🎥 Video case study: Designing a Mobile Loyalty Experience for Retail.
Watch now
Customer loyalty isn't just the cherry on top of doing business – it's the WHOLE cake. Generous clients are truly your biggest fans, rooting for you, offering insights, and sticking with you through thick and thin. Repeat customers typically spend more over time, making them invaluable to your business's long-term success.
But loyalty doesn't happen by accident. In fact, if you want to build customer loyalty, you need to adopt a well-thought-out strategy and make a consistent effort to understand what makes people tick.
So, how do you attract and retain these dedicated patrons who consistently choose your brand over others?
To guide you in this mission, we've gathered 10 strategies from industry specialists who know what it takes to attract and retain clients. They share actionable tips, proven tactics, and fresh ideas that can help transform your customer base and segments into a lifelong community of advocates. Read on to find out how to increase customer loyalty in your case!
Ready to find out what makes customer loyalty important and learn how to increase customer loyalty? Read on!
A loyal customer is someone who consistently chooses your brand over others. They're individuals who have formed a strong connection with your business and trust your products or services enough to return again and again. Devoted buyers often advocate for your brand, recommending it to friends, family, and their wider networks.
What sets committed clients apart is their emotional bond with your business. The connection might stem from positive experiences, shared values, exceptional customer service, or simply feeling appreciated and understood. Loyal customers are more forgiving when mistakes happen and are less likely to be swayed by competitors' offers or lower prices. Instead of just seeing you as another company, they see your brand as their preferred choice, one they trust to meet their needs repeatedly.
Existing customers are incredibly valuable. They spend more over time, cost less to retain than acquire new customers, and often have a higher lifetime value. Building and maintaining this type of fidelity requires consistent effort, but the rewards, in terms of stability, growth, and advocacy, are well worth it.
Customer loyalty is when people keep coming back to your brand, not just because they have to, but because they want to.
Loyal customers trust you, prefer your products over competitors, and even recommend you to others. They're not just looking for the best deal – they stick around because of great experiences, excellent service, and the value you bring to their lives.
Loyalty can be built through consistency, personalized interactions, and rewards that make customers feel valued. Be it a small company with a personal touch or a big brand with a killer rewards program, companies that invest in loyalty create long-term relationships that drive growth.
Simply put: Happy customers stay. Loyal customers advocate.
Customer loyalty is about the reasons customers choose to stick with a brand. Understanding the different types of loyalty can help businesses create better strategies to keep customers engaged. Here are the main types:
This type of loyalty is driven by rewards, discounts, and incentives. Customers stay because they see a financial benefit in doing so.
Customers feel a personal connection to the brand, making them loyal beyond just price or convenience. Emotional loyalty is built through brand storytelling, shared values, and strong customer relationships.
Some customers continue buying from the same brand out of habit, without actively considering alternatives. This often happens when a brand becomes part of a customer's routine.
Customers remain loyal because a brand is the easiest or most accessible option. Factors like fast shipping, store location, and a seamless user experience play a big role.
Some customers choose brands that align with their values, such as sustainability, social responsibility, or ethical practices. They stay loyal because they believe in what the brand stands for.
Exceptional service can be a major reason customers return. When a business consistently provides outstanding support and personalized attention, customers develop strong loyalty, and the business manages to improve client retention.
👇 Now, let's find out 10 practical customer loyalty strategies for building and maintaining a loyal customer base (expert quotes included).
Understanding your customers is the first step to building loyalty. Think of it as getting to know a good friend – when you understand what they like, dislike, and value, it's easier to make them happy. The same goes for your clients.
Start by using data wisely. Every customer interaction leaves valuable clues about their preferences, shopping habits, or priorities. Look at purchase history, browsing behavior, and even the feedback they leave. Such as, do they often buy during promotions, or are they attracted to certain product categories? These patterns can help you tailor your offerings to their needs.
As Gbeminiyi Onabanjo, Managing Director at Mitera Health Limited, says about the future of loyalty, "Increased personalization and customization driven by data insights, seamless omnichannel integration, and real-time engagement will become beneficial trends."
Developing customer personas is another game-changer. These personas are like detailed profiles of your ideal customers and help you craft relevant strategies. Imagine you own a coffee shop. One persona might be Busy Bella, a young professional who relishes quick service and mobile ordering. Another might be Social Sam, who comes in for the ambiance and loves sharing latte art on Instagram. With personas like these, you can design your approach to fit their preferences – for Bella, focusing on app convenience and speed, and for Sam, showcasing beautiful decor and seasonal specials that appeal to the social nature.
The goal is to create experiences that feel personal and relevant. People want to feel like they're more than just a number to you. When they see that you truly understand their needs, they're far more likely to stay loyal. And the best part? The more you learn about them, the better you can serve them, creating a positive cycle of confidence and gratification.
Customer service is the heartbeat of any loyal customer base. When your customers feel supported, they're far more likely to stick around and work on your brand reputation. Outstanding service isn't just about solving problems – it's about leaving a lasting impression every time they interact with your business.
Start by focusing on quick response times. Nobody likes to be left waiting, especially when they're reaching out with a question or issue. Responding promptly, whether through email, chat, or social media, shows that you respect your customers' time and care about their concerns. Even if you don't have an immediate solution, acknowledging their inquiry quickly can make a world of difference.
Empowering your team to solve problems efficiently and with empathy is equally important. Equip your employees with the tools, knowledge, and authority to handle customer concerns without unnecessary delays or escalations. But efficiency alone isn't enough – empathy is key. When a customer feels genuinely heard and understood, it builds trust and goodwill. A simple phrase like "I understand how frustrating this must be for you" can turn a tense situation into a positive experience.
But don't just stop at resolving problems. Aim to create memorable experiences. Think about the times you've had outstanding service – what made it special? Maybe someone went above and beyond to help you or added a personal touch.
As Stéphane Ponte, Global Consumer Loyalty Manager at Salomon, said, "The focus will shift toward creating unique experiences, which will become the primary differentiator for brands." Small gestures, like a follow-up email checking if an issue was resolved or a handwritten thank-you note after a big purchase, can turn a standard interaction into something memorable. These moments solve problems and create loyal fans who'll rave about your brand to others.
Loyalty programs can be one of the most powerful tools in your customer retention arsenal – if they're done right. A well-designed loyalty program rewards customers, but more importantly, keeps them engaged, excited, and coming back for more. The key is to make the program feel valuable and fun, not like a chore or an afterthought.
Start by offering tangible rewards. People love feeling like they're receiving added benefits for their loyalty, so focus on perks that have real value. Discounts on future purchases, free products, or even early access to new items can go a long way in making people feel appreciated.
For example, running a clothing store and offering loyal customers a sneak peek and an exclusive shopping window for your next collection can make them feel like true insiders.
As Andreanne Rondeau, Loyalty Specialist at stratLX, explains, "The future of loyalty programs is shifting beyond traditional points and rewards systems toward a more holistic approach. This evolution focuses on building long-term relationships with customers by recognizing their value and engagement, ensuring they feel important and appreciated at every interaction with the brand."
Incorporating rewards that align with customers' values, such as those supporting environmental and social responsibility, fosters connections that go beyond transactions."
Consider creating VIP programs to make your most loyal customers feel special. VIP tiers can offer benefits like free shipping, dedicated customer support, or invitations to exclusive events. It's all about creating that "elite" feeling – letting your top clients know they're part of something exclusive.
Such an approach strengthens their connection to your brand and motivates others to work their way up to that VIP status. Lukasz Sloniewski, CEO at Omnivy, emphasizes, "The role of loyalty programs in organizations should grow, as understanding customer behavior and needs will be critical for staying competitive. There is no better tool for recognizing and identifying customers in an omnichannel environment than a well-designed loyalty program."
Add gamification elements to your loyalty program to keep things fun and engaging. Points systems are a classic case. Users earn points for purchases, referrals, or social media engagement, which they can redeem for rewards. Badges or milestones, like "10 purchases unlocked" or "100 points earned," can make the experience feel like a game, encouraging people to participate more actively.
