The importance of customer loyalty

Customer retention can be a difficult task, but it's one of the most important tasks when running an online business. It can seem like customers fall off after time has passed. But this doesn't have to be the case as loyalty programs can help keep customers coming in, give them an incentive to return and reward them for it.

The reason why these are so important for your business, whether it be a small town store or the largest of all corporations, is that customers are always going to have options. These programs help ensure that your company will be one of their choices over time. The goal should always be to make sure that people want to come back more often than they need too. Give them a reason to!

What is a customer loyalty program?

These are rewards that a merchant offers to the customer for staying. This is usually done by earning points or credits from purchases and then redeeming them later on. This could be something as simple as keeping track of your shopping habits over time or, or as elaborate as gaining points for each purchase and being able to redeem them later on.

What is a customer retention program?

These are programs that a merchant offers customers who have previously made purchases, incentivizing the customer with discounts, coupons and other rewards in order to get them back into the store more often.

Here are two examples:

Customer Loyalty Points - These points can range from simple discounts during future purchases to free products with every purchase made at the store being offered as an incentive. The point values differ depending on the type of program you're in and what rewards are available while participating in them but there's something out there for everyone who wants it!

Customer Loyalty Cards - These cards are another way for businesses to give their customers rewards who continue to come back, with the most common being a punch card system. When they reach specific milestones of points earned they can then redeem them for items from the store or just have an automatic discount applied every time they shop at that particular location.

In this day and age, customer loyalty is a key factor in any business' success. It's been proven that the top 20% of customers generate 80% of your revenue. So make sure to reward them with exclusive deals when they come back or refer friends for more sales! Implementing an incentive program can help secure their support as well as create new leads through word-of-mouth marketing.

(Source of the infographic)

This infographic published by Invesp demonstrates the important connection between customer loyalty programs and increased customer retention rates. This in turn led to a 25% to 100% increase in profit per customer. Don't forget, loyal customers are the most valuable kind of customers.


A simple example of an effective loyalty program is the Starbucks Reward program,. They automatically gives customers a free drink or snack item after they have spent around $150.

This way they're not only rewarding their regular customers for their loyalty. They're also encouraging them to spend more money at the store and therefore create increased revenue opportunities as well. Customers who use these types of programs understand that they're getting a deal, and are therefore more likely to return.

For this reason, loyalty programs work best when they provide customers with benefits that will encourage them to come back for more rather than just one-time rewards. This is why products like gift cards or discounts on the next purchase can be very effective in increasing customer satisfaction and retention rates.

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Nice bloke with practical ideas. Former Procter & Gamble, Kraft and IBM sales and marketing executive. Became a business owner 20 years ago. Started multiple businesses including EXELA which is the most successful Keap® & Infusionsoft™ reseller in the EMEA region.

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