Customer loyalty programs – what is it in simple terms
Posted: Wed Jan 29, 2025 7:05 am
It is important to attract a person to your store so that he does not leave without a purchase. But if you are seriously concerned about the further development of the business, think about what needs to be done so that he comes back again and again, continuing to buy goods from your company. There is no need to come up with anything new to motivate the consumer. There are so-called customer loyalty programs that are designed to solve such problems. And if you have not used them yet, it is time to sort this out.
And the faster you do this, the less likely it is that your customers will leave you for your competitors who have “better service,” “more frequent promotions,” or a “lifetime warranty.”
What is a loyalty program?
This is a built relationship between your company and its customers. On your part, new products, various promotions and bonuses are offered, on their part, users respond to this with interior designers service email list new deals, thereby proving their commitment, showing loyalty to your brand.
There are many options for such programs on the market. It is important to choose the one that will best meet your requirements and help you achieve your goal.
Customer loyalty programs
If you focus on the discount system, such a loyalty program will attract only those who want to "get free stuff", and not truly solvent consumers. The result will not justify the money spent by the company on organizing the discount, since customers will not be interested in purchasing other products, but will come only if a price reduction has been announced.
The main objective of the loyalty system is to attract a wide audience with the right attitude towards the brand’s products and maintain long-term contact with it on a mutually beneficial basis.
Read also!
"32 Ways to Attract Clients: Proven and Unconventional"
Read more
The most popular types of customer loyalty programs
There are several most common loyalty programs that have maximum efficiency. Their choice depends primarily on the goals you set for them, as well as on the business niche. Let's consider each of them in more detail.
Discount loyalty program
These loyalty programs for store customers are the most popular all over the world. Their essence lies in the buyer receiving a one-time or cumulative discount. Usually, he is given a discount card, which calculates the percentage of price reduction. In this case, the discount can be fixed or cumulative.
Discount loyalty program
Source: Stokkete / shutterstock.com
The cost of the purchase is determined by a price scale. And if it turns out to be higher than a certain amount, the client is rewarded with an increase in the discount percentage. However, some companies, in order to motivate people to come to the store as often as possible, begin to come up with restrictions.
For example, if a person has not purchased anything for a month, the previously achieved percentage of price reduction drops by one level. And so every 30 days, until he appears in the store again and starts actively using the discount card, increasing his cumulative discount.
And the faster you do this, the less likely it is that your customers will leave you for your competitors who have “better service,” “more frequent promotions,” or a “lifetime warranty.”
What is a loyalty program?
This is a built relationship between your company and its customers. On your part, new products, various promotions and bonuses are offered, on their part, users respond to this with interior designers service email list new deals, thereby proving their commitment, showing loyalty to your brand.
There are many options for such programs on the market. It is important to choose the one that will best meet your requirements and help you achieve your goal.
Customer loyalty programs
If you focus on the discount system, such a loyalty program will attract only those who want to "get free stuff", and not truly solvent consumers. The result will not justify the money spent by the company on organizing the discount, since customers will not be interested in purchasing other products, but will come only if a price reduction has been announced.
The main objective of the loyalty system is to attract a wide audience with the right attitude towards the brand’s products and maintain long-term contact with it on a mutually beneficial basis.
Read also!
"32 Ways to Attract Clients: Proven and Unconventional"
Read more
The most popular types of customer loyalty programs
There are several most common loyalty programs that have maximum efficiency. Their choice depends primarily on the goals you set for them, as well as on the business niche. Let's consider each of them in more detail.
Discount loyalty program
These loyalty programs for store customers are the most popular all over the world. Their essence lies in the buyer receiving a one-time or cumulative discount. Usually, he is given a discount card, which calculates the percentage of price reduction. In this case, the discount can be fixed or cumulative.
Discount loyalty program
Source: Stokkete / shutterstock.com
The cost of the purchase is determined by a price scale. And if it turns out to be higher than a certain amount, the client is rewarded with an increase in the discount percentage. However, some companies, in order to motivate people to come to the store as often as possible, begin to come up with restrictions.
For example, if a person has not purchased anything for a month, the previously achieved percentage of price reduction drops by one level. And so every 30 days, until he appears in the store again and starts actively using the discount card, increasing his cumulative discount.