Customer loyalty programs have proven to be an effective tool for increasing customer retention and engagement. However, not all loyalty programs are received equally well by customers. While some of the most successful loyalty programs have managed to reverse flagging business fortunes, others have fallen flat on their face. Let’s take a look at what makes a successful customer rewards program:


Simply put, your Loyalty Program Software needs to be simple and efficient. In addition to being easy-to-understand for your customers, your staff should require no training to use it. Furthermore, intelligent Loyalty Program Software systems should seamlessly integrate with POS terminals and framework, and offer real-time analytics-based reports on engagement, redemption and sign-ups. In addition to doing all the heavy-lifting, a successful loyalty management software solution should simplify the management of loyal customers, rewards, and employees. Some of the most successful rewards programs have a simple points-based system or a self-explanatory tier-based design.


There’s nothing more discouraging for a shopper to be told during checkout that he/she is ineligible for a certain offer or discount as a result of some lesser-known condition of the program. Make sure you reward offers are designed to be as inclusive as possible and communicate the terms and conditions upfront. Furthermore, avoid ambiguous and vaguely worded marketing campaigns that seem too good to be true. Make sure that the offers and rewards you are offering are in line with your overall rewards strategy and appeal to customers in a direct, yet personalised, manner.

Low Entry-Barriers

Signing up for the loyalty program should be a simple one-step process. The customer should only have to provide his or her contact details and should instantly receive a welcome message in real-time. The importance of a quick and seamless on-boarding process cannot be emphasised enough, for it is the very first time a customer interacts with the Loyalty Program Software. A glitch-free and positive experience at this stage is likely to reap rich dividends for the future and increase the lifetime value of the customer. Furthermore, if the customers have to sign up for the program themselves, make sure they can do so with their mobile.

Positive Reinforcements

At the core of every successful customer loyalty program is effective positive reinforcements for frequent purchases and redeeming points. Make sure your rewards strategy benefits high-value customers and is able to communicate the same to them. If loyal customers engage positively with any of your offers and promotions, they should be encouraged to do more of the same. Don’t worry; there is a world of difference between reinforcing positive shopping behaviour and simply bleeding cash to attract customer attention. For starters, the former requires careful strategising and designing of rewards, and the latter offering blanket rewards without much thought.

If you require a feature-rich cloud-based Loyalty Program Software solution for your business, make sure you get in touch with us to understand how Loyera can benefit your business. In addition to offering a seamless loyalty solution, Loyera also integrates POS and E-Commerce functionalities, all absolutely free of cost!

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