12 Best Loyalty Program Ideas That Innovate Your Business

12 Best Loyalty Program Ideas That Innovate Your Business

Loyalty programs are said to be one of the most powerful and effective ways of increasing revenue and stimulating the loyalty of customers. 

The prime reason why brands invest in loyalty and reward programs is that it is extremely difficult to acquire new customers otherwise. Many retailers are therefore finding innovative ways to build loyalty programs.

There are plenty of reasons why Loyalty Programs may be beneficial for your business. They are as follows-

  • The prime reason is that Loyalty Programs help in increasing your sales and improving the customer lifetime value. They also help in fostering an emotional connection with the customers through repeat behaviour and personalization.
  • If you retain customers who make repeat purchases, it would get a high ROI for your firm. Retaining customers is way cheaper than acquiring new ones.
  • Loyalty Programs also help you create brand advocates. This means that it encourages Word of Mouth Communication. It has been proven that Word of Mouth Communication or recommendations from near and dear ones is way more powerful than any other promotional tool.
  • Apart from retaining customers, Loyalty Programs can also help you attract new ones. People may want to take advantage of the Loyalty Program as soon as they hear about its benefits. Current customers also get a reward for recommending or bringing in new customers.

Therefore, in this blog, you are going to find the 12 best loyalty program ideas that may inspire and help you innovate your business. 

1. Offering First-time purchase discounts to the customers

Offering First-time purchase discounts to the customers

One of the most interesting Loyalty Program Ideas is to offer discounts to your customers. This can be a very effective way of attracting customers to your business. To acquire new customers, you may offer them a one-time discount on their first purchase. This would not only help you in acquiring new customers but also retain them and encourage sales.

2. Referral Rewards

Referral Rewards

As a business, you should always persuade your existing customers to refer you and bring in new prospects. You can reward your customers with discounts, freebies, or other perks on every referral. This would convince them to find more people and convince them to try your products and services.

3. Free Trials

 Free Trials

Many times, customers are hesitant in buying your product or service primarily because it may involve a fee that they may not be willing to pay without trying it. This is more common if your business involves subscription services, software, etc. 

Therefore, the best solution, in this case, is to offer your customers a free trial of your product. This would give them a first-hand experience with the product and would help them make a wise choice.

4. Celebrating Customer’s Birthday

This can be an interesting way to keep your brand memorable for your customers. Birthday invitation ideas can add a personalized touch to your approach. You may surprise your customers on their birthday with a creative and themed invitation. This Loyalty Program Idea would therefore create a positive impression on your customers.

5. Keep your customers connected via Email

This can be one of the most effective Loyalty Program Ideas. To make your business appear more personalized and easily accessible, it is important that

you keep your customers updated about ongoing sales, discounts, limited period offers, etc. You can do this by regularly sending them emails and staying connected with them. 

6. Offering Reward Points

This is one of the most commonly used Loyalty Program Ideas that helps in increasing your sales. The logic behind this marketing gimmick is very simple. You reward the customer with “points” every time they make a purchase. These points have a certain value equivalent to money.

Customers can redeem the points anytime during their subsequent purchases and that amount can be deducted from the total charge of your order. More points naturally mean more spending on your products or services. You may also incorporate fun and engaging activities to reward repeat sales.

7. Incentive-based Customer Surveys

An effective and effortless method to know what your customers perceive about your product or service is by conducting customer surveys. Survey forms may be sent to the customers via email, mobile apps, in person, etc. Those who fill out the form may be rewarded with a freebie, coupon code, or any other exciting perk.

8. Offering VIP Membership

Many customers want to know whether the companies they support pay attention to their needs and purchasing behaviour. VIP membership would give them a feeling of special treatment and exclusivity. Also, this marketing scheme is neither costly for your business nor your customers.

You don’t have to charge your customers anything to get a membership, and the incentives can be perks like early access to new products and services, free and expedited shipping, exclusive rebates and coupons, and more.

9. Free Offers

Free Offers

Customers are lured by exciting offers and discounts. They love it when they can get the best value out of their money. Thus you can offer customers exciting free deals like Buy 1 Get 1 free, Buy 2 get 5, Buy 4 for the price of 2, etc. This leaves an impression on the buyers that they are able to save more money and therefore they engage in various purchases.

10. Familiarity with Products and Services

Creating familiarity with Products and services can be one of the best Loyalty Program Ideas.

Customers will be the happiest when they like your product. If customers become interested in your Products or Services, they view them differently and can be extremely beneficial for your business.

11. Use Social Media 

Social media is a new trend and one of the most persuasive mediums. Try to engage your customers through social media by offering them online discounts, flash sales, free shipping, etc. You can provide limited period offers which motivate the customers to buy your products and services.

12. Conduct Raffle Draws

An interesting way to retain your existing customers is by conducting raffle draws and giving exciting prizes. Customers get interested because they get a chance to win and in turn, you get a chance to thank them for purchasing your products and services. This will generate immense interest among the customers towards your business.

Wrapping Up

It is extremely important to build a lifetime relationship with your customers. To encourage your customers to make repeat purchases, you must engage them in various activities and keep them invested in your business. Therefore, without giving a second thought, use the loyalty program ideas listed in our blog as your business strategy and see the results.


Q1. What are Loyalty Programs?

Ans These are the programs primarily offered by retailers as a way to encourage customers to engage in repeat purchases. They may be in the form of cashback, raffle draws, discounts, incentives, rewards, etc.

Q2. How do Loyalty Programs encourage Customer Retention?

The primary purpose of Loyalty Programs is to encourage repeat purchases. They are very effective at retaining customers and refraining them from switching to other products. They increase the Lifetime Value of a customer by offering them various incentives due to which they may buy your company’s products more often.

Q3. How can Loyalty Programs benefit customers?

Loyalty Programs make your customers feel that they can save more money which in turn helps them to become more inclined towards your brand.


Shivani is a content writer at InviteReferrals. She writes SEO articles, blogs, and guest posts for businesses to improve website ranking on SERP. She follows a balanced approach for the quality of content and its marketing. She loves to do creativity, although she had an English major in her graduation.