• Joshua Richardson

3 Important Things You Need to Build A Powerful Loyalty Program

Updated: Aug 20, 2019

The 3 important things we’re going to cover below is what every major company uses to dominate their market.

By using these three simple systems, I've seen businesses increase their revenue by as much as 30% in six months! So, it’s important you read and understand how you can do the same.

Let's get started!

Step One: Loyalty Programs Are Essential

Almost every major company has a loyalty program for their business. They do it because they know their best customers are the ones who have shopped with them before.

Surveyed consumers have consistently said they are more likely to buy at a business for the first time if there is a rewards program in place.

In other words, a loyalty program is one of the best ways to transition new customers into existing customers.

This transition is crucial since repeat customers are one of the primary ways to increase your revenue quickly.

Did you know that the probability of selling to a new customer is only 5-20%, while the possibility of selling to an existing customer is between 60-70%?

When an existing customer comes into your business, they are likely to spend 31% more than a new customer.

Why am I telling you all this?

Because it's imperative that you have a program in place that entices new customers to buy and keeps existing customers coming back!

Have your customers ever purchased a product and walked out of your business without becoming a member, or left your website without providing their email? If so, then you're severely limiting your revenue potential.

One final note.

When it comes to marketing, the cost to market to existing customers is considerably lower than trying to acquire new ones.

Unlike new customers, existing customers are aware of your brand, are familiar with your products or services, and most likely enjoyed their previous experience.

Because of this, it is much easier to get them to come back! Having their contact info, like an email, simplifies your ability to keep them informed about new deals and promotions you are offering.

Finding the Right Program

There are several types of loyalty programs on the market that you can choose. Below, I have summarized the three most common types you will find.

• Promotions Loyalty Program

• Points Loyalty Program

• Stamps Loyalty Program

The Promotions Loyalty Program

The Promotions Loyalty Program is straightforward yet extremely effective. It's sole purpose is to acquire customer emails in exchange for promotional offers. In other words, you would present customers with different promotional offers at your business or on your website. Once a customer has selected their choice, they'll need to give their email to receive it.

It is up to the business whether or not that promotion can be redeemed on the same day, or the next visit. By doing this, you incentivize customers to spend more money with you and also gain the ability to provide future promotional offers to them at no additional expense.

Points Loyalty Program

With the Points Loyalty Program, businesses dispense points to customers based on purchase amounts. The most common and easiest way is to have every dollar spent equal one point. After a customer has accumulated a certain number of points, those points can be used for a free item, special discount, or exclusive offer.

The business must decide on the number of points needed to meet the required goal. Typically, companies will have multiple offers with different point values. This way, customers can take advantage of rewards sooner or can save points to reach a higher valued reward.

The Stamps Loyalty Program

The Stamps Loyalty Program is based on customer visits. This program closely resembles the punch card system. After a customer purchases a product, the business uses a method to acknowledge and track the customer's visits to their business. Once a customer accumulates a specific number of visits, they are rewarded, usually with a free item.

Step Two: Understand Your Customers and Your Business Will Thrive

A survey is an essential part of any business, and if you're not doing it, you're missing out.

As a limited example, surveys can be used to assess customer demographics, track business performance, and understand how customer are finding your business (very helpful if you are marketing through various sources)!

But first, you have to get the customer to take the survey. Currently, less than 10% of people complete surveys that are sent via email.

The trick is, to get the survey in front of the customer before they leave your business. This will substantially increase the amount of feedback you get, allowing you to make the best decisions possible for your business.

Once I started doing this, I was getting feedback from 90% of my customers that had purchased a product. From the amount of data I was receiving, I was able to make rapid changes to my business that ensured customer satisfaction and allowed me to grow tremendously!

Things to Remember About Surveys

1). Keep them short.

Surveys should be ten questions or less. The quicker, the better. Make sure questions are direct and straightforward to understand. This will help avoid confusion, allowing you to get the most accurate answer from customers.

2). Give rewards for customer participation.

We've found that customer participation in surveys significantly increases when they know they'll be rewarded for their efforts. Please make sure the rewards you offer are worth their time, but also beneficial to your business.

3). Make the survey interesting.

The longer the survey, the more crucial this step is. Being playful with your words will keep customers interested; nonetheless, being playful should never lead to confusion. Only have fun with the questions if you are 100% sure the customer understands precisely what you are asking.

Step Three: Emails Equal Money

Customer emails are one of the essential revenue-producing assets your company can have.

Every customer/client email has a value associated with it. That value is determined by your business type and the products or services you offer.

For instance, businesses that do not do much in volume, but whose products or services are sold at a premium price, will have a considerably higher value associated with each email.

"Did you know that many small businesses are generating well over 50 thousand dollars every month just off their customer email list?"

Those are some fantastic results! By the way, that's the standard, not the exception.

Customers who have shopped with you before, know your products and services. So, getting those customers back to your business requires less effort and money.

One of the first things you should focus on right now is trying to build your email list!

To compile your list, make sure you funnel all traffic that comes to your business. The best way to do that is by making customers provide their email address to receive promotions, special offers, or rewards.

Customers love to be rewarded; however, don't tell them they'll be rewarded if they give you their email. You can do that for surveys ("let us know how we're doing and get rewarded"), but not emails. The promotion should be the primary focus and the email the "afterthought."

For example, "Thanks for choosing this promotion (or reward), please enter in your email address to receive it now!"

When you send out emails, it's vital that you give some value to customers and communicate how your product or service provides a solution or fills a need.

Try not to focus on features; customers are more interested in benefits.

In other words, your customers would rather hear how buying your product or service will enhance their lives or make it easier.

Lastly, if you sell products that can be shipped, make sure to include a link to your website in every email. That link should lead straight to the product(s) you are promoting, so the customer can purchase it right away!

Conclusion: Time to Dominate

Not everyone is willing to put in the time to learn how to grow their business or prepared to take the necessary steps to make it happen.

"Everyone has the potential to grow their business if they're willing to implement everything I've described."

Implement Everything Into Your Business

Let’s talk briefly about how you can get everything setup in your business.

If you're looking for one program that can do everything mentioned in this article and then more, I would recommend getting True Biz Pulse.

True Biz Pulse is comprehensive, affordable (40% - 60% less than its competitors), and is highly rated by its users.

It’s extremely easy to use, so there’s not much of a learning curve.

It allows you to choose from the three different types of Loyalty Programs mentioned above. It has a concise in-store customizable survey that actually gets results. A comprehensive email campaign system that allows you to segment customers based on prior selected promotions. A system that lets you get reviews on Google, Facebook, or Yelp, from only satisfied customers! You can even design your own promotional flyers in the web app and use them in email campaigns or share them on social media. There is so much you can do with this program.

Check them out by clicking the link below.


If you already have a loyalty program for your business and just need the survey, your best two options are Survey Monkey and Typeform. These programs should allow you to offer in-store customer surveys (don’t quote me on that).

If you have everything else and just need an email campaign program, then go with Constant Contact or Mailchimp.

Regardless of how you get it done, make sure you get all three programs implemented into your business. Everything I’ve outlined above is not a suggestion, but a blueprint on how to build a powerful loyalty program that will yield incredible results.

Written by: Joshua Richardson. Josh holds a Master’s Degree in Business Administration and has served as a product tester and content writer for over fifteen years.

  • Google+ - Black Circle
  • Facebook
  • LinkedIn - Black Circle
  • Twitter
  • Instagram

Copyright 2019 True Biz Pulse, LLC.

All Rights Reserved.