Now, here's where enterprise loyalty software can really help. This kind of software takes your program to the next level with tools for personalizing rewards, integrating seamlessly across channels, and analyzing customer data. It helps you understand what works and tweak your approach for even better results.
Ultimately, a great loyalty program is about creating a win-win relationship. Users feel rewarded and appreciated, and you earn their continued transactions. Rewards are fine, but the experience of being recognized for the allegiance is even better. Make it simple, meaningful, and fun, and your program will become a magnet for repeat sales.
Since you're reading this article, you certainly want shoppers to stay with your brand, so you must go beyond just making a sale. Show that you care about them as individuals, not just as numbers in your sales reports.
As James Caan, Chairman of Recruitment Entrepreneur, aptly puts it, "Too many people focus on the end result – the transaction – and don't place enough importance on the steps you take to getting there – the journey," emphasizing the importance of relationships over transactions.
A great way to stay connected is by sending regular updates, tips, or educational content. A fitness brand might share workout routines, nutrition advice, or success stories from other gym fans. Creating this kind of content keeps your brand top of mind and also is a terrific enhancement to their experience with you. They'll see you as a helpful resource, not just a company selling products.
Personalized loyalty actions and marketing take this connection to the next level. Address your customers by name in emails or messages, and tailor your communication to their interests and preferences. A customer who recently purchased hiking gear might appreciate recommendations for complementary products, such as a waterproof jacket or information on top-rated hiking trails nearby.
Adding a human touch can make a world of difference. Imagine ordering a product and receiving a note that says, "Hi Alex, thank you for your order! We hope you love it. Let us know if you need anything else." It's a small gesture, but it can turn a good experience into a memorable one.
People interact with brands across various platforms, whether online, in-store, or through social media. Provide a seamless and consistent experience no matter where they engage with you. Consistency builds trust, and trust builds allegiance.
Regularly auditing channels, training staff, and centralizing customer service software are key steps to synchronize efforts and ensure clarity. Start by maintaining a unified brand presence across all channels. Your website, physical store, social media pages, mobile loyalty app, and even your email communications should all feel like they're part of the same story.
Use consistent branding elements like your logo, colors, tone of voice, and messaging. So, if your online store has a friendly, casual tone, ensure that the same personality shines through in your in-store signage or social media posts. When buyers feel like they're dealing with the same brand no matter where they are, it creates a stronger tie.
As Cinthya Celaya Contreras, Senior Loyalty Manager at Grupo Axo® notes, "One critical challenge in loyalty marketing will be ensuring that the loyalty experience is truly omnichannel. With customers interacting with brands across multiple platforms – whether in-store, on mobile apps, or through online channels – companies must seamlessly integrate these touchpoints to create a cohesive and personalized experience."
Leverage real-time communication tools like live chat and chatbots to enhance the omnichannel experience. These tools allow clients to get quick answers to questions when interacting through email, communicating via SMS, engaging on social media, or even navigating in-store kiosks.
A chatbot, on the other hand, can handle simple inquiries, like checking order status or finding a product, while live chat can provide a more personal touch for complex issues. Being available and responsive in real-time shows customers that you treat their time seriously and are committed to meeting their needs. Try to implement consistent messaging and align all channels (offline or online) to eliminate confusion.
Next, guarantee seamless transitions between all channels so clients don't have to repeat themselves when switching from live chat on your website to a phone call with customer service.
"While incentives like special offers or exclusive pricing remain essential, they only succeed if the whole experience is seamless. This means marketing messages must resonate, customers should feel recognized, and their benefits must be automatically accessible in all channels. For instance, a product a customer viewed online should be easy to find and try in-store, completed with personalized pricing or recommendations," recommends Lukasz Sloniewski CEO at Omnivy highlighting the importance of synchronizing data to provide continuity across platforms.
When you prioritize a consistent omnichannel experience, buyers know they can rely on you no matter where or how they want to interact. This reliability builds confidence and strengthens their relationship with your brand, making them more likely to return and recommend you to others.
