Download our new e-book: Customer‌ ‌Experience‌ ‌Fundamentals‌

The 4 steps you should take while creating a Customer Loyalty Program

There are 4 basic steps that every business should follow when creating a customer loyalty program.

Step 1 – Research

The first thing you should do before the creation of your customer loyalty program is research. While conducting research you should be able to identify the following:

  • What your customers want
  • How much they are willing to pay for what you offer
  • What motivates them
  • Which brands or product categories they truly love

The above insights will help you find the sweet benefit spot between your customers and your business.

Another aspect that is of great importance when conducting a research, is to segment existing customers and your target market.  Additional information such as demographics, purchasing behavior and patterns will help you develop your strategy.

The more data you have in your hands, the more effective your Loyalty program can be.

Step 2 – Make a plan

From the moment you have completely understood your audience, you may develop your strategic plan for your loyalty program. Part of this strategic plan should be the creation of specific, measurable goals and key performance indicators (KPIs).

After setting up the above, the next step is to decide which loyalty program model and types of rewards, will motivate best your customers and offer them the most value. After all, everything is about the creation of value for your customers and how you may factor it for the benefit of your business. In other words, it is about creating value to your customers and transforming this value to an asset for your business.

Click here to read more about customer loyalty program types!

Step 3 – Build your program

After creating your strategic plan for your loyalty program, the next step is to figure out its structure by using all the information you have already selected. Determine the rewards your business will provide to customers, as well as the step by step procedure that they will follow to earn them.

Below you may find some ideas of reward-worthy actions:

  • Email subscription sign-up
  • Account registration
  • Birthday
  • Referral
  • Social engagement
  • Shopping on specific days
  • Money spent

Start by giving each of these actions points of values and determine how many points your customers need in order to earn a specific reward!

Step 4 – Let your audience know about the program

To be honest, the fact that you have now created a customer loyalty program does not mean that customers will use it or be aware of it. A wise thing to do, is to give that loyalty program an identity, by simply creating a landing page on your website, and by developing an awareness campaign and promote in-store tactics (i.e. educate sales associates). In other words, at this step all you have to do is get the word out, let your customers know that you have a Loyalty program.

We also have a bonus for you!!!

Below you will find 5 tips that will help you while creating your Customer Loyalty program.

1. Simplicity is the key

2. Start with your existing mailing list –  Your loyalty card will easily have its first members

3. Make it easy to join – E-mail address and Customer’s Name can be a good start

4. Make reward rules simple – Clarify the rewards

5. Make it about your customers, not about money – Be Customer Centric

Read more about Customer Loyalty:


Also published on Medium.