Understand Your Buyer > How To Convert > The Loyalty Effect
What is it?
Using loyalty points and rewards to incentivise buyer behaviour.
Why does it work?
It works because as humans we repeat rewarded behaviour. When our loyalty to a particular brand is rewarded we respond by repeating that behaviour.
How can you use it?
By simply creating a loyalty card or offering loyalty points and discounts you can ensure clients think twice about buying anywhere else. It’s rewarding their behaviour to buy from you that is the primary goal.
Example:
A local coffee shop gives customers a stamp card:
“Buy 9 coffees, get your 10th free.”
Every time a customer buys, they get a stamp. Some people even go out of their way to return just to get that next stamp – even if there’s another café closer.
Why it works:
The buyer feels their loyalty is building toward something. It taps into our desire for progress and reward. Even small incentives encourage repeat visits and build a sense of relationship with the brand.
This same idea works with digital points, tiered rewards, or exclusive perks after a certain number of purchases.
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