You should get ready to start your own customer loyalty program. Over 90% of companies already have some type of loyalty program.

Loyalty programs have proven themselves to be one of the most effective tactics for increasing revenue and inspiring customer loyalty and they often use branded merchandise like our Full-Color Matchbox. As many as 84% of consumers say they’re more apt to stick with a brand that offers a loyalty program than turn to a new brand that has none. And 66% of consumers say the ability to earn rewards actually changes their spending behavior.

We know that it costs a lot less to sell to repeat customers than acquire new customers—that’s why brands invest in loyalty and rewards programs – it drives repeat business.

While they can be effective, customer loyalty programs are nothing new. Because you are making each customer feel important by rewarding them for their transaction, they gain greater satisfaction from their purchases than another store without a loyalty program.

What is a loyalty program?

Customer loyalty programs reward customers who repeatedly interact with a brand. It’s a customer retention strategy that encourages customers to continue buying from your brand rather than competitors. The more a customer buys or engages with the brand, the more rewards they earn. Sound easy?  It really is.

How does a customer loyalty program work?

With a loyalty program, companies can offer points or benefits to customers. And in return, the customers redeem points for discounts,  free products (like our branded koozie or frisbee), rewards, or insider perks. The goal is to motivate repeat purchases and build trust between your customer and your business.  Give them a little – you gain a LOT.  The reality is that 95% of customers say trusting a company increases their loyalty.

There have been many studies involving the types of rewards that most motivate consumers to buy. Because people want more than free shipping and discounts, giving them early access to sales and new products can boost sales.  They want to be treated as if they are special

Customer Reward Payoffs

Running a customer loyalty program means you’ll need to give away something. Besides discounts, you can offer special sales, early access, etc. But the payoff for having rewards programs is huge:

• More customer referrals. If you have a great loyalty rewards program, people may tell their friends and family about it. More referrals equal more customers.
• Higher customer retention. If people find value in your customer loyalty program, they’ll likely stick around longer.
• More sales. Want a higher average order value? About 49% of consumers agree they’ve spent more after joining a loyalty program.
• Brand advocacy. A successful loyalty program can turn regular customers into brand advocates. This group helps your company get in front of new customers through word of mouth, which is a low-cost marketing strategy versus paid ads.

But not every loyalty program is the same. There are different types of rewards programs you can use to build customer loyalty and earn repeat purchases.

Read about the four basic types of customer loyalty programs.

1. Points-based Loyalty Program – Published 03/10/2023
2. Tiered Loyalty Program – Published 03/17/2023
3. Paid Loyalty Program – Published 03/24/2023
4. Value-based Loyalty Program – Published 03/31/2023

Have you read about all of them?