• Posted by admin 19 Nov


From our previous posts, I received numerous emails asking how loyalty programs can help increase customer visits and decided to share our thoughts so we can all hopefully gain a tip or two.

From our experience with clients in Nigeria, Loyalty Programs increase both the value (emotional & financial) of your customer relationships and also your revenue. A recent study shows that 60% of consumers consider loyalty reward programs as an important factor in their buying decisions. Loyalty programs (unlike Promotions in which your businesses experience a hike in sales / revenue when you have a promotion running and a dip when the promotions end) are designed around relevant rewards and incentives that encourage frequent visits and increased spending.

As we know, attractive incentives are the main driver for customer buying behaviour , as they provide a value exchange between your business & your customers. By setting both attainable and aspirational rewards, you can motivate members to visit more often. By allowing instant rewards, you’ll appease the customer seeking instant gratification and by offering greater rewards that require more visits, you’ll capture the attention of your most dedicated guests.

Your program will be successful if you plan around the needs of your customer and understand the monetary value of each reward as loyalty isn’t about giving out freebies all the time, it is primarily about encouraging incremental spend!!! Rewards should engage and entice members while being mindful of setting workable limits to maintain the cost of rewards.

The value exchange of your program should start as soon as customers get enrolled. It is important to design programs that add value to each customer and not 1 out of 1,000 customers. All customers need to be engaged for the span of their lifetime as it costs 6 – 7 times more to acquire a new customer than to keep an existing one, so for that reason alone, customer engagement is key. Last week, a colleague found an old cheque book that hadn’t been used for a while (3 years) as she moved around a lot, she totally forgot the account existed and over the years, had opened other accounts, on seeing the cheque book, her first response was ‘ I am going to move my money from this bank’ simply because, they totally forgot about her, although she did say she was called once in the span of 3 years.

For businesses with loyalty programs, you can tell what your customer spends on and then send targeted communications to them with relevant offers which will drive a higher percentage of customers back to your store in less time and with less money spent. Use incentives and time-based promotions to drive more frequent visits and measurable incremental purchases. This is the best combo, and the most effective way to bring your customers back!

I was fortunate enough a few weeks ago to be contacted by a UAE Airline of which I am a member of their loyalty program; informing me of my accumulated points and offered me 2 free nights with one of their partner hotel as well as allowing me to pay 50% of my ticket cost with my accumulated points. The airline did inform me that I’d need to stay a minimum of 5 nights at the hotel however. But imagine ….. the additional income for the airline for a seat they otherwise may not have sold, and the additional income for their partner hotel – 3 nights paid, meals for 5 days and other sundry expenses – all paid in cash; simply because the airline made me a relevant offer. Well the Airline definitely has 1 more hooked customer who’d use them again and again.

How can you be this creative in rewarding the customers of your business? I hope this helps get your creative juices flowing.

Please feel free to reach me any time on

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