Customer Loyalty: Three Tips for a Better Loyalty Program

2. Beware the overused discount. Continued use of discount-oriented offers tends to attract only price-motivated shoppers, the report says, and when a lower price shows up elsewhere, these customers will leave you. In effect, you actually encourage disloyalty, because the customers will come back only when you offer the best price. When you do offer discounts, try tempering the offers with qualifiers, such as a preset order value or minimum number of products, the authors suggest.