Simple Tips for Customer Loyalty Programs

customer relationship

There was a segment today on Good morning America about discount cards.

It reminded me that a simple loyalty program can be an effective marketing tactic for a small business.

Loyalty programs are about understanding your customers’ buying behaviour.

This includes how much they buy, what they buy and what they spend.

Once you have this understanding it is easier to implement actions to keep your customers buying from your business.


Before you develop or a customer loyalty program in place, you might like to consider the following:

Retain Customers

It is a great feeling when you have worked hard and your customers are loyal.

They refer and recommend your business to others and your business grows.

Today there are simple loyalty solutions software for small businesses available that are easy to implement.

Treat customers Differently

All businesses have top customers that contribute the majority of their revenue and profit.

A customer database helps you identify who your most profitable customers are.

You can use this information to develop programs that provide special benefits and services to reward these customers for their loyalty.

What Do You Want To Achieve?

Before starting any loyalty program it is important to determine your loyalty program objectives.

These come from your marketing strategy to get your customers to buy more.

The definition of loyalty may vary depending on the type of products or services you sell. As well as whether you sell to consumers or businesses.

For example:

  • Do you want customers to purchase more often?
  • Do you want your customers to purchase more of one product or service (up-sell)?
  • Do you want your customers to purchase other products or services in your range (cross-sell)?
  • Do you want your customers to purchase your premium priced products or services?

Ease of Use

It is important that any loyalty program is simple to use and will generate rewards for your customers in a timely manner.

Loyalty programs that are hard to attain can generate a negative feeling amongst customers which you don’t want.

Customer Relationship Management Software

It is possible to purchase software that focuses on customer relationship management (CRM) and customer loyalty.

CRM software offers a way of capturing customer information, sorting information, conducting mailings and producing reports.

Research the range of software available and determine which one will best meet your business needs. Most software companies can provide you with a free demonstration or trial offer of their product to make your decision easier.

Tracking Results

It is important to track the results of your loyalty program to determine if it is having a positive impact on your business i.e. are the benefits outweighing the costs of running the program?

Tracking will also help you to identify your most valuable customers’ behaviour patterns that you can use to increase loyalty and improve your profitability.

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