Loyalty Management

How to manage loyalty in retail

How to work with customer loyalty management

Let’s talk loyalty management! But before we start you might have a few questions,  like:

  1. Doesn’t it just mean managing customer loyalty in different ways?
  2. How much is there to say, really?

The answer to the first question is yes. And the answer to the second question is: there is so much to say! So brace yourself to learn a lot about loyalty management, which should be a huge part of your retail business.

Psst: The most effective way to manage loyalty in all categories is through a loyalty program. If you want to go straight to learning more about how to set up or renew an existing loyalty program download this video ASAP: Create a loyalty program that stands out

What does it mean to manage loyalty?

To define such a broad expression is a tough nut to crack, but let’s start by saying it includes the strategies, tools, and different tactics your business needs in order to acquire, retain and engage your customers. Loyalty management allows your brand to find the right customers, then take care of them in the right manner – through benefits, experiences, events and rewards, etcetera, to build long-lasting relationships.

Like we just wrote in the previous paragraph, one huge part of loyalty management is a loyalty program. That process includes things like:

Read more: 8 boxes to check before choosing a loyalty platform

How do you define a loyal customer?

When we are on the topic of loyalty management, we have to address what it all comes down to – loyal customers. But have you ever thought about how to actually measure which ones of your customers are loyal? You can look at customer retention and say “Hey, these customers have shopped more than twice this year, they sure are loyal!” and clap your hands with excitement. But are they really?

To determine if a customer is loyal, look at all these metrics:

Yes, one part of loyalty is that a customer shops more than once – loyal customer keeps coming back for more. A fact we found through aggregated and anonymous data in Voyado, is that a customer who purchases more than once, shop for 260% more, than customers who only shopped once.

Read more: 6 secrets to create customer loyalty and retention

A loyal customer is not just satisfied with your products and their experience of your brand – they are thrilled! And how do you find the customers who are? NPS score ftw! If a customer gives you a 9 or a 10 on a scale from 1-10, they are in love with you, and if they shop frequently from you – you can add them to your loyal customers’ list.

RFM is a way of ranking your active customers based on profitability and frequency on a scale from 1-5. Your most active customers will get a 5 and the least active ones will get a 1. The ranking is a great tool to understand who your top customers are and where to put in extra efforts to increase sales.

Signs of a loyal customer

Ok, so what else can you look at to see which customers are loyal? Here are a few examples that indicate loyalty:

Read more: Loyalty marketing – how and why it matters

The most effective kind of loyalty management – a loyalty program

See how much there is to say about managing loyalty? Gosh! Hope you are ready to learn more about the most effective loyalty management system there is: Loyalty programs! If you don’t see the point in a loyalty program or have set up one just because you think it’s a “necessary must”, you should read these lines a few times:

A customer loyalty program is the most effective, structured, and long-term marketing effort you can use. A well-planned program is built to motivate your customers to come back for more and promote loyal buying behavior.

You need a loyalty program that is designed to make customers buy more. But not just by handing out discounts – it should nourish the relationship with your customers. So there should be a mix of monetary benefits and other perks that are for members only.

Read more: Retail loyalty program – a comprehensive example and concrete tips

What should be included in a retail loyalty program?

This is a very common question, and it’s impossible to give an answer that fits all. The most important thing though, is that you create or improve your loyalty program based on your customer’s needs and interests. Don’t assume your customers will buy more only by getting discounts – when they might have bought from you regardless!

Some brands have created loyalty programs where cash rewards don’t exist at all – they focus on other benefits, for example:

Other loyalty programs use a mix of cash rewards and “softer benefits”. You just have to make sure that your specific program focuses on what your customers want, and what fits your business. And remember, a lot of what’s important in a loyalty program has to do with the experiences you give your customers!

Read more: How to improve the customer experience and the importance of it

How to acquire new members to your loyalty program

There are many ways to attract new members to your program. For example, if you have physical stores, the staff plays an incredibly big role in recruiting new members. Set up competitions between stores, and make sure to educate every single staff member about what to say and memorize all the benefits of the program.

If you’re a pure player online, you can work with pop-ups on the site that explains the benefits of the program and allows an easy sign-up!

Find new members through Facebook audiences

The previous examples work on customers who are already in your shop or on your site. If you want to go one step further and find brand new customers and members, we have 2 words for you: Facebook audiences.

Voyado’s connection with Facebook Custom Audiences can be used to target your communication on Facebook and Instagram. You can also create “lookalike audiences” and reach out to people that are most likely to become your customers. This is an awesome way to target ads to people that are similar to the ones you already are in contact with!

Empower your loyalty management with Voyado

Even though Voyado is one platform with six different features – they all work seamlessly together to help you manage customer loyalty. Here are just a few examples of what you can do. Check out this page if you want to read more about all of our features. Voyado also have many partners that are easily integrated with our platform, so you can manage loyalty from every angle.

See all partners

Drag and drop module for NPS score  

Like mentioned before, the NPS score is a great way to measure how a customer feels about your brand. In Voyado, you can easily drag and drop a module with the NPS score into your emails. The receiver can choose a number between 1-10 of how likely they are to recommend your products to friends and family.

Define and create custom rewards

In Voyado, a customer can earn reward points based on different criteria:

RFM value – learn about your most loyal customers

In Voyado, you see which ones of your customers are most loyal, based on the RFM value. It’s shown on your customer’s profile and you’ll see a number between 1-5, where the most active customers will have a 5. It’s calculated by:

Membership levels

If you want to include different levels in your program, there are two different ways to go in Voyado.

Ready to manage loyalty with Voyado?

We’re guessing you are! Because if you’ve read this far, you must be super eager to start working proactively with loyalty! So what are you waiting for?




We were blown away by all the features Voyado could offer in one platform: customer data, consents, purchase history, offers and rewards, e-mail marketing, SMS, automations, registration forms, and business intelligence.

Rickard Sviestins, Business Developer at Hälsokraft

Frequently asked questions

These are some of the most common questions about retail management in Voyado.

How can I manage loyalty through Voyado?

The entire platform is built and designed for you to be able to manage loyalty. You can work with detailed segmentation to create personal communication through email and sms – either manually or in marketing automation flows. Create gamification campaigns and work with membership levels in your loyalty program just to mention a few things.

Why is loyalty management important?

Because loyal customers will make you money! The oldie but goodie "80 percent of your business comes from 20 percent of your customers" is still true. So you see, that's why you need to take care of these valuable customers!

What is customer loyalty management?  

Loyalty management includes the strategies, tools, and different tactics your business needs in order to acquire, retain and engage your customers. Loyalty management allows your brand to find the right customers, then take care of them in the right manner – through benefits, experiences, events, and rewards, etcetera, to build long-lasting relationships.

What is unique with Voyado compared with other loyalty management softwares, services or solutions?

In Voyado, you will get six features under the same hood – where loyalty management is just one part of it. The platform is extremely easy to use and is tailored for retail and e-com businesses. One of Voyado's largest USPs is the amount of speed you can work in. All of our customers say they can create a strategy in the morning and execute it in the afternoon.

Why book a demo of Voyado?

Because you owe it to yourself and your brand! Find out for yourself what it is about Voyado that makes so many retailers chose this particular customer loyalty platform.

It’s not just because Voyado is built specifically for retailers or because it’s so easy to use – it’s more than that. And that’s why you need to book this demo.

Fill out the form on your right, and we’ll reach out to set up a time.

Book a free demo