Benefits of a Loyalty Program for your online business

Brands have realized that retaining existing customers is as important as acquiring new ones. This is why Loyalty Programs are in trend. According to Invesp, 64% of the e-retailers find Loyalty Programs to be the best way to connect with their customers.

What is a Loyalty Program?

A Loyalty Program is a marketing strategy by Brands where they reward loyalty points to the existing customers to encourage them to return to the store and shop. A loyalty program helps to retain customers who purchase frequently from your store.

A loyalty program offers many benefits. In this article, I have put forward the top 5 benefits of implementing a loyalty program on your e-commerce website.

Benefits of Loyalty Programs

1. Retain existing customers and acquire new ones

Customer retention is the primary motive of a loyalty program. Brands do not want to lose out on the existing customers. Hence, they provide them rewards or loyalty points to ensure that they remain loyal to their brand. A loyalty program is an important part of customer retention strategies.

Apart from customer retention, customer acquisition can also be improved by Loyalty Programs. You can reward some loyalty points to new users as a joining bonus and make them loyal to your brand within a short period.

2. Increase sales

increase sales using loyalty programs

Loyalty programs are highly effective in boosting your e-commerce revenue. Providing loyalty points to a customer for buying your products increases the possibilities of a customer visiting your store again in the future to make a purchase.

Customers love getting rewards. As long as you are providing them some profit, your store sales graph would often remain high. A study by Invesp reports that a 5% increase in customer retention can increase sales by 25-100%.

3. Loyalty Programs are cost-effective

Retaining existing customers is comparatively less expensive than acquiring new customers. The credibility that you have build with your existing customers would have taken you a lot of effort, time and money. To turn a new customer into a loyal customer would require the same commitment. Existing customers have been through your journey, hence, the expense to persuade them for more purchases is less than what would be required to influence new customers.

4. Take customer relationship to the next level

take customer relationship to the next level

To grow as a brand requires a healthy relationship with customers. Value your customers, treat them special. Make them feel that they are important. Build a personal and emotional connect. Loyalty programs help you in building a strong bond with your customers.

76% of consumers think that Loyalty programs are a part of their relationship with brands. By getting rewards or loyalty points for making a purchase, customers feel more attracted to your brand and prefer it as their go-to option for online shopping.

5. Grow Brand Awareness

Grow Brand Awareness using loyalty programs

If a customer receives loyalty points or rewards for making a purchase, he or she will likely suggest the brand to their friends, family or relatives. The discussion reaches from one person to another and gets viral. This gets your brand noticed. More and more people visit your store and look to make a purchase. Hence, Loyalty Programs can be an ideal way to build your brand awareness.

PrestaShop Loyalty Points addon by KnowBand

If you run an e-commerce store on the PrestaShop platform, the PrestaShop Loyalty Points addon can be an ideal solution to improve customer retention as well as customer acquisition.

PrestaShop Loyalty Points addon enables you to provide loyalty points to the new users when they sign up on your store and reward customers every time they make a purchase. Customers can use loyalty points in the form of a discount voucher.

This is a feature-packed PrestaShop addon that allows you to set your own loyalty rules in order to make a customer earn loyalty points. Plan your loyalty program today!


More than 80% of online shoppers said that loyalty programs encourage them to continue purchasing from certain brands. Hence, not having a loyalty program can decline your sales graph.

Carry forward the relationship with your customers. Improve customer retention and increase your brand awareness. Do try out the PrestaShop Loyalty points addon if you are a PrestaShop merchant.

Manish Barthwal

Manish Barthwal

Following his passion for writing, Manish has been providing value to his readers through his write-ups. He predominantly writes for the e-commerce industry. Apart from writing, Manish's love for cricket is unmatchable. He is an ardent cricket fan.

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