"Programs will need to offer simple, understandable, and relatable value propositions to remain relevant," says Jason Whiting, Loyalty Marketing Leader, Ex-LEGO. "This renewed focus will shift toward meeting user needs – such as convenience, access, and savings – which will, in turn, shape how programs evolve and the technologies they rely on."
Listening to your audience is one of the best ways to grow traction. Take comments as they come – whether they're criticism, praise, or helpful suggestions – and use them as a guide to you. Acting on that customer feedback shows customers that their opinions matter and that you're committed to improving their experience.
"There will be a need for programs that combine discounts and special, time-sensitive promotions with the ability for customers to provide feedback and recommendations, as well as refer services or products to friends," states Anna Konopka (Wolszakiewicz), CRM Manager & Loyalty Project Owner at Philips. Create structured opportunities for opinions while ensuring a psychologically safe environment for clients to express themselves openly.
Start by conducting surveys regularly to track your customers' changing needs and opinions. Short, targeted surveys can provide valuable insights into what's working and what needs improvement. After a purchase, ask buyers to rate their experience or share suggestions for how you can do better. Use tools like email surveys, social media polls, or review widgets on your website to make it easy for shoppers to share their thoughts. Gather opinions and ACT on it. By responding to input and showing tangible improvements, you foster long-term adherence.
The constant mention by clients of long support wait times is a sign that it is worth improving response times and then making the update available to the public. You might say something like, "Thanks to your feedback, we've added more team members to our support staff to serve you faster." This transparency demonstrates that you're listening.
Closing the feedback loop is of the essence. Respond to all opinions (whether it's positive, negative, or neutral) promptly and thoughtfully. Affirming comments, whether positive or negative, makes customers feel heard. When someone leaves a glowing review, thank them personally and let them know how much you appreciate their support.
Now, does a customer share a complaint? Acknowledge their frustration, apologize, and explain how you'll address the issue. Even if you can't make immediate changes, letting them know their voice has been heard goes a long way.
Creating a culture of improvement benefits both your business and your clientele. It encourages open communication and helps you continuously refine your products, services, and customer experience.
People are far more likely to stay loyal to a brand that communicates openly and delivers on its promises. And how about you, do you have an environment where clients know they can rely on you, even if things don't go perfectly?
"Transparent data practices will be crucial to address growing concerns. By combining cutting-edge technology with a genuine customer-centric approach, loyalty programs can amplify direct business impact and foster long-lasting customer relationships," says Rik Lutterman, Global Research Lead at Incentive Marketing Association. He emphasizes that integrity and ethics are non-negotiable if you want to earn and keep the continued backing of your customers.
Start by plainly communicating your policies, fees, and product details. Clear communication is the foundation of trust, and ambiguity often leads to confusion and frustration. To avoid this, make everything straightforward and easy to understand. For example, a return policy should be both accessible on your website and written in plain language to leave no room for misinterpretation.
Equally noteworthy is transparency about extra fees, such as shipping or setup costs. You can prevent misunderstandings and foster goodwill by disclosing these upfront during the purchase process. Remember, while surprises are delightful when it comes to gifts, they can quickly sour the experience when it comes to billing.
"With stricter data privacy regulations, compliance with laws like GDPR will necessitate securing sensitive information and enhancing transparency, potentially requiring system upgrades," explains Jure Leko, Loyalty Marketing Manager at Studenac Market. He highlights the importance of safeguarding customer trust by prioritizing data protection, ensuring transparency in data handling practices, and investing in technological advancements to meet regulatory requirements.
When mistakes happen, and they inevitably will, it's crucial to admit them openly and take immediate corrective action. Clients understand that no business is perfect, but how you handle errors can make or break their trust. Addressing issues head-on with sincerity and solutions demonstrates your commitment to customer satisfaction levels.
When the wrong item is shipped, acknowledge the error, apologize sincerely, and provide a solution, such as sending the correct item free of charge. Taking responsibility and resolving mistakes demonstrates that you appreciate your clients and their experience.
