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Loyalty program marketing: The power of offline promotion

Paweł Dziadkowiec
Paweł Dziadkowiec
Loyalty Expert
Weronika Masternak
Weronika Masternak
Content Writer
Loyalty program marketing big cover
Market insights

Loyalty program marketing: The power of offline promotion

Boost your offline loyalty program marketing! Discover key theories, smart promotion tips, success stories, and easy ROI measurement techniques.

Offline advertisements and promotions still pack a punch when it comes to building loyalty. Just imagine how rewarding customers at every step, right in your store or any other offline spot, can enhance customer interaction. 

Are you interested in exploring effective offline promos and marketing tactics? This article is your cue to adopt strategies that elevate experiences and fortify the connection between your brand and the audience.

Browse the popular and expert-recommended offline marketing techniques to make your loyalty program stand out.

What is the marketing theory of loyalty programs?

The marketing theory behind loyalty programs centers on the idea of creating, enhancing, and sustaining customer loyalty to a brand or business. Loyalty programs encourage repeat purchases and increase customer engagement by offering rewards, discounts, and special benefits.

Learn more about the main ideas behind promoting loyalty programs.

1. Behavioral loyalty vs. attitudinal loyalty

Behavioral loyalty, characterized by customers repeatedly purchasing from the same brand/business, is the primary focus of many loyalty schemes. These programs aim to increase the frequency and volume of purchases by offering enticing rewards for continued patronage.

In contrast, attitude-based loyalty reflects a more profound emotional attachment or loyalty to a brand. Loyalty programs targeting this form of allegiance seek to build a positive emotional connection and improve the overall customer experience through personalized rewards. This encourages repeat purchases and cultivates a more meaningful customer-brand relationship.

2. Reward systems

A points-based loyalty program allows members to earn loyalty points for purchases, which can be redeemed for rewards. These systems provide clear and direct incentives that motivate customers to keep shopping and accumulate points. To keep points-based loyalty programs attractive and fair, it's necessary to define how many points equal a reward.

Another effective strategy is tiered programs. These offer a rewards structure based on customer spending or engagement levels, with higher tiers providing more exclusive benefits. This approach motivates members to spend even more to reach upper levels, fostering a sense of status and achievement.

Cashback or discount programs offer another effective way to encourage repeat purchases alongside point-based and tiered programs. In these schemes, customers receive a percentage of their purchase amount back as a discount on future transactions. This provides immediate and tangible savings, encouraging people to keep coming back.

3. Customer retention and acquisition

Loyalty programs are designed to retain existing customers by rewarding their continued transactions, which helps reduce churn rates. Foster a sense of appreciation and value by consistently recognizing and rewarding customers. 

Plus, appealing loyalty programs can attract new customers looking for great perks. Promote your program to draw in new clients who will find value in joining and staying engaged with your rewards system.

4. Personalization and customer data

A significant advantage of loyalty programs is the collection of core data, such as purchase history and customer preferences. This data can be utilized to customize loyalty marketing activities and offer personalized rewards. Moreover, understanding your audience better through this data allows for more relevant and targeted offers.

Incorporating offline loyalty marketing strategies further enhances this approach. By analyzing customer data, you can offer highly relevant rewards to individual shoppers both online and offline, significantly enhancing their overall experience and satisfaction. Tailored rewards management, whether through in-store promotions, exclusive offline events, personalized coupons, or physical thank-you cards handed out right in the store, makes customers feel understood and appreciated, greatly increasing their attachment to the brand.

Source: https://www.card-bee.com/business-card-theme-customer+loyalty+voucher/ 

5. Economic theories

Loyalty programs can increase switching costs for customers. As members accumulate rewards, they may be less likely to switch to a competitor to avoid losing accrued benefits, creating a "barrier" to exit.

Similarly, loyalty programs aim to maximize customer lifetime value (CLV) by increasing overall spending and engagement with the brand. Only when you foster long-term relationships and encourage repeat purchases can you increase the value for each recipient.

6. Psychological theories

The principle of reciprocity suggests that when members receive rewards, they feel a sense of obligation to continue patronizing the business. This sense of giving back can strengthen your customer-business relationship.

The endowment effect posits that people value the rewards they've already earned and are more likely to continue engaging with the program to protect their "perceived value." This effect makes clients more committed to the loyalty program and the brand, as they want to retain the benefits they've already gained.

7. Social influence

Seeing others participate in and benefit from a loyalty program can encourage new users to join and existing customers to remain engaged. Such an influence can be truly powerful, as people often look to the behavior of others to guide their own actions.

