customer loyalty program

10 Best Ways to Create a Customer Loyalty Program with Example

The customer loyalty program has become a critical component of business activities nowadays. Businesses invest a significant amount of money for reaching more people and then try to get them converted into customers. Thus, they are interested in ensuring that the customer stays with the business for the long term.

Best Ways to Create a Customer Loyalty Program

1. Give Freebies to Loyal Customers

Give Freebies to Loyal Customers

One of the best ways to ensure customer loyalty programs is by giving them freebies. It will be an extra incentive that will boost customer confidence, and it will be in their interest to remain associated with you. A customer who is providing repeat business should have given an incentive to encourage his trust in your product. The company can offer inexpensive freebies to the customer. Yet, it can give a value proposition to the customer. Examples of this system include offering a free haircut after ten haircuts Or getting an item free after buying a certain number of products.

2. Regular Cashback Programs or Discount Offers

Regular Cashback Programs or Discount Offers

Nothing excites a customer more than getting discounts on their purchases. Saving money is a very mouth-watering proposition which very few can ignore. Customers are very likely to stay with the business if they are offered regular discounts. A few ways are there that can help business are as follows: –

  • After the completion of the sale, give the customer a coupon for a future purchase. In that purchase, the products and services will be available at a discounted price.
  • At the time of billing, when you generate a bill. You can print out discounts and cashback offers on the buyer’s invoice. It will enable the customer to avail such discounts easily at the time of the next purchase. It is an excellent way of showing appreciation to the customer, and it also paves the way for future engagement.
  • You can even introduce a punch card. In that card, every hole represents the amount of money that customer has spent at the time of purchase. The money spent by the customer will be shown on the punch card. It is done by punching corresponding holes in the card. After the card has been completely punched out, the customer receives a discount on the next purchase.

3. Various Membership Programs

Various Membership Programs

Businesses can offer different kinds of membership programs to their customers, but these membership programs must offer a significant value proposition over market competitors. It can ensure a good customer loyalty program for existing customers. Setting up a membership program may be a little more complicated than a rewards program. Also, it must be ensured that it does not cost the business much money to install it.

4. Gifts for Referrals

Gifts for Referrals

Referral marketing is one of the most effective digital marketing tools today. Referrals can help to create new and loyal customers for the business. Referrals happen when your existing customers are satisfied with your business, and you reward those customers who provide referrals to others. It will have a two-pronged advantage. First, you will solidify your relationships with existing customers, and second, in this process, you will get new customers. Offering incentives to new customers will further enhance your relationships with them.

 5. Launch contests for the Customers.

 Launch contests for the Customers.

You can hold periodical contests to give away rewards. It may range from inexpensive to expensive as you have to give something big for the customer who has won the contest. Customers can win based on the number of entries they have brought. It will engage more people as customers likely to participate in competitions and win free prizes. Visitors can also enroll themselves in the contests. Their contact details will help the business to contact them further for marketing purposes. It will help you build a comprehensive marketing database of prospective customers.

6. Email Promotions

Email Promotions

You can note down email ids of customers and visitors with their permission to add them to promotion-related campaigns. Various incentives can be provided to people to make them give their email ids. The incentives can range from discounts, cashback, coupons, and periodical offers. It will help you to connect with your customers and visitors, who have the potential to become your customers in the future.

Forward them email about advance intimation of offers. These offers can be about upcoming sales, providing discount coupons, or new products that are on offer. Provide specialized promotions to loyal customers to make them feel privileged. Personalized emails can be forwarded to them on their birthdays. Also, it provides unique opportunities to deliver them a prize according to their purchasing history to them based on their buy history.

 7. Appreciate and Value your Customers through Regular Events

Value your Customers

Make your loyal customers feel valued by conducting regular events for them. You can conduct an event related to your industry. The hours can be stretched beyond the regular working hours for them. They can attend and purchase products at a discounted price. The top customers can be rewarded at special events. It must be kept in mind that these events are not a one-off, but happen in regular periods.

8. Use Social Media

 Use Social Media

You can create a reward program for customers who promote your product by using social media.

It is where your loyal customers can help you excel. Make them work as your brand ambassadors, and reward them for promoting your product. Post the pictures of loyal customers on your website and your social media accounts. You can even share their social media posts and blogs on your website.

9. Be a Reciprocal Customer

Be a Reciprocal Customer

You can be a reciprocal customer to your customers. It is especially applicable to industries where businesses cater to other companies. You can become a loyal customer and expect them to do the same. Try to avail their products or services to as large an extent as possible. You can make referrals to others, and even send your existing customers to their business. Your customers will appreciate being referred to another valued enterprise. It will create a win-win situation for all. 

10. Show your Gratefulness

Show your Gratefulness

Show your gratitude to your loyal customers to make them feel valued. It will show that you cherish them and do not take them for granted. You can learn the names of your loyal and regular customers and learn about their habits. You can tailor your services according to their preferences. Your staff must be trained to treat them with respect and care.


Businesses need to create a customer loyalty program to remain profitable in the long term. More money can be used for customer acquisition. Companies would like to ensure that those customers stay with the business. 



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.