5 Reasons Your Online Store Needs a Loyalty Program (and How to Set It Up Right)

Acquiring new customers is becoming increasingly expensive — it can cost up to five times more than retaining existing ones. And loyal customers make a real difference: on average, they spend 67% more than new customers.

So how do you keep them coming back? One of the simplest and most effective strategies is a loyalty program. But launching a program isn’t enough — it has to be simple, visible, and attractive to work.

In this article, we’ll show you 5 reasons why your online store should have a loyalty program and how to set it up so customers actually want to return.

1. Customers Will Return More Often and Spend More

Rewards are a powerful motivator. If customers know they’ll earn points, discounts, or gifts with each purchase, they’re more likely to choose you over the competition next time.

Studies show that 68% of customers intentionally change their shopping behavior to maximize loyalty rewards.

B2C tip – Motivate instantly:

Make the benefits immediately visible and desirable. Use clear, engaging messages that encourage bigger purchases:

Highlight rewards in the cart or user account.
Use persuasive copy like “Collect 500 points and get €5 off your next purchase” or “Just 100 points away from a 10% discount” or even “You’re only €15 away from a free gift – claim it in the next step!”
Test different reward thresholds to see what drives repeat purchases best.

B2B tip – Focus on efficiency:

In wholesale, customers buy for their business, not for themselves. Personal gifts rarely work — volume discounts or cost-saving advantages are far more effective. For example:

“Spend €5,000 by the end of the quarter and get a permanent 5% discount.”
“Reach a cumulative spend of €10,000 and receive priority shipping.”
Simplify their processes, e.g., faster logistics or easier order handling.

Real example: Golf Centrum offers a tiered discount system. Once a customer spends over €330, they automatically get 10% off future orders — naturally encouraging repeat purchases.

2. Stand Out from Marketplaces and Competitors

Marketplaces like Amazon, Alza, or Heureka attract customers with convenience — one-stop shops, easy price comparison, and next-day delivery. While some offer loyalty programs, their focus is on price and convenience, not long-term customer relationships. That’s your opportunity.

56% of customers are willing to pay more for a brand they like — especially when they get something extra in return.

B2C tip – Offer unique value:

Your loyalty program doesn’t have to be generic. Customize it to support your goals and give customers something special:

Reward purchases of selected products — like seasonal items or stock you want to move quickly.
Encourage larger baskets: “Spend over €50 and earn 100 bonus points.”
Offer exclusive benefits for registered users, like early access or members-only deals.

B2B tip – Create tiered partnerships:

In B2B, loyalty programs can work as partnership levels — each tier unlocks new benefits:

Higher tiers can access better payment terms, faster order handling, or exclusive offers.
If the system is dynamic and regularly reviewed based on recent purchases, customers are motivated to maintain or improve their level.

Real example: Gudvio.sk runs the Rituals by Gudvio program, offering not just discounts but personalized product recommendations and exclusive bundles — not available anywhere else.

3. Give Customers Options – And Watch Engagement Rise

Buying is an emotional and rational decision. Studies show people hesitate between instant and long-term rewards — but a well-designed loyalty program can offer both.

In one U.S. study, shoppers were given a choice between a $5 instant discount and a $10 future coupon — 74% chose the instant option.

B2C tip – Let them choose:

Flexibility is key. If customers can choose how to use their points, they feel more in control, which increases engagement:

Let them redeem points their way: “Use 200 points for €2 off now, or save for a free gift.”
Offer options at checkout: “Spend €50 and choose: 3% off now or 150 bonus points.”
Surprise them: “Exchange 100 points for a mystery gift with your order.”

B2B tip – Optimize the process:

Business customers think differently — they care less about future savings and more about process optimization:

“Use your points for a 2% discount now or save them for priority shipping later.”
“Spend over €5,000 and choose: free delivery now or credit for your next order.”
“Collect points and get a personal account manager to streamline your orders.”

Real example: Dr.Max Club lets customers collect points and choose how to use them — on future discounts or selected products from a reward catalog. This freedom builds trust and repeat business.

4. Personalization and Direct Communication Build Loyalty

Customers don’t want to feel like just another order number. A personalized loyalty program makes them feel valued and encourages them to return. Use purchase data to tailor offers and communication.

80% of shoppers prefer an online store that provides personalized benefits based on their behavior.

B2C tip – Speak directly to them:

Use personal communication and customized offers to build stronger relationships:

Suggest products based on past purchases: “Last time you bought X — now get 15% off this perfect add-on.”
Celebrate milestones: “This is your fifth order — just one more to earn a 10% discount!”
Notify them when points are about to expire or surprise them with a bonus.

B2B tip – Tailor to their business:

In B2B, personalization means practical advantages:

Offer priority handling, flexible payment terms, or exclusive pricing.
Adjust benefits to match the customer’s purchase behavior.

Real example: Xfarby.sk gives registered customers individual discounts based on their order history — encouraging repeat business and building stronger relationships.

5. A Great Loyalty Program Builds Long-Term Relationships and Community

A loyalty program doesn’t have to be just about collecting points or passive discounts. Turn it into a dynamic part of the shopping experience, and customers will return — not just for deals, but for the joy of engaging with your brand.

According to experts, customers who actively engage in loyalty programs are 3.8 times more likely to make repeat purchases.

B2C tip – Get creative:

Make the program interactive and fun:

Create personalized challenges: “Shop 3 times in 3 months and earn a bonus.”
Launch seasonal campaigns: like a “Summer Challenge” or Christmas promotions.
Offer mystery rewards or fun elements like a digital stamp card or spin-the-wheel games.
Reward community engagement — like sharing or referring friends.

B2B tip – Add exclusivity:

Even B2B clients appreciate perks — just in the right form:

Surprise them with bonuses or business-level rewards, e.g., “Order over €20,000 and get invited to an expert networking event.”

Real example: Voňavý domov added a contest to their loyalty system — customers who spent above a certain threshold were entered into a prize draw. This not only motivated higher spending but also fostered a strong community of repeat buyers.

A Loyalty Program That Works

A loyalty program can be a powerful retention tool — but only if it’s simple, visible, and delivers real value. Launching it is just the first step. To make it work, you need to actively promote it, communicate benefits clearly, and optimize it over time based on customer behavior.

Keep it simple – no one wants to read complex rules.
Make it visible – show it in emails, banners, shopping carts, and user accounts.
Balance value – combine instant rewards with long-term benefits.

Already have a loyalty program? Maybe it’s time for a refresh. Thinking about starting one? Set it up right from the start — and we’ll be happy to help you get the most out of it.

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