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Tips For Running A Points-Based Loyalty Program

Tips For Running A Points-Based Loyalty Program

The modern consumer is a savvy and demanding individual, expecting only the best from businesses vying for their attention. As such, offering customers an engaging points-based rewards program can help set any business apart in this highly competitive market. You can demonstrate to your customers that you value their loyalty and trust by developing a loyalty program that rewards points. They accrue points for each visit to your business, which they can then exchange for particular rewards, ultimately resulting in increased loyalty and satisfaction. It expresses your gratitude and motivates them to keep doing business with you. Customers are more inclined to stick with a brand that offers a loyalty program, according to 84% of consumers.

Today’s blog post will cover the fundamentals of a points-based loyalty program as well as tips on how to manage one.

What is a points-based loyalty program?

To boost sales and customer loyalty, the majority of businesses use points-based reward programs. Using this tactic, customers are encouraged to spend more money with the business in order to accrue rewards points that can be redeemed for various benefits and perks. A rewards program with a points system is a great way for customers to get discounts on their purchases. They eventually have the option to exchange their accrued points for discounts or gifts by earning points for each purchase. It’s a terrific way to get discounts on expensive stuff because the more money a customer spends, the more points they get.

Customers can accrue points to move up the ranks at businesses that provide tiered loyalty programs. When customers advance through the ranks, they could get advantages like exclusive sales and discounts, early access to new products, and limited-edition products. Customers who are the most loyal can join VIP programs and receive the best rewards. A dedicated customer service team, invites to private events, and other benefits could be available to VIP members.

Points-based loyalty program benefits

Retain loyal customers

Customer loss is expensive. By using a points-based system, you can strengthen your relationships with loyal customers. They won’t just stay; they also have a higher likelihood of returning for more.

Entice new customers

Your customer base grows thanks to a strong loyalty program. Everyone is encouraged to participate in your business through enticing rewards.

Boost customer loyalty

60% of customers worldwide are said to be more loyal to a brand as a result of loyalty programs. Thanks to your incentives, they get their money’s worth.

Obtain customer data

A digital points-based rewards program gathers information on each member. You can better understand your customers’ requirements and wishes by using data from a loyalty program.

4 ways to utilize a points-based loyalty program to engage customers

Provide unexpected rewards

When customers accumulate points, businesses typically reward them. However, some customers might need some time to accumulate them. Offer customers a surprise gift to make them happy and surprised.

Recognize achievements

Customers can take advantage of a birthday discount or gift by visiting your physical or online store. They can be informed about this unique campaign by your employees.

Deliver personalized offers

Excellent customer insight is provided by the best points-based rewards program. You can customize the customer experience and make offers based on how customers spend their money thanks to it.

Deliver an omnichannel experience

Let customers interact with your business on a variety of devices.

The most popular rewards to offer

In truth, incentives are the reason customers join your loyalty program. With the help of points, they can get their preferred item or service for less money. It is not surprising that they register as members at that point.

First-time buyer’s discount

Incentives are needed for new customers to return. To entice them, give them a discount on their initial purchase.

Free products

Most loyalty programs delight customers by giving them free merchandise. You can distribute your best-selling items or upcoming products.

Unique offers

To build a connected customer experience, come up with offers that customers can utilize both online and in-person. The two channels shouldn’t be kept separate.

Birthday gifts

On their birthdays, everyone desires to feel special. To automatically deliver gifts to customers and let them know you’re thinking of them, use a points-based rewards program.

Refer-a-friend gifts

Your membership base will grow thanks to referrals. Offer customers the opportunity to earn points or incentives for referring friends. Due to the incentive, they are more inclined to do it!

7 tips on managing your points-based rewards program

1. Set a goal for your business

Any points-based rewards program should make it easier to achieve a business objective. It is the only way to make sure it works. It won’t stand out if there’s no clear goal.

So, which loyalty program objectives can you set? You might, for example, want to:

  • Increase sales
  • Boost user retention
  • Strengthen customer acquisition

2. Choose the rewards to offer

Keep in mind that incentives and reward points are the main reasons individuals join loyalty programs. You must demonstrate your value to them so that they will pick your loyalty program over others.

3. Give out points for every purchase

No matter what they buy, you should let customers earn points on every purchase. That would demonstrate to them your value for them and your willingness to thank them for their support. Customers would be considerably more inclined to recommend a business that offers this kind of platform to others, and they would also be far more likely to return to it.

4. Show employees how to use the points-based rewards program

It might take some effort to persuade staff members to learn how to use a new points-based program. If you don’t want to lose customers, you must do it, though. Reviewing the rewards program with your staff can take up an entire day, if not longer. Demonstrate for them how to utilize a referral code, find a member, log a transaction, redeem a coupon, and other features.

5. Use innovative redemption strategies

Customers should have many options when redeeming their points. They can then select the option that most closely matches their requirements and preferences. Discounts, free products, and coupons are a few common redemption options. Another thing to keep in mind is that the redemption procedure needs to be simple. Nobody wants to have to make extra efforts to use their benefits. Customers will be more engaged if you make it simple for them to participate.

6. Provide extra points for special occasions or holidays

Offering customers extra points on special occasions is a fantastic way to express your appreciation for their business. They won’t just appreciate the kindness; it will also motivate them to keep doing business with you. Holidays and birthdays are ideal occasions for bonus points because individuals tend to spend more money during these times. By providing them with an additional incentive to keep coming back for more, you’ll make them feel valued and appreciated.

7. Make it enjoyable for the customers

It’s no mystery that loyalty programs occasionally become boring. Customers can eventually stop thinking about your program altogether. Because of this, a growing number of businesses started gamifying their loyalty programs. Using game-like aspects to increase the excitement and engagement of loyalty programs is known as gamification. That may be an excellent approach to maintaining customer interest in your loyalty program. You may entice them to continue participating by making it more entertaining and interesting. It can ultimately result in more customer loyalty and repeat business.


Interested in starting your loyalty program journey? Look no further than Loyal-n-Save, a premium loyalty rewards program that engages and retains your loyal customer base, giving them the opportunity to earn reward tokens. It has a wide range of features, including Team Builder, Campaign Builder, the Swag Shop, and a gamified mobile app. Ready to get started? Get in touch with us to set up a consultation and schedule a demo with 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.


  • points-based loyalty program
  • Points-based loyalty program benefits
  • points-based rewards program

Posted on Apr 28, 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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