Creating an Incentive Program to Foster Customer Loyalty

Customer loyalty is an important marker of success for any business. Our NH strategic marketing experts can attest to that. Loyal customers are more likely to stick around, be more responsive to promotions, and continue to purchase from the same company for longer.

However, how can you ensure customers remain loyal to your business? An incentive program may be the answer.

What Is an Incentive Program?  

An incentive program is a marketing tool that rewards customers for repeated purchases or other forms of engaging with a particular company. Incentive programs are used by businesses to encourage customers to return to their establishments or take part in specific promotions. It can be simple or complex, but the basic concept remains the same: give customers an added benefit or reward when they take certain actions. 

The Benefits of Having an Incentive Program 

NH strategic marketing experts have proven several benefits to having an incentive program in place. Some of these are:

  • Higher Customer Spending and Repeat Sales – Offering incentives to customers often increases customer spending, which can lead to increased profits.
  • Improved Customer Communication – Incentive programs give customers an incentive to remain engaged with a business, which in turn allows businesses to better understand the needs of the customer.
  • Increased Customer Engagement – Incentive programs can help to generate more customer engagement with a business.
  • Increased Return on Investment – Offering incentives to customers often yields greater ROI compared to traditional marketing approaches.
  • Improved Trust in the Brand – Incentive programs can help to build trust in the brand, leading to improved reputation and customer loyalty.

Incentive Programs for Fostering Loyalty 

Before you create an incentive program, there are a few things to consider. First, you need to decide what reward or incentive would be most valuable for your customers. Generally, it’s best to offer rewards that have an immediate and tangible value, such as discounts or free products.

Next, you need to consider how best to reward your customers. Should it be on a point-based system or as a one-time reward?

Point-based incentives are more stable than one-time rewards as they encourage customers to return for future purchases. However, one-time rewards can be more valuable for customers and can be used to boost customer loyalty. As NH strategic marketing experts, we suggest to think about the customer’s preferences when deciding what to offer.

Then, you should keep customers engaged with the program. It has to be dynamic and regularly updated to remain fresh and exciting. You could offer new rewards or tie the program in with seasonal or limited-time offers. 

Finally, track and measure the success of the incentive program. Keeping track of its results can help you make smarter decisions when allocating resources or creating new offers. 


Creating an incentive program can be a great way to foster customer loyalty. By using rewards that offer immediate and tangible value, regularly updating the program, and tracking the results, you can create an incentive program that will keep customers coming back for more.

At Marketing Ally, we help you grow your business. We are NH strategic marketing experts with over 25 years of experience in brand management, promotions, and customer loyalty initiatives. Talk to us, and let us help you develop more loyal customers.

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