Leveraging Loyalty Programs for Greater Lifetime Value

Leveraging Loyalty Programs for Greater Lifetime Value

There’s a very good chance you’re a part of one —if not many— loyalty programs. They are a fantastic way for customers to track their purchases and earn rewards, so it’s no wonder they’re well-loved by shoppers. But, the advantage is not skewed completely towards the customer.

New research shows that of the 42% of consumers enrolled in loyalty programs, they on average spend up to 18% more than their non-member counterparts. That’s a huge life in revenue for your business by simply setting up a framework that customers love. 

Here’s how you can engineer your loyalty or perks program to promote greater LTV and wow your customers.


With the proper anonymous tracking technology, it’s possible to understand the behavior of unknown users, but it’s impossible to put a name to that data until they opt in to messaging and freely give their personal information. You could simply offer the standard coupon of 15% for opting into emails, but that won’t help differentiate your brand from competitors and for some shoppers simply isn’t a good enough incentive.

Try instead to promote your loyalty program from the first brand interaction. Communicate the value of joining and what’s in store if shoppers are willing to disclose their contact information. It’s the first demonstration to your customers that you will provide something valuable for their time and won’t just spam.


Research has shown that strictly point-based loyalty programs may lose their effectiveness after 6 months. It’s so expected that it’s almost a cliche. Businesses who offer unique and personalized rewards will be the clear winners in years to come.

Take for example the beauty giant Ulta. Their thoughtful beauty rewards program has garnered praise across the makeup community. Members are rewarded special birthday perks, exclusive access to extra point opportunities, and all while still allowing for the traditional backbone of “the more you spend the more you earn”. Additionally, Ulta often throws in free gifts, samples, and free salon services for certain purchases, further wowing loyal shoppers. With more customers than ever flocking to Ulta for their unique approach to rewards, it’s no surprise the company is climbing the Forbes 500 and is outranking other beauty retailers in customer satisfaction.

With the right tools, marketers can even make improvements upon top-notch rewards programs and the key is through 1:1 personalization. With a platform like Blueshift’s Customer Data Activation Platform, it’s now possible for marketers to serve up tailored marketing experiences on the fly. Using our Predictive Intelligence, target your customers with the highest projected LTV with special offers based on previous purchases and recommended items that are optimized to have them back on site (or on App) and converting in no time.

Rewards programs are a must for B2C brands and although your customers expect them, there’s no need to get stuck in the usual routine. Thoughtful perks, combined with 1:1 personalization will not only boost LTV and revenue but also establish a stellar reputation for your brand.