Some loyalty programs create a sense of community among members through exclusive events or social interactions, fostering a deeper connection with the brand. The community-building aspect can build customer loyalty by making members feel part of something larger and more meaningful.

8. Gamification

Incorporating game mechanics such as challenges, leaderboards, and achievements can make loyalty programs more engaging and enjoyable for users, encouraging continued participation. These elements add a layer of fun and competition, which can motivate customers to engage more frequently and with more tremendous enthusiasm.

Gamification can transform routine transactions into exciting opportunities for members to earn rewards and achieve higher statuses within your program.

9. Network effects

Referral programs encourage customers to refer others to the loyalty scheme, creating network effects where the program's value increases as more people join and participate. This can lead to exponential growth in the client base, as each new member potentially brings in more referrals.

As your program grows, the benefits and rewards catalog should also expand, making the loyalty program more attractive and valuable to all members.

What is the stationary loyalty program promotion?

The stationary promotion of the loyalty program includes distributing content and promotional materials at physical locations, such as retail stores, service outlets, or other brick-and-mortar establishments.

This form of promotion aims to raise awareness and drive participation in the loyalty program among clients who are present at the location. Strategically placed promotional displays, signage, or handouts can attract the attention of potential customers and inform them of the benefits and incentives offered by the loyalty program.

The stationary promotion serves as a means to reinforce brand advocacy, encourage repeat visits or purchases, and foster stronger customer relationships by emphasizing the program's value proposition in a tangible and immediate context.

Source: https://www.elotouch.com/news/8-ways-digital-signage-helps-build-loyalty-in-retail 

How do you promote a loyalty program?

When promoting your loyalty program effectively, you must fully use a mix of strategies that leverage all available channels. Here, we'll delve into the key elements of promoting your loyalty program offline and how you can maximize them to increase member enrollment and engagement.

Visual merchandising

Create eye-catching displays that highlight the top benefits of your loyalty program. They should include using vibrant colors, engaging graphics, and interactive elements that draw customers’ attention. Place these displays in high-traffic areas such as store entrances, checkout counters, and product aisles to ensure maximum visibility.

Source: https://www.fixturescloseup.com/2018/08/09/loyalist-loyalty-program-sign-cubes/ 

Strategically placed signage and banners can inform visitors about the loyalty program and its perks. Use clear, concise messaging and ensure that the design aligns with the overall branding of your store.

Source: https://www.fixturescloseup.com/2021/10/28/express-insider-loyalty-program-floor-sign/ 

Banners can be hung from the ceiling, placed in windows, or positioned on walls, while smaller signs can be used on shelves or countertops to remind buyers about the program as they shop.

Express Loyalty Program Perks Signage
Source: https://www.pinterest.com/pin/114349278021906150/ 

Point-of-sale (POS) integration

Train your staff to actively inform people about the loyalty program during the checkout process. Provide them with a script or key points to mention, such as the immediate benefits of joining (for example, a discount on their current purchase) and the long-term rewards. Staff can also answer any questions customers may have and assist them in signing up on the spot.

Source: https://blog.hubspot.com/service/pos-system-customer-loyalty-program 

Use POS materials such as stickers on the checkout counter, brochures, and flyers that detail the benefits and sign-up process for the loyalty program. These materials should be easily accessible to customers as they wait in line or complete their purchase.

Additionally, consider using digital displays at the POS to show promotional videos or slideshows about your loyalty solution. Add an easy way to register for the loyalty program by displaying a QR code on wobblers or banners near the cash register, allowing customers to quickly and conveniently sign up using their smartphones.

Source: https://retailwire.com/discussion/macys-counts-on-new-rewards-program/ 

Event marketing

Organize events such as product launches, in-store demonstrations, or "customer appreciation" days where the loyalty scheme is a focal point. Offer exclusive deals, discounts, or early access to new products for loyalty program participants. These events create a sense of exclusivity and incentivize non-members to join to access these benefits.

The_Fresh_Market-Ultimate_Loyalty_Experience_program-store_signage.jpg
Source: https://www.supermarketnews.com/retail-financial/fresh-market-launches-its-first-shopper-rewards-program 

Partner with local businesses to create joint promotions that enhance the value of your loyalty program. For instance, a coffee shop could partner with a nearby bookstore to offer discounts or special deals to each other’s loyalty program participants. As you might guess, this broadens the reach of your loyalty scheme and fosters a sense of community and support among local businesses.