Transparency also involves setting realistic expectations. Overpromising on delivery times, product features, or services can lead to disappointment. Explicit and achievable expectations from the outset increase customer satisfaction. When changes occur, such as a shipping delay, proactively communicate with the customer, provide an explanation, and offer possible alternatives.
"[...] trust will be huge, so companies will have to be upfront about how they're using data," states Hadie Perkas, CEO at the European Loyalty Association. Proactive updates can often turn potential dissatisfaction into opportunities for loyalty. When people know you'll be upfront with them and take responsibility when things go wrong, they'll likely stick with you over the long term.
Customers expect an experience that feels meaningful and engaging. Delivering additional benefits beyond what they purchase is a powerful way to build loyalty and create a deeper connection with your audience. As James C. Anderson and James A. Narus highlight in their Harvard Business Review article, "Business Marketing: Understand What Customers Value," understanding and delivering what clients truly care about is essential for fostering strong relationships.
One way to provide added benefits is by offering educational content. Think guides, tips, or webinars that help your clientele get the most out of what they've bought or teach them something new. A kitchenware brand might provide cooking classes, recipe e-books, or live webinars on mastering specific culinary techniques. In the tech space, tutorials and troubleshooting guides can make a massive difference. Such content positions your brand as a helpful resource and aligns with Anderson and Narus's emphasis on delivering value that resonates with people.
Fostering community engagement is a fantastic way to connect with your audience more deeply. Creating forums, social groups, or online spaces where your audience can interact with your brand and each other can be highly effective. A beauty brand might build a sense of community by starting a Facebook group where people share tips, looks, and product recommendations. Engaging in these spaces, whether through answering questions or sharing exclusive content, makes clients feel like they're part of a community rather than just another number in your database.
Celebrating milestones and rewarding clients' commitment shows your appreciation, turning ordinary clients into passionate brand advocates. "One of the biggest challenges we face is retaining active members. As engagement fluctuates, keeping members consistently involved and loyal requires continuous innovation and personalized experiences to maintain their interest," says Irene Wu, CRM and Loyalty Manager at Decathlon Digital. Even small gestures can make a big difference in showing appreciation.
Start by recognizing achievements. Whether it's a customer's anniversary with your brand, a birthday, or reaching a certain spending threshold, acknowledging these moments makes users feel special. For example, send a personalized email or a small reward like a discount code on their anniversary or birthday. Even a simple message like "Happy 2nd Anniversary with us! Here's 20% off your next purchase as a thank-you to use in the loyalty app" can leave a lasting impression.
Featuring loyal customers on your platforms is another way to show appreciation. Highlight their stories, testimonials, or photos on your social media, website, or newsletters.
Next, hosting exclusive events can take your loyalty program to the next level. Private sales, VIP-only webinars, or in-person gatherings are great ways to make your top customers feel like they're part of an exclusive club.
At the heart of customer loyalty lies trust, and trust is built on consistent quality and reliability. When customers know they can count on your brand to deliver a great product or service every time, they're far more likely to stick with you and recommend you to others.
The first step is to ensure consistent excellence across every touchpoint. Think of it this way: every interaction (through a website, in a store, customer service, or the product itself) should meet or exceed expectations. Examples? If you're a restaurant, people expect the same high-quality food and service every visit. On the other hand, if you sell products online, your packaging, shipping, and product quality should always be flawless.
"A major challenge is ensuring alignment between the loyalty platform or technology and the overarching marketing strategy and execution. This involves integrating the right tools and platforms seamlessly so they support and amplify marketing efforts rather than creating friction or gaps. Misalignment can result in a disjointed customer experience, reduced program effectiveness, and underutilized technology investments," advises Mike Bossard, Loyalty + MarTech Architect/Strategy Executive.
One strategy for impressing buyers is to underpromise and overdeliver. This doesn't mean setting unrealistic expectations but rather managing customer anticipation wisely and then exceeding it.
"Success will come from building effective, transparent, and efficient programs that deliver undeniable ROI – without the need for expanded teams," suggests Iain Pringle, Managing Partner at New World Loyalty.
