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The role of the loyalty program in increasing sales

Mar 11, 2022

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The loyalty program (LP) is a special system in which strong and long-term relationships with customers are built on bonuses, loyalty development, and trust. It’s also perceived as a modern retail tool that allows you to gather an army of brand followers, increase sales, and average bills. There’s a great variety of LPs, as each business, its goals and resources, its positioning and corporate culture, are unique. The location of the marketplace doesn’t matter, as the loyalty program Singapore is popular in different countries and cities all over the world.



The client is the target and the main source of income. Company representatives spend time, effort, and money to attract him/her. Despite the fact that it’s very difficult to do this due to high competition, an LP is one of the effective e-commerce tools that allows you to create a base of regular customers. Let’s take a closer look at it.

What is LP for?



  • Getting a perfect buyer is the main reason for LP implementation. We’re talking about a client who consistently visits your online or physical store, buys thoroughly, purchases various kinds of goods, and looks forward to new products. It allows you to create a certain reputation of the store, let that person know that you have an excellent variety of goods and provide conditions for efficient shopping.

  • Increasing profits due to a large number of purchases and contribution in the average check are also one of the most decent advantages of the LP

  • Business scalability and continuous development. If there is money, there is a concern of consumers and an extensive customer base. The better the service, the larger the range of the store, the better the quality of the goods, the more customers. This is a vicious circle that businessmen are so eager to get into.

  • Get more exposure from customers who buy frequently and tell others about your shop.

  • Attract new and return lost customers by developing innovative discounts or bonuses.

  • Reducing customer acquisition costs. Retaining an old customer is 5-10 times cheaper than attracting a new one.


What types of loyalty can there be?


There are two basic options – accrual of discounts and bonuses. All types of LPs are based on them.

  • A discount is a reduction in the price of a certain product by a store.

  • Bonuses. It’s a certain amount credited to the customer’s discount card for any purchase.


Discount system


This can be a fixed percentage, for example, 5 or 10% on a discount card or it may increase according to the bill’s peculiarities. The goal is to motivate a person to make more purchases here and now.

Bonus system


A bonus is credited to the client’s card after making a purchase. A fixed percentage reward may be charged or it may increase with the growth of the bill. The received bonuses can be spent on the next purchases, receive gifts, or some privileges for them. Bonuses motivate the buyer to choose your store or even buy products that they had not even thought about before. The bonuses are perceived as deferred discounts. This greatly spurs the customer’s interest, increases loyalty, and ensures repeat sales.

Layered system


This is a more complex version of the discount or bonus system. In this case, clients are divided by level or status. The more purchases made by the client, the higher his/her status is. Of course, a layered solution helps get more discounts and bonuses.

Put concisely, LP is a great solution that is suitable for different business industries. Especially, when it’s performed as an app and can be easily downloaded to any mobile device. How is it possible? Modern digital M-Loyalty Company is responsible for software development/management and offers different commercial suggestions for groceries, manufacturers, restaurants, and even for airline companies. Visit the https://www.m-loyalty.com/en/loyalty-programs-for-airlines/ website to get more information with the regard to airline solutions. Everything is made in accordance with the personalized experience.

Tags: English