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Customer loyalty programs – the growing trend and its effectiveness


This concise guide outlines what you need to know about customer loyalty programs, and how to make them work most effectively.

Loyalty and trust have always been an important part of all human interactions and transactions since the beginning of times. People tend to have tightly knit relationships with not only their family and friends but also with the familiar faces of vendors and merchants. In the world we live in today, we have plenty of options when it comes to buying anything. From some great food to eat, to finding something to gift to someone special etc, we are exposed to a plethora of choices. While this definitely has added to our convenience, it has also become very overwhelming for us. The customers have a challenge finding the best product or service to buy while the businesses face the challenge of offering the best products and services and staying relevant amidst all the competition.

One of the biggest part of this challenge is addressed through word of mouth marketing. People today listen to the opinions of their peers and friends or log on to an online review website before they make a decision to purchase anything. Another part of this is the loyalty that can be rewarded in customer loyalty programs. Customers tend to rely on the businesses that they find genuine and reliable. And, it gets all the more better when there is an added incentive to return it.

Customer loyalty programs: the overview

Loyalty programs are offered by organisations of all kinds and sizes, as per From small nail salons to large airline, loyalty programmes offer customers a little extra incentive that keeps them coming back for more. These programmes persuade happy customers to return to them for more. Loyalty programmes are not limited to any specific industry as well. Every industry offers these programmes as an incentive to their customers.

It instils pride in customers

Customer loyalty programs are proven to build an emotional connection between the customers and the organisation. This makes customers come back for more and helps in retaining customers in this era when the market is full of competitors. To make your customer loyalty programs work, you need to offer your customers something that helps them identify with the value of the brand, and take it as a matter of pride for themselves. Thus, you need to ensure that the quality of your product or service never goes down.

A win-win for both sides

Customer loyalty programs are a win-win for both the business and the customers. Brands invest in customer loyalty programs in a bid to gratify their customers. On the other hand, customers spend later on to earn these rewards. Nothing can replace the value and effectiveness of customer loyalty programs when it comes to long-term business growth.

Why is customer loyalty important to your company?

There are many ways in which you can acquire new customers today. But what about customer loyalty? This is a real supreme discipline. A good customer loyalty is an important basis for that customers regularly come to you and seek no competitors.

There are various points that speak in favor of customer loyalty. This includes:

  • An emotional bond with a product or a company ensures that customers will continue to buy from you in the future.
  • Regular customers ensure effective word of mouth . They report on their own positive experiences and thus generate new customers.
  • The cost savings also play a role. If you have a steady customer base , you will have to invest less in new customer marketing.
  • Did you know that regular customers pay less attention to prices? For them, quality counts first and foremost, and for this very reason, customer loyalty is particularly important.
  • Another point is that existing customers often not only buy a product, but also take advantage of other offers from the range.

Very good customer service as a loyalty measure

For effective customer loyalty , it is essential to offer optimal service. Even if this point should actually be a matter of course for a company, it is not. Here are a few points that make up the excellent service:

The service type: How can the customer reach you? The more channels there are, the better it is for you too. In the meantime, customers don’t want to be able to reach a company just by phone or email. A chat or social networks are also measures for customer loyalty that should not be missing.
The speed: no customer wants to wait long for an answer. Fast response times are important for customer loyalty. This does not mean that you are no longer allowed to take breaks. Customer loyalty measures include, among other things, that you respond to inquiries or at least confirm their receipt within one working day.
The complaint management: There may be complaints always, but usually to regular customers can not drive out of it if there is a good complaint management. The customer’s concern should be in the foreground. Try to find a solution to customer complaints and also offer compromises. Take every request seriously. That is what makes complaint management good.
Refund after return: If you offer products, your existing and new customers would like to be able to rely on receiving a refund quickly after they have been returned. It can always happen that products do not meet expectations. A quick reversal is therefore an important argument in customer loyalty.

Customer loyalty and psychology

Effective customer loyalty also includes customer acquisition and customer service. Psychology is not to be underestimated. If a customer does not feel that he is in good hands, he will not become a regular customer, even with very good products. It is all the more important to look after every customer well and to ensure that they use the company again and again. Customer loyalty works very well with psychology.

The best tips at a glance

  • Use personal contact with customers as often as possible.
  • Analyze and question the exact needs of your customers and develop corresponding products or services.
  • You should also plan regular customer surveys on satisfaction and wishes.
  • Gather your knowledge of customers and manage it professionally.
  • Check the industry standard services.
  • Make sure that you are easily accessible for questions and complaints from your customers.
  • When sending e-mails and the like, you should always use the personal approach.
  • Provide better information for your customers – for example with a newsletter.
  • Check regularly which customers are making how much sales and then evaluate your customers. You can then take action based on the importance of the customer.
  • Motivate your employees to put the wishes of the customer at the center of their daily work.


Keeping your customers loyal to your business is something you need to invest in even if you have a lot of traffic coming to your business. To keep the old customers coming back for more, you need to offer them promotions and other rewards in terms of customer loyalty programs. However, just offering loyalty programs will not do the job for you. You first need to have something that offers value to the clients.

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