How to create a strong loyalty programme for your customers?

How to create a strong loyalty programme for your customers?

Customer Services & Relations

GlobalLinker Staff

GlobalLinker Staff

196 week ago — 7 min read

Customer loyalty is not easily earned. Customers are steered by their own objectives and will be loyal to the company that can fulfil them the most. Cultivating customers who keep buying your products should be a top priority for every business acquiring new customers costs 5-25 times more than focusing on those who are already loyal. Repeat customers are therefore the lifeblood of businesses.


What is a customer loyalty programme?

A customer loyalty programme is a marketing strategy that rewards loyal customers that frequently engage with a brand.


The rewards offered to customers can include discounts, points redeemable towards a purchase, free products, or even exclusive access to new products. Customer rewards programmes are designed to encourage future purchases. By rewarding frequent engagement, you can increase customer loyalty and ensure continuous growth for your business. You will also build a rapport with customers, deepening their relationship with your brand. A good customer loyalty programme can therefore generate significant revenue for your business.


Also read: 4 ways to improve customer loyalty


Here are some tips for creating an effective customer loyalty programme.


1. Do your research

To implement a successful customer loyalty programme, you need to do thorough research. This research will help you decide which customer loyalty approach best fits your business requirements.


Have a clear objective for your campaign, analyse the nature and size of your business, and create a program that helps you accomplish your business goals. Don’t forget to take into account customer expectations, demographics, and current market trends.


Customer data can come from your website analytics, inventory history, sales, conversations, etc. By collecting and properly analysing data, not only can you use it to design customer loyalty programmes, you can even improve your products and overall customer service.


2. Keep it simple

If you overcomplicate your loyalty rewards programme, there is a chance that customers won’t follow it. Avoid this by making the process easy for customers to understand.


Make it simple for your customers to sign up for the programme.


3. Personalisation is key

Artificial intelligence is helping companies craft more personalised loyalty programmes. Businesses must invest in technologies that offer tools for a more customised service. Moreover, they must offer a seamless omnichannel experience to their customers— on the web, mobile or a physical store.


4. Build meaningful customer interactions

Research shows that a whopping 60% of customers stop doing business with a brand after a single poor customer service experience. Also, 67% of churn can be foiled if the customer service issue is resolved during the first interaction. This means that your customer service has to be stellar, and in case of mistakes, you need to fix them immediately.


Loyal customers expect a consistently good experience from your brand. If at any stage they feel under-valued, you risk losing them to competitors.


CRM can come in handy here as it can record all customer experiences. It stores emails and calls, as well as customised notes that impart all information about a customer. This helps create a more customised experience as employees can leverage important past customer data.

5. Set a budget

Set a budget for your customer loyalty programme and a separate one for developing new customers. Keep in mind that a solid customer loyalty programme can pay rich dividends in the long run.


6.  Share positive customer experiences

If you're doing a good job generating positive customer experiences, then gather customer feedback and share your reviews to inform others about the benefits that your company can provide. Use your omnichannel communication system to relay these stories across a variety of mediums. Customers tend to trust other customers more than your advertising, so it's important to leverage customer reviews.  


7. Reward your customers

Studies show that customers who have an emotional connection with your brand tend to have a lifetime value that's four times higher than your average customer. These customers spend more with your business and must be rewarded for it.


This is where a loyalty program becomes vital to building customer loyalty. Research shows that 52% of loyal customers are eager to join a loyalty programme.  Customers who join a loyalty programme spend more at your business because they receive benefits in return. They already enjoy buying from your company, so why not give them another reason to continue doing so?


8. Choose incentives mindfully

When selecting incentives for your loyalty program, analyse the needs and behaviour of your target customers. Sometimes freebies devalue your product or services, so try and think of options that offer exclusivity.


Experiential rewards are well-liked because they make customers feel good. They also help your business stand out from the crowd.


9. Market loyalty programme

No matter how great your customer loyalty program is unless your customers know about it, it’s of little value. Invest in marketing so your customers are aware. Make sure you create a marketing strategy that fits with your business. Some of the ways you can market your loyalty program include Online Ads, Social Media, Press Releases, Send Email Newsletters, etc.


Customer loyalty programmes can boost profits and improve customer retention. This means they have the power to make a significant impact on your profits. Implement the right loyalty programme for your customers and ensure enduring success for your business.


Also read: How can customer surveys improve your business?


Image source: 


Posted by

GlobalLinker Staff

We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.