Source: https://www.capillarytech.com/blog/coalition-loyalty-programs-for-retail-brands/ 

Strategies for implementing stationary promotion

Implementing robust stationery promotion strategies can significantly boost visibility and engage your consumers. In the following section, you'll gain valuable insights into marketing tactics to enhance your stationery promotions, helping you forge a strong emotional connection with your audience.

Designing printed collateral

When designing printed materials, use vibrant colors, compelling imagery, and clear messages to grab eyeballs. For example, if you run a sandwich store, your flyers could feature enticing images of your specialty snacks alongside bold text highlighting your loyalty program benefits.

Opt for high-quality paper and printing techniques to show professionalism and add value. Consider using glossy finishes or embossed logos to make your materials pop.

Source: https://venngage.com/templates/brochures/customer-loyalty-program-brochure-428ed97a-641c-4f52-8aac-a4e1d9da3996 

Include clear calls to action (CTAs) to prompt people to take action, like visiting your store or taking advantage of a special offer.

For example, if you're offering a promotion such as "Buy 5, get 1 free" or "Get $5 for every 100 points," your signage must display this offer along with additional information, such as a QR code linked to a loyalty registration page.

Source: https://www.business2community.com/loyalty-marketing/7-inspiring-loyalty-campaigns-holiday-wish-list-01964979 

Additionally, consider creating a visually appealing loyalty card that matches your brand and highlights the benefits of returning to you. For example, a clothing boutique could design loyalty cards featuring their logo and a stylish design, with each purchase earning a point towards a future discount. Keep your loyalty program straightforward but rewarding to encourage repeat visits.

While traditional stickers and stamps have their charm and historical significance, they are considered a bit outdated. To be futureproof, focus on modern, digital methods for tracking and rewarding customer loyalty to ensure a seamless and contemporary experience. 

Source: https://www.thestampmaker.com/how-to-use-stamps-for-your-loyalty-program.aspx 

Offering exclusive perks or discounts to loyal customers will encourage them to return and spread the word about you. For instance, a spa could offer VIP membership program users early access to new services or exclusive discounts on premium treatments.

Source: https://jaensspa.com/partnership/ 

Leveraging direct mail

When sending out printed mailings, target them to specific groups based on their buying history, demographics, or interests.

For example, if you run a pet supply store, you could send personalized mailings to customers who have purchased dog food in the past, offering them a discount on their next purchase of treats or toys. Personalize the content to make it more relevant and engaging. Mention specific products or services that the recipient has shown interest in previously. 

Track the results of your mailings using unique codes or URLs to assess effectiveness. For instance, if you include a QR code on your mailing offering a special discount for loyalty program members, you can track how many recipients redeem the offer. 

Personalize your mailings with the recipient's name, past purchases, or product recommendations to make them feel special. Use variable printing technology to create customized mailers at scale. Don't forget to include QR codes or personalized URLs to direct people to your online content and promotions. For example, a local bookstore could send personalized mailers recommending new releases based on the recipient's past purchases, with QR codes linking to online reviews and author interviews.

However, note that printed mailings can be a costly and less productive solution compared to email marketing. Due to the high cost associated with printing and postage, direct mail isn't generally recommended. Email marketing offers a more cost-effective and efficient way to reach your audience with personalized content.

Source: https://www.uspsdelivers.com/harnessing-the-power-of-direct-mail-to-grow-customer-loyalty/

Community engagement

Engage with local events, fairs, or festivals that align with your brand's values and target audience. Showcase your products/services and connect with people in your community. For example, if you run a health food store, you could sponsor a booth at a local farmers' market, offering a free sample of your product and information about your loyalty program. Partnering with events can amplify your brand exposure through signage, materials, and social media. 

Invest in community initiatives like charity programs or environmental efforts to demonstrate your commitment beyond profit-making and foster strong connections with clients. For instance, a restaurant could donate a portion of proceeds from a special menu item to a local charity and promote the initiative through their loyalty scheme, offering bonus points to shoppers who order the charity item.

Encourage your team to get involved, whether through volunteering or supporting local causes. For example, a store could organize a team volunteer day to clean up a local park and promote the event through their retail loyalty program, offering bonus points to participating customers.

Read more about sustainable loyalty programs.

