Tips for creating or having a successful loyalty program

Are you thinking of creating or having a loyalty program? This post is for you.
13 Sep 2021
Tosin Ogunrinde

Loyalty programs are widely used by businesses as a means to encourage customers to repeatedly patronize their business. Businesses offer discounts or rewards to customers who patronize them after they have accrued sufficient points. Loyal customers become business builders - they buy more and help to bring in new customers. When planned and designed properly, loyalty programs can encourage relatively new customers to behave like a company’s longest and profitable customers. To create or have a successful loyalty program, businesses need to consider the following:

  1. A loyalty program should not be treated as a one-off or short-term promotional discount. Use offers for that.
  2. Think of your customers. Is the reward relevant to them? Can you offer them a choice of reward options? Can they get better alternatives elsewhere?
  3. Continuously educate your customers about your loyalty program. This helps to keep them motivated to earn the rewards.
  4. Reward customers in proportion to the value they add to your business.
  5. How long will it take for customers to accrue sufficient points? Customers are not likely to stick around for a reward that takes years to redeem.
  6. Can the effect of your loyalty program on your business be measured or quantified?
  7. The activities you reward customers for should be linked to the desired customer behaviours. Is the desired behaviour to encourage increased spending, to buy only a particular item, or to perform a certain action?
  8. The reward you give to customers should be linked to the desired customer behaviours. Does it encourage a behaviour where customers redeem their rewards and could defect to another business?


Businesses need to view their loyalty programs as a means to encourage the desired customer behaviours. However, it may be challenging to have a successful loyalty program without the right technology solution. For example, a business that wants to encourage customers to spend more by giving them three points for every one dollar spent will soon find out that this cannot be achieved with a loyalty card that is stamped on every transaction. Offerwhere can help businesses to run a successful loyalty program at a fraction of the cost that will otherwise be required to build and maintain one in-house. Through Offerwhere, businesses can:

  1. Define one or more activities that they want to reward customers for.
  2. Define the number of points that they want to give to customers for each activity.
  3. Encourage the desired customer behaviours.
  4. Measure the effect of their loyalty programs.
  5. Gain better insight into customers.
  6. Run their loyalty programs online and in-store without having to invest in new equipment.


Through the Offerwhere Business app (available on the App Store and on Google Play), businesses can run their loyalty programs in-store or in-person. The Offerwhere Business app allows businesses to scan the customers’ Offerwhere PIN and send us their transactions. The Offerwhere PIN is a unique eight-character long number issued to every user on Offerwhere, and can also be used online. The Offerwhere PIN is presented as a QR Code on the Offerwhere app (available on the App Store and on Google Play).


To learn more about how we help businesses to attract and retain more customers, click here. Finally, if you have any comments or feedback, kindly contact us.