How to Build a Loyalty Program That Supports Long-Term Ecommerce Growth

Short-term promotions can drive quick wins - but sustainable growth comes from building your brand and reaching more customers. As shown by marketing effectiveness experts Les Binet and Peter Field, long-term success relies on a balance of broad brand building and sales activation. While loyalty programs won’t drive growth on their own, they play an important role in maximising retention and lifetime value from the customers you acquire.

Loyalty Plays a Role in Long-Term Growth - But It’s Not the Whole Story

Les Binet and Peter Field’s research reveals that loyalty strategies alone rarely drive significant brand growth. In fact, loyalty tends to increase as a result of growing brand penetration - not the other way around. Mass marketing and brand-building efforts remain the most effective way to grow your customer base.

That said, loyalty still has a vital role to play in ecommerce. It helps brands:

Maximise the value of customers already acquired
Improve retention through better customer experience
Gather first-party data to inform future marketing

The business case is compelling:

Loyal customers spend 12-18% more annually (Yotpo)
Retained customers drive 25-95% higher profits (Bain & Company)
The average loyal customer is worth up to 10x their first purchase (Harvard Business Review)

As Binet explains in WARC, the most effective approach uses paid, owned, and earned media together. Loyalty strategies can enhance this mix - especially when integrated with email, onsite UX, and customer service - to support long-term profitability.

Loyalty Goes Beyond Points and Discounts

True loyalty happens on an emotional level. It’s about the customer feeling understood, appreciated, and connected to your brand - not just being rewarded with points.

Common reasons loyalty programs fail:

Confusing redemption processes
Unclear value exchange (e.g. how many points = $1?)
Poor visibility of status and rewards

Fix common pitfalls by:

Making tier progress and point balances clearly visible in customer accounts
Sending branded emails for rewards, expiries, and birthday surprises
Confirming rewards instantly at checkout to reinforce value

Expand Beyond Discount-Only Incentives

Offer real value through loyalty perks such as:

Exclusive product access or early releases
Member-only experiences or content
VIP tiers with added benefits
Surprise-and-delight gifts that feel personal

Make Loyalty Easy to Understand

Use a dedicated explainer page to outline your program in plain English - helping customers engage, redeem, and stay loyal over time. Clear communication increases participation and ensures your loyalty strategy actually delivers on its retention goals.

Keep it fast, scannable, and benefit-led. Include:

What customers get (and what it’s worth)
How to earn and redeem points
Visual tier breakdowns with icons and dollar values where possible

Final Thought: Loyalty Supports - Not Replaces - Growth Strategy

Loyalty isn’t your brand’s growth engine - but it is a powerful retention and profitability lever. When paired with strong acquisition and brand-building strategies, loyalty programs can: