Boost Repeat Sales and Retention with Effective Loyalty Management

by Bistriti Poddar |

Boost Repeat Sales and Retention with Effective Loyalty Management

Loyalty management is vital to any business’ success and essentially is a series of activities, strategies, approaches that aim to provide top-class service to its customers. This concept uses modern marketing strategies that allow companies to acquire, engage, and retain existing as well as potential customers. It also gives the companies a chance to review their relationship between customer retention, customer acquisition, and other aspects of the business model. This branch of management enables the brands to target the right audience, get a detailed analysis of market size and growth rate, and then reward its customers with benefits, experiences that drive long-term engagement.

The main factor of loyalty management is not only to craft a successful loyalty program but also includes elements like- using cutting edge technology for better customer experience, better client services, and branded customer services, loyalty program optimization, customer acquisition strategy, creative services, high communication, and marketing strategy, simple transactional processes, etc.

Loyalty management provides tools and helps to strategize marketing that proves to be very beneficial for business growth. What are these benefits & how does it help businesses?

  1. Increases customer retention– On average, more than 67% of revenue generation is done by existing customers than new ones. Loyalty programs help boost customer retention. This retention rate is a measure that encourages customers to make repeated purchases at the brand for an extended period. It motivates the company to provide a great customer experience and retains the most valuable customers who contribute positively towards brand growth. Every business requires a massive amount of investment in resources to generate leads, which results in higher customer acquisition costs. However, if those investments are redirected towards increasing customer loyalty and serving the customers in a better way, it will encourage the clients to return to those brands.
  2. Increases CLV– Customer lifetime value helps a brand to predict the net profit it may earn through a single customer. This vital metric works on improving the brand image, serving its customers in a better way, acquiring most customers, enhancing its relationship with every customer so that the customers spend more and buy more often, increasing the CLV. It results in a win-win situation for both parties. The higher the CLV, the higher will be the revenue generation. Thus, boosting CLV is a crucial part of loyalty management, which will also develop a strong and positive brand image.
  3. Helps in direct marketing– Loyalty management and its tactics give access to all the loyalty data, including customer preferences, demographic information, transactional details, and other valuable insights. This way of data collection is the most effective way to build customer loyalty, increases customer frequency and helps brands to understand the customer persona, their purchasing power, and purchasing pattern. With the help of these actionable data, intuitive campaign management tools, and marketing channels, personalized experiences are offered to increase your bond with the customers.

There are many benefits to the loyalty management system. It gives businesses steady and sustainable growth in the long run. However, to achieve such benefits, modern loyalty management software is needed to carry out such operations smoothly.

While loyalty management supports businesses to target audiences and give them rewards for being loyal customers, loyalty management software is one such tool that helps businesses to manage customer loyalty data and information. These are the web-based solutions that businesses use to manage their customer loyalty programs, identify the repeat as well as potential repeat customers and give them incentives in the form of gift cards, vouchers, reward points to make them return to that business. Loyalty program software also helps to automate customer loyalty programs.

What are the advantages and disadvantages of incorporating such software while managing customer loyalty?


  1. It includes features that help businesses identify loyal and potential repeat customers, which makes market research easier.
  2. Market segmentation becomes easy and less hectic for businesses that help determine customer’s purchase history, profile qualities. The software uses static or dynamic segmentation in strategizing your loyalty campaigns.
  3. Loyalty management software provides a tracking system. This system records the interactions between the customers and the loyalty program.
  4. With digital transformation, this system allows businesses to access customer data and customers to gain insights on loyalty programs via different devices and multiple channels.

All business types know the importance of customer loyalty. Their marketing strategies aim to bring in new business, acquire new customers with low customer acquisition costs, and make customers return to the same brand expanding the loyal customer base. Even statistics from various studies show that it is 5 to 25 times more expensive to acquire new customers than to keep an existing customer. Accenture says that more than 90% of companies introduce various kinds of loyalty programs to increase customer engagement and loyalty. And to do so, every company, business, organization- be it an established one or a start-up- needs to manage its loyalty tactics and strategize strategies to keep its loyalty game on point.

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