Why Loyalty Programs Are Important

Before getting into the depths of this blog as to why loyalty programs are important, we should know what a loyalty program really is. Loyalty rewards program are rewards that are offered to the customers who make frequent purchases. Some of the best loyalty programs are:

  • Free merchandises
  • Rewards
  • Coupons
  • Released products in advance
  • Discounts
  • Points

So much for the rewards in loyalty programs, but it’s time to ponder over the question How important is it? If so, Why? This is because in an era of brand loyalty, the need for these engaging loyalty programs are the highest.

So here are top 5 reasons as to why these programs are important?

1.It will result in customer retention to the company. Repeat customers spend more on an average than the new ones and it is necessary to retain the old customers. Apart from this, revenue for small businesses comes from their established, repeat customer base. If a loyalty program is created that can satisfy this goal, then this becomes the reason why loyalty programs are the most important.

2.Customer satisfaction is very important as it is another benefit of a well implemented customer loyalty program. If the rewards offered to the customers are of value to them and interest too, then they will feel acknowledged and appreciated. In return, they will also feel grateful towards the retailers in return which is an added benefit. The larger the customer loyalty program becomes, the number of retail sales also increases and more predictable.

3.It is a cost effective technique for companies as harnessing the advantages of these customer loyalty programs can be highly cost effective. This is because big companies usually spend high amount of money on reward campaigns while small businesses do not have to do this to achieve high turnover results. These companies can make their customers earn a lot of benefits just through using their Smartphone.

4.Loyalty programs help the companies to achieve from a specific marketing campaign .It helps the companies to go a step further from the usual marketing research to how the marketing campaigns can be implemented successfully. Whenever a marketing strategy is implemented in the business, it is necessary to know what the company is hoping to achieve with the rewards. The obvious result is make customers come back to the business and improve the profit margins of the company. Thus new customers can be reached as well as retain the existing ones with a lot of loyalty programs for free.

5.Customer loyalty programs helps in giving the company an edge from its competitors. It becomes very difficult to stand out and rise above the competition due to budgets and resource constraints. Here is where loyalty programs comes into effect and becomes the company’s best friend. These programs are sales driven as well as a personal way to connect with the customers. Incentives like this will keep your customers happy and make them brand loyal to your company.

Thus if your company has not implemented a customer loyalty program already, then it’s high time you start providing these services to your customers and ensure a great service next time!



Summary :

When a person buys from you, is it much more likely that their choice to purchase is because of an emotional need, or a logical want, or due to a relied referral?

Business sales promotions are a extremely good way for your enterprise to incentivize potential customers to buy. However, if you pick to spend money on a sales promotion without fully understanding the elements that decide its fulfilment, your commercial enterprise runs the hazard of losing more than just a few customers.

While income promotions can be a part of the advertising blend, they constitute one variable inside the equation. Here are three ways to get a customer’s to make a purchase:

Promos: Lowering the Barrier to Entry

As a business owner, you know the strength of discounting merchandise to grow demand.But which merchandise do you give a discount on? And by how much? Or for how long? These are all questions that come to mind when thinking about the choice of decreasing prices. They’re also essential questions because of the nature of how pricing impacts consumer psychology.

For example, you may have heard the power of ending prices with nine. Researchers have found that items priced at 199 sell greater than the less expensive price factor of 180 or we tend to choose the option of a scrubber sold with a face wash rather than only a face wash, even supposing there may be no need of a scrubber at that time, the entire motivating factor right here is the phrase “free”.

Cultivating a Positive Brand Loyalty

Let’s face it, getting new clients costs a whole lot of time, money, and effort. Providing great service and developing purchaser loyalty programs that get clients to return, time and time again, it is far more profitable and efficient as a retailer.

Though you could now not have the big-box store budget to launch a complete-out consumer loyalty program, rest assured, there are a few superb options that still take place to be very cost powerful.

One easy manner is to begin one of the loyalty packages and entice your consumers into this just like the loyalty programs given by body shop or central the shopping centre.

Email advertising has better ROI than endless calling or networking. It’s additionally very smooth it begins while client’s drop of their email id’s on the sales deck this builds loyalty and drives client retention. This just doesn’t lead them to go to your brand time and again but also it makes them to feel vital as they are on your mailing list.

Surprise your customer’s

Make the customer feel special. Although reciprocity works quite well on it’s own, studies indicates that it’s miles even more powerful when started out by surprise. For a simple instance, When your birthday is in the subsequent week and you want to buy clothes. Suddenly you get a text stating that ” Happy advanced birthday to you, we would really like you to make your day, more special and subsequently we’re providing you with a pleasant bargain on all our clothes” this makes the customer feel touched, just because you didn’t forget their special event and continually would love to make their day, extra unique.

