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.

In this article:

Customers stay engaged when a reward is in sight. To check yours, go to Customers, filter Member status to Enrolled, and sort by Points. Compare your members' balances with the points cost of your cheapest reward.

We recommend setting up multiple rewards that your customers can work towards. The more rewards available, the happier the customer. We recommend giving 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.

You can set these up as a flat or percentage discount reward.

A variety of rewards gives customers options, which creates a happier customer. Everyone loves free shipping, and it is 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 tiers only, to ensure your most loyal customers have plenty of choice in how to spend their points.

You can set this up as a free shipping reward.

This reward helps you manage your inventory more efficiently. You can use it to promote new items in stock, or to encourage purchases of items that are not selling well.

Tip: The free product reward is the second most attractive reward, with 63% of consumers deciding to join a loyalty program because of it. Access to different types of free product reward could increase in value as customers spend more and move through your loyalty tiers. Alternatively, you could reduce the points cost of the same product reward for customers in your top tiers.

You can set this up as a free product voucher reward.

Use this reward to help manage your inventory more effectively. It also works well for promoting a new product range, a seasonal collection, or the loyalty program itself.

Tip: If you notice a dip in orders within your LoyaltyLion analytics, promote a specific collection. Because this reward can be made exclusive to specific loyalty tiers, you can use it to promote the benefits of higher tiers by encouraging customers to spend more to access them. Don't forget to advertise these special rewards to your customers by social media or email.

You can set this up as a product or collection discount voucher.

You can create custom rewards to perform actions, or provide rewards, that do not fit the standard LoyaltyLion reward types. These are fulfilled either manually or through a webhook. Setting up a custom reward that fulfills automatically through a webhook is a technical process, so please involve your developers. Manual fulfillment suits very exclusive, valuable rewards designed to be redeemed rarely, perhaps by customers in your highest tier.

Tip: This reward could be anything. Analyze your customers' preferences to make sure the reward is relevant to your store. Exclusive experiential rewards for customers in your top tiers make your most loyal customers feel like VIPs, and could include access to VIP events in person or online, such as training sessions, Q&As, tours or parties.

You can set this up as a custom reward.

To learn more about loyalty strategy, data and customer retention, take a look at LoyaltyLion Academy.

Need help customizing your program? Hire an expert here!