Customer loyalty programs are an essential part of any successful business. These programs come in all shapes and sizes, but all of them share the common goal of rewarding customer engagement and encouraging consistent spending. In this article we’re going to walk you through a few basic steps for how to monetize a loyalty program.

The best loyalty programs create incentives such as points, miles or other rewards to promote customer engagement and repeat purchases; companies can boost their revenue and solidify customer retention.

Whether through enticing discounts, exclusive product offerings, or personalized customer experiences, businesses with effective customer loyalty programs can generate 20% increased profits while keeping existing customers satisfied and building greater brand awareness.

Loyalty Marketing Programs

Customer loyalty programs have been around for many years and are still relevant in today’s competitive business landscape. There are many types of loyalty programs.

  • Hotel loyalty programs offer added flexibility and feature special privileges, such as free Wi-Fi access or minibar credits.
  • Restaurant loyalty programs track the spending habits of repeat customers and offer rewards such as discounted meals, access to exclusive events like wine tasting, and free menu items.
  • Airline loyalty programs, also known as Frequent Flyer programs or Air Miles Programs, offer ways to earn points or miles that can be redeemed for discounts, flight awards, insider perks, and free products.
  • Loyalty card programs can include plastic cards or fobs with a barcode for scanning. These businesses gather information about customers to help them understand and influence purchasing habits.

Whether implementing a customer loyalty program for the first time or looking to improve an existing program, consider using Coupons & Deals tool from Admitad.

It enables you to promote special offers such as discounts, gifts, or free delivery on your ad space to motivate your users to place orders.

Types of Loyalty Programs

One of the most common customer loyalty programs is a points-based system. Customers earn points for making purchases from a company or its competitors and can then redeem them for various rewards, such as gift cards or discounts on future purchases.

Another type of customer loyalty program is a tiered membership level, where customers can earn benefits based on how much they spend with a company over time.

For example, some companies may offer different rewards or discounts to customers based on their total purchase amount, or they may grant exclusive access to dedicated events or perks based on the customer’s level of spending.

This type of customer loyalty program is one way for brands to reward their best customers and encourage them to continue doing business with the company.

Other customer loyalty programs offer rewards for referrals, where customers can earn points or discounts for referring new customers to the company.

Loyalty Programs for Small Business

Attracting loyal customers is a goal of every small business. The following steps can keep a company ahead of the competition.

  1. Developing a multi-channel system focuses on the customers’ needs. Maintain a consistent user experience with a brand across platforms, channels, and devices. Live chat tools and a help desk can help with the workload of processing incoming requests.
  2. Offer excellent customer service. Customers need solutions to their problems, not merely discounts and giveaways.
  3. Don’t worry about the competition, focus on the customer. Know what the competition is doing, then get more creative. Every interaction, purchase, and referral, affects brand loyalty.
  4. Stay consistent so customers know what they can expect. Customers can more easily make brands a part of their lives when presented with consistent services and products.
  5. Meaningful interactions build credibility. While three out of five customers rate good customer service towards their feeling of loyalty, 50% report they would switch brands after only one unpleasant experience.
  6. Go above and beyond the customers’ expectations. Sixty-one percent of millennials are willing to pay more for an experience that is guaranteed to be a good one. One way is to create a customer community. Another is to host events or contests that would interest the target audience.
  7. Gather customer feedback and share reviews about the benefits the brand provides. Customers trust other customers more than they do advertising.
  8. Customers who spend more money on a brand should be rewarded for their loyalty. Sixty-eight percent of customers will join a loyalty program if one is presented because they will receive benefits in return for their business.

No matter what industry or niche, business should offer added and exclusive benefits to customers for their loyalty. A program proper to the small business will improve customer retention and generate more referrals. For ideas on how to do this, look no further than what large companies are doing.

Best Customer Loyalty Program Examples

From small businesses to giant corporations like Sephora and Starbucks, examples of the best loyalty programs in 2022 that can serve as inspiration are many. Here are just a few:

1. Amazon Prime

This subscription-based service that offers a broad range of benefits costs $12.99 per month ($119 per year). Most customers consider its 1 or 2-day shipping the greatest benefit. However, they also enjoy discounts at Whole Foods, access to Amazon Prime streaming, and first access to other deals.

With over two hundred million subscribers, Amazon’s is the most successful program in the world.

2. Sephora Beauty Insider

This is another point per dollar program. When the customer reaches five hundred points, they get $10 off any qualifying purchase. This is considered one of the best loyalty programs in retail with twenty-five million members.

3. REI

This is a paid membership program where a one-time $20 payment gives customers a 10% discount off most products, plus lifetime access to a range of benefits.

REI Co-op has over twenty million members who take part in exclusive benefits such as classes on water sports, camping, hiking, snow sports and survival skills.

4. AAdvantage Program

The concept of air miles is simple, the customer earns miles when flying on participating airlines. American Airlines offers five tiers of memberships that include things like upgrades, car rentals, hotels, and vacations. This program generates an average of $2.9 billion each year.

5. The North Face XPLR Pass

The XPLR Pass is an example of a simple points-based loyalty program. Each one hundred points earns a $10 reward.

6. Lego VIP

Lego VIP is like other points programs but becoming a VIP member is free, granting first access to new LEGO collections. The program was an instant success, generating $41 million in one year.

7. Chipotle Reward

This is another point-based system with a twist, customers can earn extra points through gamification to encourage added engagement. Gamification elements can drive 74% improved engagement according to Omnisend research.

