What are the benefits of customer loyalty programs? Once you create your product or service and start generating revenue from your customers. Then, you should consider to create a customer loyalty program.

No matter your industry or business is vertical, you can find a way to reward customers for their loyalty, hard-earned money and provide additional exclusive offers.

You may already be a member of some customer loyalty programs. For example, frequent flyer miles programs or customer referral bonus programs. But, you may not know how to start a customer loyalty program for your organization.

In an increasingly competitive and crowded business area, customer loyalty programs may be a factor that differentiates you from your competitors and also a factor that keeps customers.

The members of the customer loyalty program include:

75% are more likely to buy again after receiving the reward. But, this is not the only reason to start the project.

benefits of customer loyalty programs

What are the benefits of customer loyalty programs?

Better customer retention

Customer loyalty programs help you keep customers engaged in your business, showing how likely they are to stay with you and how much they will spend.

In this day and age, consumers make purchase decisions not just based on the best price—their purchase decisions are based on shared values, participation, and emotional connection with the brand.

They are a great way to attract customers, not just at the time of purchase, but on a shared value interface, and provide customers with more value-making them happier and more likely to continue buy from you.

More customer recommendations

If your customers enjoy the benefits of your customer loyalty program, they will tell their friends and family that this is the most trusted form of advertising.

The result of the recommendation is that new customers can be obtained for free, which can bring more revenue to your business-because customers recommended by loyal members account for a high retention rate of 26%.

benefits of customer loyalty programs


It is more cost-effective. For your business, keeping satisfied customers is more important than constantly losing and acquiring new customers. Acquiring a new customer is 5-25X more expensive than keeping a current one.

User-generated content and comments

Online customer reviews are almost as trustworthy as recommendations from friends and family. Customer loyalty programs that encourage comments and ratings on websites. Then, social media will produce real user-generated content, and customers will praise you, so you don’t have to do that.

So, now that you understand the benefits of customer loyalty programs, how do you start creating and launching such a program?

benefits of customer loyalty programs

How to build a customer loyalty program?

Choose a great name.

The first step in launching a successful customer loyalty program is to choose a good name. The name of the program needs to stimulate curiosity and interest, motivate customers to participate, and it needs to be distinguished from the countless other loyalty programs they have already participated in.

The name of the store shouldn’t just explain that customers will receive discounts or rewards, it needs to make customers excited to be one of them.

Create deeper meaning.

Some customers are skeptical of customer loyalty programs, believing that it is just a smart strategy to get them to spend more money on the business.

Even if this is the goal of your customer loyalty program (because it is the goal of most businesses), your job is not just for money. Let your customers be interested in your value.

Dig into the “why” behind your product or service to make your customer loyalty program as compelling as possible.

Reward customers for various behaviors.

In addition to buying, what other ways can you prove your loyalty to customers? Reward the behavior of non-purchasing customers.

Customers watching product videos, participating in your mobile app, sharing social media content, and subscribing to your blog are still valuable signs of customer participation in your brand-so reward them for this.

Provide various rewards.

Discounts are not the only way to provide customers with more value.

Those who spend up to a certain threshold or earn enough loyalty points can exchange these points for free tickets for events and entertainment.

Then, subscribe to additional products and services for free, and even donate to charities of their choice in their name.

Make your “point of view” valuable.

If you want your customers to work hard to join your customer loyalty program, you have to make their efforts worthwhile.

Just like inbound marketing, if you want your customers to spend more money. Then, you need to provide them with something valuable in return to ensure that the return matches the effort.

For example, if you offer cash back rewards as part of a customer loyalty program. Then, you can assign a monetary value to your points so that customers can see what they can get (and spend) by continuing to buy from you.

The credit card does a good job in this regard. It explains how to use points by changing one dollar to one dollar—just observe how any commercial points are exchanged for dollars, airline miles, food, or gasoline.

Construct non-monetary rewards around customer value.

Values ​​are important to customers-in fact, two-thirds of customers are more willing to spend money on brands that take a stand on social and political issues they care about.

So, make sure you also include these values ​​as part of the reward plan.

Provide customers with multiple registration opportunities.

Once you have activated your customer loyalty program, make sure you are promoting the benefits of joining.

If customers are rewarded for shopping in your online store. In addition to the price, they can also share the points they have earned through consumption.

You may have experienced this situation when you fly on an airline that offers credit cards for loyalty rewards. The flight attendant may announce that if you apply for an airline credit card. Then, you can earn 30,000 miles on the next flight.

Other methods include promoting the project on social media channels. Then, adding on-site push notifications when customers complete an activity and earn points.

Explore partnerships and provide more attractive offers.

What is better than a reward? Of course there are two rewards.

Co-branding rewards programs are a great way to showcase your brand to new potential customers. Then, provide more value to existing loyal customers.

Brands may provide loyal customers with free access to co-branded partnerships. T-Mobile offers a Netflix subscription service to purchase two or more phone lines.

Let it be a game.

Everyone loves games and competition. So, use this winning spirit to get your customers to interact with your brand more frequently.

Many brands have gamified customer loyalty programs in order to gain valuable participation in applications, websites, or points of purchase.

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