Why Loyalty Programs Are Important for Brand Marketing

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We have all read on what it takes to run a successful business including competing in different sectors, mediums, and platforms. In this day and age, new brands should quickly strategize on how to make new customers and retain them through quality products and customer service. From a very early standpoint, brands should be keen on building a loyal customer base and launching noteworthy customer loyalty programs that help their business self-sustain.


It looks easy to launch a loyalty program for your business to give incentives to loyal customers against generating handsome revenue from them. To be honest, it requires extensive audience research, customer data for buying behavior, and emotional attachment qualitative analysis. After making all these efforts, you have to decide for appropriate rewards that suit your business type and are welcoming for your loyal customers.

For a better understanding of loyalty programs, we need to understand its core definition and how many types of loyalty programs are there for successful marketing.


Loyalty marketing focuses on bringing back and retaining existing and past customers with initiatives and rewards. For example, a plugin developing company can reward its loyal customer with paid new features without charging any cost just to retain them for future sales. 

1-Points Programs: No doubt, a points-based loyalty program is one of the most popular and executing loyalty programs in the business world. Customers that spend more get more points. myCred (Points Management system) can help you a lot to launch points-based incentives for your online customer. 

2-Tiered Programs: Tier programs are similar to points programs in that customers earn points for purchases, but those points allow them to join specific benefit’ tiers.’ This loyalty program can boost your marketing efforts by offering different perks to your tier members. For example, by posting an influential social media post related to your company, one of your tier members can be rewarded with a certain offer. 

3-Value-Based Programs: This is a different approach to a loyalty program as you reward your customers by not rewarding them directly; instead, you pay for charity on behalf of them. When customers spend a defined amount or buy a certain product, a designated sum gets donated to charity. This program creates a soft image of your brand in the customer’s heart, and they feel emotionally attached to your business.

4-Referral Programs: A referral program is a method of promoting products or services to new customers through referrals from their current loyal customer base. This program usually based on ‘Word of mouth,’ which is one of the powerful ways to advertise your products. 

5-Partnered Programs: A sensible coalition with other businesses that share your demographic can be an extremely effective way to retain customers. A good partnership can multiply the success of your loyalty program. Your customers get rewarded with a special treatment feeling. 

6-Hybrid Programs: It’s literally a fusion of more than one type of loyalty program. Few programs naturally gel perfectly. For example, You might combine a tiered program with a gamification program, allowing customers to “level up” in your gamification program to reach new loyalty tiers.


1-INCREASES SALES: Marketers and company owners enjoy loyalty programs because it can improve customers retention and ultimately reflects in better revenue stats. A proper marketed loyalty program, along with desirable rewards for your customers, do wonders for your business.

2-BETTER REPUTATION: Loyalty program provides a dual benefit: By rewarding new clients, you make sure to keep them hooked for repeat buying, and also existing clients feel your company values them. When customers feel appreciated, they share their joy with others and hence work as a recommendation source naturally for your business. 

3-AUDIENCE RESEARCH: Loyalty programs help you to understand your audience’s buying behavior, what triggers them to spend more money, and what they appreciate most as a reward. This information can be utilized for new product/service launches, and it can give you a clear picture of Cross/UP selling.


We hope this article helps you understand different loyalty programs that can your business become successful. Without a second thought, we can say loyalty programs are useful marketing tools to retain customers in a competitive environment, build a better reputation for your brand, and ultimately provides you growth & revenue. Last but not least, ‘It makes your customers happy.’ 😊