Tip 54: Introduce a loyalty program

When your customers come to you again and again, give them a little reward to remind them why they should continue to come back. Hotels and airlines do a great job of this with their loyalty programs where customers can earn free rooms, upgrades, and flights.


  1. I am often ecstatic when I’m able to use my rewards points to get free stuff for something I was using anyway. I was on cloud nine when I cashed in airline reward miles to get a flight to China. I ended up only having to pay the taxes and fees for a roundtrip ticket which was tiny compared to the price of a roundtrip flight. If your customers are able to cash in on a loyalty program you offer them for something real good, they’ll be ecstatic too.
  2. Sephora, a make-up, skin-care, and beauty products store offers their customers a loyalty program known as the Beauty Insider. Over time, as customers make purchases in the store, they accumulate points. When a certain milestone is hit, the customer gets a free gift. It is always fun to walk in to buy one thing, and walk out with an unexpected “gift.”


  1. Look for a variety of inputs for what would make the ideal loyalty program for your customers. Check out programs that exist outside your industry for ideas. And continue to listen to your customers to get some ideas too.
  2. Implement a loyalty program that doesn’t take forever and a day for your customers to reap the benefits. When your customers are able to get rewards from your loyalty program early on, the more likely they will be to continue to participate over time.

Application for your business

  1. Make a list of five industries to research the loyalty programs of. Within each industry, make a list of three companies to get an in depth look at their programs.
  2. Brainstorm three types of loyalty programs you can implement for your customers.

Previous tips

1-22. Section 1: Build a relationship with your customers (series)

23-48. Section 2: Make your customers’ lives better (series)

49. Treat everyone fairly

50. Play favorites (to your best customers)

51. Treat your customers like they are the most important customer in the world

52. Make your customers feel exclusive

53. Be thoughtful