8 Alternatives to Loyalty Programs for Customer Retention
Exploring alternatives to traditional loyalty programs for keeping customers engaged, we gathered insights from CEOs and marketing experts. From offering gift cards as rewards to educating clients with personalized content, here are eight innovative strategies they recommend for customer retention.
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Offer Gift Cards as Rewards
Customers can be given gift cards, similar to discount coupons, as a reward for their loyalty to your firm. But this isn’t everything. Customers who like your products and services may buy gift cards and present them to friends, family, and co-workers. Gift cards can be used to promote repeat business and as a marketing tool to spread the word about a certain brand.
Rebecca Xing, CEO, Trustana
Send Personalized Follow-Ups
Friendly follow-up emails are an ideal way to ensure customers keep our brand in mind. We’ll send annual thank-you emails on the anniversary of customers’ moves. Especially with renters, this tends to line up well, since they’ll often be looking to move again soon. In other cases, it’s just a way to keep our brand in mind so that customers recommend us to friends and family.
Nick Valentino, VP of Market Operations, Bellhop
Create Co-Innovation Partnerships
As a tech CEO, I champion “Co-Innovation Partnerships” as an alternative to loyalty programs. We invite customers to contribute input for product enhancements and new features, making them feel like partners in our journey. It gives them a sense of ownership and investment that far outweighs any loyalty scheme. It is not only about keeping a customer but transforming them into product ambassadors who feel valued, acknowledged, and instrumental in our evolution.
Abid Salahi, Co-founder & CEO, FinlyWealth
Build a Community-Driven Brand Experience
Why should a customer be loyal to you?
Shiny deals, brand point-currency, and false-flag status aren’t cutting it.
Steep discounts aren’t enough to stop me from yawning.
When it comes to keeping customers coming back, loyalty programs aren’t the only—or even the best—option on the table.
One powerful alternative is creating a community-driven experience around your brand. Say that again. EXPERIENCE. People want something to brag about, to share, and above all else, to belong to something special. All fandom is rooted in that.
You don’t want a loyal customer. You want die-hard fans.
Now, here’s a take that might ruffle a few feathers: Loyalty is a loaded word. In today’s saturated global markets, where consumers are bombarded with options, brands can’t just assume that loyalty is something they deserve. The truth is, loyalty isn’t something you can buy with points or perks. It’s something you have to earn by making your brand genuinely worthy of your customers’ devotion.
Think about it—why should a customer be loyal to you? Because you offer a discount or throw in a few freebies? Those tactics might get them to stick around for a while, but they’re not going to build real, lasting connections.
Competitors are constantly vying for attention, global brands are moving in, TEMU is on every screen! You better get real and go beyond transaction-focused planning and foster a sense of identity, belonging, and purpose.
This is where community excels.
People crave connection, and brands that can foster a sense of community often see stronger customer loyalty without needing to rely on points or rewards. The brands that succeed are the ones that make customers feel like they’re part of something bigger. They give customers a place where they belong, where they can connect with like-minded people, and where they feel valued not just as consumers, but as members of a community.
Creating a community-driven experience doesn’t just keep customers around—it turns them into advocates. And in the long run, that’s far more valuable than any loyalty program could ever be. Let’s be real—loyalty programs can be a crutch. In the modern market, you’ve got to work harder than that. You’ve got to build a brand that’s worth your customers’ attention and devotion.
“Loyalty isn’t something you deserve; it’s something you earn. In today’s crowded market, brands need to do more than just buy it—they need to be worthy of it.”
Steve Rock, Partner, Good Kids
Provide Exclusive Subscription Benefits
By offering customers a subscription with exclusive benefits or content, you create a steady revenue stream and foster ongoing engagement. For example, we shifted to a subscription model, providing subscribers with early access to new products and exclusive discounts. This approach not only increased customer retention by 30% but also enhanced our ability to predict and manage inventory.
Bram Louwers, Director, BrainManager
Build Strong Customer Relationships
One specific alternative to traditional loyalty programs for customer retention is to focus on building strong, personalized relationships with customers through proactive engagement and exceptional support. In our B2B business, we’ve implemented a strategy that includes regular check-in emails to our customers to maintain an ongoing dialogue and address any concerns before they escalate. Ensuring that customer support is reliable and always available—whether through phone, email, or scheduled meetings—is essential for any business.
For larger accounts, we’ve assigned a dedicated Customer Success Manager who can provide a personalized touch, helping to align our services with the customer’s goals and offering tailored advice. We’ve initiated regular one-on-one meetings with these accounts, so they have the opportunity to talk more about their experience and give us feedback.
Additionally, incentivizing customers to leave reviews by offering vouchers and involving them in referral campaigns can strengthen their connection to our brand while simultaneously expanding our customer base.
David Breitenbach, Chief Marketing Officer, PatentRenewal.com
Prioritize Exceptional Customer Service
Improve and maintain your highest possible customer service standards, and loyalty programs become less relevant. The loyalty marketing strategy has created a saturation of loyalty programs, many of which are never redeemed or only partially redeemed. Many have expiration dates that limit their use and viability as a strategy. Customer-driven service, on the other hand, forges a stronger connection between marketing and consumers.
Nicholas Grigoriou, Lecturer in Marketing, Monash Business School
Empower Clients with Educational Content
For me, personalized client education can be a powerful alternative to traditional loyalty programs for retaining clients. In our law firm, we focus on providing ongoing, tailored information to our clients even after their cases are resolved.
For example, we send regular updates on changes in medical malpractice laws that might affect them or offer free seminars on patient rights and healthcare navigation. This approach keeps our clients engaged and informed, reminding them of our expertise and commitment to their well-being. It also positions us as a trusted resource they can turn to if they or someone they know faces medical malpractice issues in the future.
By investing in our clients’ knowledge and empowerment, we strengthen our relationships with them. This aligns perfectly with our mission of seeking justice and fighting for just compensation through the court system. It’s not about points or rewards, but about continuing to add value to our clients’ lives, which in turn encourages them to think of us first for their legal needs.
Dioselvi Lora, Certified Paralegal, Freedland Harwin Valori Gander (FHVG)
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