Consumer goods blog of chekkit techologies

How to Boost Sales with Consumer Rewards and Loyalty Programs

A loyalty or reward program is simply a marketing strategy that rewards consumers for frequently engaging with a brand/product (mostly by means of purchase). The logic behind an effective loyalty program is that the more consumers purchase your products, the more they get rewarded and as a result, you generate more sales and revenue. Asides, from the reward consumers receive, loyalty programs can help you build trust, foster closer relationships with consumers, as well as acquire new consumers who haven’t pledged loyalty to any particular brand/product.

Can Rewarding Consumers For Purchase Really Boost Sales?

Over the years, rewards and loyalty programs have been seen as one of the most effective strategies for boosting sales and increasing consumer loyalty. A loyalty program properly implemented can promote a brand, increase consumer loyalty, and increase revenue while also helping you gain insights into the buying habits of your consumers.

In a research carried out by The Nation Nigeria, it was reported that the market place is saturated with products and services that offer similar value, giving consumers ample options to choose from. Loyalty programs and purchase rewards have become the go-to marketing strategy many brands have turned to in order to ensure their products fly off the shelves in record time.

Benjamin Adegoke, a Consumer Insight Analyst explained that many consumers are always expectant to get something in return from any business transactions made. They prefer to stick to a brand that offers a loyalty program, and the ability to earn rewards can actually change their spending behavior. It will also motivate them to advertise such a brand to their close buddies.

Consumer Rewards & Loyalty
Nivea loyalty program using Chekkit’s in-store consumer rewards solution


Loyalty programs have been successfully implemented by many brands. For instance, one of our clients, Nivea recorded an increase in sales within a week using Chekkit’s in-store consumer rewards solution. This program encouraged consumers to purchase a Nivea lotion or deodorant spray and get a free roll-on for every purchase.

How Can You Boost Sales Using Rewards & Loyalty Programs?

A reward or loyalty program that is not well implemented can lead to great losses. For a loyalty program to generate adequate revenue, it must be properly implemented. Thankfully, there are different methods that can be used to achieve the desired sales outcome. These are;

  • Point-based system
  • Tier system
  • Paid Program
  • Partnership Program
  • Offer unique rewards

Point-based system: This is a common type of loyalty program that allows recurring consumers to get a reward based on the points accumulated. The point is later converted to rewards such as discounts, freebies, or special offers. For a point-based system to be effective, the conversion process must not be complex. You must ensure that conversion is simple and intuitive so that consumers can keep coming back for your brand. This program works best for brands that encourage frequent and inexpensive purchases.

Tier System: In this type of loyalty program, a small incentive is given to consumers for making an initial purchase to encourage more purchases. The value of reward increases as the consumer moves up the loyalty ladder. This type of program works best for higher commitment and a higher price-point brand.

Paid Program: Some brands offer a paid program where loyal consumers are allowed to become a member of their community. They Charge a one-time fee that allows loyal consumers to have access to discounts or unique opportunities when purchasing large supplies. This helps consumers bypass common purchase barriers and also boost sales.

Partnership Program: Partnering with other brands is also an effective loyalty program that promotes a brand, builds a long-term relationship, retains consumers, and boosts sales. This boils down to understanding what your consumers need and their everyday purchase process.

For instance, Dashket (Nigeria’s largest multi-brand loyalty program) partnered with 30 top brands. Their partnership program enabled consumers who purchase through them earn a point which is then redeemed by shopping at any of their partner’s outlets. Providing value that goes beyond what your company offer shows that you understand your consumer’s needs.

Offer Unique Reward: Rewards offered to consumers might not necessarily be a discount on future purchases. Consumers who spend more on purchasing goods can be rewarded with instant gifts like instant airtime, goodies pack, one of your new products, raffle draws, and so on, depending on convenience and your unique operations.

Why Should You Use A Loyalty Program?

Consumer goods blog of chekkit techologies

There are many benefits you can enjoy as a brand when using loyalty programs. These include;

  • High Consumer Retention Rate: Loyalty programs bring about an increase in consumer retention rates. Consumer retention is the ability of a brand to attract and maintain stable consumers. 44% of brands focus more on consumer acquisition, while 18% focus on consumer retention. However, Statistics show that existing consumers are 50% likely to try new products and spend 31% more when compared to new consumers. An existing consumer is more likely to become a loyal consumer when compared to a new consumer. If you want to generate more revenue, aim at retaining loyal consumers.
  • Reduced Marketing Cost: You can make your consumers feel valued by making them your brand ambassadors. This is an effective way to reduce marketing expenses as well as promote brand because consumers trust friends over marketing. Loyal consumers will do a perfect marketing job for your brand than your sales team.
  • Generate Valuable Data: Encouraging consumers to fill profiles as part of your loyalty program can help you gain insight into their buying habits and also get feedback about your product. Information’s generated from the data collected can be used to design marketing campaigns.

Key Takeaway: In this new normal, where consumers’ buying behavior is changing. It is vital for your brand to invest in reward and loyalty programs to appreciate your consumers for being loyal and also motivate them to continue purchasing from your brand. Building an effective loyalty program for your brand can be costly and time-consuming but the benefits are endless. 

Interested in seeing how Chekkit can help you boost sales using consumer rewards and loyalty programs in-store or in-field? Request A Demo now!

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