Reward programs are a great way to both retain loyal customers and drive new customers to your business. The classic customer rewards programs divide into two major types. Loyalty programs and referral programs.

With both of these types of programs, the goal is to drive more customers. Whether that means drive existing customers to return or expand your customer base altogether. Rewards programs also tend to produce pretty quality customers, who end up spending more in the long run.

If both of these programs allude to the same type of results (more sales), are they really that different?