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Optimizing your rewards

Our top tips for optimizing your rewards to improve customer engagement with your program

Success team avatar
Written by Success team
Updated over 9 months ago

In today's competitive market, rewarding your customers through a loyalty program is the key to encouraging repeat purchases. This article explains how you can implement a variety of valuable rewards that will differentiate your brand from your competitors, strengthen your relationship with your customers, and lead to increased engagement.

To see which plans include Loyalty Tiers please see our pricing page. If you would like to add Loyalty Tiers to your account, please contact support@loyaltylion.com.

In this article: 


Money off and percentage discount

We recommend that you set up multiple rewards that your customers can work towards. The more rewards available the happier the customer. We recommend that you give a maximum of 5% back. 

Tip: Money off rewards are the most popular reward. Research states 71% of consumers decide to join a loyalty program because of money off every purchase. It is encouraged to make the most valuable discount rewards exclusive to your higher tiers because this will encourage customers in your lower tiers to spend more to be able to access the highest value rewards.

Free shipping voucher

Variety of rewards provides customers with options which creates a happier customer. Everyone loves free shipping and this will be an easy cost to calculate

Tip: If you have a lot of international customers we recommend setting a maximum shipping rate. You could make this a staple reward that is exclusive to your highest tier(s) only, to ensure your most loyal customers have plenty of choice in how to spend their points.

See Reward: Free shipping on how to set this up

Free product

This rewards will help you manage your inventory more efficiently! You can use this rule to promote new items in stock or to encourage purchases on items that are not selling well.

Tip: The free product reward is the second most attractive reward where 63% of consumers decide to join a loyalty program because of this reward. Customer’s access to different types of free product rewards could increase in value as they spend more to move through loyalty tiers. Alternatively, you could discount the cost of the same product reward to customers in your top tiers by decreasing the cost of the product in points per tier.

See Reward: free product voucher for how to set it up

Discount on specific product

Use this reward to also help you manage your inventory more effectively. Alternatively, this reward can also be used to promote a new product range to increase future purchases, a seasonal collection, or the loyalty program itself!

Tip: If you notice a dip in your orders within your LoyaltyLion analytics why not promote a specific collection. Because this reward can be made exclusive to specific loyalty tiers, this reward could be used to promote the benefits of the higher tiers by encouraging customers to spend more to access these exclusive benefits. Don’t forget to advertise these special rewards to your customers via social media and/or email!

See Reward: product discount (voucher) for how to set it up

Custom rewards

You can create custom rewards to perform actions or provide rewards that don’t fit into the standard LoyaltyLion reward types. These rewards can be fulfilled in one of two ways: manually or via a webhook. Setting up a custom reward that fulfils automatically via a webhook is a technical process so we ask that you please involve your developers. Manual fulfilment is perfect for very exclusive and valuable rewards that are designed to be redeemed rarely, perhaps by customers in the highest loyalty tier

Tip: This reward could be ANYTHING! Make sure to analyse your consumer preferences to ensure the reward is relevant to your store. Exclusive experiential rewards for customers in your top tiers make your most loyal customers feel like VIPs. Experiential rewards could include granting access to VIP events (in person or online), such as training sessions, Q&A’s, tours, parties, etc.


See Reward: custom reward for how to set it up


Need help customizing your program? Hire an expert here!

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