Can a rewards program build customer loyalty?

Today, more than ever, businesses are looking into new strategies of providing the best value to customers – a value-prop they can’t get anywhere else. Everyone wants to stay alive and remain competitive amid the pandemic. The thing is, loyal customers can go a long way to provide your business with a consistent stream of revenue as they are likely to spend more than occasional customers. 

Many savvy business owners and marketers know that implementing reward programs can create much-needed loyalty for repeat businesses. In the US alone, there are up to 3.3 billion loyalty memberships, with more than 90% of businesses implementing some kind of loyalty program. Even so, do rewards programs really create customer loyalty? Here is what you need to know! 

Can a rewards program build customer loyalty? 

If you’re not sure if implementing a rewards program in your business can help you build customer loyalty, you’re not alone! We often receive this question. And the answer is obvious; rewards, just like other loyalty programs, can and actually do create customer loyalty. What most people don’t understand and distinguish is the purpose of the rewards. Basically, rewards can be implemented under two dimensions. 

First, rewards can be implemented as promotional giveaways or freebies to attract new customers and create brand awareness. Frankly, most companies provide rewards using this approach, where it is a kind of short-term promo and special offer. And as much as it can be effective, if treated this way, it can offer only a fraction of its intended value. 

However, if designed and executed to drive customer loyalty, a rewards program can encourage customers to not only become loyal but spend more on your brand. So, in addition to offering the rewards, you need to educate them on why they’re rewarded and motivate them to earn their rewards.

Today’s consumers are increasingly expecting businesses to offer them personalized promos and relevant rewards as a way to engage with brands they love. It’s as simple as making your customers feel appreciated for shopping with you. After all, they can still shop with your competitors, but instead, they choose you. So consider appreciating and recognizing them by offering rewards.

3 best software tools to build an effective loyalty program 

To help you build an amazing loyalty program, we compiled the following three loyalty tools to consider:


LoyaltyLion, a desirable loyalty software, is primarily designed for ecommerce businesses. The software allows you to reward your customers based on their actions, like sharing your posts or giving reviews. One of its best parts is that it seamlessly integrates with many ecommerce platforms such as Shopify or your own (if you have your own ecommerce store). 


Yotpo allows you to create customizable reward and referral programs to incentivize both existing and new customers. It has a good user interface and integrates even existing reviews. Yotpo loyalty software enables quick rewards for customers that positively impact your business. Plus, it has other customized campaign programs to aid your marketing efforts., ecommerce marketing software, provides you with a myriad ways of offering loyalty and rewards programs to your customers. With its fully-customizable loyalty and reward options, it still has other unique offerings, such as points and rewards, VIP programs, and referral programs. It also offers reviews and ratings services.

Customers really want reward programs 

Although it may look like a simple gesture, providing loyalty programs like rewards can do wonders for you in creating a strong and loyal customer base. Modern customers, especially the younger generation, are more likely to prefer brands that offer reward packages – consumers love to be appreciated. It shows how much you value them. 

So, in addition to providing a better customer experience, reward programs will help you build customers’ loyalty, ensuring that you retain customers that are more likely to increase your revenues. Not mentioning how they can become your brand ambassadors and bring you new customers through recommendations. 

At Horatio, we have a team of experts who can turn your existing customers into long-lasting brand loyalists. Contact us today, and we will help you customize your rewards program to provide you with the desired value. 


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