DX United

Time To Leverage A Point-Based Loyalty Program To Improve Customer Retention

‍Have you ever wondered how you can get customers to keep coming back to your business? 

Or maybe you’ve been thinking about how you can give a better customer experience for your customers?

One way to do this is to leverage customer loyalty programs, or to be specific, a point-based loyalty program

By providing customers with rewards for their loyalty, businesses can encourage customers to remain loyal and increase customer retention. 

A point-based loyalty program allows loyal customers to earn loyalty points for their purchases and then redeem them for rewards such as discounts, special offers, or even free products and services. 

This type of loyalty program can be used to improve customer retention and provide a unique and engaging experience for customers. In fact, it is so effective that 73% of loyalty programs out there are normally points-based.

With the right loyalty program, businesses can keep their customers coming back and build long-term relationships with them.

The Benefits You Get With A Point-Based Loyalty Rewards Program

A point-based loyalty program can be implemented across various industries and has many benefits. These include:

Greater Customer Satisfaction

Customers are always looking for ways to earn rewards and benefit from their loyalty to a particular brand. Point-based loyalty programs allow businesses to increase customer satisfaction by providing customers with rewards for their loyalty.

Better Customer Retention

A point-based loyalty program encourages customers to return to your business and spend more money. This can lead to increased customer retention and a larger customer base for your business.

Loyalty Program To Improve Customer Retention

Increased Customer Spending

This loyalty program allows customers to spend their loyalty points on discounted or free items. This can encourage customers to spend more and increase your overall sales.

Enhanced Brand Recognition

Customers can use their points to show off their brand loyalty and share their experiences with others. This can lead to positive word of mouth and brand recognition for your business.

A point-based loyalty scheme gives customers a reason to stay engaged with your brand by rewarding them for their loyalty. Customers earn points on their virtual or physical loyalty card that can be redeemed for rewards like exclusive discounts, free products, or other special offers.  

This creates an emotional connection between the customer and the brand and incentivises them to continue making purchases.

Designing The Best Point-Based Loyalty Program Ever

To design a successful point-based loyalty program, you must first understand your customers and their motivations. Once you have a better understanding of your customers, here are the key steps to designing a point-based loyalty program: 

1. Figure out your marketing goals

Before designing a loyalty program, you must first identify your marketing goals. What do you hope to gain from implementing a loyalty program? Once you have these goals in mind, designing a program that helps you achieve them will be easier. 

2. Identify your customers

The next step is to identify your customers. Who are they, what do they like, and what do they dislike? By better understanding your customers, designing a loyalty program that keeps them engaged and encourages them to spend more money will be easier.

3. Define your target audience

Another important step is to define your target audience. Who are the people who will be using your loyalty program? Consider age, gender, income, and occupation when defining your audience.

4. Design your loyalty program

Once you better understand your customers and their motivations, it’s time to design your loyalty program. Start by deciding what kind of program you want to implement.

Your business’s most effective loyalty program will depend on your overall customer retention goals and the type of customers you are trying to retain

Consider factors such as the average purchase amount, the frequency of purchases, and the rewards most appealing to your customers. 

You should also evaluate the cost of your loyalty program and the potential ROI of your program before deciding on a solution.

Strategies You Can Use To Promote Your Loyalty Program

Once you have implemented a loyalty program, there are a few strategies you can use to promote it and encourage customers to participate. Some of these strategies include:

Offer special rewards

One way to get customers to join your loyalty program is to offer special rewards. You can offer exclusive discounts, free products, or special offers for customers participating in your loyalty program.

Promote Your Loyalty Program

Offer sign-up incentives

Another great way to encourage customers to join your program is to offer incentives for signing up. You can offer special discounts or free products for a limited time to customers who sign up for your program.

Create a unique experience

A great way to set your loyalty program apart from others is to create a unique experience. This doesn’t have to be a physical place. It could be an online experience or even a special set of benefits. Maybe even a social media event would be great!

Use rewards-based marketing

Another strategy to promote your loyalty program is rewards-based marketing. This type of marketing encourages customers to engage with your brand and earn points towards rewards.

How Do You Measure The Success?

The best way to measure the success of your loyalty program is to track customer engagement with it. You can track customer engagement by measuring three key metrics:

  1. The number of customers participating in your program
  2. The number of customers redeeming their points
  3. The average value of a point
Track Customer Engagement

Few Tips To Maximise Customer Engagement With A Point-Based Loyalty Program

Once you have an established point-based loyalty program, there are a few tips you can follow to maximise customer engagement. These include:

  • Creating a clear and understandable program
  • Be generous with your points
  • Offer exclusive rewards
  • Set customer expectations
  • Reward customer engagement
  • Track your program


Setting up a loyalty program is the right action. And this is a proven method to engage customers across the UK because according to statistics:

  • 56% of Brits are members of a supermarket customer loyalty program, 
  • 28% have joined a pharmacy loyalty programme, 
  • and 27% are members of a retail rewards programme.

So, implementing a point-based loyalty program can benefit various industries, especially if you’re one of the three industries mentioned above. This loyalty program will improve customer satisfaction, retention, and spending and help you get better brand recognition

Now, if you want to create your own point-based loyalty program after reading all that, then why not talk to experts who can help you develop it?

Here at DX United, we can help you create the best point-based loyalty program that your consumers will surely love! Through our rewards software, we create lasting connections with your customers, regardless of where they are on their digital journey.

With our personalised, end-to-end point-based rewards system, you can develop a deeper connection and engagement with your loyal customers no matter where they are.

Whether it’s a tiered loyalty program or a flexible loyalty program software you’re looking for, we’ve got you covered. 

So what are you waiting for? Book a demo call now!

28 November, 2022