6 Types Of Customer Loyalty Programs To Help You Grow Your Business

The majority of retail marketers will agree that they occasionally consider loyalty programs as a way to grow their organization.

Retailers have used point systems, tiered programs, and even paid membership loyalty programs since the dawn of time to attempt and keep loyal customers.

The main question is whether these initiatives actually foster loyalty.

And are you able to determine which loyalty program type is most appropriate for your brand?

If not, don’t worry; we’ll talk about the six main types of customer loyalty programs that can help you expand your company. Before that, let’s discuss.

What is Customer Loyalty?

It refers to a customer’s repeated eagerness to do business with a brand they had enjoyable and surprising experiences.

Customer loyalty can also arise from an emotional bond with the brand, in which customers have a belief that the brand really cares for them.

Different types of Customer Loyalty Programs to help you grow your business

  • Point-based customer loyalty program

In the world of commerce, it is one of the most widely used customer loyalty programs. It is a type of marketing approach where customers earn points for every transaction they make (on your website, mobile app, or in-store).

These points can later be redeemed for other types of prizes such as discounted services, special customer attention, or even giveaways based on the magnitude of their purchases. Businesses can manage their point systems through a mobile app or a loyalty card. One of the most popular loyalty schemes in the retail sector.

  • Tiered-based customer loyalty program

Implementing a tiered loyalty reward system, which rewards initial loyalty and encourages future purchases, is one way to strike the perfect mix between achievable and desirable rewards.

The tier program is ultimately based on levels of loyalty. Every time a customer makes a purchase, they get points. They advance in level as they accrue more points. Additionally, they will receive extra goodies as their level rises.

  • Paid/membership program

Customers must pay to become members of a group. Where they must pay it on a monthly or annual basis. Customers have access to special services, discounts, and other incentives through this premium program.

Businesses must advertise to current customers if they want this form of loyalty program to be used effectively. Additionally, the issue must offer members-only benefits in order to retain its worth.

  • Value-based program

Customers are more likely to become brand ambassadors if your loyalty program is in accordance with their values. However, the crucial question here is: How can you appreciate customers without rewarding them?

It is crucial to clarify your values first. Consider that you manage an online pet shop and are completely aware that your customers care about animal welfare. One thing you might consider doing is starting a loyalty program that works like a point system. Where purchasers make purchases and convert them to money. As a result, if a consumer spends 50 rupees, you would donate 50 rupees to an organization that rescues animals.

The benefit of choosing a value-based program is the opportunity to build a solid, moral relationship with your customers that will allow you to engage with them on a deeper level.

  • Gaming-based program

It is a kind of loyalty program that engages customers and offers incentives or benefits in exchange for playing a game in-store or through a game app.

Gaming-based customer loyalty programs have been successful in attracting young, tech-savvy consumers. The greatest approach to keep younger clients interested and coming back for more is to provide them the ability to accomplish more game levels or quests in order to earn rewards.

  • Hybrid loyalty program

It combines two different loyalty programs kinds. The point-based with-the-tier program merger is the most typical kind.

Customers now have it simpler to keep track of their accrued points, redeem them, and be inspired to move up a loyalty tier, which encourages more purchases.


It’s crucial to pay attention to customer feedback not just for your loyalty program but also to improve your overall customer service and develop a following of devoted supporters. Because of this, it is necessary to determine which customer loyalty program would best suit your needs if you want to develop one for your business. This cannot be done without the help of a professional digital marketing agency. Get in touch with Stellar Digital, the best digital marketing agency in Delhi NCR, and Gurgaon, if you’re seeking such a company. We have a skilled team of marketers who can offer top-notch solutions.