Aim of this research paper is to understand the impact of loyalty programs on expenditures done by the customers on their shopping and also to know the impact on the customer retention. This study was applied on the Rohtak (Haryana, India) customers. The study investigates the impact of independent variable; loyalty programs: point system, tier system reward, and non monetary programs, on the dependent variable: customer expenditure and customer retention. Customer loyalty is a driving force for the good sales and performance of store. It’s a well known fact that it’s easy to develop a customer but it’s very difficult to keep that customer for the long time “Banane se kahin jyada mushkil hai bana k rakhna”. Companies are trying a lot to retain the customer with different strategies like new designs, new products in a very short time, innovative ideas etc. and various schemes like promotional programmes, loyalty programmes etc. Loyalty programs are one among them. From this study we tried to conclude that is there any impact on sales by offering the various loyalty programmes to the customers. Impact may also be observed with the help of brand equity.