Brand Loyalty

What Are Loyalty Programs?

Loyalty ProgramsLoyalty programs are organized marketing efforts designed to reward and encourage loyal buying behavior.


Point Systems

Tier Systems

VIP Status

It Takes Time to Grow Your Network.

For every contact made, every sales transaction completed, you have an opportunity to create a more long term relationship. In this industry, it’s all about great relationships. So, why not reward them?

According to Inc., It costs a business 5-10 times more to acquire a new customer than it does to sell to an existing one. And on average, those current customers of yours spend 67% more than a new one. So, what are you doing to keep your customers coming back to your business?


Let’s Take A Closer Look

Point System. The most basic loyalty program is the points system. The more you buy, the more points you earn. And for every point you accumulate, you earn discount or customer advantage.

Tier System. Similar to a points system, customers start with small rewards for joining the program and then increase as customers become more loyal.This offers greater rewards for staying your customer in the long term. 

Paying for Exclusive VIP Status/Benefits. While many loyalty programs are free, some companies opt to charge customers to participate in exchange for future and exclusive benefits. E.g. Amazon Prime© members.

Premium Loyalty Program. Reward customers who spend the most and develop a program that limits who may be eligible to qualify.


Benefits You Could Offer:

  • Personalized customer service
  • Exclusive content that may be helpful to your customers
  • Exclusive events
  • Exclusive services
  • Special one-time, ongoing or limited-time discounts or services
  • Partner benefits

A Good Loyalty Program is Worth Shouting About.

And because so few suppliers have a Loyalty program in place, it’s easy to distinguish yourself from the pack and take some market share.

How Do You Get Started?

Get Physical: Create a rewards card that enables you to track customer behavior. Why physical? It’s tangible.

Get to Talking: 

  • Start an opt-in process in all of your current transactions.
  • Create a steady stream of communication with special benefits and offers only available to loyalty members.
  • Segment out your loyalty members in your email and direct marketing efforts. Share news of upcoming loyalty incentives or events.
  • Want to start on a limited scale? Try a select target to go after.

Get Social: Social media is an extremely effective way to engage with loyal customers. Once you’ve selected the right social media platform, and have built your presence with engaging content and posts, create options for sharing and referring.

What to Track in Loyalty Programs

  • Length of membership
  • Purchases/transactions
  • Order size of purchases
  • Referrals
  • Views/downloads of content
  • Social engagement
  • Event attendance (if applicable)
  • Email engagement

What Do You Measure?

Customer Retention Rate. How long do customers stay with you? The goal of a loyalty program is to increase the number of customers who stay with your business for an extended period. Measure customer retention between program members and non-program members.

Negative Churn. How many customers have left your business? Negative churn is the measurement of customers who instead of leaving, upgrade their membership and purchase added services.

Customer Satisfaction. Customer satisfaction metric is simple customer feedback. The most common measurement is whether your customers would recommend your company.

Did You Know?

A 5% increase in customer retention can lead to a 25-100% increase in profit for your company. (source: Fred Reichheld, author of the Loyalty Effect)

48% of customers who had negative experiences with a company told 10 or more people. (source: Harvard Business Review study)

Want more advice? We're so glad you asked. 

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