Points-Based Loyalty Strategy

Rewarding customers with points for purchases and engagement, which can be redeemed for discounts or freebies. This strategy encourages repeat business and boosts customer loyalty but requires careful management to keep it appealing and cost-effective.

Related Tactics

Name Description Difficulty Cost
Analyse loyalty programme data to identify trends and refine offerings By analyzing loyalty program data, you can spot trends and improve yo…
Intermediate
Medium
Collaborate with complementary brands to offer joint rewards in loyalty programmes Team up with brands that complement your own and offer joint rewards …
Intermediate
Medium
Collect customer data during the pop-up for future marketing efforts Collecting customer data during a pop-up helps you keep in touch with…
Intermediate
Medium
Continuously refine tier benefits based on customer feedback and behaviour Always tweak your tier benefits based on what customers are saying an…
Intermediate
Medium
Create a personalised experience for loyal customers, such as early access to sales Offer your loyal customers something special with early access to sal…
Intermediate
Medium
Create exclusive content or experiences for higher-tier members Craft special content or host unique experiences for your premium mem…
Intermediate
Medium
Create limited-time offers to create urgency and boost sales Create a sense of urgency and drive more sales with limited-time offe…
Intermediate
Medium
Create tiered rewards to encourage more significant engagement Tiered rewards offer a way to keep people interested by giving them b…
Intermediate
Medium
Develop a clear business plan outlining objectives, roles, and responsibilities Creating a business plan sets a clear path by defining goals, roles, …
Intermediate
Medium
Develop a comprehensive onboarding programme for new customers Planning how to introduce new customers to your product or service is…
Intermediate
Medium
Develop a customer loyalty programme to incentivise repeat purchases A customer loyalty program rewards repeat business by offering perks …
Intermediate
Medium
Develop a loyalty programme specifically for returning customers Creating a loyalty program for returning customers ensures they feel …
Intermediate
Medium
Develop a loyalty programme where customers earn points for every purchase A loyalty program where customers earn points for every purchase enco…
Intermediate
Medium
Develop a points exchange system between partnering brands Create a reward points exchange system where customers can earn and r…
Intermediate
Medium
Develop a referral programme to encourage word-of-mouth marketing A referral program encourages your existing customers to spread the w…
Intermediate
Medium
Develop a referral programme with clear incentives A referral program with clear incentives encourages your customers to…
Intermediate
Medium
Develop a tiered loyalty programme with escalating rewards Create a loyalty program with different reward tiers to keep customer…
Intermediate
Medium
Develop customer lifetime value models to optimise marketing spend Using customer lifetime value models helps you allocate your marketin…
Intermediate
Medium
Develop discount bundles to encourage higher volume purchases Creating discount bundles is a great way to get people to buy more. I…
Intermediate
Medium
Develop exclusive content or offers for loyalty programme members Creating exclusive content or special offers for loyalty program memb…
Intermediate
Medium
Develop multiple tiers in the loyalty programme with escalating rewards Multiple tiers in a loyalty program offer escalating rewards. Though …
Intermediate
Medium
Develop tiered discounts to encourage larger purchases Tiered discounts are like little rewards for shopping more; the bigge…
Intermediate
Medium
Develop tiered pricing models that align with customer value perceptions Use tiered pricing to appeal to different customer segments and maxim…
Intermediate
Medium
Encourage customers to move up tiers by increasing their purchase frequency or volume Increase customer loyalty by encouraging them to make more frequent o…
Intermediate
Medium
Encourage feedback through loyalty programmes or incentives Loyalty programs or incentives can really get your customers talking.…
Intermediate
Medium
Encourage repeat purchases through automated replenishment services Automated replenishment services automatically send customers the pro…
Intermediate
Medium
Encourage user participation through contests or challenges Hosting contests or challenges is a fun way to engage your audience. …
Intermediate
Medium
Ensure discount strategies align with overall brand positioning Aligning discount strategies with your brand ensures you attract the …
Intermediate
Medium
Follow up with attendees post-event with exclusive content or offers Post-event follow-ups with exclusive content or offers are a great wa…
Intermediate
Medium
Host customer appreciation events to strengthen relationships Customer appreciation events are a great way to connect with your cus…
Intermediate
Medium
Host referral contests to encourage more shares Hosting referral contests can effectively expand your reach by levera…
Intermediate
Medium
Identify loyal customers or fans to become brand ambassadors Turn your loyal customers into brand ambassadors and create a ripple …
Intermediate
Medium
Implement a referral incentive within the loyalty programme Referral incentives in a loyalty program motivate customers to refer …
Intermediate
Medium
Implement a referral programme that rewards customers for bringing in new business Give your business a boost by launching a referral program that offer…
Intermediate
Medium
Implement a referral programme to encourage word-of-mouth marketing A referral program leverages word-of-mouth marketing by incentivizing…
Intermediate
Medium
Implement a seamless referral process on your website or app Incorporating an effortless referral system on your site or app can b…