Do you estimate a delivery time of five days? Aim to deliver it in three. When you promise a certain level of service, surprise your clientele with something unique – a handwritten thank-you note, a small bonus product, or exceptional customer support. These pleasant surprises leave a lasting impact and make your brand stand out.
Delivering quality and reliability also means addressing issues proactively. If something goes wrong, such as a delayed order or a defective product, own the mistake and resolve it quickly. Honest and swift resolutions can even turn mistakes into opportunities to build stronger customer relationships.
Keeping your customers happy and coming back is what makes a business thrive. These are the people who choose you, even when there are countless alternatives. They're your backbone, and, ultimately, your greatest asset for long-term success. Let's break it down.
Retaining a customer is far more cost-effective than acquiring a new one. On top of that, loyal clients tend to spend more over time. They trust your products or services and are willing to explore your offerings. It creates a snowball effect on your revenue – the longer they stay, the more they contribute to your bottom line. The consistent cash flow from the average repeat customer can also act as a safety net during challenging times.
Faithful clients don't just stick around, they talk about you, too. When someone loves a product or service, they naturally want to share their excitement. Whether it's through word-of-mouth recommendations, social media shoutouts, or positive online reviews, these buyers become your unpaid but highly effective marketers. Referrals are incredibly valuable because they come with built-in trust. When a friend or family member says "You've got to try this," the chances of someone taking action are significantly higher.
At the core of loyalty lies an emotional connection. Clients who feel recognized and understood are more likely to stick with a brand, even when faced with more affordable or newer options. It's about trust, authenticity, and the sense that a brand aligns with their values.
Customer loyalty comes down to one thing – a great experience. If people love doing business with you, they'll keep coming back. That means delivering quality products, making interactions easy and enjoyable, offering top-notch customer service, and creating a brand people actually connect with. Personal touches, like remembering their preferences or rewarding them for their time, can go a long way in making customers feel valued.
Want to know if your customers are truly loyal? Here are a few key ways to track it:
Learn more about loyalty program metrics.
Small businesses actually have an advantage when it comes to loyalty – personal connections. Here's how to build that:
Loyalty for small businesses is all about building real, lasting relationships, not just making a sale.
Several factors influence whether customers stick around or jump ship. Here are the biggest loyalty boosters:
At the end of the day, loyalty comes from making customers feel valued, heard, and understood.
While customer loyalty and brand loyalty are often used interchangeably, they are not the same. Understanding the difference is crucial for businesses looking to build long-term relationships with their customers.
Customer loyalty is primarily driven by price, rewards, and convenience. Customers stay loyal because they get tangible benefits such as discounts, promotions, or rewards. However, this type of loyalty can be easily swayed – if a competitor offers a better deal, customers may switch.
Key characteristics:
Building brand loyalty, on the other hand, is about trust, emotional attachment, and shared values. Customers stay with a brand because they genuinely prefer it over others, regardless of price or incentives. They are less likely to switch, even if a competitor offers a cheaper alternative.
Key characteristics:
Loyal customers are advocates, ambassadors, and a reliable source of sustained growth. If you focus on building trust, creating meaningful connections, and going above and beyond in the customer experience, you can turn occasional shoppers into lifelong fans of your brand.
The strategies shared here, from providing an outstanding customer service team to creating engaging loyalty programs and acting on customer feedback, are designed to help you foster strong bonds. So, don't treat them as just theoretical ideas but actionable steps that can make a real difference in how your people perceive and interact with your business.
Now is the time to start implementing these strategies. Assess your company's situation in terms of building customer loyalty and choose one or two areas to focus on first. Whether it's improving your customer service, adding a personal touch, or creating a seamless omnichannel feeling, each step you take will bring you closer to building a loyal base.
Don't forget to measure your progress. Track key metrics like customer acquisition results, customer retention rates, repeat purchases, behaviors, and satisfaction scores to see how your efforts pay off. Because in the end, loyalty is earned, one step at a time. Start earning today!
API-first loyalty and gamification engine
Get a weekly dose of actionable tips on how to build and grow gamified successful loyalty programs!
