Building Customer Loyalty Programs That Work

Acquiring a new customer costs five times more than retaining an existing one. Here's how to build loyalty programs that keep customers coming back.

Types of Loyalty Programs

Points-Based

Customers earn points for every purchase, redeemable for discounts or free items.

Tiered

Offer increasing benefits as customers spend more — bronze, silver, gold tiers.

Paid Membership

Customers pay an upfront fee for exclusive benefits (like Amazon Prime).

Value-Based

Donate a percentage of purchases to a cause the customer cares about.

Setting Up in RetailCore

1. Navigate to Dashboard > Loyalty
2. Choose your program type
3. Set earning rules (points per currency spent)
4. Define reward options
5. Launch and promote to customers

Measuring Success

• Enrollment rate (target: 30%+ of transactions)
• Redemption rate (target: 20-30%)
• Repeat purchase frequency
• Average order value of members vs non-members
• Customer lifetime value (CLV)

Best Practices

• Make enrollment frictionless
• Offer an immediate small reward on signup
• Personalize rewards based on purchase history
• Promote the program at checkout
• Keep the program simple to understand

Set up your loyalty program now.