Intermediate
Medium
Implement in-cart upsell offers to increase average order value Adding recommendations for related products or upgrades while custome…
Intermediate
Medium
Implement volume discounts to incentivise bulk purchases Volume discounts encourage bulk purchases, making it cost-effective f…
Intermediate
Medium
Include coupons or special offers in newspaper ads Including coupons or special offers in newspaper ads is a classic way…
Intermediate
Medium
Include exclusive offers or discounts on postcards Offering exclusive deals or discounts on postcards is a smart way to …
Intermediate
Medium
Include product recommendations based on purchase history You're boosting sales and nurturing customer loyalty by showcasing pr…
Intermediate
Medium
Integrate the loyalty programme with mobile apps for easy access and tracking Make it super easy for customers to track and redeem their rewards th…
Intermediate
Medium
Launch a points-based or tiered loyalty programme to reward repeat customers Starting a points-based or tiered loyalty program is a simple way to …
Intermediate
Medium
Leverage customer loyalty data to target high-value customers Using your customer loyalty data wisely can help you understand who y…
Intermediate
Medium
Leverage customer loyalty programmes to increase repeat purchases Customer loyalty programs are a way to reward your customers for thei…
Intermediate
Medium
Leverage rewarded ads to increase engagement Want to boost user engagement with your app? Rewarded ads might be yo…
Intermediate
Medium
Offer additional points for specific actions, such as referrals or social shares Earn extra points for referring friends or sharing content. It's free…
Intermediate
Medium
Offer bonuses or tiered incentives for top-performing affiliates Boost your affiliate marketing program by rewarding high-performing a…
Intermediate
Medium
Offer bundle deals that encourage customers to purchase more Increase your sales by offering bundle deals that make customers feel…
Intermediate
Medium
Offer bundled packages to encourage higher purchase volumes Bundling products or services together into a package deal can boost …
Intermediate
Medium
Offer certificates of completion for courses to increase engagement Certificates for course completion make learning more attractive and …
Intermediate
Medium
Offer customers the option to round up purchases for charity Offer customers the option to round up their purchases for charity. I…
Intermediate
Medium
Offer double points during special promotions or events When your customers can earn double points during special events or p…
Intermediate
Medium
Offer early access to new products or sales to loyal customers Reward loyal customers by giving them a sneak peek at new products or…
Intermediate
Medium
Offer early bird discounts to drive early registrations Get people to sign up earlier by offering early bird discounts. It's …
Intermediate
Medium
Offer exclusive content or bonuses for subscribers Offer your subscribers exclusive content or bonuses to keep them enga…
Intermediate
Medium
Offer exclusive content or rewards for app users Providing special deals or unique content to app users can help build…
Intermediate
Medium
Offer exclusive deals for local viewers Give your local audience a reason to choose you by offering exclusive…
Intermediate
Medium
Offer exclusive deals for satellite radio listeners Offering exclusive deals for satellite radio listeners can boost enga…
Intermediate
Medium
Offer exclusive deals or discounts for in-store purchases Give shoppers a reason to visit your store by offering exclusive deal…
Intermediate
Medium
Offer exclusive deals or discounts in catalogues Offering exclusive deals or discounts in catalogs can effectively dri…
Intermediate
Medium
Offer exclusive deals or discounts on flyers Offering exclusive deals or discounts on flyers is a great way to cat…
Intermediate
Medium
Offer exclusive deals or discounts to win back lost customers Offering exclusive deals or discounts to win back lost customers is a…
Intermediate
Medium
Offer exclusive deals or promotions via SMS Sending exclusive deals or promotions directly to customers' phones t…
Intermediate
Medium
Offer exclusive discounts or benefits for loyalty members Offering exclusive discounts or benefits for loyalty members helps ma…
Intermediate
Medium
Offer exclusive promotions or deals for trade show attendees Attending a trade show? Offering exclusive promotions or deals is a g…
Intermediate
Medium
Offer exclusive rewards or discounts to both referrers and new customers Offering exclusive rewards or discounts to both referrers and new cus…
Intermediate
Medium
Offer first-time customer discounts to encourage trial First-time customer discounts are amazing for bringing in newbies to …
Intermediate
Medium
Offer incentives for customers who choose eco-friendly options Provide incentives like discounts or reward points to customers who o…
Intermediate
Medium
Offer incentives for customers who return or reuse packaging Incentivizing customers to return or reuse packaging is a great way t…
Intermediate
Medium
Offer incentives for long-term commitments (e.g., subscriptions, contracts) Get more customers to commit for longer periods by offering special i…
Intermediate
Medium
Offer price matching or price guarantees to build customer trust Offering price matching or price guarantees can help you build custom…
Intermediate
Medium
Offer samples as a reward for completing surveys or engaging with the brand Get customers excited by offering them free samples for completing su…
Intermediate
Medium
Offer special deals or discounts for sampled products Special deals or discounts for sampled products are a great way to at…
Intermediate
Medium
Offer special promotions or deals during outbound calls Offering special promotions or deals during outbound calls can encour…
