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The Key to a Good Loyalty Program

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The Key to a Good Loyalty Pro...
Brand loyalty is what every company wants. While the main goal is to increase sales, it’s much easier and cheaper to get customers that continually come back. In fact, it’s five to 25 times more expensive to acquire a new customer when compared to retaining an existing one (according to Harvard Business Review). A loyalty program offers incentives (rewards) to build trust and increase customer retention.

From a business perspective, the goal of a loyalty program is to give loyal customers benefits that seem relatively high but don’t actually cost the company that much. In return, they hope the customer will spend on other products/services associated with the brand. But that’ll only happen if your company can build a successful loyalty program. In the end, it’ll be beneficial on both sides. It’ll promote the brand and encourages frequent and valuable transactions. And customers will be appreciative that the company’s rewarding them with exclusive discounts and offers for their loyalty. Like how our Dreamersi customers get InforMakers and WebdeXpress for free as well as exclusive discounts with their web and email hosting plans.

The Key to a Successful Loyalty Program


happy man holding two brown shopping bags

The most important thing to keep in mind when creating an effective loyalty program is the customer’s experience. The goal is to not only inspire and encourage loyalty but also create long-term customer engagement. While many marketing activities generally focus on the brand awareness and acquisition stages of the customer journey, relationship marketing focuses more on the post-purchase cycle. Namely, the customer’s satisfaction, loyalty, and evangelism levels. To do this, you’ll want to avoid the hard sale. Once customers opt-in for your loyalty program, you’re no longer trying to accomplish short-term goals like increasing customer acquisition and individual sales.

To do this effectively, you want to create positive moments that customers will not only remember but praise. Keep in mind that customers will remember the best and worst moments most. To give them the best experience possible, focus on boosting sensory appeal. And if you can find ways where your brand can go above and beyond customers’ expectations, even better. For the brand, it’ll also be important to identify where you can collect more customer data and discover ways to use it to meet (and possibly exceed) customers’ needs, desires, and goals. Transforming that data into meaningful experiences will also strengthen the relationship between the brand and the customer in the long run. All it takes after that is promoting it, which will be much easier if you’re providing true value to your loyal customers.


Pacific Software Publishing, Inc.

1404 140th Place N.E., Bellevue, WA 98007

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Pacific Software Publishing, Inc. is headquartered in Bellevue, Washington and provides domain, web, and email hosting to more than 40,000 companies of all sizes around the world. We design and develop our own software and are committed to helping businesses of all sizes grow and thrive online. For more information you can contact us at 800-232-3989, by email at info@pspinc.com or visit us online at https://www.pspinc.com.
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