Why Starting a Customer Loyalty Program Can Benefit Your Business

Attracting new customers is much harder than retaining your old ones. However, brands

are usually more focused on how to approach new audiences. A move that can put you

in advantage and make you stand out among your competitors is a good customer

loyalty program.

Focusing your efforts on increasing the satisfaction of current customers can benefit

your business greatly. The customer loyalty program will show your appreciation for

returning customers and motivate users to stay faithful to your brand. To prove to you

that a customer loyalty program is a good idea, here are the reasons why you should

implement it.

1. Retain Customers

After purchasing one product from your brand, many customers will decide to

experiment with products from other brands. Whether you have exceptional product

quality or not, people navigate towards trying out different things to find what fits them


You don't have to lose your customers that fast. You just have to do something about it.

The customer loyalty program will encourage customers to stay loyal to your brand even

if they were hesitant at first.

Your reward system will give them something that other brands can. That’s what will

retain the customers.

2. Let Customers Be a Part of Your Brand

The customer loyalty program isn't attractive to buyers just because of discounts and

special offers. It also provides customers with a sense of community and builds a closer

connection with the brand.

When you present your customers with a loyalty program you welcome them in the

"family". If they accept to be a part of the program they'll know that your brand is

someone they will turn to whenever they need that kind of product.

Zsuzsa Kecsmar, CMO and Co-founder at Antavo Loyalty Software shared why the

customer loyalty program is important, "Customers don’t want to only buy things. They

want to be part of your brand’s story. They want to be part of your community." Kecsmar

also added, “Let customers collect points for their purchases, referrals, social activities,

by participating in contests and much more. If they feel that doing business with you is

fun and entertaining, they will stick around even longer.”

3. Improve Customer Experience

Giving your customers a “reward” for purchasing your products will make them more

content. Their experience will be more positive if they notice that you value their loyalty

to your brand.

The customer loyalty program will give customers something other than just a product. If

they don’t get that addition from other brands, they’ll feel satisfied with their choice.

GrabMyEssay, an essay writing company, is a perfect example of how you can reward

your customers. They have a special discount system for their steady customers. As

customers accumulated the pages, they get a higher discount. This will definitely leave

customers happy about their experience with this company.

4. Encourage Recommendations

People talk. They talk about their purchases as much as they talk about their personal

life (if not more). Positive word-of-mouth recommendations can be sparked with a

customer loyalty program.

The customers who take part in the program must be satisfied customers. Otherwise,

they won’t care about getting rewards with additional purchases. What this means for

your brand is that customers who are in your loyalty program are your definite brand


Alexandra Perry, a customer experience specialist at TrustMyPaper writing service,

gave a good explanation of why a customer loyalty program works. “A customer loyalty

program makes customers feel like they received more than they paid for. That kind of “I

won” satisfaction triggers recommendations. When their friends and family hear all

about the special offers and discounts they get for loyalty, they will be intrigued to give

your products a try,” said Alexandra.

5. Increase Your Profit

Instead of the number of purchases, loyal customers can bring you higher profits.

Research has shown that increasing customer retention rates by 5% can increase your

revenue by 25% to 95%.

Just think about it, would you rather that 5 people make a $10 purchase or that one

person makes a $100 purchase? Customers that had a positive experience with a brand

and therefore, trust the brand, will feel more confident about splurging.

A customer loyalty program will motivate buyers to make higher purchases. When you

combine their positive experience and benefits of the customer loyalty program, they

won't hesitate to buy more expensive products.

6. Build Your Online Presence

Did you know that almost 95% of shoppers read online reviews before making a

purchase? That’s a good reason to ensure that your online presence is strong and filled

with positive reviews. With customer loyalty programs, customers will be motivated to

leave a good review.

Additionally, loyal customers can be up for more elaborate reviews such as written or

video testimonials. Such genuine reviews will give you extra points with potential


To increase your social media engagement, you can create a special hashtag related to

your loyalty program. Encourage your loyal customers to add pictures of your products

with the hashtag. In return, you can give them extra loyalty points.

“Building your social media presence has become a necessity nowadays. Customer

loyalty program is a valuable incentive for that purpose as it benefits customers and

doesn’t cost extra money from your budget,” shared Timothy Swain, a social media

specialist and a contributing writer at GrabMyEssay.

7. Gather Valuable Data about Customers

Filling out the form for a loyalty program will give you more than just the identity of your

new member. It will provide you with data on your customers.

Knowing who your target audience is will help you in numerous ways. You can share

targeted marketing campaigns, create personalized offers, improve your relationship

with customers, prolong your email list for email marketing, etc.

Digital marketers consistently emphasize how relevant it is to use customer data when

forming a business strategy. The customer loyalty program will give you a bulletproof

reason to collect data. Not to mention that most loyalty software track analytics and

allow you to view reports on customer loyalty and efficiency of your program.

Final Thoughts

As you can tell, a lot of benefits come from implementing a customer loyalty program.

You can work on strengthening your relationship with customers, present your business

as caring, form a strategy for the future, and increase revenue.

The customer loyalty program won't just retain your current customers. With the positive

reviews it encourages and the representation of your business as trustworthy, you'll be

on the right path of acquiring new customers as well.

Bridgette Hernandez

Bridgette Hernandez is a Master in Anthropology who is interested in writing and is planning to publish her own book in the near future.  She works with professional writing companies such as Best Essay Education. The texts she writes are always informative, based on qualitative research but nevertheless pleasant to read.

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