1. Loyalty programs help you stop competing purely on price

By rewarding customers and appealing to their emotions, you build a bond that encourages repeat business and boosts your profits.

2. Improve retention and reduce churn

Loyalty programs turn one-time buyers into loyal customers, significantly reducing churn and boosting revenue.

3. Increase CLV (customer lifetime value)

Loyalty programs can significantly increase CLV by making customers spend more often, buy more per purchase, and stay loyal to your brand for longer.

4. Turn customers into brand advocates

This creates a win-win situation where customers get rewarded and the company enjoys free promotion.

5. Increase purchase frequency

Customers are more likely to make more frequent purchases of producsts if they know they’re building up loyalty rewards by doing so.

6. Improve average order value

As well as increasing the frequency of purchases, loyalty programs can increase the value of each purchase. 

7. Even out seasonality

Most businesses experience seasonal fluctuations in sales, and it can be a challenge to drive up revenue in the quieter months. Loyalty programs can help counterbalance these fluctuations by offering special rewards or promotions during off-peak periods. 

For instance, travel businesses like airlines or hotels might offer double points for bookings during their low season to encourage travel during these times.

8. Improve communication and strengthen your brand

Regular updates about rewards, exclusive offers, and events provide touchpoints to engage with customers, fostering a stronger brand-customer relationship. 

With Tiger Loyalty, brands or businesses can easily send personalized emails and text messages to their customers following certain triggered events.

Loyalty programs are great for your business — but they’re also great for your customers.

And the better you understand the benefits of loyalty programs for your customers, the better you can tailor your loyalty program to their needs.

Savings and rewards

The most obvious benefit to customers: through discounts and redeemable points loyalty programs help shoppers to save money. Many brands offer special perks like free delivery or free returns to their most loyal customers so that they can provide them with even more value. 

Exclusive access and perks

But loyalty programs aren’t just about discounts — and it’s often best for your business if they aren’t —loyalty programs can also often offer exclusive perks that enhance the customer experience. 

This can include early access to new products or sales, special members-only events, and preferential customer service. 

Personalized experiences

With the data collected through loyalty programs, businesses can offer personalized recommendations and promotions that cater to individual customer preferences. 

A sense of fun!

Loyalty programs often involve elements of gamification — earning points, reaching new membership levels, completing challenges — which can make things more engaging.

By introducing gamification into your loyalty program, it creates an experience that is genuinely fun for your customers.

A feeling of belonging

Done right, loyalty programs create a community of customers who share your values.