Today’s marketplace is more globalised and competitive than ever before. It’s difficult for a new small business to survive and thrive with the market flooded with products and services, and consumers inundated with marketing messages from all angles. That’s why, when your business gets a customer, it’s important to retain them for future purchases. Customer loyalty is at an absolute premium nowadays, and it’s an area small businesses work hard to foster. One way to do so is with loyalty marketing. Here’s how to do it. 

What is Loyalty Marketing? 

Essentially, loyalty marketing is the act of engaging and retaining customers so that they continue to make purchases, and ideally begin recommending your products or services to others. It involves each and every step in the customer’s journey, and if implemented correctly, promotes growth and development of your brand. Any marketing that ticks the following boxes can be considered loyalty marketing, namely providing incentives, and retaining engaged customers. Setting up a loyalty program is the most obvious example of this, with the incentives being fulfilled by a reward system, and engagement translating to repeat purchases. But there are plenty of other examples as well. 

According to a report highlighted by Small Business Trends, increasing customer retention by just 5% can boost profits by 25% to 95%. This highlights the enormous potential in loyalty-focused strategies. Meanwhile, HubSpot (2023) confirms this link, offering data-supported methods for small businesses to boost retention. 

How to Get Loyal Customers 

The goal of loyalty marketing is to form a loyal customer base who will repeat purchases as well as spread the word about your brand. It’s the growth of a community who find your company indispensable to their personal or professional life. To effectively build such a community, businesses must take a strategic and holistic approach. There are many strategies you can use. 

Brand Values 

The primary goal of achieving long-term loyalty is to fully understand the values and policies of your brand. This should have been one of the most fundamental parts of your initial business plan and research when you launched the company, and so you should have a clear understanding of the chosen demographic before you begin. Using the most effective marketing techniques, from email campaigns to printed brochures and pamphlets, you can communicate your values clearly to help commercialise your brand. This is a base layer to build on. 

Weleda, a German organic skincare company, has built a loyal customer base by emphasising sustainability and ethical sourcing. Their commitment to biodiversity and fair trade resonates deeply with European consumers. Weleda sources over 80% of its certifiable raw materials from certified organic cultivation and, wherever possible, from biodynamic cultivation. They also ensure that their raw materials are ethically sourced, creating fair working conditions for their cultivation partners worldwide. Similarly, in the Philippines, social enterprise Habi Footwear highlights Filipino weaving traditions and sustainability, creating a strong emotional bond with its customers. Habi promotes responsible fashion, Pinoy pride, and social involvement through 100% Filipino-made, environment-friendly footwear and lifestyle items. They value the preservation of traditional weaving techniques and support local artisans, fostering a sense of community and cultural pride. 

Make Customer Service a Priority 

It goes without saying that quality customer service should be one of the highest priorities for your company. Consumers are, more than ever, demanding increased personalisation and quick responses. It’s been shown that there is a direct correlation between the speed, accuracy, and friendliness of initial responses and conversion to sales. 

A study published in BMC Health Services Research highlights that trust significantly influences perceived quality, customer satisfaction, and repurchase intentions. This underscores the importance of positive customer experiences in fostering repeat business (BMC Health Services Research, 2025). 

You’ll build trust between customers and your brand, and that is a massive step towards repeat business and overall customer loyalty. When customers do make purchases, thanking them should also be a priority. Something as simple and classic as a thank-you card will pay dividends in the future. Customer service is a big part of loyalty marketing. 

A case study by HiFlyer Digital illustrates how a re-engineered email marketing strategy helped an e-commerce brand increase monthly revenue from $27K to $250K in just 90 days. The strategy focused on segmentation, personalisation, automation, and scaling successful tactics, leading to a significant boost in customer retention and revenue. Meanwhile, Love, Bonito, a Singapore-based fashion brand, achieved a 15% increase in online revenue within six months by adopting SAP Emarsys’ omnichannel marketing solutions. This growth was driven by personalised customer journeys across email, website, and paid channels, leading to higher conversion rates and repeat purchases.  

Loyalty Program 

The clue is in the name — a loyalty program is an important step in loyalty marketing. It’s a way to prove to your customers how much they mean to your business. There are many different ways to do this, and it often depends on the business model of your company, as well as the types of products and services you offer. Exclusive access to new products or software, or a reward such as a free item with a certain amount of purchases are all common examples of a loyalty program in action. 

It’s important to make sure the benefit of these programs outweighs the amount of effort (or purchases) that the customer needs to make to access them. A loyalty program will show your customers that they are valued, and make it more likely that they’ll return. 

In Kenya, mobile payments giant M-Pesa partnered with local merchants to offer airtime and cashback rewards, increasing user retention in rural areas (Safaricom, 2018). The ‘Adore Society’ loyalty program, launched in March 2021, contributed to an 18% revenue growth over six months and a 200% increase in subscriber base within a year. The program included incentives for social media engagement and referrals, leading to significant growth in customer engagement and revenue (SmartCompany, 2021). According to Forbes, 73% of consumers are more likely to recommend brands with effective loyalty programs (Morgan, 2020). 

Use Social Media 

The word ‘community’ is often thrown about when talking about customer loyalty, and this means forging ties between people and your brand. Using social media has become an intrinsic part of any marketing strategy, and is an invaluable tool in loyalty marketing too. 

You should encourage your customers to follow you across your social media presence, and be available on all major platforms. Create engaging content to keep customers interacting with your brand, and also use the platform to create company transparency — including customers in your processes and workings is a good way to build trust and retain business. 

Based on the study titled The Role of Digital Influencers in Fashion Consumption in Brazil by Dantas et al. (2023), 73% of respondents indicated a high likelihood of purchasing fashion products promoted by local digital influencers. Nielsen (2019) also reports that 92% of global consumers trust user-generated content more than traditional advertising. 

Measuring Loyalty Success 

To truly benefit from loyalty marketing, tracking and analysing data is crucial. Key metrics include:  

• Customer Lifetime Value (CLV) – the total net profit attributed to a customer  

• Net Promoter Score (NPS) – measures willingness to recommend  

• Repeat Purchase Rate (RPR) – percentage of returning customers 

Measuring loyalty success through these key metrics allows businesses to track the effectiveness of their loyalty programs and identify areas for improvement. By regularly assessing CLV, NPS, and RPR, businesses can gain a deeper understanding of their customer base and the overall health of their brand. These metrics help businesses stay focused on their goals of building long-term relationships with customers, improving their customer retention strategies, and ultimately driving sustainable growth. Regularly analysing these data points ensures that businesses can adapt and evolve their loyalty strategies based on real insights, leading to better customer engagement and satisfaction. 

Conclusion 

Customer loyalty is at an absolute premium in today’s crowded and competitive marketplace. By implementing a mix of well-researched, data-backed strategies—grounded in strong brand values, exceptional service, meaningful rewards, and community-building—small businesses can retain customers and promote organic growth. These insights should inspire business owners to take immediate action: start measuring loyalty metrics, communicate brand values consistently, and treat every customer interaction as a step towards a lasting relationship. With focus and consistency, even emerging brands can earn customer trust and build success far beyond the first sale.