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4 Benefits of a Customer Loyalty Program

PAI – Sep 1st, 2013

4 Benefits of a Customer Loyalty ProgramA customer loyalty program can offer invaluable information and resources for merchants to entice customers and increase business. Below are the four top benefits a merchant will receive from implementing a customer loyalty program. While each one has its own unique advantage, they all add up to a better experience for the customer and more business for the merchant.

Customer Retention

If a customer knows they'll receive a certain discount, or are working towards getting something for free, they are much more likely to shop at your business again. Customer loyalty programs keep customers coming back because they know they're saving money and getting the best value. In addition to a standard discount, loyalty programs allow you to send special promotions to the members, enticing them to come back for even more savings.


Depending on the size of the business, many customer loyalty programs keep a database of everything each member purchases, the time it was purchased, and the amount of money spent. This provides important data about the spending and shopping habits of customers. The merchant can then use this information to provide a better shopping experience by bundling products, using promotions to increase sales on low volume days, changing the store layout to put popular products nears items the merchant wants to promote, altering the store hours or making a number of other changes that ultimately lead to more sales.


When customers are naturally loyal, it's important to show how much you value and appreciate their business. A loyalty program allows you to recognize your best customers and offer personalized discounts and rewards based on their previous shopping and spending habits. This opens the door for a deeper relationship with the customer.


Customer loyalty programs offer low-cost advertising to people who are already interested in a merchant's business. If a loyalty program has a membership or keychain card, customers will see these each time they open their wallet or take out their keys.

While these benefits are all geared towards the business, it's important to remember the consumer as well. A good customer loyalty program will be mutually beneficial for the merchant and the customer, providing each something that will make the shopping experience better. To learn more about customer loyalty programs, and the solutions offered by Payment Alliance International, contact one of our representatives.

Tags: [Merchant Solutions]