Utilizing Loyalty Programs in Promotional Campaigns

Generally sponsored by retailers and other types of businesses, loyalty programs offer consumers discounts, rewards, and other specialized incentives as a way for companies to attract new and retain old customers.

Loyalty programs have been designed to encourage repeat purchases from customers by offering them rewards if they’re loyal to a brand or a store. Generally, the more often a customer makes purchases and spends more, the greater the reward they end up getting from the business.

Aside from being beneficial for attracting and retaining customers, loyalty programs help businesses generate important information regarding how the customers are spending their money and which types of offers or products are most appealing to them.

Companies can create different types of loyalty programs for their consumers, such as those offering early access or an advanced notice for new products, or those offering early access to sales or free samples. Companies can also offer discounts and additional services that are only available to members of loyalty programs.

The goal of every loyalty program is to reward the customers who regularly make purchases from a business, and to generate a lot of data on those consumers.

Although many companies are already able to evaluate and get data from anonymous purchases, the added benefit of loyalty programs is the fact that they get additional details regarding the types of products that consumers prefer purchasing together.

Through these programs, companies also gain an understanding of which incentives are more effective in their promotional efforts.

It’s not always easy for businesses to retain their customers, but when those customers are part of a brand’s loyalty program, they’re likely to spend nearly 70% more on that brand.

However, it’s important to note that loyalty programs are not a short-term strategy in customer retention, but a long-term one. When customers enjoy a loyalty program over a long period of time, they’re a lot more likely to stick to that brand in their purchases.

Aside from that, loyalty programs also help companies increase their sales and revenue. Since repeat buyers tend to spend a lot more on every transaction, and since they’re a lot more likely to repurchase, they’re also going to be referring more new people to the company as well as trying out new products from them.

In fact, loyalty programs are a proven way to make customers choose one brand over its competitors, and they also make those consumers shop more frequently.

Customer Engagement

One of the biggest benefits of loyalty programs is the way they improve customer engagement, which has a direct impact on a company’s sustainability in the long run.

When a company doesn’t connect to its target audience, it has trouble creating a reliable brand image with consumers. When the customers join a loyalty program, they’re more open to receiving promotional emails or other types of marketing content from the brand, which ensures customer engagement and strengthens the relationship between the company and its customers.

Customer Experience

Another benefit to loyalty programs is that they improve the customer experience. Many brands these days tend to aspire to create positive experiences for their customers, and one of the easiest ways to achieve that is through loyalty programs.

The customers’ expectation of earning a reward ends up creating more excitement, and when they do receive a reward, that improves the customer satisfaction and experience.




Ronn Torossian is Chairman & Founder of 5WPR & one of America’s most notable PR executives. He is the Author of best-selling PR book, “For Immediate Release.“

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Ronn Torossian

Ronn Torossian

Ronn Torossian is Chairman & Founder of 5WPR & one of America’s most notable PR executives. He is the Author of best-selling PR book, “For Immediate Release.“

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