frequent flyer miles they accumulate. These patronage rewards can then be redeemed to get air tickets as well as holiday packages.

2. Banks award points on credit card purchase which can be used to get different goodies or discounts. These rewards by banks aim at using credit cards and offer discounts, cashback etc on purchases. 

3. Fuel companies also have patronage rewards for customers using their gas stations or petrol pumps. A similar initiative was launched by Bharat Petroleum few years back in the form of Petrocard.

Hence, this concludes the definition of Patronage Rewards along with its overview.

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