If your loyalty management program is showing signs of fatigue with dropping customer engagement levels and a decreasing number of new sign-ups, it’s time to optimise your rewards and promotions strategies. Here are some strategies to ensure that the rewards you roll out are more effective and impactful:

Tangible Benefits

An important part of any customer loyalty program is to effectively communicate the benefits of the same to customers. When customers are able to clearly see the benefit of an offer – X% off; gift voucher worth $X; free product on every nth purchase – they are much more likely to find it lucrative. Furthermore, in order to really appeal to your customers, the benefit should be of significant value. Discounts should at least be in double digits, and gift card values must be at least 10% of the purchase value. Thus, your rewards must offer a clear-cut saving, either in percentage or monetary terms.

Clear Terms & Conditions

The importance of clearly putting across the eligibility terms and conditions cannot be emphasised enough. Customers who visit your store in hopes of redeeming an offer, only to find out that they are ineligible due to a minimum purchase requirement, or any other hidden clause, are likely to be disappointed and might even feel cheated. An intelligent Loyalty Software for Business can help you engage and inform your customers of new offers and be helpful in explaining the eligibility, terms, and conditions of the offer. Having a simple and uncomplicated customer rewards program will naturally help in this case.


Restricting the deal to limited products and services might seem like a smart strategic decision, but it can backfire. Studies have shown that when customers have the flexibility to use a discount or an offer as per their discretion, they are much more likely to respond to it. For example, in a restaurant, offering any free dessert on minimum order will prove to be much more popular than offering a predetermined fixed item (say a cupcake). Again, a Loyalty Software for Business can help you identify customer behaviour and choices, and target them with offers that match their preferences.

Unexpected Bonuses and Surprises

Nothing can pull back a disengaged customer back in like a generous rewards bonus! The purpose of rolling out bonus offers for existing customers is to increase their lifetime value and encourage them to engage with your brand more frequently. These offers can also be used to introduce new products and services, or even garner feedback for existing ones. Similarly, new customers can be offered a joining bonus in the form of bonus loyalty points or a free product. Do not forget, a critical part of giving customers bonus rewards is the messaging – the idea is to communicate how much you value your customers.

Remember, effective customer loyalty programs do not bombard customers with multiple discounts, but offer rewards are valuable, personalised, irresistible, and communicated clearly. These strategies will not only help you in retaining existing customers, but also help you attract new ones. In case you’re in the market for an effective, cloud-based, and intuitive Loyalty Software for Business, make sure you get in touch with us to know more about how Loyera can help your business.

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