Driving effective Customer loyalty programs in 2022

Some online stores find it easier to sell to existing customers than to acquire new customers—And that’s why brands in 2022 invest in loyalty and rewards programs.

Loyalty programs have always proven themselves as an effective approach for increasing sales and acquiring effective customer loyalty. Most retailers today are hunting to find innovative ways to create rewards programs and build customer loyalty.

What is a loyalty program?

A customer loyalty program means rewarding customers who repeatedly associate with a brand. It’s a strategy to retain and encourage customers to continue buying from your brand rather than your competitors. The more a customer buys or engages with the brand, the more rewards they earn.

How do customer loyalty programs work?

Brands can offer points or benefits to customers to continue shopping with them after the first purchase. And in return, they redeem points for discounts, free products, rewards, or other perks. The ideology is to motivate repeat purchases and keep customers engaged for a longer duration. Stores with rewards programs observe higher customer retention and thus, increased revenue.

 Customer Loyalty Program Trends in 2022

·      More than 90% of companies indulge in some kind of customer loyalty program.

·      84 percent of consumers stick with a brand that offers a loyalty program.

·      As per Customer Trust Report, Salesforce Research, 95% of customers say trusting a company increases their loyalty.

·      A recent poll from Yotpo revealed, that nearly 68% of respondents joined a customer loyalty program for brands they like. 

·      68% of marketers send thank you emails to help increase customer’s loyalty.

Benefits of Loyalty programs

  • More customer recommendations- When you offer a great loyalty rewards program, people may recommend you to their friends and family. More referrals equal more customers.
  • Higher customer retention- When people find value in your customer loyalty program, they’ll keep coming back.
  • Higher average order value – As per a recent loyalty research, 49% of consumers agree they’ve spent more after joining a loyalty program. More AOV equals to more sales.
  • Brand advocacy- A successful loyalty program can turn loyal customers into brand advocates. This word-of-mouth publicity is a low-cost marketing strategy versus paid ads.

Types of rewards programs

1. Points based loyalty programs

Under this most common rewards program, customers can accumulate reward points which they can redeem for freebies, cash-back, perks, discounts on next purchase, etc. Besides purchases, they can also earn rewards points from sharing on social, leaving reviews, having a birthday, or through gamification.

2. Tiered loyalty programs

Companies with loyalty programs under this category give customers a goal. The higher their tier, the more exclusive and better rewards they’ll receive. Customers get different benefits depending on their rank based on certain metrics like sales or engagement.

3. Paid loyalty programs

Paid loyalty programs give customers benefits against a participation fee which can be recurring or one-time. The customer spends more after acquiring a membership.

A report by McKinsey said that consumers are 62% more likely to spend after joining a paid loyalty program with a brand.

Most common example is Amazon Prime or Netflix.

4. Value-based loyalty programs

This involves donating a percentage of customers purchase to charity or welfare programs. With this loyalty program, you don’t actually reward customers, but the rewards are used to benefit society.

Best customer loyalty programs 2022 examples

  1. DSW
  2. Sephora Beauty Insider
  3. Starbucks Rewards
  4. Amazon Prime
  5. The North Face
  6. REI Co-op
  7. Apple

Strategies for driving customer loyalty.

1. Have regular communication

Simply maintain regular contact with your customers by sending your customers regular emails, text messages, social media messages or even a quick phone call, to drive customer loyalty and show that you really value them and care about their feedback. 

2. Offer something of great value

Offer something your visitors can’t refuse. Offer incentives. Try “free forever” pricing tier. Focus more on customer retention strategy rather than on new customer acquisition strategies.

Try an incentive- use monthly coupons. Offer feel good moments like plant one tree for every item purchased and engage with our customers post-sale.

3. Use personalisation to win over customers

By offering a personalised loyalty program, you can give consumers what they want.

The more relevant the offers, the more likely that users will be motivated to keep making purchases or utilizing your service. Use your customer data to personalise their experience.

4. Resolve issues easily

One strategy for driving customer loyalty is minimising friction and effort required during a customers’ journey experience with a brand. To improve customer loyalty, provide social proof, FAQs, online forums, etc. that allows customers to get solutions quickly to resolve common problems. Remain relevant in providing quick solutions.

5. Offer something exclusive

Today’s users are smart. Create exclusive content or experiences to increase your brand loyalty and enjoy a bonus of more word-of-mouth advertising.

Build a sturdy relationship with customers and makes them feel more than just a customer – make them part of a team.

6. Create a community

One of the best ways to develop a strong customer connection is building a strong network of clients on social media, eventually creating a community or fan club.

Community membership programs are a great way to ensure repeat business, by offering special discounts and promotions. Happy customers will share their photos, stories, and customer experiences. Turn some of your top customers into brand ambassadors.

Wrap up – When to add a loyalty program for your business

Loyal Customers Love Rewards. More Rewards, more Happy Customers. 

Every business today is competing to acquire customer trust. One of the best ways to build this trust is by providing them with an experience they can’t find elsewhere. Start a loyalty program from day one to grow the never-ending relationship with your existing customers.


7 innovative customer loyalty programs to keep them coming back. Shopify. (2022, June 22). Retrieved August 31, 2022, from 

Mmosley. (2022, June 21). 60 experts give their advice on driving customer loyalty. Referral Rock Blog. Retrieved August 31, 2022, from 



Minal Jain
Minal Jain
Senior Content Writer