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Customer Loyalty Program

6 Key Benefits of a Customer Loyalty Program

Customer loyalty programs have been gaining traction for the past few years. They tend to yield a variety of benefits for businesses. However, in today’s competitive market, merely having a traditional loyalty program isn’t enough to stand out. Reports say that 42% of loyal customers stop shopping with their favorite brand after two bad experiences.


In order to improve customer retention as well as ROI via a loyalty program, businesses have started giving rewards to customers for their social and behavioral actions and providing them with a more personalized experience. The success of this approach depends on precise planning and the right customer loyalty program software. But is it really worth the efforts?


Most people would say YES. Below, we have explained a few benefits of a loyalty program to steer clear the doubts of skeptics.


Increase Revenue 

Loyalty programs allow businesses to win trust as well as the loyalty of their customers, which, in turn, improve their retention rate. Since loyal customers are likely to stick to your brand and shop more, it will help you to pave the grounds for increasing revenue. According to the report, increasing customer retention by 5% through a loyalty program can boost revenue by 25% to 95%.


Improve Sales 

Businesses are inclining toward delivering a personalized experience as most customers report personalization as a high priority. By gathering customers’ data and analyzing their shopping behavior and activities, you can suggest better products to them. Besides, you can also give them exciting rewards to influence their purchasing decision as well as power. Thus, they will probably purchase your suggested products and help you to improve your sales exponentially.


Build an Emotional Bond 

A loyalty program will make your customers feel more connected to your brand, which will help you to build a strong emotional bond with them. By giving points for special occasions like birthday or offering them discounts on their next shopping, you can make them feel valued and create a brand image in their minds.


Enhance Communication 

A loyalty program offers you a direct way to engage with your customers, which you can utilize in emergencies like a product recall. By matching purchase dates, you can email relevant customers regarding product recall instead of sending a generalized email, which is often overlooked. Additionally, you can leverage customer loyalty program solutions to promote special events, sales, and showcase your new products.


Attract New Customers 

A loyalty program uncovers new avenues of attracting new customers. Like Swiggy or Zomato, if you offer rewards for a signup, you can easily reach out to new customers and increase your customer base. Meanwhile, if customers find a brand that offers quality products and easily accessible rewards, they are more likely to try that brand.


Moreover, satisfied customers who have been rewarded or had a good shopping experience may refer your brand to their friends. In such a case, you can reward users with referral points to improve your signup conversion rate and drive word-of-mouth marketing.


Measure Loyalty Through Engagement 

Loyalty program data allows you to measure the efficacy of your loyalty campaign in terms of sales. You can track essential metrics like repeat purchase rate, program engagement, number of sales, purchase frequency, and more.


Final Words

Creating an advanced customer loyalty program allows you to turn your customers into brand advocates and drive your business growth. Though this approach demands a bit of precision and planning, it is certainly worth adopting and will pave your way to success.


For more detailed information, approach our experts at

Create your own Loyalty Program

About Us

CheerMe allows you to create a fully-customized, tier-based loyalty program and build an emotional connection with customers through surprise and delight. With this program, you can provide customers access to greater benefits and rewards and thus encourage them to spend and engage more to reach the next tier level.