While your competitors are blindly shooting arrows everywhere with the hope of hitting one of the 3% of instant buyers, with “The Visible Target Technique” you’re focusing all your firepower on a clean and seen goal.

The effects of loyalty program on customer lifeline

Loyalty stands for faithfulness while loyalty program is a reward program that is offered by companies to the customers to encourage their buying behavior. From the company’s point of view, this is done to benefit the firm. They are strategies or structured marketing efforts offered by a company to their customers who make frequent purchases. This is done to know consumer behavior as what will make them buy a particular product and to increase customer loyalty. Loyalty rewards program brings commitment from the customer’s side and less aversion towards the company thus benefiting the two.



Customers are satisfied with their shopping due to which the business gains happy customers. Companies that offer consumer loyalty programs have programs that have a long positive effect on consumer behavior and customer satisfaction. This is because the customers are consistently exposed to the complete environment of service experiences that can make them stick to the same company rather than moving on to another one.


With the help of these programs, customers become more engaged with the company by spending and participating more than ever. This way customer’s loyalty will also increase and they will start interacting with the company on every possible channel treating it as their own. They will feel that the brand is their personality and this will lead to more revenue generation for the company because of the greater number of purchases and a greater spending by the customers.


Loyal customers spend higher than one time customers because they are able to relate themselves with the brand emotionally. The more loyal the customers are, less will be the threat of the competitors for the company. Customers that trust the company will only stay back and customer retention begins from there. Once they start trusting the company, the company can start making recommendations and sell across its product lines. The longer the customer enjoys the loyalty program, the more they will want to stick to their brand.


A loyalty program will influence the customers to buy more ultimately achieving Customer Lifetime Value which is the net profit calculated for the relationship maintained between the customer and the company throughout its lifetime. When the company shows the customers how they truly value them, an emotional connect is built as each customer is treated in a unique way. Since the needs of the customers are changing day to day, these programs will cater to their needs by satisfying them in a different way and this way, a personal relation, and a strong bond is built between the two.

Rewarding the customers will certainly benefit them as well as benefit the company in a multitude of ways. Thus, loyalty programs will shift the mindset of the consumers from a narrow minded myopic perspective to a dynamic multiple decision making perspective.

Do Reward Program Build Loyalty

Reward has usually been observed from a long time. Psychologists agree that it has a strong effect at the motivational stage of an individual and started out searching at how human beings change when being rewarded. The most important elements for a company’s success has been employees and it’s customer’s. It’s very crucial to keep these elements extremely happy and the rise and fall of the company depend on them.

Customer reward programs were always considered to be a cheap gimmick, giving out a reasonably-priced promotional discount, short-term fads, giving something for nothing. Yet they’ve been around for greater than a decade, and more groups, are leaping on the bandwagon. From airlines supplying frequent flyer offers to textile companies reducing their fees to get extra sales, enterprises are spending thousands and thousands of bucks growing and imposing customer rewards programs.

A business enterprise’s most loyal customers are also it’s most worthwhile. With the pass of a year brings more loyalty, clients become less priced to serve. Over time a customer reward programs can accelerate the loyalty life cycle, dependable customers even end up being business developers: buying greater, paying top class charges, and bringing in new customers through referrals. Studies display that enterprise that has consumer loyalty programs are 80% extra profitable than the alternatives.

Employee rewards programs have always been seen as the programs to praise exemplary performance and it also motivates employees on individual and/or group stages. Employee rewards programs are intended to offer a psychological reward as in a financial or a non-financial gain. Employee rewards programs are regularly combined with reputation programs considering that many factors of designing and implementing the two are the same.

So we realise investing on these factors are crucial for a business, however how else have you to justify investing in a loyalty or reward program? Here are a few of the reward’s you can give them.

  1. Travel RewardsTravel, be it for enjoyment or business, brings humans together and creates loved memories. Who wouldn’t love to unwind and travel?
  2. Loyalty EngagementGetting extra ‘Rewards’ by the manner of incentives is what drives our new age partners. Be it the sales team, the channel partner’s or even customer’s.
  3. Shopping voucher’sGift your loved ones an infinite desire with a personalized gift card. Shopping gift cards are pampering and also make them feel unique and recognized.
  1. Salon RewardsNow this is something new. Life is full of pressure and demanding situations. Unfortunately, this takes away the stability out of ones thoughts. It is vital to live a wholesome balanced life and an increasing number of company are realizing to bring ‘We Care for you’ or better nevertheless ‘Pamper your self’.
  2. Movie VoucherDinner & Movie is the traditional night out, the necessary date night time and the reliable go to and unwind on happiness.

This is simply one of the approaches we provide recognition, tell us how you give reputation to others and encourage others to do the same.