What are Loyalty programs? Five benefits of a loyalty program

what is loyalty program

Table of Contents

Every store owner knows that satisfied customers keep coming back. Rewarding loyalty helps businesses win back sales and keep their loyal customers loyal. In contrast to attracting a fresh audience, welcoming customers who show relentless support and loyalty involves less marketing effort. In the digital landscape, once a company has grown to amass customers, ‘Customer Loyalty Programs’ become a sensible investment.

What exactly are Loyalty Programs?

When an online-store hands out offers and discounts to its routine shoppers, it can be labeled as part of a Loyalty Program. The benefits may include free products, personalized discounts, pre-booking, and other promotions. The weight and relevancy of such benefits have only evolved with social media and internet marketing.

The technology behind Customer Loyalty Programs can be stitched-to-suit any market. Indie brands to established players, loyalty programs are sought after for their knack to retain customers.

How Do Loyalty Programs work?

Humans are primal and loyalty is a primal function. Harnessing this function with rewards/points for every business-positive activity performed by the customer creates a perfect feedback loop.

-Purchase and Repurchase

These activities help the business by generating revenue or by fetching invaluable data used for promotion. The rewards and incentives for each action are customizable, down to the detail. The customer gets an “on-brand” human experience with Loyalty Programs. Loyalty Programs Plugin with robust features encourages customer interaction and eliminates redundancy.


Retain Customers

When store owners provide repeated gratification to their customers, it is only natural to expect to reap the benefits of their service. Retaining customers is an important marketing strategy. Customer Loyalty Programs increase retention rates, emotionally vested customers have fewer reasons to try another brand.

Even when there is a price drop by a competitor, they will choose to ignore. Such customers have high Lifetime Value, and they drive more customers purely by Word-of-Mouth. They appreciate the benefits of Loyalty Programs, and tend to stay loyal long-term. Attrition (the gradual dispersal of a customer base) can be dodged and the health of the business can be preserved.

Cultivate Revenue

Customer Loyalty Programs can recapture sales otherwise lost. Revenue, the crucial part of any business, is known to grow after implementing Loyalty Programs. It brings back forgotten customers and visitors who were only ‘eyeing’ a product. In short, a Loyalty plugin does the job of maintenance of Customer Lifetime Value, extracting the most out of a customer. Numbers never lie. According to Forbes, 71% of American consumers say loyalty programs add meaning to the relationships they have with a brand.

Overhaul Brand Perception

Once a brand is launched, it is perceived with a million different pairs of eyes. A creator or the owner should best be in the driver’s seat when it comes to public brand perception. To speak the language of your customers with your brand’s personality on display can get challenging. Loyalty and Reward programs curate a flexible form of communication that can spur customer acquisition.

Loyalty Programs show commitment as a brand owner. This intangible value of a brand plays a vital role in the brand’s trajectory in the market.

Escalate Cart Value

Discounts on upselling and cross-selling are a fail-proof way to motivate customers to make handsome purchases. Reward points and other benefits like thresholds on Free Shipping create an action-reward goal in the customer. This strategy works especially while running SALE on special occasions. The purchaser feels the need to shop extra for a family member or a friend. Gifting season and offers on wishlisted products can help maximize the average cart value. Store owners can capitalize on irregular shoppers, provide great service and convert them into loyal customers.

Setting a timer for the validity of coupons and discounts will excite customers to get into action and make the purchase before the deal expires.

Community Building

Reward systems reaffirm a customers’ sense of belonging. Building an online community is rarely an overnight process. One of the underrated benefits of any Loyalty Program is how it can add social value and trust. This in turn, improves customer acquisition as the brand is viewed as an active participant of its community.

Your customers may love your brand, but if you keep your gates closed, there will be less interaction and less brand visibility. The world of online shopping is ever-changing, and the ease of switching from one store to another has put pressure on store owners never to give customers reasons to move on. One unhappy customer can go on social media and assign more work to the Reputation Management team.
Community building helps brands take charge and help customers become brand advocates. There’s no better PR than a strong online community.


When communication is clear as crystal, there’s more room for brand recall. Customer Loyalty Programs let you know who an unpredictable shopper is and who a valued long-term customer is. Make your digital presence in alignment with your store’s true objective.

Shri Selvaraj

Shri Selvaraj

Shri Selvaraj is a word-technician. Shri has a penchant for creating alive, value-adding content and believes that readers online love motifs in moderation. Her body of work includes writing, design and art.

Start your WooCommerce Loyalty Program with WPLoyalty

Create a loyalty and rewards program now to increase your revenue and loyal customer base.