Loyalty marketing – how and why it matters

Loyalty marketing is all about keeping your cherished customers happy and engaged by rewarding them and building a stronger bond between your brand and the people who love it. At its heart, this strategy is about forging and nurturing deeper connections with your customers through delightful incentives, personalized experiences, and ongoing communication that inspire repeat purchases and create lasting loyalty to your brand.

Rather than relying solely on acquisition campaigns, loyalty management invests in the customers who are already familiar with your brand, nurturing them into advocates who return again and again.

Why is loyalty marketing important in retail?

You’ve likely heard the adage: “80% of a company’s business comes from 20% of its customers.” That’s why focusing on loyalty isn’t just smart—it’s essential.

Retailers today face high acquisition costs, often up to 7 times more than what it takes to retain an existing customer. Loyalty marketing flips the script by redirecting your budget and efforts toward the individuals most likely to repurchase—your existing customers. These are the individuals who already trust your brand, and with the right strategies, they’ll continue to come back for more.

A well-crafted loyalty marketing plan leads to stronger customer relationships, higher average order values, and a steady increase in Customer Lifetime Value (CLV).

Get started with customer loyalty marketing

Loyalty marketing comes in many forms, but the most common entry point is through incentives. While many retailers use traditional monetary rewards (like earning points for purchases), today’s most effective programs go beyond discounts.

Take Sephora’s Beauty Insider program, for example. Instead of offering a one-size-fits-all reward, they allow members to choose from a variety of options based on personal preferences. This autonomy deepens engagement and increases emotional loyalty.

Why a loyalty program is your best loyalty marketing tool

The most strategic way to implement loyalty marketing is through a dedicated loyalty program. Here’s why:

• When a customer joins your program, you gain valuable first-party data—like email, behavior, and preferences.
• You can begin to segment your customer base and deliver highly personalized messaging.
• If you use a powerful platform (like Voyado), you unlock advanced features like predictive churn scores and CLV estimation, enabling even smarter targeting.

Whether you’re starting from scratch or revamping an existing program, the key is building a strong strategic foundation.

Start (or refresh) your loyalty program

A loyalty program is the heart of your loyalty marketing strategy. But no two programs are alike—the design depends on your business goals, customer behavior, and brand values. That’s why the first step is to develop a solid strategy.

Before building out your program, align internally on a few critical questions:

• Why are we launching or updating a loyalty program?
• What do we hope to achieve—higher retention, bigger baskets, more engagement?
• Who is our target audience?
• What value does the program offer customers?
• What tools and platforms do we need?
• How should the program look and feel?
• How will we handle data and privacy?
• What will the recruitment process look like?
• Who needs to be involved from across the organization?

From strategy to execution

Once your strategy is in place, you’re ready to begin building the program itself. Here’s what comes next:

• Map out the program structure: Tiers, rewards, points system, and redemption rules.
• Plan your recruitment journey: Online sign-ups, in-store prompts, email invites, etc.
• Set KPIs and measurement frameworks: Track enrollment, engagement, repeat purchase rates, and more.
• Launch with impact: Use all available channels—from email to in-store to paid media.

Take advantage of social media

Your social channels are a powerful tool in your loyalty marketing arsenal. Use them to:

• Run giveaways and contests: Ask followers to tag friends, share stories, or post photos for a chance to win.
• Showcase user-generated content: Let your customers share their experience, then amplify it on your own channels.
• Promote positive reviews and feedback: Reinforce social proof and reward engaged customers with a spotlight.
• Grow your membership base: Use social ads and lookalike audiences. Read more about Voyado’s solution for Facebook look-a-like audiences.

Choose your loyalty platform early

A smart loyalty program needs a smart platform. Bringing in your technology partner early ensures your program’s vision aligns with your tech capabilities. You might discover features—like automated journeys, AI scoring, or dynamic segmentation—that elevate your original plan.

Voyado, for instance, offers all of the above in one platform, streamlining your loyalty marketing efforts and making it easier to turn strategy into action.

Let’s sum it up

Loyalty marketing isn’t just a tactic—it’s a long-term investment in the relationships that fuel your business. By offering thoughtful incentives, leveraging customer data, and aligning your strategy with the right technology, you can create a program that keeps customers coming back—and keeps your brand top of mind.

Ready to build a loyalty program that actually drives revenue? Learn more how Voyado can improve your loyalty management here or contact one of our experts today.