Why are loyalty programs important?

Like personal relationships, customer relationships are successful when both parties feel they are getting something beneficial from the relationship.

Customers give you their support when they buy from you, and in return, loyalty rewards like discounts and freebies affirm that they are receiving something in return.

Here are 8 benefits of a customer loyalty program:

  • Improves customer retention

  • Increases customer lifetime value and repeat business

  • Boosts revenue

  • Builds stronger customer relationships

  • Differentiates a brand from its competitors

  • Encourages word-of-mouth marketing

  • Shows customers appreciation

  • Drives customer satisfaction