Loyalty Marketing Programs

Ronn Torossian
2 min readSep 23, 2021

Customer loyalty programs are needed to boost customer retention and increase revenue. Loyalty programs provide a strategy that encourages customers to repeat business with a company. These strategies normally include incentivizing purchases and building up customer loyalty.

To grow a customer base you need to keep hold of the people who are more likely to buy from you again. The solution is to create a customer loyalty program that rewards the customers who come back.Different types of loyalty programs — A customer loyalty program can be any of three different types:

a) Tier-based programs —

A tiered program includes a points program that allows customers to earn rewards with every purchase. Once a customer completes a level of spending, they can move onto a new level that gives them access to more benefits and perks. This strategy motivates customers in lower tiers to make an effort to get to the next level .

b) Points program —

Points are easy to earn and redeem. Customers can redeem points for discounted services and credit towards their next purchases. The points program can be easily tracked with an online account, a loyalty card, or a mobile app. For instance, Marriott has a customer loyalty program called Marriott Bonvoy Benefits, with which Travelers can redeem points for dining, free hotel stays, and other experiences.

c) Paid -programs —

Customers can pay a monthly or annual fee to join a VIP member club that gives access to special privileges and opportunities. The Barnes and Nobles loyalty program is a paid program, through which customers become VIP members by paying an annual fee of $25. Paid loyalty programs must include exclusive benefits .

As enumerated below, certain characteristics make a loyalty program work:

  1. Transparency — Visible and accessible customer reviews, frictionless paths to contact support teams, and detailed information about products will go a long way to establish customers’ trust. The more transparent a brand is, the more likely a customer will remain loyal.

2) Revamp- The most successful programs evolve over time as businesses adjust to changing customer preferences.

3) Emotional connection — Emotions are the biggest driver of customer loyalty. Emotionally engaged customers tend to spend more.

4) Putting the customer first — The customer should be at the center of everything. It is important to understand why a customer wants to connect with a business not just in terms of products and services but also in all the other experiences they crave. Loyalty programs should surprise and delight customers.

5) Personalization- Consumers expect perks, promotions, and experiences tailored for them. This entails strategic use of customer data.

Ronn Torossian is the CEO and Founder of 5W Public Relations. 5W PR is a leading digital PR and influencer marketing agency.



Ronn Torossian

Ronn Torossian is Chairman & Founder of 5WPR, one of America’s leading & largest PR Agencies and the Author of the best-selling PR book: "For Immediate Release"