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5 Elements of an Effective Customer Loyalty Program

  • January 9, 2022


The customer loyalty program is the strategy that businesses provide rewards to their customers who make frequent purchases. In other words, it’s encouraging customers to buy from your business constantly and to make them avoid your competitors. A customer loyalty program allows you to build more robust relationships with your customers by rewarding them for purchasing products or services from you.

There are a wide variety of customer loyalty programs that all offer different rewards and have diverse operating styles.

If you need some inspiration for creating a program for your loyal customers , here are five things remarkably beneficial for you.

Digitize your Loyalty Program

According to Technomic Inc., 2017 report, 70% of consumers aged between 18 and 34 state that restaurant loyalty programs should have a digital component to facilitate the procedure of gaining and redeeming the rewards. You can provide your customers with a user-friendly smartphone application to track their progress and communicate offers via the app, text message, or email.

Make your rewards system points-based

Points programs are the most common type of reward programs that let customers redeem their achieved points for freebies, cashback, perks, etc. Customers don’t just earn points from purchases. Customers should understand the concept of your club’s strategy for redeeming their collected points.

Plan an attainable reward tiers

The first reason a loyalty program can’t correctly engage its customers is that it’s time to earn enough points to redeem them for a reward. Now, participants are able to start joining many tired loyalty programs for free. It allows everyone to enter the program, and brands collect valuable data on participants. However, if customers plan to reach the next tier’s elite status and privileges, they must first become one of the most loyal customers.

Plan rewards with more than just free food

Consider diverse reward options for your customers, such as special reservations to special events or a free skill lesson or creative and different rewards for your patrons that make you unique for your customers.

Plan an effective advertisement

According to a Deloitte analysis, people don’t join a loyalty program at their favorite restaurant because they actually are not aware of them. Some strategies immensely help promote your loyalty program, such as training your staff to present it, mentioning it on your receipts, advertising it in your email marketing and social media feeds.

To sum up, If you want the sales bumps and customer insights that come with a successful loyalty program, you should consider choosing the best loyalty platform. All these loyalty platforms share the same purpose to build retention, as well as sales growth. Therefore, if you consider the general structure of a program properly during execution, the costs of the concept will be minimum for a brand.