Marketing Masterclass: Reward customer loyalty

Rewarding customer loyalty can boost profits and brand reputation, writes Lisa Bailey, Entice, P&MM

Marketing Masterclass: Reward customer loyalty


Rewarding customer loyalty also delivers rewards for brands. Research has found that 70% of consumers would be persuaded to choose a brand if it offered such rewards1.

But it goes beyond that. Consumers are savvier than ever and tend to shop around for the best deal, so it’s tricky for companies to stand out. You may offer a good product, but the chances are it’s available elsewhere, too. They want more.

Nowadays it’s more about the service; the whole package that comes with the product. Rewarding loyal customers is essential to ensure that they feel appreciated, maximising the chances of retention.

It costs five times more to attract a customer than it does to retain one2, so keeping those who are loyal happy is important to ensure you avoid losing them to a competitor.

When it comes to loyalty schemes delivering ROI, 88% of businesses with a loyalty programme are more profitable than those without one3.

More than 25% of consumers would be likely to spend more money with a company that offers rewards, while nearly a quarter would be encouraged to stay loyal to a brand that does4. It’s likely, then, to boost profitability and your reputation.

This has been proved by companies such as Boots and Tesco, where loyalty schemes have increased in-store spend, profits and repeat custom5.

LA Fitness is one of the UK’s leading health and fitness chains – its MYLA Rewards platform doubles as a tool to attract new members and an ongoing benefit to help retain members. Over its first three months, 22% of the member base had engaged with the platform and offers, and by the first quarter, member numbers had increased significantly.

LA Fitness sends regular emails to members with relevant offers. It is also able to gain valuable insights into the behaviour of its customers, enabling the brand to create a more personalised service.

Nearly 10% of people would be likely to recommend a company to a friend if it offered loyalty benefits6; 87% of consumers are more likely to share positive experiences7, and generous rewards can assist in creating these. This leaves satisfied customers, with expecations exceeded.

This, in turn, leads to referrals, attracting more customers. People trust their peers more than a company8, so referrals are extremely important in customer acquisition, boosting brand aware­ness and reputation.

Rewarding loyalty is essential to retain customers and ensure a positive experience. The stats show loyalty schemes make a significant difference and are likely to increase retention, acquisition, profits and referrals – so if your company doesn’t yet have one, it’s time to start thinking about investing in one. It’ll be worth it.

To find out about the customer reward programme Entice offers, go to

Customer Loyalty Study

An independent study into how consumers feel about being rewarded for their loyalty and how it affects their behaviour toward brands. Download our research paper FREE –

1 Censuswide Survey 2015 (1101 people); 2 CAM Foundation; 3 Loyalty 360; 4 Censuswide Survey 2015 (1101) people; 5 Money Saving Expert; 6 Censuswide Survey 2015 (1101 people); 7; 8 HK Rampersad, ‘Authentic Personal Branding: A New Blueprint for Building  and Aligning a Powerful Leadership Brand’, 2009