Which of the following statements correctly describes a common aspect of loyalty programs?

Loyalty programs are designed to engage and retain customers by rewarding them for their continued patronage. A key characteristic of these programs is that they can vary significantly in terms of their payment reward structures. This can include points per dollar spent, tiered reward systems based on purchase frequency or volume, or other incentives that do not solely rely on discounts. By offering a variety of potential rewards—such as exclusive access, additional services, or personalized experiences—businesses can attract a wider range of customers and encourage loyalty through different motivations.

In contrast, the other options are overly narrow or incorrect in their interpretations of loyalty programs, as they don't encompass the full range of how these programs can function and provide value to consumers and businesses alike. Loyalty programs are not restricted to discounting, are not limited to a single measure of cash spent, and are certainly not exclusive to frequent flyers, as many industries utilize such programs beyond travel.