What is Transactional Loyalty?
Offering tangible benefits like discounts, points, cashback, or free products in exchange for specific customer actions such as making purchases, referring friends, or leaving reviews. They provide instant gratification and encourage immediate engagement, which can be highly effective in driving sales and boosting short-term ROI.
Example: Offering a flat 10% discount on every purchase leads to short-term sales but lacks engagement beyond the single transaction. Customer Lifetime Value (CLTV) and brand loyalty might suffer due to the absence of deeper connections.