Beyond Black Friday: The Power of Customer Loyalty Programs

Black Friday is a massive opportunity to attract new customers, but the challenge lies in turning them into loyal repeat buyers. Research shows that 64 percent of brands find shoppers acquired during Black Friday have a lower lifetime value than customers acquired at other times of the year. To change this trend, businesses need to focus on retaining these shoppers, and customer loyalty programs are the key to achieving that.

Building Customer Relationships Through Loyalty Programs

Loyalty programs provide the perfect foundation for building long-term relationships with customers acquired on Black Friday. Half of all shoppers are more likely to join a rewards program during this period, making it the ideal time to launch or highlight such initiatives. Start by offering instant rewards like points, discounts or freebies on their next purchase. This gives customers a reason to engage beyond their initial transaction. Use email and SMS to promote the benefits of signing up, as 60 percent of consumers prefer email communications, while 37 percent favor SMS. Ensure your loyalty program is prominently displayed on your website and checkout page to capture attention.

Personalization plays a crucial role in fostering loyalty. Over 70 percent of consumers say they're more likely to return to a brand that delivers personalized offers or messages. Send emails post-purchase highlighting loyalty points earned, what rewards can be unlocked or products they might like based on their shopping history. For example, a simple email showing how close a customer is to their next reward can nudge them toward another purchase. Personalized communication not only builds trust but also strengthens the emotional connection customers have with your brand.

Exclusive VIP perks are another powerful way to retain Black Friday shoppers. Around 80 percent of consumers say early access to sales or exclusive products motivates them to stay loyal to a brand. Use your loyalty program to roll out the red carpet for members, offering holiday deals or sneak peeks of new items. This sense of exclusivity makes customers feel valued, increasing their likelihood of returning.

Free shipping continues to be a major draw for shoppers, with 81 percent saying it makes them likelier to spend more with a brand. While offering free shipping to everyone might not be feasible, tying it to loyalty memberships or higher program tiers can balance costs while keeping customers happy. For instance, you can offer free shipping for loyalty sign-ups or limited-time promotions during peak shopping periods.

Another strategy is running double or triple points events to encourage repeat purchases. These limited-time promotions allow shoppers to earn rewards faster, giving them an incentive to come back and redeem their points. This approach shifts the focus away from constant discounts and instead highlights the long-term value of being a loyal customer.

Referral programs are an excellent way to transform satisfied Black Friday shoppers into brand advocates. Research shows that 78 percent of customers who had a positive Black Friday experience are willing to recommend the brand to friends and family. Reward both the referrer and the new customer with discounts or points, and use post-purchase emails to promote your referral program.

Post-Black Friday follow-ups are essential to maintaining momentum. Send personalized emails showcasing time-limited rewards or incentives, like bonus points for leaving a review or completing a survey. Surprise gestures, such as free shipping or extra points, keep your brand top of mind and encourage additional purchases.

Maximizing Engagement With Tiered Rewards and Personalized Strategies

Tiered loyalty programs can also boost engagement by giving customers a goal to work toward. Offering better perks, such as exclusive discounts, extra points or premium customer service, for higher tiers motivates shoppers to stay connected. Visibility is key — make sure customers can easily see their progress and how close they are to the next tier.

Finally, track and analyze the performance of your loyalty program. Metrics like repeat purchase rate, points redemption and retention rates will help you identify what works and where improvements are needed.

Black Friday shoppers don’t have to be one-off customers. Investing in retention not only boosts customer lifetime value but also builds a loyal community that supports your brand’s growth — now and for many years to come.

Charlie Casey is CEO and co-founder at LoyaltyLion, an e-commerce loyalty platform.