What are Customer Loyalty Programs?

What are Customer Loyalty Programs?

It’s the relationship between a brand and their customer. The company offers exclusive incentives such as prices, products, and sales to you; in exchange for your repeat purchases and word-of-mouth advertisement (brand recognition).

Let's face it, (as consumers), we all look for bargains. Whether it's the lowest price at the gas pump or a great deal on that must-have outfit at the brand name store. Taking part in an incentive program allows you to get items at a rate lower than the published price.

As a business owner, you want repeat customers. The best way to ensure this is to have a Customer loyalty program in place.


Shopify gives three core reasons.

  1. It stewards relationships with existing customers.
  2. It helps increase sales
  3. It attracts new customers

Other organizations such as smile.io and Loyalty Lion cite five reasons that loyalty programs work. It’s pretty clear that there is an increase in this, and for good reason.

Building relationships with existing customers is an awesome thing to do. A happy customer is likely to “share” their experience both in face-to-face conversation as well as in the Social Media realm. This is also true of unhappy customers, but that is for another blog. Installing a loyalty program gives you a chance to stay connected with your repeat customers as well as entice new ones to become repeaters. Repeat business/sales = increase in your profits.


It’s a proven fact that It is 6 -7 times more expensive to acquire a new customer than it is to keep an existing one. Just offering sales and discounts eats into your profit margin - especially harder when the customer has no reason to want to come back and shop again. Repeat customers with no incentive are rare at best, but repeat customers armed with a rewards program become priceless to your profit margin.

As a business owner, you want repeat customers. The best way to insure this is to have a Customer loyalty program in place.


@bizjournals said in a tweet that 75% of US companies with loyalty programs generate a return on their investment.

@HarvardBiz tweeted that an increase by 5% in customer retention increases profits by up to 95%.

@martech_zone tweeted There are 3.3 billion loyalty program memberships in the US, 29 per household


In studies done, customers agree that loyalty programs are more likely to sway them in their decision to continue doing business with certain companies. It's been reported that existing customer spend (on average) 67% more than new customers. Can you appreciate the potential for that profit margin? According to selfstartr In 2015 the number of loyalty programs a buyer utilized was at an average of just over 13 programs versus 10.9 in 2014. Proof that customers loyalty programs!

Take klosebuy for example.

klosebuy is a simple and affordable way for your business to create digital advertisements/rewards while getting to know your customers on a personal level. This is an awesome loyalty platform for small to medium sized businesses! This program is designed to increase sales and profitability through a variety of different marketing facets including mobile, digital, direct & an online loyalty points redemption program. In addition, the solution provides for direct push notification messaging, email marketing, real-time customer database and so much more. As the klosebuy network grows so does your potential to reach thousands of customers - all for just under $20.00per month (no matter how large the audience grows).

In today’s fast-paced world of mobile apps, klosebuy is there and ready to make sure all businesses are too. Check out the three videos below and when you're readyto get on the klosebuy platform or you have questionsabout it, contact ReleasedSolutions and schedule an appointment!


Interested in finding the right program for your business? Book a FREE intro call and let's talkabout the best program for you!While you're waiting for your call, check out what HubSpot suggests in their DIY article regarding Customer Loyalty Programs.

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