Customer Loyalty Programs: Best Tips for Customer Retention

A vital component of any business’s success is having a firm grasp on customer retention strategies.

Customers are the lifeblood of any enterprise. Without consumers, there is no demand, sale, or business. Therefore, when viewed through the lens of business, customer acquisition, engagement, and retention are the three stages of customer relationship management (CRM).

According to Forrester, marketers prioritize customer acquisition at the expense of customer retention. A common error organizations make assuming that if they provide quality products or services, customers will remain loyal to their brand.

Let’s examine why consumers leave a brand and move to a different one.

  • Offers
  • Quality of Products/Services
  • Brand Name
  • Popularity
  • Returns and Replacement Policy
  • Customer Care and Support

Client Acquisition Vs. Customer Retention: Which Strategy Works Better

Let’s look at the two scenarios:

Scenario 1: You devote all of your time and resources to acquiring new customers by branding, advertising, pitching, and conversions while ignoring retention.

Scenario 2: After acquiring a new customer, care for them by delivering them loyalty offers and messaging as part of an organized customer loyalty program.

Which one of the two seems easier, and which one ensures a regular sales flow?

Acquiring a new customer and enhancing customer retention is the more straightforward and effective approach. For example, a business might easily retain customers familiar with its products and services by offering them a customer loyalty program.

Now consider the following analysis:

According to this graphic, existing consumers are five times (87%) more likely to purchase from the same business again and four times (79%) more likely to suggest the brand to relatives and friends.

To increase earnings, firms must devise tactics to retain their most profitable clients and build a solid consumer base.

Customer Retention Strategies: 6 Top Examples on How to Build Customer Loyalty

  • Tesco
  • Apple
  • Amazon
  • Coca Cola
  • Starbucks
  • Toyota

Here are six examples of brands that implemented customer retention strategies and saw a dramatic increase in sales and general brand recognition:


Initially, mass mailing was one of Tesco’s marketing techniques for customer retention. One year later, however, they encountered problems such as bounced emails and invalid addresses. In the meantime, its customer loyalty program also failed, predicting a drop in client traffic.

If we talk about the best examples of Customer Retention strategies that work, Tesco desired to comprehend the psyche of their clients and choose how to become their preferred brand. Therefore, they used data from consumer satisfaction-focused researchers. In addition, they learned how to place the customer at the center of their decisions by analyzing market trends, consumer behavior, and information from their loyalty card.

Tesco began examining how they catered to customer expectations with personalized offers. In addition, they have been able to comprehend their purchasing patterns, allowing them to provide customers with preferable discounts.


Lets talk about the top Strategies for Customer Loyalty and Retention in 2022. Apple has amassed a loyal customer base across the globe over the years. In fact, according to research by, 59 percent of the 2,275 iPhone users acknowledged purchasing the device out of “blind loyalty.”

But why is this blind loyalty displayed? The idea is to create a brand identity that users can relate to. Steve Jobs always believed that a brand should speak for itself. Apple ensures that each of its products resonates with consumers through periodic updates of its software and a simple and sophisticated design.


If you are looking for the Customer Retention Strategies That Boost Your Business then Amazon is a perfect choice. It originated in Jeff Bezos’s Washington garage as an online bookstore and has since become one of the world’s major eCommerce platforms. However, due to its premium customer loyalty program, Amazon Prime, what makes its consumer base loyal is more noticeable.

According to research by LoyaltyLion, Amazon Prime members spend more than four times as much as other Amazon customers on average.

Amazon, however, surpasses Costco and gives more incentives than any other eCommerce site, including Amazon Prime Video streaming service, rapid delivery, and no shipping fees.

It encourages brand loyalty by making clients feel they are receiving more than they bargained for.

Coca Cola

Cola Cola has been home to a dedicated client base for years, and with each generation, it gets more customers. One of the most notable characteristics of the brand is its advertising campaigns, which have won the hearts of millions.

With slogans such as “Happiness is to Share,” its advertisements are memorable to individuals of all ages. Coca-Cola attracts the masses with its heartwarming messages to improve the world.

For instance, the current online and offline “Share a Coke” campaign invites communities to come together. It provides the brand with an approachable and universally adored personality. As a result, it attracts customers back repeatedly.


Are you still seeking the top-rated Proven Customer Retention Strategies for 2022? Starbucks is the ultimate example of a brand whose foundation was built on client loyalty. In 1971, Starbucks opened its first coffee shop, but what factors led to the brand’s popularity?

In 1982, Howard Shultz was hired as the head of marketing, and he saw that customers frequently felt awkward owing to their lack of coffee knowledge. So, with the aid of brochures, he designed a customer-friendly technique that made it simple for buyers to comprehend the merchandise. As a result, it caused them to return to the store repeatedly.

However, Baldwin and Bowker, the company’s founders, intended for the business to sell only coffee machines. Consequently, Schultz left the organization and founded a new coffee chain.

In March 1987, Baldwin and Bowker announced their intention to sell Starbucks, which Schultz shortly acquired. He integrated it with his coffee chain, and over time, Starbucks became the largest café chain in the world. It would not have been conceivable if Schultz had prioritized company functions over customers.

