It is common knowledge amongst sales and marketing professionals that the first sale is the hardest and most expensive. Customer loyalty programs are intended to take advantage of repeat sales as a way to offset the cost and effort of converting the visitor (be it online or bricks and mortar) into a customer.

The most common form of such a program is the customer loyalty card. Any loyalty scheme, however, will help to boost sales and income as long as it is a reward program that offers clear customer incentives that reward loyalty to the brand or retail outlet.

Designing Loyalty Rewards

A loyalty reward has to offer value to the customer: for low value, high volume businesses, such as sandwich shops, a typical loyalty reward is to offer a free sandwich once a number have been purchased. Each sandwich that is purchased earns the customer a stamp on a card – when the card is full it can be exchanged for a free sandwich.

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