Benefits of a Customer Loyalty Program

A customer loyalty program is a marketing strategy designed to reward and incentivise customers for their repeat purchases and engagement with a brand or business. By offering rewards, discounts, and exclusive perks, these programs aim to build stronger relationships with customers to help increase customer loyalty and retention. Through data collection and personalisation, businesses can provide targeted promotions and improve overall customer satisfaction, encouraging word-of-mouth marketing and long-term customer relationships.

What Are Some Different Types of Customers Loyalty Programs?

  • Point Programs: Point programs are a popular type of loyalty program where customers earn points for each purchase they make. The points are typically based on the amount spent, and customers can accumulate these points over time. Once they’ve collected a certain number of points, they can redeem them for rewards, discounts, or free products.
  • Tiered Programs: Offering different levels of rewards and benefits based on the customer’s loyalty status is known as a tiered loyalty program. Customers start at a basic level and can progress to higher tiers as they make more purchases or engage more with the brand. Each tier comes with increasingly valuable perks, such as exclusive discounts, early access to sales, personalised offers, or even dedicated customer service.
  • Paid Programs: Paid loyalty programs require customers to pay a membership fee to become part of an exclusive club or group. In return, members receive special benefits and rewards that non-members do not have access to. These benefits can include free shipping, members-only discounts, priority access to new products, or unique experiences.
  • Partnered Program: Using a partnered program, two or more brands can go into collaboration to offer joint rewards and benefits to their customers. Partnered programs broaden the scope of rewards, providing customers with more opportunities to earn and redeem points across different products or services.
  • Referral Program: Referral programs encourage customers to refer friends and family members to the brand. When someone they refer makes a purchase, the referring customer receives a reward, such as a discount, free product, or loyalty points. Referral programs use the power of word-of-mouth marketing to encourage customers to promote the brand and bring in new customers.

Businesses can choose to implement just one type of loyalty program or combine several to create a program with the most benefits for themselves and their customers. This is known as a hybrid loyalty program and is used to cater to a diverse range of customer preferences and behaviours by blending features like points-based rewards, tiered levels, referrals, and memberships.

Why Implement a Loyalty Program?

Benefits to Customer

A customer loyalty program offers customers a tangible reward for their repeat purchases, including discounts, free products, or exclusive offers. This makes the customers’ overall shopping experience more cost-effective and enjoyable. Loyalty programs also create a sense of recognition and appreciation, enhancing the customer’s trust and connection with the brand and simplifying the purchasing process, making it easier and more convenient for customers to interact with the business.

Customer loyalty programs often provide personalised offers based on customer preferences and behaviour, leading to more relevant shopping experiences. By participating, customers can access exclusive perks, early access to sales, and premium services, increasing their overall value from the brand.

Benefits to Business

Implementing a customer loyalty program benefits retail stores by:

  • Improving customer retention
  • Increasing customer lifetime value and repeat business
  • Boosting revenue
  • Building stronger customer relationships
  • Differentiating the brand from its competitors
  • Encouraging word-of-mouth marketing
  • Showing appreciation towards customers
  • Increasing customer satisfaction

CowraFeed Loyalty Program

CowraFeed uses a hybrid of a tiered and points-based loyalty program to reward our resellers for their continued business. myCowra groups resellers into three tiers – Community, Team, and Partner – giving each their own advantages while also working in the CowrAdvantage point-based rewards. This program aims to support and strengthen local produce stores based on their monthly purchases by allowing you to collect points for every purchase you make. These points are redeemable as gift cards, free stock or account credit. CowrAdvantage is designed in a way that you can be earning up to 1.5points per $ spent on CowraFeed products!


From sports to the coffee industry, more than 90% of companies worldwide offer some form of loyalty program. When implemented correctly, these can be a valuable tool for any business. Depending on the product offering and target audience, most companies tend to use a combination of rewards strategies to encourage repeat sales and get the most out of every transaction – the key is to build value for your customers.


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