Harvard Business School has published multiple studies showing two significant findings:

  1. Rewards create and accelerate loyalty
  2. A company’s most loyal customers are also its most profitable

The application of loyalty rewards programs is broad:

  1. Motivate return visits and consistent retail and/or web store visits and purchases
  2. Encourage a sales force to better position your product compared to that of a competitor’s
  3. Generate positive product experience reviews and sharing
  4. Internally, rewards can be successfully used by HR to shape and reinforce corporate culture

Engagement Matters

Studies show customers are more likely to buy brands with which they are engaged. According to a report by Forrester Research, 78% of consumers polled said loyalty programs save them money. Nearly half of respondents said loyalty programs influence what they buy. Additionally, loyalty program members are 40% more likely to be brand evangelists.

Combining gamification with rewards programs enhance engagement and interest with “surprise and delight” prizes along the way. And, like all promotions, successful loyalty programs must be targeted to your audience — you’ll “Activate Your Audience” when you speak to your audience in a language they easily understand.

Successful loyalty programs are built on the foundation of your business strategy. Utilizing email, text message-based marketing and apps you can inspire and reward real-time action. Programs that engage customers with non-transactional activities, like learning new ways to use a product, sharing product experience, completing reviews, etc., will further boost customer longevity.

Rewards program members may also act as your sales force. Another recent report on brand loyalty indicates 73% of loyalty program members are more likely to recommend brands with good loyalty programs.

Furthermore, a 2018 Forbes study also reported that 78% of consumers believe loyalty programs save them money and reinforced that loyalty programs influence what they buy. According to the report, loyalty program members on average spend over 30% more with traditional retailers than shoppers not in a loyalty program.

Loyalty programs reinforce themselves and build sales because members share and inspire others to join the program. A brand loyalty report sampling 12,000 Americans and 7,000 Canadians participating in over 280 loyalty programs reported that 73% of loyalty program members are more likely to recommend brands with good loyalty programs. Powerful loyalty programs build brand value.


Loyalty programs take many forms:

  • Points-based program – earn and redeem points for rewards or discounts on future purchases
  • Association-based program – earn rewards redeemable for partner brand merchandise
  • Tiered loyalty membership system – escalating value and membership rewards increase customer value by rewarding your best customers
  • Fee-based loyalty system – With a minor barrier to participation like programs such as Amazon Prime,  offer instant gratification and a suite of benefits
  • Philanthropic value-based program – Redeem value to a charity or host a selection of charities from which your customer chooses
  • Gamification loyalty program – Engage your customers with an appealing game to earn, reveal and track earned rewards. Optionally, use customer feedback to evolve the game

And, most of the above programs can be combined to enrich and deepen both customer experience and engagement.


Loyalty programs build brand evangelists, increase customer spend and lifetime value and prevent them from straying to other brands.

We want to help you navigate the intricacies of loyalty program design and development. Contact Promosis to explore which is right for your application.

Call Promosis at 781-639-1937 to discuss your loyalty program.