Benefits of using Customer Loyalty program for your business
Back to Blogs
#Customer Loyalty #program #Software 2 mins read

Benefits of using Customer Loyalty program for your business

The loyalty program now is an essential part of every company. Customer loyalty is defined as the measurement of the likeliness to repeat the transaction with the company or brand. Customer loyalty is the result of customer satisfaction and value that customers receive form the brand. It is a proven tool for businesses to expand and sustain their market share as well as customer relationship. Customers who are enthusiastic responses to a particular product or brand, now get the encouragement from the company tend to stay and keep a long term relationship with the brand.
Customer Loyalty Program

Photo by Robert Bye in Unsplash


According to a statistic, 83% of customers said that the customer loyalty program keeps them to continue making transactions with certain companies. Thus, what are the exact benefits that the customer loyalty program brings to the business? Let’s find the answer below.


Customer retention & Reputation Improvement:

Keep customers to stay longer with the brand is the key factor in sustainable business development. It costs less to maintain current customers than acquire new prospects. The customer loyalty program is one of the most effective methods to retain customers by encouraging them with many values and benefits while consuming the product of a certain brand name.


By making customers satisfied with the company’s services or products is also a good way to increase the business reputation. the customer loyalty program can help the business in expanding customer appreciation and increase the customer’s word-of-mouth to share their satisfaction with people around them. The more a customer feels that your company serves them well the more he or she will widespread your brand name out to their familiar ones. Word-of-mouth is proven as the cheapest and most credible method to promote your business.

Customer Retention

Photo by Blake Wisz in Unsplash

Increase revenue and reduce costs:

By using the customer loyalty program, the company creates brand credibility for its customers so that it encourages customers to spend more. According to a statistic, 49% of consumers agree they spend more after having joined a loyalty program.


Acquiring new prospects can be 25% more costly than retaining current customers. By creating and implementing a loyalty program, businesses can save a large amount of money for new prospect acquirement. This budget can be used to increasing customer service quality or for other purposes.

Increase Revenue

Photo by Austin Distel in Unsplash 

Increase customer satisfaction & Customer relationship reinforcement

76% of consumers think that loyalty programs are a part of their relationship with brands. To increase consumer experience and satisfaction, the company can gather valuable data from the CRM system particularly from the customer loyalty program. Analyze the gathered data, your business can make better suggestions to your customers, which will then increase the preference for your brand name.


The more customer satisfied with your business products or services, the longer time the relationship between the company and the customer is maintaining.

Customer Satisfaction

Photo by Johan Godínez in Unsplash 

Attract new customers:

A good loyalty program can attract new prospects in many ways. If a customer sees that your loyalty program where benefits attracted them and the requirement are within reach, they are more likely to try your brand. The good loyalty program creates a positive reputation for your business can also impress your prospects and encourage them to experience your products or services.

New Customers

Photo by Charisse Kenion in Unsplash

Contribute to sustainable business growth:

With the benefits are mentioned above, the customer loyalty program dramatically contributes to your company growth. It might be one of the most straightforward approaches to your business for a sustainable growing direction.


Manage the customer loyalty program well is one of the most important tasks of the marketing department. How to create and manage customer loyalty as effectively as possible always a big question for marketers. The template below is an example for marketers or businesses for the hotel industry.

Back to Blogs