Source: https://www.business2community.com/sustainability/go-green-get-green-sustainability-in-loyalty-programs-02341369 

Successful offline customer loyalty program promotions

ALDO loyalty program example

ALDO, a renowned footwear and accessories brand, has effectively leveraged offline strategies to enhance their loyalty program. They use eye-catching and innovative window displays to draw attention to their loyalty program

These displays highlight the benefits of joining, such as exclusive discounts, early access to sales, and special members-only promotions. By placing these displays at the forefront of their stores, ALDO ensures that passersby and regular customers are consistently reminded of the perks associated with their loyalty program.

Source: https://www.openloyalty.io/clients/aldo 

ALDO also organizes exclusive in-store events specifically for loyalty program members. These events can include early access shopping hours, special meet-and-greet sessions with designers, or limited-time product previews. Such events make loyal customers feel valued and create a sense of community and excitement around the brand. These experiences are often promoted through in-store signage and personal invitations, reinforcing the sense of exclusivity and reward for loyal members.

Exclusive in-store events are a cornerstone of ALDO's loyalty program strategy. ALDO is gearing up to host a series of fresh experiential events, leveraging the insights gained from their inaugural pop-up store. These events are held to provide loyalty program members with even more exclusive opportunities to engage with the brand.

The brand's emphasis on data-driven decision-making underscores their dedication to delivering meaningful experiences. ALDO leverages insights and feedback to tailor their in-store events to better resonate with their audience, ultimately fostering stronger brand loyalty and customer engagement.

In addition to their commitment to in-store events, ALDO is also making waves with the innovative "Pillow Talk" initiative. Inspired by the intimate conversations shared between friends, ALDO's Pillow Talk series brings people together in a unique setting to discuss fashion, style, and personal experiences. 

These sessions offer a platform to engage customers in candid discussions with ALDO's team of stylists, designers, and industry experts. Pillow Talk events provide valuable insights into people's preferences and trends by fostering authentic connections and dialogue, informing ALDO's product offerings and marketing strategies.

Read the full ALDO case study.

Source: https://www.modernretail.co/marketing/fresh-off-its-first-pop-up-aldo-is-planning-more-experiential-events-for-2024/ 

Coffee shop loyalty program example

Coffee shops, both independent and chain establishments, often implement unique offline methods to promote their customer loyalty programs. Many coffee shops use table tents and menu inserts to communicate the benefits of their loyalty programs

These physical marketing materials are placed directly on tables and within menus, ensuring coffee admirers see them as they enjoy their coffee or browse the menu. Such inserts typically highlight the program's rewards, such as free drinks, discounts, or special promotions for members, encouraging sign-ups and regular participation.

Source: https://www.plasticprinters.com/table-tents 

Another engaging strategy is hosting monthly tasting events exclusively for loyalty program members. These events offer a unique opportunity for members to sample new coffee blends, seasonal specialties, or even exclusive products yet to be available to the general public.

Coffee shops create a deeper connection with their loyal customers through memorable experiences, fostering a sense of belonging and appreciation. Events can be promoted through in-store posters, flyers, and direct invitations to loyalty members, ensuring that the most dedicated users are aware and excited about participating.

Read the top 10 successful examples of coffee loyalty programs.

Source: https://www.slidegeeks.com/coffee-shop-promotion-events-and-loyalty-programs-inspiration-pdf 

Measuring ROI of customer loyalty programs promotion

Tracking sign-ups and engagement metrics

Track sign-ups and engagement metrics to effectively measure your loyalty program promotions' return on investment (ROI). These loyalty metrics will help you understand how well your promotion attracts new members and their engagement with the program.

Sign-ups tracking

  • Initial sign-ups. Monitor the number of new customers enrolling in the loyalty program during and after the promotion period.
  • Growth rate. Compare the rate of sign-ups before, during, and after the promotion to identify any significant spikes.

Engagement metrics

  • Active participants. Track how many members are actively using the loyalty program (for example, making the first purchase or redeeming rewards).
  • Usage frequency. Measure how often members engage with the program through various activities like redeeming points, checking balances, or participating in special events.
  • Customer feedback. Collect and analyze feedback from loyalty program participants to assess satisfaction and areas for improvement.

Analyzing sales data before and after promotion efforts

Spot the impact of your loyalty program promotions on sales and analyze sales data from both before and after the promotion. Only this comparison will help you identify positive changes directly attributed to your promotional efforts.

Baseline sales data

  • Historical sales. Before you run promotions, compile sales data from previous periods. Establish a baseline for comparison.
  • Segment analysis. Break down sales data by loyalty segments (for example, new vs. returning customers or high-value vs. low-value customers).

