5 Tips For Designing Successful Loyalty Programs For Your Brand

On December 8, 2020


Customer loyalty is a primary focus of all major brands. This is for several reasons, including that the permanent customer provides a much more regular profit compared to the new customer. Some studies have shown that regular customers spend 67% more than new customers. There are a variety of ways to increase customer loyalty. But the best of them is to design successful loyalty programs that guarantee you the return of your customers and keep them loyal to your brand by rewarding them every time they buy from you. In this article, we’ll talk about some tips you can apply to design successful loyalty programs for your brand.

How to measure the success of your loyalty programs:

1. Customer Lifetime Value (CLV):

This value represents the average revenue that your brand generates from a single customer during his time with you. As mentioned earlier, the rate of profits from your regular customers is 67% more than the rate of your profits from new customers. You can measure this rate in the following way.

How to measure CLV

2. Points redemption rate:

As the name indicates, this rate represents the percentage of points redeemed by customers. The higher this number, the more successful your customer loyalty program is in bringing in customers and making them repeat purchases with you. It can be calculated in the following way.

How to measure points redemption rate3. Rate of interaction with loyalty programs:

This rate determines the extent to which your customers engage and whether they are satisfied with your loyalty program. The higher it means that customers love to interact and enroll in your successful loyalty programs. You can find out this rate this way.

How to calculate the rate of interaction with loyalty programs:4. Customer retention:

Measuring Customer Retention is very easy, as it is related to the number of customers who were acquired for the first time and the number of customers who returned even once in a specific period that you control. The higher this rate, the more successful your strategies for retaining your customers and the success of your loyalty programs.

Calculating customer retention Why do some loyalty programs fail?

1. Being too difficult:

When your loyalty program is too difficult or complicated this will mean that the subscription rate will be less. When the subscription method is difficult for the customer. Or when the rewards are too complicated to get, your program will fail. Do not forget to always create a unique customer experience because this will help you keep them.

2. Trying everything all at once:

You have now decided to try a loyalty program and now you are confused as to which type will suit your brand and services. Don’t try all types at once. And do not make your customers confused about choosing between them, as this will inevitably reduce their registration rate in your programs. If you are a beginner with these strategies, try the easy and simple rewards points program that we offer on our platform “Boonus”.

3. Employees are not trained well to market loyalty programs:

The reason your program is failing may be that your employees are not used to it. So this is when implementing any strategy in your branding, always make sure to train your employees on marketing it and explain it better to customers to get them to register for it.

4. Neglecting digital marketing:

You may have the best loyalty programs and the best services. But it’s not worth anything as long as your customers don’t know about it. One of the main reasons loyalty programs fail is because they are not well marketed. Therefore, be sure to use ads on social media that your customers use to reach the highest number of them. Attract them to engage with your brand.

Tips for successful loyalty programs:

We have previously mentioned the reasons that lead to the failure of loyalty programs. Simply if you want to implement successful loyalty programs, all you have to do is stop doing what we mentioned previously and apply the following tips.

1. Simplify your loyalty programs:

Make it easy … Don’t make things hard for your customers, whether in signing up or exchanging their points for rewards. Also, steer clear of coalition loyalty programs if you’re a beginner that could negatively impact your brand. Get your brand awareness high first. Then participate with other successful brands in coalition programs.

2. Provide various rewards:

Don’t just limit your rewards to a specific product or sale. Change it from time to time. Add other options for rewards and diversify them, such as adding a gift on the occasion of a national holiday or the birthday of a customer. Always make the change so that the customer does not get bored and decides to give up the exchange of his points.

3. Listen to your clients and stay in contact:

Your customers’ reactions, feedback, and ratings of your programs and services are the fuel that will keep your brand on fire. Always make sure to listen to your customers and their suggestions and try to build a loyalty program around your customers and their preferences, whether it is favorite products or discounts they want.

4. Make your loyalty points time-limited:

Most people have what’s called the fear of missing out or FOMO. Put an expiration date for your loyalty points. Or have a Happy Hour in your place where clients can double their points. This creates a sense of urgency for your customers. And it will make them feel that they have to come back to buy from you for other points and exchange them before it is too late.

5. Use a platform to run your own loyalty programs:

Employ the services of a loyalty program application such as our Boonus platform to help you design better loyalty programs, organize them, and market them to your customers to ensure their success and increase your sales.

Here at Boonus, we are always keen to provide the best loyalty solutions for your brand with your own identity to ensure the success of your marketing campaigns and increase the loyalty and retention of your customers. We also provide you with excellent support at all times. Apply now and take advantage of the best benefits with us.


Finally, we can say that customer loyalty is an important component of any business. It represents the difference between failing brands that customers always replace and successful ones that have loyal customers who deal with them on a regular basis and recommend them to their acquaintances to bring you, new customers. You must therefore apply customer loyalty strategies to design successful loyalty programs for your brand.


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