According to Adobe, the top 10% of your customer base is spending 3x more per order than your average customer while the top 1% is spending 5x more per order. Read our Ebook on The Complete Guide to Retail Loyalty Programs

Loyal customers expect you to treat them differently. They expect to be rewarded for their loyalty and this should be reflected in your loyalty program.

Not only do loyalty programs encourage repeat transactions and improve customer retention, but their mere existence can also help to boost your company’s reputation, improve overall customer satisfaction, and even provide you with valuable insights and data about your customer base.

Of course, designing and implementing a retail loyalty program that will best suit your needs and your customers’ wants can be easier said than done. This is where taking the time to understand the costs and potential return on investment (ROI) of your proposed loyalty program can be beneficial.

6 Considerations for your retail  loyalty program

There are many important considerations to keep in mind when designing a customer loyalty program for your business and unique customer base. Creating a business case with these considerations in mind will help you make the right decisions.


One of the most important aspects of any loyalty program is the customer base; what types of demographics will your loyalty program be targeted to and how many members do you anticipate joining?


Coming up with a system for calculating rewards can be one of the most challenging aspects of designing a loyalty program. How will members earn points, and how can those points be redeemed? This will require you to carefully think about reward rules and different tiers or levels of memberships that you may want to offer, as well as point redemption requirements and offer delivery requirements.


There are many different technologies that may be required to implement and maintain a customer loyalty program. Taking the time to identify the best technology solutions based on their functions and costs will help you yield the best ROI. Read more of the different loyalty technologies.

When deciding on technology , be sure to consider the following:

  • registration process
  • how customer transactions will be tracked/captured
  • CRM


Having a great loyalty program won’t do your business much good if it’s not being promoted widely and effectively enough to get people to join. Consider, then, how the specific program will be promoted both in-store (where applicable) and online. This is also where naming your loyalty program will be important, as this name will be tied to the program from this point forward.


One of the biggest advantages to having a loyalty program in place is the ability to track customer spending and other data, which can then be used to target your marketing and increase future sales/profits. When designing and implementing your loyalty program, then, you’ll want to carefully consider what specific data you’ll want to be tracked as well as how it will be tracked and interpreted.


Ultimately, knowing how much the design and implementation of your program versus what its potential ROI will be is extremely important before moving forward. Learn more about the ROI of customer loyalty

There are many potential costs that must be taken into consideration, including:

  • the technology that will be needed to implement and maintain the program
  • the rewards you will be offering your loyalty members
  • ongoing communication and promotion of your loyalty program

In determining the ROI of your loyalty program, it can be helpful to subtract the estimated costs from the anticipated incremental value of the program itself.

How Brandfire Can Help

If all of this research seems a bit intimidating, but you still want to be able to implement a great loyalty program at your place of business, it may be in your best interest to work with a marketing agency that specializes in determining costs and ROI benefits of customer loyalty programs. This is where Brandfire can help.

At Brandfire, we offer comprehensive solutions for your loyalty program from design to implementation and beyond. This includes your initial loyalty research, a definition of your program objectives, program research, description of all processes, and an ROI estimation as part of your unique business case.

From there, we can help you define your brand’s loyalty strategy, along with the specifications and requirements your program will need to have in-place for long-term success. Ultimately, we will present you with a business requirement document (BRD) that will outline in detail your timelines and costs.

With Brandfire’s help, you can successfully design and implement a great loyalty program that will keep customers coming back and boost your brand’s reputation while providing you with the best ROI possible. Interested in finding out more about the services Brandfire has to offer? Ready to get started in requesting your business case for loyalty? Contact our team today; we would be happy to help you better understand and determine the costs and ROI of a loyalty program for your business.

Posted in Loyalty & Rewards