How to Build a Customer Loyalty Program

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How to Build a Customer Loyalty Program

For any business, it is vital to have loyal customers who keep coming back. Apart from providing quality service and efficient customer support, you must also have a strong customer loyalty program that can entice your customers to choose your products over others. A customer loyalty program is not a new concept. However, it is difficult to retain existing customers in today's competitive market. Therefore, the loyalty programs also need to be upgraded. In the digital era, you must provide unique and effective experiences to your customers if you wish to hold them. This article will discuss how to create an efficient customer loyalty program.


What Are Customer Loyalty Programs?

Customer loyalty programs are essentially a set of strategies that enable you to offer your customers rewards and incentives based on their purchasing history. These can be in the form of points accumulated each time a customer makes a purchase. The customers can later use the points to collect rewards in the form of discounts or some other incentives. Such a strategy will encourage your customers to return to your products and services, thereby building a loyal customer base.   


How to Create a Customer Loyalty Program?

Here are eight steps that will help create a customer loyalty program.


Conduct Research

Before creating and executing an efficient customer loyalty program, you must conduct extensive research. Since there are many ways to generate customer loyalty, with proper research, you can find out the one that suits your business. You must not only be clear regarding your campaign objective but also analyze your business size and nature before implementing a loyalty program. You must also take current market trends, customer behavior, and expectations into account. All the customer data from sales and inventory history can help you better understand your customer and lead to a well-responded campaign. 


Make It Simple

Whichever method you choose to implement, try to keep it simple. If you are opting for a complicated reward program, your clients may not receive it well. They may even forget about it or ignore it completely. In comparison, a system where the customers can earn points through purchasing is easy to understand. You must also make it simple for the customers to redeem those points and keep track of their expiration dates.



Companies are investing in artificial intelligence to create more personalized loyalty programs in the digital era. This equips the company with tools through which they can offer more proactive services. Most brands personalize the customer experience through visual engagement tools that enable them to assist their customers.


Give Rewards

Under a loyalty program, the rewards you provide should make some financial sense to your business and be something that your customers can look forward to. From customer discounts to free rewards, it must offer some value to your customers. A very common example is the partnership between grocery stores and fuel companies under which they provide discounts on gas to their regular customers.  


Stay Connected

After creating a loyalty program, it is very important to stay in touch with your customers, and one of the most common and effective ways is through email campaigns. Emails regarding loyalty programs have 40% higher open rates, 22% higher click-through rates, 29% more transaction rates, and 11% higher revenue for each email. Updates regarding renewals or special deals can be conveyed to your regular customers through emails. If you can send reminders about various campaigns, then it can help create a positive impression in their minds regarding your brand. Live chat is another way of connecting with your customer. 


Market Your Program

If you cannot inform your customers regarding the loyalty program, no matter how good or attractive it is, it will not make any difference. Therefore, you must invest in getting the word out. Also, take care of the fact that your marketing strategy must be in sync with your business.  


Select Appropriate Incentives

Your incentives must be based on careful analysis of the needs and behaviors of your customers. Freebies can often devalue your products and services, but gestures like free shipping are always appreciated. You can also provide experiential rewards that can make your customers feel good or add value to their lives. At the same time, it also makes your brand stand out and can generate loyal customers. My Starbucks Rewards from Starbucks is a fantastic example of a loyalty program where the customer receives a 'star' for every purchase. 



Provide Attractive Deals

From social media followers to email subscribers, all are your potential customers.  You can use various digital platforms to inform them about attractive and exclusive deals. Hashtags can be an effective tool for such campaigns.  Such marketing campaigns can help your customers feel as if they are part of an exclusive club. This will eventually lead them to refer your business to others, making your company grow.  


If you can implement your customer loyalty program correctly, it can help boost profits and improve customer retention. By selecting the correct strategy and managing it well, you can ensure long-lasting success for your brand.  

WomExperts Team

WomExperts Team

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