Sales data post-promotion

  • Sales growth. Measure the increase in sales attributed to loyalty program members after the promotion.
  • Average transaction value. Compare the average transaction values of loyalty program participants before and after the promotion.
  • Repeat purchases. Analyze the frequency of repeat purchases by loyalty program members to gauge the promotion’s effectiveness in driving repeat business.

Calculating return on investment (ROI) for offline promotions

Estimate the ROI for your offline promotions and assess both the costs associated with the promotion and the revenue generated as a result. The in-depth analysis helps you understand your promotional activities' financial impact.

Cost of promotion

  • Direct costs. Include all expenses directly related to the promotion, such as advertising, materials, staff time, and any incentives or rewards offered.
  • Indirect costs. Account for any indirect costs, such as overhead, logistics, and opportunity costs.

Revenue attribution

  • Incremental revenue. Calculate the additional revenue generated as a direct result of the promotion, distinguishing it from regular sales growth.
  • Customer Lifetime Value (CLV). Estimate the long-term value of customers acquired or re-engaged through the promotion to include in the ROI calculation.

ROI calculation

  • ROI formula. Use this formula to calculate ROI: Incremental Revenue - Cost of Promotion) / Cost of Promotion.
  • ROI analysis. Interpret the ROI results to determine the financial effectiveness of the offline promotions. A positive ROI indicates a successful promotion, while a negative ROI suggests a need for strategy reassessment.

Overcoming challenges in stationary promotion

Budget constraints

When working with a tight budget, get creative with what you already have. Use in-store signage and digital displays to catch recipients' eyes. Design attractive posters, banners, and screen ads that showcase the perks of your loyalty program.

Source: https://www.pymnts.com/news/loyalty-and-rewards-news/2021/63-of-grocery-store-shoppers-say-loyalty-programs-influence-where-they-shop/ 

Adapting to changing consumer behavior

Staying relevant means adapting to how customers' preferences change. Regularly analyze insights to understand their shopping habits and tailor your loyalty program accordingly. Implement feedback mechanisms like surveys or suggestion boxes to gather insights and make necessary adjustments.

So, how do you incentivize loyalty? Opt for flexibility and be open to integrating offline elements with online ones, such as a simple mobile loyalty app to use in the stationery store. Make the program more accessible and appealing to tech-savvy customers – just like Target did with the Circle rewards program!

Source: https://retailwire.com/discussion/will-a-loyalty-program-give-americans-more-reasons-to-shop-at-target/ 

Getting people to join

Once you have your loyalty program, you might wonder: How do I get people to join my loyalty program? Attracting members to your loyalty program starts with a clear value proposition.

Highlight the benefits of joining, like exclusive discounts, early access to sales, and special promotions. You can also try referral rewards to reward customers for each qualifying on-site registration when someone brings a friend, parent, or other close friend to the store. Additionally, integrate offline strategies by promoting your loyalty program through in-store signage, flyers, and at point-of-sale interactions. Encourage staff to inform and remind customers about the program during their in-person visits.

Make the enrollment process as simple as possible, whether it's a quick sign-up form at checkout. Offer a compelling incentive for signing up, such as a discount on the next purchase, bonus loyalty points, or a small free gift. Personalize the program using collected data to offer tailored rewards and recommendations, making people feel valued and understood (and spend money on your offerings). Consider using printed materials like membership cards or brochures that explain the benefits and can be handed out during transactions.

To keep clients hungry for your solution, consider a tiered rewards program where they earn more benefits the more they spend. This encourages ongoing engagement and higher spending. Offer unique, non-monetary rewards like exclusive events, early access to new products, or personalized shopping experiences.

Source: https://retailpharmacymagazine.com.au/dds-launches-discountplus-loyalty-program/ 

Encourage members to refer friends and family by offering referral bonuses, which can help grow your customer base. Every now and then, surprise your loyal customers with unexpected rewards or perks. This can create positive emotions and strengthen their bond with your brand. Strategically addressing these challenges to effectively promote and grow your loyalty program, even with limited resources.

Summary

Offline loyalty program promotion is a powerful marketing tool that rewards customers and fosters both behavioral and attitudinal loyalty. Simple tricks such as using reward systems, personalization strategy, user-generated content, economic and psychological principles, and social influence can keep customers excited and engaged.

Use the loyalty marketing tactics outlined in the article to spread the word about your loyalty program effectively. Don't lose focus! Stick to an approach that boosts customer retention, encourages spending on your offerings, and ultimately drives long-term profitability. Make your customers happy and connected both offline and online for a truly comprehensive loyalty experience.

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