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/ Loyalty

Top 3 reasons customers make loyalty purchase decisions

Top 3 reasons customers make loyalty purchase decisions

You ever wondered how best to use loyalty marketing to retain more customers?

Many brands have successfully managed to implement loyalty campaigns that keep their customers returning to them again and again. These companies' success has convinced many business owners to invest more time and budget in loyalty schemes. Loyalty programs are now considered a 'must-have' for any modern business that really wants to thrive and improve customer retention.

Keen to understand more behind customer motivations for taking part in loyalty schemes? In this article, we'll take a closer look at some of the reasons why customers choose to shop with the same brands repeatedly. What exactly drives their loyalty purchase decisions?

Although there can be many different reasons for this, we've focused on the top 3 below.

1. Customers join loyalty programs to save money

According to a recent study on customer loyalty programs, 57.4% of consumers join a company’s loyalty program because they want to save money. It’s as simple as that.


In these uncertain economic times, modern consumers are now seriously savvy shoppers that look for the best deals online. They use comparison sites to find the cheapest price for their purchases. Many customers seek out loyalty schemes that will save them money by offering personalised discounts and offers.

We can quite confidently say that if a loyalty campaign has absolutely no money-saving element to it, it’s much less likely to result in customer retention.

2. Customers want to be part of a community

The most important thing for any business owner to remember about their customers is the obvious - customers are just human! This means that normal human tendencies will apply. Understand human psychology, and you’ll have most of the knowledge you need to build any marketing campaign.


For many customers, joining a loyalty scheme is all about meeting their inherent human need to be part of a community. Statistics show that restaurant loyalty programs can increase visits by 35%. This is because businesses that provide that community feel for loyal customers give that person a sense of belonging. Which, let’s face it, is something that all humans secretly desire.

3. The sense of progress associated with tier-based loyalty programs is rewarding

Many businesses choose to launch loyalty schemes that are tier-based. These involve customers climbing up tiers based on how much they shop or use a service. As customers see that each purchase brings them closer to the next tier, they feel that they’re achieving something with each purchase.


Customers can start to crave that feeling of gratification once they reach the next tier and unlock another reward. The entire process is almost like a game. And many customers find it, quite literally, very rewarding.

If you decide to launch a tier-based loyalty scheme for your business, we’d recommend creating a visual element such as a virtual or physical loyalty card with stamps that show the customer’s rewards building up. Such digital cards can always clearly show your customers how close they are to climbing up to the next tier. This will incentivise their next purchase.

Need some help with your customer loyalty program?  

At OMG, we’re great believers in the power of customer loyalty schemes. We’ve developed a set of loyalty tools that you can quickly and easily implement to grow your business and increase customer retention.

Our loyalty solutions won’t just help you retain existing customers, but also attract new ones. We’ll help you capture valuable data and insights to make informed decisions and offer your customers personalised rewards and incentives.

The best part? We’ve made our solution entirely free, without any need to download hardware or take part in training programs.



Start by joining our waiting list for businesses here!

Alexey Gutin

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