8. H&M Now

In addition to offering one point for each dollar spent, H&M Now lets customers collect points through sustainable conscious choices, including recycling clothes and bringing their own bags to the store. The enormous success of the program is reflected in over one hundred million customers signing up.

9. Starbucks Rewards

This awards-based system lets customers earn stars with each purchase that can then be redeemed for foods and free coffee. Starbucks was the first to offer their program through a mobile app. They now have twenty-four million users generating 51% of spending in their U.S. stores.

10. My Bath & Body Works

Customers earn points with each purchase, one point per dollar. When they reach seventy-five points, they get a free product of their choice.

Creating Additional Revenue

While loyalty programs have many benefits, such as increased brand awareness and customer engagement, businesses also rely on these programs to generate more revenue.

In addition, brands that offer low-cost items or services benefit from loyalty programs that can help them increase sales and offset the costs of running these types of programs.

One such program charges customers a fee to take part in the program.

For example, some customer loyalty programs may require customers to pay an annual fee, or they may charge a monthly fee for access to exclusive rewards discounts.

Monetization Examples

Overall, customer loyalty programs are an effective way for companies to build stronger relationships with existing customers and encourage them to continue doing business with the company.

In addition, customer loyalty programs can be a valuable tool for businesses looking to drive customer engagement and increase revenue, whether by points or other rewards.

Loyalty Program Examples

There are many loyalty programs, ranging from those offered by large companies like Amazon and Starbucks to smaller businesses. For example, some common types of customer loyalty programs include:

  • Points-based systems, where customers earn rewards based on the number of purchases they make;
  • Customer-specific programs, which offer discounts or special promotions based on customer purchase history;
  • Customer referral programs give customers incentives for referring new businesses to the company.

Overall, customer loyalty programs are an effective way for companies to build stronger relationships with existing customers and encourage them to continue doing business with the company. Customer loyalty programs can be valuable assets to any company, whether using points or other rewards.

Opening Additional Revenue Streams

Loyalty programs are a powerful tool for businesses, as they can help drive customer engagement and increase revenue over time.

This is because of several critical factors, including the need for customer loyalty programs to be designed in a way that is easy for customers to understand and use and the importance of supplying valuable rewards that encourage customers to take part.

How To Start a Loyalty Program With Admitad

Creating loyalty programs with Admitad involves adding affiliate links to a website with a bonus program.

When the user clicks such links and completes a target action, they receive points through the loyalty program.

Points can be used to pay for products or services from the site that runs the loyalty program or for purchases in other stores.

Getting Started

  1. Visit Admitad catalog;
  2. Pick a brand you want;
  3. Join the program by signing up;
  4. When the user clicks the link you created in your dashboard, it will automatically redirect your ID to our support team;
  5. All the required information about particular order will be stored in Admitad cloud;
  6. Once an online store confirms the order, the loyalty program receives revenue;
  7. As part of the chosen reporting format, Admitad sends the data necessary for accrual (you can choose between API-based integration or server-to-server);
  8. The loyalty program converts the reward into its own currency and transfers it to publisher.


Things To Know Before Launching A Loyalty Program

  1. Join Admitad Partner Network as a publisher;
  2. Activate the affiliate programs you need for the allowed type of cashback traffic;
  3. Choose an integration method (API-based, manual);
  4. Sign a contract with Admitad.


Implementing a New Loyalty Program

Businesses with effective customer loyalty programs can see a significant uptick in customer loyalty and satisfaction because more customers make purchases, affecting the bottom line.

Launching a program in Partner Network can also help you reach your monetization goals.

There are several things to keep in mind with implementing a customer loyalty program in any business, large or small.

  1. Make sure that the program is easy for customers to understand and use;
  2. Offer rewards that are valuable enough to encourage customers to take part;
  3. Monitor the program regularly to ensure that it runs effectively and positively affects the consumer;
  4. Consider developing a new revenue stream to offset any losses. Monetization solutions from Admitad are here to help.

Successful Loyalty Programs

Several key factors contribute to the success of customer loyalty programs, including program design, valuable rewards, and regular promotion.

In addition, customer loyalty programs need to be designed to be intuitive, easy to navigate, and geared towards customer needs.

Finally, they should include targeted communication and personalized offers to encourage customer engagement.

Plus, it is also important to offer rewards that are valuable enough for customers to participate in the program, including discounts, points for purchases, first access or special promotions, or other incentives.

Finally, customer loyalty programs need to remind customers regularly of the benefits and encourage participation. Through marketing campaigns, social media, or other channels, the programs can do this. This helps ensure that the customer is aware of all the things the business has to offer.

By following these tips, you can ensure that a customer loyalty program is successful and drives positive results for your business.

Customer loyalty programs are a terrific way to improve customer engagement and increase revenue, so consider them for any business.

How to Monetize a Loyalty Program

Several factors affect how well loyalty programs make money for companies.

For example, customer participation rates, discount rates, and customer data selloffs all affect how much revenue customer loyalty programs can bring in.

Additionally, companies need to be aware of the costs of running these programs, as they can quickly eat into any potential profits by understanding how customer loyalty programs work and what factors improve their profitability.

An online tool that comes at no extra cost is Partner Network.

Promote products and services, choose brands that best suit the needs of your target audience and maximize your earning potential.

Whether through points-based systems, customer-specific programs, or customer referral programs, companies and content creators can use solutions from Admitad to boost sales and build stronger relationships with their customers.

If you’re creating engaging content on social media, complement them with links to relevant products/services your subscribers might like.