Customer loyalty schemes are an effective way to improve your customer-retention levels.  Despite this widely known fact and that the cost of bringing in new business is higher than the cost of regular engagement to retain existing clients. So many businesses are missing a trick when it comes to building customer loyalty.

With the age of the internet it’s so much easier for customers to research alternative suppliers making it much easier in today’s competitive marketplace for customers to switch. Therefore, loyalty schemes are an effective way to increase customer retention and improve your profitability.

A loyalty scheme can be used to incentivise and delight your most valued customers. That in turn can do wonders for your profitability.

Rewarding Your Customers

The advantages of loyalty schemes

  • Loyal customers buy more and are often willing to pay more, which boosts your cashflow. By increasing loyalty, you can increase profitability and extend the time they place their business with you.
  • Loyal customers are also good for your business because they become your best advocates. They recommend you to others, saving you marketing costs. A loyal customer’s endorsement is more powerful to their friends and family than any advertising campaign. This can go even further than traditional word of mouth if they endorse you on social media.

Devising the right loyalty scheme

  • loyalty scheme for hairdresserCustomers like loyalty schemes because they feel they are getting rewarded for giving you their business.

    So your scheme needs to offer customers something they will appreciate.

    Of course, any loyalty reward campaign should still be devised with profit in mind.

  • Remember that you’re trying to reward customers for behaving in the way that you want.

    Focus on specific goals.

    For instance, are you looking for repeat business or do you want your spend per transaction to increase?

  • The rewards you offer to regular customers can vary from fixed discounts to extra goods or prizes. A hairdresser, for example, could offer a scheme whereby customers get a free conditioning treatment for every five visits or a restaurant could offer a complimentary main course for the tenth visit.


If customers have to spend a lot to get a small gift, they will be insulted. At the same time, make sure you can recover the cost reasonably quickly.


Loyalty Cards can be easily lost  so a mobile app is better

Cards can be easily lost which is also frustrating for customers. A loyalty mobile app avoids this disappointment and keeps your customers happy, which is of course the main goal of the loyalty scheme in the first place!

Free eBook




You can find out more about Loyalty schemes by downloading our FREE ebook.

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Follow Jon:

Jon Newlyn

Executive Director at Tickling Trout
Jon had his baptism in sales after a year in Halfords and then 8 years at the company now called Alliance. Here his interest in computers led him to develop his career into main frame operations.He then joined one of the largest food companies in the the world to manage scheduled work on their main frame and mini systems.

However, the lure of a dealership (and new car!) was so strong he later joined the worlds largest pc comms manufacturer and then a little later down the line a software vendor backed by citrix where he met David.

Then they ran away together to form Tickling Trout and the rest as they say is history.
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