Attracting new customers is important – but retaining current customers is even more crucial for the growth of a brand. Customer loyalty is a vital component in achieving this goal; however, loyalty can’t be built on one sale alone. Loyalty is built with steady, targeted engagement. A well constructed loyalty programme is more than just points and discounts, it is a strategic tool that strengthens the connection between customer and brand, increases the average value of the basket and ultimately creates brand ambassadors. In this article, we will present practical ways to design and make the most of an effective loyalty programme which boosts customer retention and drives repeat sales.

1. Set Clear Goals

What would you like to achieve with your loyalty programme?

• 🔁 Increase repeat purchases
  
  
  
• 📈 Increase average order value
  
  
  
• 🧍 Reduce customer drop-off
  
  
  
• 📣 Boost word of mouth via referral rewards
  
  
  

Tip: Set Key Performance Indicators (KPIs) such as customer retention rate, customer lifetime value and conversion rate from loyalty activities.

2. Choose the right reward model

Every brand is different – choose the one that best fits your audience and your products:

• 🎯 Points programme: points per purchase or action (e.g. signing up, review)
  
  
  
• 💎 Tier-based system: levels with extra advantages (e.g. silver/gold/platinum)
  
  
  
• 🎁 Vouchers/Gifts: automatic rewards after specific actions
  
  
  
• 👭 Referral rewards: a bonus for referring a new customer
  
  
  

Example: Earn 1 point for every €1 spent – collect 100 points and receive a €10 discount!

3. Link Online & Offline

Tip: Include the loyalty programme in your e-shop with tools such as Smile.io, LoyaltyLion or custom solutions.
Extra tip: Make sure that the loyalty points are valid for in-store purchases via POS integration.

4. Discounts & Experiences

Today’s consumers don’t just want discounts; they want unique access and value.
Suggestions:

• Access to early launches and private sales
  
  
  
• Personalised offers
  
  
  
• Events for loyalty members only
  
  
  
• Free shipping and returns
  
  
  

5. Promote it with Purpose

Promotion is essential for success.
Channels:
📧 Email onboarding & updates
📱 Instagram highlights & stories
🛒 Banner in the e-shop
📦 An insert in the packaging (e.g. Join the programme & enjoy rewards!)

Tip: Show simply and clearly all the benefits for the customer.

6. Analyse & Adapt

The loyalty programme is not fixed and should be continually evolving.
Tip: Analyse participation, redemption rates, engagement and the return on investment (ROI).
Adjust: Which rewards work better? At which point does the customer lose interest?
Act: Carry out A/B testing (split testing) on rewards, communications and tiers.

A well designed loyalty programme should be considered an investment – not an expense. When it functions correctly, it can turn customers into fans and advocates. Align the programme to your brand’s identity, make it easy and attractive and offer unforgettable experiences.

Loyalty is achieved through consistency, care and rewards. Why wait? Start today!