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Loyalty Programs

How to Create A Successful Offer For Your Customer Loyalty Program

Written by 
Michaela Ward
September 25, 2018

A business simply can't survive without happy customers - that's a fact.

This is why recognising and appreciating customers for their loyalty is extremely important. 

A customer rewards program ensures your customers feel appreciated and valued and they are also a very powerful customer retention tool for your business. 

Considering that new customer cost a lot more to acquire, and generally don't spend as much as repeat customers do, keeping your customers happy should be a vital part of your business strategy.

While it's undeniable that customer loyalty programs are an effective tool for increasing customer loyalty, it's imperative for businesses to understand a loyalty program simply won't work without being carefully designed.

So, exactly what are the key ingredients for a successful customer loyalty program offer?

1. Simplicity

Keeping your offer simple for customers and staff to understand is paramount. Having too many terms and conditions can be confusing, overwhelming and off-putting. You want your offer to be easy enough for staff to explain and for customers to understand.

2. Reward is Attainable

Create an offer which is attainable for your customers. If a customer thinks it will take too long to achieve the reward, or they have to spend unreasonable amount of money to get it, they probably won’t bother trying. That’s why it’s very important to ensure that your reward is achievable.

3. Reward is Appealing

Put yourself in your customers shoes and think of rewards that would excite them. Does this look like a good reward? Is it something they would be excited to earn?

Focus on your most popular service / products. Choose a reward that your customers would see as great value in exchange for their loyalty and ensure that it is relevant to what they are looking for.

Remember: the reward is only a cost if the customer qualifies for it. That cost is likely to be small when compared to the lifetime value of that customer.

4. Provide an incentive to participate

Give the customer a reason to join the program by rewarding them for joining.

For example, if you have a cafe, offer customers a free small coffee upon joining your loyalty program!

This provides an instant incentive and makes the process of on-boarding customers to your loyalty program much quicker.

5. Promotion

If your customers don’t about your new loyalty program, how do you expect them to take advantage of it?

Promote your loyalty program far and wide across your social media channels, website, via email to your existing database and of course, in-store.

Examples of great loyalty program offers for common industries:

The Cafe


Offer: Buy 6 Coffees and the 7th free!

Terms: One stamp per coffee purchased.

Sign up reward (once-off): Free small coffee!

The Hairdresser


Offer: Collect 5 Stamps and get Half Price off your next Haircut!

Terms: Minimum spend $25 per visit to qualify for a stamp.

Sign up reward (once-off): 10% off your next visit.

The Restaurant


Offer: Collect 8 Stamps and get 25% off your next bill!

Terms: One stamp for each main meal purchased.

Sign up reward (once-off): Free entree!

At Stamp Me, we provide you with a platform that helps you to easy implement and manage your digital loyalty program. Talk to us today about how we can help you create a successful customer loyalty program for your business.

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