Customer loyalty is the key that unlocks the door to increased revenue, profit, and long-term growth. With 75% of consumers saying they favour businesses that offer rewards and 77% saying they stay loyal to specific brands for ten or more years, it is clear that a carefully crafted loyalty programme will help attract and retain customers.

Future sales also hang in the balance of loyalty, with the likelihood of selling to an existing customer standing at 60-70%, whereas the figure for new customers is 5-20%.

Loyalty also drives referrals, with more than 70% of consumers saying they are more likely to recommend a brand that has a good loyalty programme. Furthermore, satisfied customers say they share their positive brand experiences with up to 11 other people.

59% of internet users say earning loyalty rewards is one of the most valued shopping experience aspects. However, only 18% of companies say they are focusing on customer retention and simply hope that loyalty materialises.

These statistics, research, and studies show the importance of customer loyalty. However, hoping and wishing for customer loyalty is not a recipe for success. If you need further persuasion to introduce a customer loyalty programme, here are five more convincing reasons.

1. It costs less to turn an existing customer into a repeat customer

Acquiring new customers is notoriously expensive, depleting marketing budgets at an unprecedented rate. However, selling to existing customers is incredibly affordable. For example, if it costs your business £50 to acquire a new customer, it only costs your company £10 to get an existing customer to make another purchase.

The long-term value lies in customer retention with enormous ramifications for your bottom line. A customer loyalty programme is a cost-effective approach that engages and rewards while simultaneously lessening the financial resources you need to throw into traditional marketing and advertising.

But, if you move your focus to retention and loyalty, will acquisitions fall by the wayside?

2. Your retention strategy is also your acquisition strategy

The short answer is no because loyal customers help you reach new customers. Loyal customers are in themselves a powerful marketing tool that will drive eCommerce. A satisfied customer that is regularly engaged through loyalty marketing will make personal word-of-mouth and social media recommendations and write positive online reviews. 

You can even incentivise and reward existing customers who bring in referrals. As an acquisition strategy, it is worth knowing that referred customers make twice the sales compared to those brought in through paid advertising. Referrals also tend to be more loyal, creating a snowball effect with more and more brand advocates working on your behalf.

3. Loyalty programmes drive emotional commitment 

Loyalty programmes create emotional connections with customers similar to how we learn; through repetition. Every time a customer uses, for example, a rewards card, they are reminded of your business and brand. Incentives that are ingrained in lifestyle actions create the most profound emotional commitment.

Examples of lifestyle rewards include third-party promotions for accessing spas, health clubs, restaurants, cinemas, and other retailers. In addition, with a broad range of loyalty offers, customer engagement is increased, creating a committed community.

4. Loyalty programmes are market research

A loyalty programme also doubles as market research, giving you access to digital data that will help you learn about your customers’ values and how they engage with your brand. You will begin to build a picture of buying habits and what customers find appealing, creating customer profiles that will help you refine and target your future marketing efforts.

Customer data obtained from loyalty programmes will help you make decisions on an individual customer basis and inform your broader brand strategy.

5. It is easier than ever to introduce loyalty programmes

Building an effective customer loyalty programme has never been more straightforward, with loyalty programme partners offering off-the-peg and ad-hoc solutions. Technology, customised apps, physical and virtual reward cards, and integrated analytics make deployment and nurturing emotional connections easy, making returns ever more valuable.


A customer loyalty programme is a fantastic USP that attracts new customers, delivers data insights, increases referrals, and reduces churn. As a result, acquisitions become organic, you secure long-term growth, and profits soar.

For a free consultation about a bespoke loyalty marketing program for your company, Jamie Fisher (Commercial Commercial Officer – The Super Marketing Group) can offer advice and options – please click here.