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Businesses understand that retaining the existing clientele is a cost efficient strategy as compared to attracting new customers. Successful companies invest a lot of time into figuring out new ways to incentivize customers through loyalty programs. This eventually helps the brands to cultivate relationships with their regular customers.

Studies have shown that growth in customer retention rate has increased the profits by a huge margin. Eighty percent of a company’s projected revenues comes from a very small portion of its existing shoppers. Loyalty programs have proven useful when it comes to keeping customers engaged with your brand and informing them about new products. The rewards are a way to show appreciation for customers’ contribution and encourage them to buy more from the business.

Dissatisfactory relevance and flexibility in rewards and deals, customer service concerns are some of the reasons why a loyalty program might end up failing. This calls for a proper analysis, structuring and implementation of loyalty strategies to efficiently use the time and money invested by the organization. Well researched changes will drive the output by loyalty marketing to the next level.

Deals which help save money seem more attractive to the shoppers compared to the deals which offer points or coins and can be redeemed after a certain period of time or score. Discounts, cashbacks and other money-saver deals give the shoppers a compelling reason to sign up for the loyalty programs.

They end up purchasing more than usual due to this whole “money-saver” structure. Interesting ways to promote the brands along with providing rewards to the customers escalates the engagement and awareness about the business and its products.

Providing ways to customize the products, exclusive offers and merchandise influence the customers into interacting and engaging with the brand. Inculcating elements which create an emotional connection with the shoppers goes a long way in retaining the loyalty program members.

Emotional connection proves to be more useful when compared to ease and effectiveness of products or memberships. Fostering the “emotional connect” appears as caring. Customers feel like they’re being understood and there might be other people who feel the same thus forming a “community” of shoppers the brand caters to.

Usability or user experience needs to be smooth when it comes to loyalty programs. Mobile applications and websites need to be responsive. A smooth user experience also plays an important role in getting the customers excited about exploring the loyalty programs. Along with usability, the interactive nature of these programs is considered to be an integral part of the whole experience.

 Including features like whatsapp, telegram, etc which allows the users to share about the programs and their experiences online or with their contacts improves the user experience. It also helps in increasing activities and engagement with the brand. And might end up motivating people to become a part of these reward programs.

If the application or website takes a lot of time to load, the business might end up losing potential customers. So, page optimization for easy, glitch-free and fast loading is also very important when it comes to improving user experience. 


To summarise it all, effective loyalty programs need to serve purposes beyond transactions. They need to be engaging. Customers could be rewarded for sharing about the businesses on social media, interacting, engaging, reviewing the products etc.

Serving global causes through loyalty programs will also see great engagement from people as they’d want to contribute to be a part of a bigger change.