5 reasons customers join loyalty programs

 What makes customers willing to join your loyalty program?

As a retailer, you probably already know the importance of having loyalty program and building loyal customer base. Numerous studies show that:

• loyal customers are more likely to repurchase, spread word, or try a new offering;
• repeat customers spend more on each transaction;
• loyalty programs make customers distinguish your brand from other competitors and also make customers feel valued.

Latest surveys show that the average shopper is part of 15 different loyalty programs, but have you ever wondered what drives customers to join them? Are customers just looking for discounts and rewards or do they have other expectations?

We find out 5 main reasons why customers choose to be part of loyalty program:

1. Emotional connection
Customers expect you to care about them, therefore 79% of shoppers only consider brands that builds the emotional bond.
You can show your customers that you care by offering birthday gifts or rewarding them for something that previously went unnoticed.

2. Exclusivity
Quite often customers join loyalty programs because they want to feel special and part of an elite group.
Loyalty program with tiers and increasing benefits ensures your customers are able to redeem points in the ways they prefer and keep them engaged at every stage in their rewards journey by encouraging them to increase their basket sizes. 50% of customers say they would change their behavior to attain a higher tier of the customer loyalty program.

3. Financial benefits
It’s no surprise that 57% of customers join loyalty programs because they want to save money.
The easiest way to offer such a possibility is a point program. By giving customers points that can be cashed in for discounts on future purchases you ensure a satisfying rewards experience and encourage customers’ retention.

4. Freedom of choice
Possibility to choose a reward is one of the biggest benefit of being part of the loyalty program.
Knowing what drives and motivates your customers and offering possibility to redeem points on both large and small rewards is important to make sure that every customer can benefit from your loyalty program.

5. Memorable experience
Customers expect a beautiful, polished brand experience whenever interacting with your business.
By building a beautiful rewards program your aim should be to evoke an emotional connection between your customers and your brand and effectively convey your brand’s value.

Understanding what drives customer loyalty is an important step for building your marketing strategy and creating a great loyalty program. If you are looking for custom and innovative solution for your loyalty program, contact us to discuss the possibilities.


  1. https://info.bondbrandloyalty.com/loyalty-report-2019
  2. https://sloanreview.mit.edu/article/why-customer-experience-is-key-for-loyalty-programs
  3. https://www.prnewswire.com/news-releases/wunderman-study-reveals-79-of-consumers-only-buy-from-brands-that-prove-they-care-about-earning-their-business-300386618.html
  4. https://www.annexcloud.com/blog/customer-loyalty-programs-10-benefits/