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11 Apr

Loyalty Program – The Underdog of Digital Marketing

Did you know it costs a business 25 times more to attain a new customer than it does in retaining an existing customer?

Not only that, but prevailing customers spend 67% more than new patrons. In short, customer loyalty really pays off and customer loyalty programs pay for themselves.


Customer loyalty programs have been around in some form or the other for decades. In today’s day, people are constantly flitting between online and physical stores and chasing the best deals possible.

Brands are constantly competing for consumer attention in addition to brand loyalty.


Here are some latest statistics by an Internet marketing agency, which show the importance of customer loyalty programs in today’s day:

  1. 88% of customers are currently enrolled in a reward/loyalty program.
  2. 71% of customers choose to sign up for a loyalty program to receive money off purchases while 63% join to receive free products.
  3. 58% of businesses using a loyalty program have noticed an increase in customer satisfaction within 12 months.
  4. 21% of customers are more persuaded to revisit a business that offers a more personalized digital experience compared to those that do not.
  5. 67% of women compared to 64% of men feel that rewards are worth paying for.


Creating a customer loyalty program that is useful to both, the customer and the company, can be a massive challenge. A loyalty program’s success requires a strategy that infuses the customer experience and branding expertise with the right technology and design.


A top digital marketing agency in Mumbai gives us insight on how to implement the best customer loyalty programs

  1. Collecting valuable data and using it to add a personal touch.
  2. Creating a seamless brand experience for customers.
  3. Leveraging inbound and outbound marketing techniques.


Customer Loyalty Programs

Once a loyalty program is integrated, the next question that pops up is ‘How to promote Loyalty Programs?’ Firstly, the program must be easy and should be service oriented. Staff must be well trained and aware of the entire details about the program and they must pass on the message to customers. Customer Loyalty Programs should be promoted via social media and email, and it should be mentioned on the brand’s website.


Ever wondered how to promote a customer loyalty program? Here are some examples of brands that have increased their returns with the implementation of loyalty programs.

  1. Pizza Hut – Pizza Hut started with a mobile rewards program to compete with Dominos.
  2. L’Oreal – L’Oreal came up with a program called Worth It Rewards, where customers can collect points by linking a retail loyalty card, submitting receipts or shopping online.
  3. Sephora – This brand came up with a VIB Rouge and Beauty Insider and was ranked the best in tiered programs.
  4. Starbucks – With a strong mobile experience, the Starbucks Rewards program became a part of the consumers’ daily routine, giving them the privilege of ordering ahead, jumping the line and paying directly from their phone.
  5. Jet Airways – TrueBlue is a typical airline rewards program where members earn points for the money they spent on JetBlue travel, which they can redeem for discounted flights, and other perks.


A loyalty program’s main purpose is to make more money by keeping the current customers. Customer loyalty programs can achieve this since they are cost effective and they help to increase social proof, word-of-mouth, and customer referrals. The success of any customer loyalty program depends on their marketing department’s ability to gather relevant data and create a personalized experience.

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