business management

4 Successful Customer Loyalty Programs For Your Business

So what are customer loyalty programs?

A customer loyalty program is a system where a business offers rewards to its customers who make frequent purchases. From a business perspective, it’s a strategy used to encourage customers to repeatedly buy from your business as it is generally understood that it costs a company much more to try and attract new customers rather than retain existing ones. 

There are lots of different types of customer loyalty programs, like refer-a-friend programs that offer customers a discount if their friend signs up or makes a purchase, reward points programs, VIP programs, and programs that provide free perks.

Besides keeping loyal customers happy, what are some of the other benefits of implementing loyalty programs?

  • Improving customer retention.
  • Encouraging repeat business.
  • Increasing customer lifetime value.
  • Building stronger relationships with your customers.
  • Increasing customer satisfaction. 
  • Standing out from your competitors.
  • Boosting revenue.

Let’s look at 4 types of loyalty programs that you can consider for your business. 

  1. Customer loyalty points programs

Points programs are wildly popular. I guarantee you have some sort of frequent buyer punch card or more likely an app that keeps track of purchases for a business. The more you spend at a business the more points you earn that you can redeem for discounts, free products/services, or free shipping

This type of loyalty program is so popular because it rewards repeat purchases. Just make sure that the freebies are actually attainable. You don’t want to put off your loyal customers with unattainable rewards. 

  1. Subscription programs

A subscription program often gives customers a discount compared to one-off purchases or offers exclusive products, content, or services that aren’t available to non-subscribers. This is how you build loyalty and repeat purchases. 

If your business sells a product or service that is consumable (think food, beverage, toiletries, or monthly e-services, like email clean-out or social media posting) then this might be a good option for you. 

Subscribers can benefit from discounts, special promotions, a first look at new products, and VIP programs that offer even more freebies. This type of program will encourage long-term customer retention. 

  1. “Make a Difference” programs

These types of programs don’t offer money-saving discounts or rewards, but instead, their purchases go towards donations to specific causes. These help your customers feel that their purchases are making a difference in the world. For example, for every x amount you spend with a company they plant a tree. Or perhaps your purchases are directly related to offsetting the carbon footprint of shipping. You could also, have a percentage of your purchases go to a nonprofit organization that aligns with your mission. These programs are a wonderful way to give back to the world and retain customer loyalty. 

  1. Refer-a-friend customer loyalty programs

Refer-a-friend loyalty programs are exactly that: They reward customers for referring friends, family, or colleagues, giving them discounts or special offers.

These programs are a great way to build trust with potential customers, especially for e-commerce/online companies that don’t have a brick-and-mortar store for customers to visit and check out the product before they buy. Most consumers trust brands that are recommended to them by friends and family. 

*Here at Life By Design Virtual Solutions we give current clients 10% off their next invoice (up to $500) if someone they refer gets started as a new client.

Which loyalty program would work best for your company? Need help setting it up? Reach out to us at we’d love to help.

Leave a Reply