What is a Frequency Card primarily designed to do?

A Frequency Card is primarily designed to reward cardholders based on their shopping frequency or spending. This type of card encourages repeat purchases by offering incentives that are typically tied to the frequency with which a customer shops or the total amount they spend. The goal is to enhance customer loyalty and increase sales by making customers feel valued for their continued patronage.

This reward structure can effectively motivate consumers to choose a particular retailer or brand over competitors since they can accumulate benefits or rewards by consistently engaging with that business. This strategy not only fosters loyalty but also helps businesses track consumer habits and preferences, ultimately allowing for more tailored marketing efforts.

Other choices, like providing cash back rewards or offering discounts, represent specific types of reward mechanisms but do not capture the primary focus of a Frequency Card. Tracking customer demographics, while valuable for market analysis, is not a function of the card itself but rather a result of using such cards to gather insights about consumer behavior.