Why are Customer Loyalty Programs Important and How to Run a Successful One?

Whаt іs а Сustоmеr Lоуаltу Рrоgrаm?

Customer Loyalty Program is a series of activities run by a company that offers benefits to frequent customers. Those benefits may be in the form of free products, discounts, or other promotions. An effective Customer Loyalty Program rewards customers who buy from a business regularly, encouraging the customer to return frequently by offering them various rewards.

Why Loyalty Programs?

The main aim of loyalty programs is to attract the right customers and create profitable long-term relationships with them. Businesses often offer loyalty programs and rewards to their most loyal customers as an appreciation for doing repeat business.

These programs encourage your customers to be loyal by offering bonuses and rewards in order for them to do repeat business with you.

Types of Loyalty Programs

  • Points Loyalty Program - The most common form of loyalty programs. Points are earned by doing various activities like buying a meal or drink, visiting stores, or downloading a mobile app.

  • Tiered Loyalty Program - Buyers get more rewards when they buy more products.

  • Value-Based Loyalty Program - There are intended for those who focus on charities.

  • Coalition Loyalty Program - Users receive relevant bids and benefits created according to their buying habits and needs.

  • Non-Monetary Loyalty Program - They are loyalty programs that do not offer monetary incentives. Rather, they offer value-centered incentives that entice customers to buy their products or service.

Benefits of Customer Loyalty Programs to F&B Businesses