READ:  The Role of Big Data in Business Decision-Making

This customer retention program is gaining in popularity as new locations open around the world. Their primary emphasis continues to be on consumer involvement, experience, and connection. With “My Starbucks Rewards,” the company’s customer loyalty program, “buying coffee and accumulating loyalty points to receive gifts,” became simple.


Next in our list of the top-notch customer retention strategies for small business is Toyota. According to research by Experian Automotive, Toyota has the most loyal customers among global competitors. Reasons include their great delivery and punctual approach. In addition, Toyota is committed to providing consumers with consistently high-quality automobiles. As a result, it resonates strongly with Toyota’s customer base, who turn to the brand anytime they desire a new automobile.

However, Toyota had to overcome a temporary loss of customers due to negative perception difficulties. They accomplished this by focusing on the client experience and offering affordable costs without sacrificing quality. Taking into account consumer needs, they maintained their aims and prioritized their loyal client base.

The Art of Customer Loyalty: Smart Tips for Better Customer Retention in 2022

If we summarise each of the 6 cases above, we get these tips on how to retain customers.

Tip 1: Personalised Offers (Tesco)

Similar to Tesco, businesses that comprehend the behavior of their clients will be able to entice people to return. For instance, a discount-offering combo would stimulate their return if people purchase cereal and milk together.

Tip 2: Customised Products (Apple)

Taking Apple as an example, if you build and offer products based on consumer desires and package them with a personal touch, they are likely to be successful.

Tip 3: Value adds (Amazon)

Providing value improvements such as quick delivery in exchange for a client’s participation in a customer loyalty program is likely to foster long-term customer loyalty.

Tip 4: Offline and Online Campaigns (Coca-Cola)

You may leave a lasting impression on consumers using offline and online campaigns and advertisements. Customers are more likely to select a brand to which they have a connection if the ad’s narratives assist them in forming a bond.

Tip 5: Purchase Experience (Starbucks)

Starbucks ensures that clients may select and purchase their desired products. In addition, they offer loyalty points redeemable for prizes as part of their customer loyalty program. With the Starbucks app, users can order their preferred goods and view their entire loyalty points.

Tip 6: Quality and Price (Toyota)

One of the most fundamental business principles, Toyota prioritized providing quality products at reasonable pricing. People will remain loyal if you offer competitively priced items and services of high quality.

Tip 7: Social Media Engagement

Social media networks can be a valuable tool for communicating with customers after a deal has been made. Customers frequently tweet or write about their brand encounters today. Acknowledging and responding to their input has a good effect on the individual consumer and those who are observing the transaction.

Tip 8: Prompt Service

Every famous brand must preserve its reputation. Therefore, they respond promptly to customer questions and concerns to increase client retention. As the saying goes, opportunity lost is opportunity delayed. It applies to businesses. Therefore, if a customer does not receive a response from a business, they will immediately move on to the next best option.

Tip 9: Calendar

Numerous large businesses, such as TGI Fridays and Titan, send their clients greetings on holidays, anniversaries, and birthdays. In addition to warm wishes, they provide personalized discounts to commemorate the occasion. Consequently, keeping a calendar can do wonders for customer retention.

Tip 10: Gratitude

A thank-you note and a small gift go a long way toward establishing consumer loyalty. After a customer has completed a purchase, offer them a discount or gift on their subsequent purchase. It makes clients delighted and consider how to use the discount coupon or free gift. It encourages them to return.

From Client Acquisition to Retention: How CRM Software Helps

Individually, each of the tips sounds like a significant amount of work. Nevertheless, each can be done using customer relationship management software. From assisting with mailing promotional mailers to managing advertising campaigns, CRM software is the right option for all customer relationship management-related duties.

A CRM software’s primary purpose is to aid client acquisition and retention. Therefore, it must be accomplished while minimizing purchase costs.

ALSO SEE: Best Bug Tracking Software

Customer Retention Strategies in CRM: Here are some ways in which CRM software facilitates these two processes:

1. Automation: CRM Software facilitates the automation of operations, including business-client contact. It enables speedy responses to the questions and concerns of multiple consumers at once, preventing the loss of clients.

2. Data Storage and Retrieval: With the use of CRM software, customer information may be obtained. The data assists in analyzing a customer’s buying history to recommend things they may enjoy.

3. Targeted Offers and Promotions: Using CRM software, firms may send promotional materials and media to prospective clients who may be interested in particular products. It is governed by their age, gender, geography, and other variables. Targeted advertising is an effective method for acquiring customers.

4. Campaign Management: CRM Software solutions assist in managing social media campaigns and converting leads into new customers.

5. Customer Feedback: CRM Software facilitates the collection of data through surveys and feedback forms filled out by consumers, allowing businesses to focus on specific requirements for customer retention.


Conclusion: emphasizing the importance of customer retention is significantly more crucial. A loyal consumer will not only continue to purchase from you but also refer you to others, generating new business. However, the most critical aspect is building a business narrative that your customers will carry. “Marketing is no longer about the products you create; it’s about the tales you tell,” stated Seth Godin.

Related Articles

Back to top button