How to choose the best loyalty scheme for you!

Retaining customers is vital for success in any business and a loyalty scheme can be an effective way to keep your customers engaged with your brand.

Whilst attracting new customers is important, it can also be an expensive cost. So it is key to make sure you retain your customers once you’ve won them over.

July 1, 2021

loyalty scheme

The majority of customers will be familiar with loyalty schemes from point schemes to tiered programmes, but how do these work for your business and what type of programme is best suited for your brand? To help you with your loyalty scheme decision making and figure out what is best suited for your brand, we’ve put together a list of some of the most popular types of loyalty programmes to help you figure out what is right for your brand.

Points Programmes

Point’s programmes are among the most popular types of loyalty programmes and the majority are well accustomed, from collecting points for our weekly shop or when we fuel our cars. As so many brands employ a point’s programme, it's an easily recognisable format for customers. They understand how to take advantage of them and it's a seamless experience.

The benefit to your business of using a point’s based system is that it allows you to collect detailed customer data that grows with each purchase. The more the customer data grows the more you can customise, and personalise your rewards, whilst also tailoring the product or service to meet the customer requirements. You also have the flexibility to choose what customer points will acquaint to and also what rewards customers can receive for their points.

Tiered Target Based Loyalty Scheme

Tier based programmes are similar to video games, once you have hit on target customers can move on to their next target level, giving them access to better benefits and bigger perks. Benefits of tier based programmes are that they provide structure that customers can rely on and in turn this will motivate them to progress. This is a great scheme to choose if you are trying to incentivise your lower spending customers.

Spending Based Programmes

Spending based programmes allow companies to recognise their high spending customers. Spending based customer rewards encourage customers to continue spending their money with you, rather than going elsewhere. This is done by analysing customer data and delving into their purchasing frequency and spending habits. One of the great benefits of a spend programme is that there is very little work that customers need to do.


Gamification is a fun way to encourage recurring customer purchasing behaviour, whilst offering a personalised experience. These programmes encourage customers to follow your instruction and engage with your brand, product or service without feeling restricted. With a game-based programme you can analyse how customers respond to incentives and use that valuable loyalty data to incentivise them further.

Prize Draws

This is a great system to use to incentivise your audience, increase sales and improve brand engagement. It is a simple process and quick to launch, the results will help you understand your customer spend patterns like never before. This mechanic offers a chance for customers to win prizes every month, simply by spending with your brand and submitting their receipts online.

By offering multiple chances to win throughout the year, this scheme encourages customers to continue or increase spend with your brand. It will also increase their overall product knowledge and brand familiarity.

Final Thoughts

Creating a loyalty scheme in 2021 and beyond should be more than just offering a one size fits all kind of scheme. Your customer loyalty strategy should be built around your existing customer data and what you know about your customers already. Only then can you reward and incentivise new behaviours in the most effective and efficient way.

If you’d like to find out more about how your business could benefit from a loyalty scheme, call us on 0113 887 8620 or drop us an email at [email protected].

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Whether you’re looking for answers, would like to discuss our services, or just want to know a little bit more about how we have helped our other clients, simply get in touch and we’ll get back to you as soon as we can!

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