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The Benefits of a Loyalty Program Over Coupons and Vouchers

The Benefits of a Loyalty Program Over Coupons and Vouchers

Businesses are constantly thinking of fresh and creative ways to attract customers. A larger customer base increases a company’s prospects for increasing profitability. Offering a special offer is a terrific method to boost sales for a specific period of time. They use a variety of promotional offers, such as coupons and vouchers, to entice customers to make purchases. Additionally, businesses implement loyalty programs, which help keep more long-term customers. However, selecting between a loyalty program and coupons or vouchers can be difficult for marketers. Today, we’ll provide you the answers in this blog post.

But before we dive in, let’s take a minute to get the fundamentals down.

A loyalty program

A loyalty program is a strategy to encourage customers to continue their regular purchases from a business or brand. Customers receive various benefits when they make purchases. It is a marketing tactic used by companies to draw in and keep more loyal customers.

A promotional offer

An exclusive discount for customers is a promotional offer. The majority of the time, it takes the form of discounts, sales, or coupons. Due to the substantial price discounts, shoppers are frequently drawn to special offers. To attract loyal customers, though, it is ineffective.

No doubt, promotional offers make shopping irresistible with their tantalizing discounts and deals, just as tempting as that salted pretzel at the mall! They act as a magnet to shoppers; however, these short-term benefits are not enough to create long-lasting relationships between businesses and customers.

After going over the fundamentals, let’s now move on to the next concern: which strategy—loyalty programs or coupons—should you employ to increase revenue.

Investing regularly

You must make a monetary investment regardless of whether you select a loyalty program or introduce a promotional offer through coupons. However, using vouchers means incurring costs each time you make a new offer. You must print unique coupons each time because your deal will vary from time to time. Additionally, you might not use it all to give it to the clients, which results in a loss. However, compared to providing coupons and vouchers, the loyalty program demands less frequent investment. In order to reward your consumers and keep them interested in your company, loyalty program software just needs to be purchased once.

Feasible strategy

According to research, some businesses may not benefit from using coupons because some customers may merely use the coupon and leave without making a second full-price purchase. On the other hand, a loyalty program offers different rewards with every transaction. This strategy supports market competition and is sustainable. Additionally, it permits the use of internal coupons to give exclusive savings.

A worthwhile journey

Coupons and discounts could occasionally make your products less valuable. The perceived value of your brand is negatively impacted by special deals. Additionally, you can’t always combine a special deal with savings.

If a customer, though, makes a purchase that enhances the value of your goods or services, the loyalty program enables you to reward them. Through the loyalty program, you are not lowering the price as much as is required. Customers receive a value-added experience from you when they do business with you.

Maintain a track record

Keeping track of purchases is advantageous for businesses. Making a critical decision for a business is helped by the details. The tracking procedure becomes somewhat challenging when you understand that releasing coupons to boost sales is a common practice. You may occasionally be unable to obtain precise insights.

A loyalty program, on the other hand, typically makes use of software that enables simple tracking of all the information, from the customer’s profile through the transactions and rewards. The system accurately stores all the information. The adoption of new business tactics requires this data. Additionally, it has a big impact on business growth.

Why loyalty programs flourish over other types of promotions

A viable solution that benefits both parties—customers and businesses—is provided by the loyalty program. For their purchases, customers receive rewards. To obtain more incentives, they will buy frequently. A brand eventually wins their loyalty. The following are the benefits of utilizing a loyalty program in your business.

  • Enhances communication with customers
  • Provides customers with value-rich experiences with each purchase
  • Garner useful customer information and insights
  • Increase sales and generate more money
  • Bring in and keep customers
  • Decrease the number of unprofitable customers

These advantages show that loyalty programs are far better for a business than any other promotional offer. In addition, businesses now take the use of loyalty program technology seriously. They monitor users’ activity with an app and reward them appropriately. Apps for loyalty programs are a widely used strategy for attracting devoted customers.

A business with more loyal customers can maintain market competition and accelerate and efficiently develop its growth. Additionally, devoted customers are a benefit to a business. Along with making frequent purchases, they are crucial to word-of-mouth advertising. The best option for keeping repeat customers are loyalty programs.

Opt for a loyalty program over any other type of promotion, such as coupons or discounts. It is a profitable and cost-efficient strategy to get customers to use a brand frequently. In addition to helping maintain existing customers, loyalty programs also work to draw in new ones.


If you’re on the lookout for the perfect loyalty club that will help you build relationships with your customers that last a lifetime, then you’ve come to the right place with Loyal-n-Save! Here at Loyal-n-Save, we know how important it is to achieve customer retention, which is why we offer simple tools and strategic guidance that produce amazing results and give you the power to create loyal shoppers who will keep coming back for more! Give us a call today to schedule a consultation and experience a demo performed by one of our specialists!

This article was written by Loyal-n-Save, an omni-channel customer loyalty solution for retailers looking to increase customer retention and new customer acquisition.


  • Benefits of a Loyalty Program

Posted on Feb 16, 2023


Danielle Dixon

Danielle is a content writer at Loyal-n-Save. She specializes in writing about implementing loyalty solutions proven to help a company grow.

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