Responsive image

Do Rewards Truly Create Loyalty?

Though customer rewards often get a bad rap as cheap promotional devices, they have been going strong for over a decade. Today, rewards are still a popular way to drive customer loyalty and enjoy all the benefits that come with that. Companies across all industries adopt rewards, so do they truly create loyalty? That's the question we will answer today.

How Customer Loyalty Programs Work

Customer loyalty programs are an effective e-commerce marketing strategy where customers receive rewards based on loyalty and how frequently they engaged with the brand. In turn, these programs foster loyalty because they are meant to incentivize repeat purchases by providing rewards such as discounts, offers, special events, and more.

These loyalty programs can take many shapes, but the goal is the same. Whether you set up value-based programs, point programs, spend-based programs, tiered programs, etc., your goal is to get repeat customers and create a long-lasting relationship with them.

The Benefits of Using Rewards to Create Loyalty

Rewards and customer loyalty programs are quite popular and for good reason. Here are a few of the benefits that will help your business thrive like crazy:

It Rewards Loyalty

Customer loyalty programs don't only reward loyalty, they create it. Rewards will make them feel amazing about supporting your brand because they will feel appreciated. Not to mention everyone loves a discount, so they will definitely feel inclined to use the rewards and purchase again.

It Boosts Profits

While you are benefiting customers, you are also benefitting your brand because these programs will boost your profits like crazy. Consistently providing rewards, special offers, discounts, and coupons, you may influence your customers to spend more, not to mention you'll get more traffic.

It Will Bring New Customers

Listen, everyone loves rewards, so as soon as people hear that your brand has an amazing customer loyalty program, they will come running and they will stay. You can even leverage the magic of referral programs to bring in even more new customers.

It Will Improve Brand Awareness

Brand awareness is vital and a customer loyalty program will help you improve it. Additionally, it will give your brand reputation a boost. When customers feel like your brand is offering great value, they will never leave and they will recommend you.

It Will Increase Customer Retention

One thing you should know about customer loyalty programs and using the power of rewards is that this is not a short-term strategy. The longer you keep up your programs and the more consistent you are with providing rewards, the more likely customers will stick with your brand.

These are only a few of the greatest advantages of using rewards to create loyalty, but there's a lot more where that came from.


One thing is certain if you want loyal customers, you need to set up a rewards program that provides good value. Though some people may think of this strategy as cheap, it's extremely effective and it will help your brand grow a community that's loyal and engaged.

Back to Blog