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Writer's pictureKelvin Low

Expert Tips to Build a Successful Customer Loyalty Points Program

Updated: May 26

Our CRM strategies help build relationships with customers, your loyalty program deepens them. Loyalty programs are among the most effective tactics to keep customers and increase revenue. Most companies have some type of incentive and rewards program, but not all programs perform to expectations. Use these tips to create a high-performing loyalty program that has a positive effect on customer behaviors, boosting your customer acquisition and retention rates.


Consumer loyalty is becoming harder to win. A well-crafted loyalty program can give you an edge over old and emerging competitors!


Allow customer to exchange loyalty point with their choice of gift

1. Keep sign-up simple and frictionless


Allow customers to sign up for your loyalty program in a few simple and familiar steps. Charging a fee to sign up or having a requirement (e.g. completing ‘x’ number of purchases from you/basing eligibility on order value) will put customers off.


Also, make it straightforward for customers to redeem their points through your point of sale or website. They should be able to apply their rewards with minimal work, such as via just their phone number.


2. Create an interesting loyalty point program


Given the ubiquity of loyalty programs and the multitude of brand connections in our digital economy, it helps to create a loyalty program that grabs customers’ attention. Check out the data on what has worked and what hasn’t for companies in your industry. Get inspiration from successful loyalty programs in other industries. Keep an eye out for loyalty programs that have made a big splash, and also get information and ideas from your loved ones and professional and social contacts.


You could try a few ideas among a few of your most loyal customers and get their feedback. Alternatively, you can supplant your actual customers with a focus group.


3. Generate hype with a FOMO strategy


It’s a good thing when your customers have a consuming feeling that they’re missing out on rewards and special sales! During checkouts at your POS and on your website, impress upon customers the value of joining your loyalty program. Tell them how much they stand to save, and the extras and specials they’ll be privy to.


Use evocative words, images, and user-generated content to drive the message home. Needless to say, promote your loyalty program on all your social media channels.



4. Keep it simple and easy to understand


A great customer loyalty program can falter due to a complex structure. Customers should go through the program and quickly figure out what they must do to be eligible for rewards. If anything requires more explanation, make sure to provide it.


How you phrase your loyalty points program will also have a bearing on customer experience. Run your loyalty program text by your staff and focus group to know how you can make it more easily understandable and engaging for your target audience.


5. Offer personalized rewards


High-performing loyalty programs consider customers’ needs, interests, and preferences so that they connect instantly to what’s on offer and haven’t any reason to refuse it. They also involve sending personalized emails, reminders, and text messages to attract customer engagement. Customers’ purchase histories contain the information needed to crave loyalty strategies that are likely to be a hit with them. For example, you may find that your most loyal customers expect special rewards, free product trials, or priority access to new stock.


A great loyalty program attracts new customers and retains existing ones. It’s worth spending time and resources to come up with loyalty strategies that contribute to your top line.


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