In today’s competitive market, businesses must find new and creative ways to foster relationships with their customers in order to remain successful. One great way to accomplish this is to implement a customer loyalty program for your business. Loyalty programs not only boost retail efforts, but also encourage consumers to return and shop at your store.

To make sure your business has a successful loyalty program, follow these helpful “do’s and don’ts”:


Do reward customers for what they are buying and not just on how often they visit
Merchants tend to be more successful if they offer points based on dollars spent rather than points based on per visit. Customers are more inclined to spend more money if they earn points for every dollar and as a result will be more likely to visit more frequently to continue gaining rewards.


Do make enrollment easy
Make sure that your loyalty program is quick and easy for customers to sign up. Most major companies, such as Walgreens and Safeway, only require a phone number to enroll which is a great model to follow as remembering ones phone number is easy when making future purchases. Experts recommend that customers have the options to enroll in-store, online, or even on the go.


Do hand out rewards based on the customer’s preferences Be sure to have an option on your sign up form for customers to choose what method of communication they would like to receive from your business, such as a text message or e-mail. It is important to respect the customers preferences of receiving loyalty messages, otherwise they will “opt-out” of receiving further communication. 

Do track your data and analytics It is critical to evaluate and measure a loyalty program’s success to see how your program is doing. One way to track this is by measuring certain campaigns to see how many purchases and visits your business is bringing in. Another option is to track increased frequency from customers. With this data, businesses are able to identify an increase in frequency related with program effectiveness.


Don’t make the loyalty program complicated
Be sure that your loyalty program is not difficult to understand and is easy to follow. Adding too many regulations or rules can turn off customers from engaging in the program or even worse, not enrolling at all.

Don’t be boring
Make your loyalty program engaging, fun, and stimulating to keep customers interested. Sweepstakes, free prizes, and social media campaigns are all great examples to entertain your customers and keep them involved.

Don’t forget to include your staff
Be sure to engage your staff members and make sure they fully understand not only the value of loyalty but also what your loyalty program is all about. If you don’t properly involve your staff, your loyalty program will never succeed long term.


Don’t charge a fee to enroll
Customers do not want to spend extra money just to be a part of a loyalty program – after all, their main motive is to save money. Charging a fee of any kind will turn customers away and will give them less of a motive to join your loyalty program. Make your loyalty program free to enroll in order to entice more customers to join.


Offering a loyalty program to your customers is an easy and effective way to get customers back in your door. With careful planning and strategy, loyalty programs can improve your overall business and provide a positive experience for your customers.