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How To Start Your Customer Loyalty Program for Effective Business Outcomes

  • Posted on April 21, 2023 by Robert
  • Reading time about 6 minutes
best business loyalty program

Loyalty is something that cannot be earned in a matter of days. It takes years to build and once it is established, it helps businesses and organizations to increase revenue, improve sales, and enable business growth. The loyalty program is the best solution for the business to retain customers and understand their current customers and target audiences.

It is estimated that more than 90% of companies have some type of customer loyalty program. Around 80% of consumers say that they stick with a brand that offers a loyalty program and 66% of consumers say the ability to earn rewards changes their spending behavior. In this article, we will discuss how you can start your scalable customer loyalty and rewards management software for your business.

What is a Loyalty Program?

Loyalty programs are structured marketing strategies that are designed to reward customers who frequently make purchases or engage with a particular brand, product, or service. The goal of a loyalty program is to create a strong connection between the customer and the brand by incentivizing customers to continue to do business with the brand.

Types of Loyalty Rewards Programs

1. Points-based Loyalty Programs

Points-based loyalty programs are one of the most common types of loyalty programs. In a points-based loyalty program, customers earn points for making purchases or engaging with a particular brand, product, or service. The customer points system allows them to be redeemed for rewards such as discounts, free products, or other benefits. However, the accumulation of points can be tied to a variety of actions, such as making a purchase, referring a friend, leaving a product review, or completing a survey.

2. Tiered-based Loyalty Programs

Tiered customer loyalty programs are a type of membership where customers get different benefits depending on their rank. Businesses integrate tiered-based loyalty programs to offer rewards or benefits for customers based on their level of engagement, making a certain number of purchases, or reaching a certain spending threshold money spent with the brand. When customers reach a higher tier then they are rewarded with greater benefits.

3. Paid Loyalty Programs

Paid loyalty programs, also known as premium or VIP loyalty programs. This type of loyalty program requires customers to pay a fee to join or maintain a membership. These programs are typically designed to provide additional benefits and perks to members. The best business loyalty program gives customers immediate and ongoing benefits for a participation fee beyond what is offered in a free loyalty program.

4. Value-based Loyalty Programs

Value-based loyalty programs are loyalty programs that focus on providing customers with personalized rewards and experiences based on their individual preferences and behaviors. The goal of these programs is to create a more meaningful and engaging relationship between the customer and the business. It connects with customers on a deeper level. It involves donating a percentage of purchases to charity or welfare programs as the rewards are used to benefit society.

Is the Loyalty Program Right for Your Business?

A right loyalty program is a basic need of business because attracting and retaining customers is a very difficult task. In order to decide whether a loyalty program will work for your business or not, it majorly depends on how it engages customers, enhances their experiences, and keeps them retained throughout the customer lifecycle.

Therefore, it is essential to determine whether developing a customer loyalty program gives value to your customers and your company, and how much it costs to acquire one. This will help you in deciding whether to invest more money in developing new customers or on retaining and developing the ones you already have.

Steps To Start Your Customer Loyalty Program

1. Know Your Customers

The first and foremost step that comes in while starting your customer loyalty program is to determine your audience. Customers leave behind various data and information that you can use in your business strategy to enhance the experience of your customers while boosting your sales and revenue. Analyze various points like- how frequently your customers make purchases, the type of products they buy, and how much you earn on their purchases. Determining these points can help you in integrating the best loyalty program.

2. Decide Your Target Audience

You need to assess your customers’ current level of satisfaction and identify the customers who engage with your brand but don’t purchase your products or services. Based on your studied data, determine your target audience and target those customers who have the ability to purchase more products and services. However, you can easily determine your target audience through surveys, interviews, and monitoring customer comments.

3. Choose the Right Loyalty Program

After knowing your audiences and determining your target audience, you need to launch a successful loyalty campaign with scalable customer loyalty and rewards management software like- Novus Loyalty. It offers customers various rewards, discounts, cashback, and more to keep them engaged within their purchasing cycle. Novus loyalty aligns with your business goals and delivers the best experience to your customers.

4. Set Goals & Measure Your Effectiveness

Integrating a customer points system doesn’t mean that you are getting more loyal customers as well as effective in gaining loyalty returns from your potential customers. Set goals for the loyalty program from the beginning and determine the effectiveness of your loyalty programs. Set goals and determine the various parameters that define the success of your loyalty program. You can also use CRM software to manage your customers and enhance the potential of your loyalty program.

5. Implement Strategies to Encourage Loyalty

Apart from integrating loyalty programs for your business, you can easily enhance the loyalty of your customers by implementing various strategies to attract and engage customers. Some of these strategies include-

· Additional discounts when purchase milestones are reached.

· Curated rewards and recognition to the customers.

· Sponsorship of an annual event.

· Premium service—guaranteed 24/7.

However, you can easily integrate the right strategies based on your business preference and fits well to engage customers.


Starting a loyalty program for your business is made easy with Novus Loyalty. It’s never too late to start a customer loyalty program. It’s a never‑ending job to increase your business reach and convert potential customers into loyal customers. Novus Loyalty brings the best to business through scalable customer loyalty and rewards management software. It easily aligns with your existing business and delivers better results in attracting and retaining your customer base.

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