Quick Guide to Building a Customer Loyalty Program

Everyone appreciates loyalty. In every form that it may come in and from anyone it is coming from, especially from your paying customers.


How can we utilize this human attribute to grow our business? To answer this we must first understand how to attract loyal customers to your business. so let’s login to how we can build customer loyalty.

Building customer loyalty

  1. Adopt a multi-channel customer service system: Having a multi-channel service system is one of the best ways to stay connected with your customers, especially when they need help.
  2. Build credibility through customer interaction: Loyal customers expect a positive experience from your brand every time they interact with it. So ensure that they do.
  3. Deliver added value; One way that your company can add value to the customer experience is to host events or contests that your target audience would be interested in. show them that beyond the services and products you offer, you also want to give back for their benefit.
  4. Share positive customer experiences: If you’re doing a good job with generating positive customer experiences, then why not let people know about them? Gather customer feedback and share your reviews to inform others about the benefits that your company can provide.
  5. Reward customer loyalty: This is where a loyalty program becomes essential to building customer loyalty. Research shows that 52% of loyal customers will join a loyalty program if one is offered to them.

What are the benefits of a customer loyalty program?

  1. Better customer retention
  2. More customer referrals
  3. Cost – efficacy
  4. User generated content and review

How to build a customer loyalty program

  1. Choose a great name
  2. Create deeper meaning
  3. Offer a variety of rewards
  4. Make your points valuable
  5. Structure non-monetary rewards around your customer values
  6. Reward a variety of customer actions
  7. Provide multiple opportunities for all customers to enroll
  8. Explore partnership to provide even more compelling offers
  9. Make it a game

Never forget to get feedback from customers who participate in your loyalty program. Ask o know if there are things they would like. In the end, the loyalty program is for them first, so don’t try to make it about the company.

Rewards Programs for Small Business

While small businesses don’t have the same financial influence that bigger companies have, these organizations can still create incentives that motivate customers to return to their stores. Take a look at a few common ways that smaller companies leverage rewards programs to build customer loyalty.

Loyalty Card

These cards can be used to give certain discounts every time they are used. For example, JustRite supermarket gives 5% off every purchase which is accumulated on the loyalty cards. When it reaches a certain amount, customers can use it to buy something else.

Opt-in Email

Opt-in email solicits the customer’s email address for communication with your brand. Once the customer opts in, your company can send them offers or promotions via email. Emails are cheap to compose and distribute and can be sent at almost any frequency. You can also use email automation tools to deliver mass amounts of emails in an efficient manner.


Free trials are typically thought of as incentives used to convert potential leads, but they can also be utilized in rewards programs as well. For example, say you have a new product or service that’s about to be launched. You can release a free-trial to members of your loyalty program. This not only acts as a reward for customer loyalty but it also works as a marketing tactic that primes your customers for a future sales call.

Partner Programs

One way to add value is to look externally to businesses that you could potentially partner with. By combining your resources, you can create an offer that benefits both you, your partner, and your shared customers.

Referral Program

You can incentivize loyal customers to become advocates by offering them an attractive reward for customer referrals. Research shows that 70% of consumers are more likely to recommend your brand if it has a good loyalty program. This means that if your offer is good enough, customers will be happy to take the time to network your business to other potential leads.

Customer loyalty programs are crucial to building customer loyalty no matter how big or small your business is. Following the steps above should help any business develop an effective loyalty program regardless of its size.

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