4 Ways to Reward Customer Loyalty

Your company decided to begin implementing a customer loyalty program for your business, and you’re wondering what now. How will your company reward your customers for purchasing your products or using your services? The most common methods are via special goods and services, coupons, and statuses and levels. Below we’ll break down the different methods, and the value of each method.

Special Goods and Services


Gifts are a great way to provide benefits for customers that they’re able to physically feel in their hands. This works because gifts are also a great way to get your products or services into the hands of your customers whether it’s one of your mainstays or a new line that you’re looking to push out. In the end as much as a customer loyalty program is in place to reward customer behavior, it’s also in place as a marketing device. Your company wants to be able to use your program as an alternative way to constantly promote your business whether it’s keeping it in front of mind for your current customers or potential customers. Another great way to incentivize your customer base to participate in the program is to provide unique gifts that couldn’t be purchased otherwise, for example, your company could provide a limited edition line as part of your gift options.



A discount method is a great way to give customers the feeling that they’re receiving a benefit or freebie, without giving away something yourself. This works because with this method the customer has to purchase an item in order to receive the benefit, however depending on the depth of the discount and your profit margin, your company would still be able to receive some cash in your pocket simultaneously. Another great thing about coupons is that your company can benefit partnerships that you’ve created by distributing partner coupons as well.

Statuses and Levels


A status or level is a great way to make customers feel like they’ve achieved a level of success within the program, and are now part of an “elite” group of customers. This works because your company can also combine statuses and levels with unique perks as an extra incentive to achieve them. The unique perks can include rewards from the categories mentioned above, however, it can also include other things such as special content. Offering the opportunity for a customer or client to be part of a unique and exclusive play into the human subconscious want to belong, and is also a great incentive for you to provide that is ultimately at a low cost for you.

Badges and Leaderboards


A badge is a great way of rewarding customers for completing specific actions without the reward being at cost for your company. This works because while customers may not physically be receiving anything, badges signify an achievement, and release endorphins in the brain due to it. Along with badges, your company can use leaderboards to create a feeling of achievement (1st place), as well a feeling of competitiveness. However if you’re going to utilize leaderboards we suggest that you utilize it effectively. For example, we would suggest using a leaderboard as part of a special promotion, such as a special promotion where the first place customer after a period of time wins a special package. This strategy provides customers with an extra incentive to compete during a period of time (such as a slow quarter) while trying the strategy back into other aspects of your customer loyalty program.


When creating your loyalty program, we would suggest using a combination of all four tactics mentioned above. Using all four tactics works because they each help achieve the goal of the other while creating the most effective engagement levels possible for your company’s customer base. For example the leaderboard can be part of the initial game, the status can be the final goal, the gift can be the reward, and the coupons can be part of the gift. As we had mentioned before, in the end, your company customer loyalty program needs to be a marketing tool to help promote your products and services. As long as you’re doing that, then you’re operating a successful customer loyalty strategy.

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