Intermediate
Medium
Offer special promotions or deals to inbound callers Offering special promotions or deals to inbound callers encourages th…
Intermediate
Medium
Offer tier-specific perks, such as free shipping or exclusive access Entice your customers with tier-specific perks like free shipping or …
Intermediate
Medium
Optimise shipping options to enhance customer experience Optimizing shipping options can seriously boost your customer's buyin…
Intermediate
Medium
Participate in Amazon’s Subscribe & Save programme for repeat sales Join Amazon's Subscribe & Save for consistent repeat sales and improv…
Intermediate
Medium
Partner with complementary brands to offer cross-promotional loyalty rewards Teaming up with complementary brands to offer loyalty rewards can be …
Intermediate
Medium
Provide early access to new products or sales for upper-tier customers Give priority to top-tier customers by offering them early access to …
Intermediate
Medium
Provide exceptional customer service and support to enhance retention Delivering top-notch customer service and support is key to building …
Intermediate
Medium
Provide exclusive content or offers in emails Providing exclusive content or offers in emails is a fantastic way to…
Intermediate
Medium
Provide exclusive offers or content for newsletter subscribers Offering exclusive deals or content through newsletters is a great wa…
Intermediate
Medium
Provide exclusive rewards or experiences for top loyalty members Offer your most loyal customers exclusive rewards or experiences. Thi…
Intermediate
Medium
Provide personalised recommendations and content to loyal customers Personalized recommendations and content for loyal customers make the…
Intermediate
Medium
Provide tracking information and post-purchase instructions Sending tracking information and post-purchase instructions keeps cus…
Intermediate
Medium
Recognise and celebrate customer milestones, such as anniversaries Celebrating customer milestones like anniversaries can boost loyalty …
Intermediate
Medium
Regularly promote the loyalty programme through email and social media Boost customer loyalty by engaging them with regular email and social…
Intermediate
Medium
Regularly recognise and celebrate ambassador achievements Recognizing and celebrating ambassador achievements is a great way to…
Intermediate
Medium
Regularly refresh in-store promotions to maintain engagement Maintaining fresh in-store promotions keeps customers interested and …
Intermediate
Medium
Regularly review and refine retention strategies based on customer feedback Gathering and acting on customer feedback helps you fine-tune retenti…
Intermediate
Medium
Regularly update referrers on their status and rewards earned Keep your referrers excited and engaged by regularly updating them on…
Intermediate
Medium
Run contests and giveaways to boost engagement Running contests and giveaways can quickly boost engagement and attra…
Intermediate
Medium
Send personalised thank-you notes or gifts to loyal customers Send personalized thank-you notes or gifts to loyal customers is a th…
Intermediate
Medium
Test and optimise different upsell and cross-sell strategies Upselling and cross-selling can boost your revenue by encouraging cus…
Intermediate
Medium
Train sales staff to identify upselling opportunities during customer interactions Upskilling your sales team to recognize upsell chances during custome…
Intermediate
Medium
Use NPS (Net Promoter Score) surveys to measure customer satisfaction Measure how happy customers are with your brand or service by using N…
Intermediate
Medium
Use a points system where customers earn points for every purchase Implementing a points system lets customers earn rewards with each pu…
Intermediate
Medium
Use app gamification to increase user engagement Think of adding game-like features to your app to keep users hooked a…
Intermediate
Medium
Use branded giveaways to increase brand visibility Branded giveaways are a great way to get your name out there. They’re…
Intermediate
Medium
Use branded materials and giveaways to enhance engagement Offering branded materials and giveaways can capture attention and cr…
Intermediate
Medium
Use branded merchandise or giveaways to enhance the activation experience Giving away branded merchandise or freebies can make your brand more …
Intermediate
Medium
Use customer data to identify and address common churn reasons Identify why customers leave based on data, and fix those issues to k…
Intermediate
Medium
Use customer data to predict and prevent churn through targeted offers By using customer data to predict and prevent churn, businesses can c…
Intermediate
Medium
Use customer purchase history to identify upsell and cross-sell opportunities Looking to boost your sales and keep customers happy? Analyzing their…
Intermediate
Medium
Use email marketing for personalised follow-ups and exclusive offers Email marketing is a great way to keep in touch with your customers b…
Intermediate
Medium
Use gamification to make point accumulation more engaging and interactive Gamification makes earning points fun and engaging by turning it into…
Intermediate
Medium
Use in-store signage to guide customers to promotions In-store signage helps customers discover promotions while shopping, …
Intermediate
Medium
Use post-purchase follow-up emails to recommend complementary products Post-purchase follow-up emails suggest products that go well with a c…
Intermediate
Medium
Use postcards for customer appreciation or loyalty campaigns Sending postcards as part of a customer appreciation or loyalty campa…
Intermediate
Medium
Use promotions strategically to attract price-sensitive customers Special deals or discounts can grab the attention of those who are mi…
Intermediate
Medium
Use push notifications to engage users and drive retention Push notifications can recapture your users' attention even after the…
Intermediate
Medium

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Apple Wallet Passes Management Tool The Apple Wallet Passes Management Tool is designed to streamline the…
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Gingr Gingr is a comprehensive marketing tool designed to enhance customer …
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InviteReferrals InviteReferrals is a robust referral marketing tool designed to ampli…
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LoyaltyLion LoyaltyLion is a leading loyalty and engagement platform designed to …
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Maitre Maitre is a sophisticated marketing tool designed to enhance customer…
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Shopify Shopify is a robust e-commerce platform designed to empower businesse…
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Smile.io Smile.io is a leading loyalty program platform designed to enhance cu…
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Square for Retail Square for Retail streamlines operations for retail businesses by int…
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Stripe Stripe is a leading financial infrastructure platform that enables bu…
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Talon.One Talon.One is an advanced promotion and loyalty management platform de…
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Tremendous Tremendous is a versatile marketing platform designed to empower mark…
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Voucherify Voucherify is a robust API-first promotion and loyalty management sof…
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Zinrelo Zinrelo is a comprehensive loyalty and rewards platform designed to e…
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eBay Coupons and Discounts Manager The 'eBay Coupons and Discounts Manager' is a sophisticated tool desi…
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Quick Facts

Type

Marketing Sub-strategy

Pros

  • Encourages repeat business: Points-based loyalty programs motivate customers to make repeat purchases to earn and redeem points.
  • Increases customer retention: Customers are more likely to stay loyal to a brand that rewards their continued patronage.
  • Boosts customer engagement: Offering points for various activities, like social media shares or reviews, increases customer interaction with your brand.
  • Improves customer data: Tracking points and rewards provides valuable data on customer behavior and preferences, helping refine marketing strategies.
  • Enhances brand loyalty: Rewarding customers with points fosters a sense of appreciation and loyalty towards your brand.
  • Drives higher spending: Customers may spend more to reach the next reward level or to maximize their points.
  • Competitive advantage: A well-executed loyalty program can differentiate your brand from competitors, attracting and retaining more customers.

Cons

  • Complex management: Managing a points-based loyalty program can be complex and time-consuming, requiring dedicated resources to track and update points.
  • High costs: Offering rewards and managing the program can be expensive, impacting overall profitability if not carefully controlled.
  • Customer manipulation: Some customers may manipulate the system to maximize points without genuine loyalty, reducing the program’s effectiveness.
  • Diminishing returns: Over time, customers may lose interest if the rewards do not seem valuable enough, leading to reduced engagement.
  • Risk of dissatisfaction: If customers perceive the points system as unfair or too difficult to redeem rewards, it can lead to dissatisfaction and negative brand perception.
  • Limited differentiation: Many companies offer points-based programs, making it hard to stand out unless your rewards are significantly more appealing.
  • Dependency on rewards: Customers may become loyal to the rewards rather than the brand, leading to a drop in loyalty if the program changes or ends.