Loyalty Program Retail: the best way to reduce the churn rate

March 10, 2023

Did you know that Loyalty Programs are the best strategy to retain Ratail customers?

Loyalty Program Retail

Customer retention today is the most important action a company can take, but also the most difficult one. Why? Because to retain customers today brands should prove they are not simple numbers, but persons with specific characteristics, preferences and needs.
This demonstration is particularly complicated for Retail companies. Not because they are unable to implement it, but because they are not used to doing it the way customers expect.

Today, in the Retail industry most loyalty programs are extremely impersonal. They are transaction-focused programs, meaning customers buy products and in return they simply receive points or rewards.
Well, that’s not enough anymore. Customer loyalty today means embracing an integrated and omnichannel loyalty management approach, in which every touch point and every department of the organization is involved.


Are you wondering why you should put so much effort in this process?

Here are some numbers that will help you understand better the importance of investing in Customer Loyalty:

But what does it really mean to retain customers?
Let’s dive deeper into this matter together.


Customer loyalty means making customers’ shopping experience and contact with the brand memorable.
And about that there is good news! Retail is the best industry to offer a high level customer experience, especially with the digital tools available today.         
However, you should consider that many companies today adopt a less structured approach, continuing to spend a very high budget to implement loyalty programs that don’t perform with the desired results.
How to get out of this loop?  

Considering three crucial key words for loyalty: Understanding, Engaging and Converting customers.
Understanding your customers means knowing their expectations and needs in detail, providing them with the best shopping experience possible.             
In fact, this will allow brands to involve customers more and, you know, the most involved customers are also more likely to buy back from the same brand.

But how can you concretely engage your customers and stand out from the competition?


First of all, let’s understand together what we mean by “loyalty program”.               
A loyalty program is a set of activities and strategies meant to bring customers closer to the brand, engaging them in funny activities and rewarding them with points or prizes, based on their purchases or other specific actions. 

In the Retail sector there is a high potential for loyalty programs’ development, as customers can choose between many products from different brands.    
However, we should not forget to develop loyalty programs that are integrated, omnichannel and based on a 360° vision and analysis of customers’ preferences.

So, how to do it well?



  • Proximity marketing:

    It consists of sending push notifications to customers, exploiting the potential of outbound marketing.
    In this way you can update your clients on their latest expenses and loyalty points, as well as notify discounts.
    The peculiarity of these notifications is that they are sent based on customers’ geolocation. For example, when the customer is near the store, they will receive a message from the brand, inviting them to visit the store to take advantage of personalized promotions.

  • POS integration:

    It consists of connecting the brand’s online and offline channels, integrating a POS device that can scan QR codes and barcodes that identify customers in the store.  The store cashier scans a customer’s barcode, in this way they can earn points for their purchases or redeem their rewards.
Loyalty Program Retail


  • Tiers:

    “Tiers” are the levels of a loyalty program.       
    A tiered loyalty program focuses on creating a “status” for the customer. And this feature is especially appreciated by consumers, who usually love a sense of exclusivity!
    Having a tiered loyalty program in the retail sector also means you can create separate tiers where customers can progress based on offline and online purchases. In this way, customers are encouraged to interact with the brand on all channels.

  • Gamification:

    Introducing typical elements of the game in a commercial context is definitely a winning initiative to engage customers more, offering a more enjoyable and stimulating shopping experience.        Loyalty features such as badges or challenges can be included, and customers can play on tablets or totems placed in the store.
    Furthermore, brands can launch some contests, allowing the customer to win prizes by performing simple activities such as buying a product or publishing a photo on social media and tagging the brand.
    These initiatives help to change customers’ behavior, encouraging them to interact with the loyalty program on an ongoing basis.


At this point, you are able to understand the importance of implementing an innovative loyalty program in your marketing strategy.     
So let’s get more concrete and discover our offer to engage and retain consumers.   
The Bit2win Engage Platform is a modular, fully integrated platform that allows brands to engage their consumers through engagement, loyalty and gamification solutions with high levels of customization.
The Loyalty Management module allows companies to build and adapt a “Earn & Burn” loyalty program that is in line with their needs and those of customers, choosing between:

What are the benefits?

Speed of implementation
With an "Earn & Burn" loyalty program all customers receive the same treatment, so no further segmentation is required and the implementation is quick and easy.
High perceived value
For the customer, the initiatives of the loyalty program seem like great offers, as the reward has a perceived value higher than its actual cost. Plus, unspent points help brands to save money.
Ease of use
The basic rule is quite simple: accumulate points and redeem them in the form of prizes and discounts. This simplicity allows customers to quickly understand how the system works and start earning points.
Incentive for customer identification
Since both online and in-store purchases are rewarded, customers are required and encouraged to identify themselves. They can do it by signing in or showing their loyalty card and this is particularly useful for data collection.

Find out more about our Loyalty management solutions:


Our client Rinascente had the goal of strengthening the relationship with its customers, making them feel closer to the brand.      
Rinascente chose Bit2win Loyalty Management solutions, satisfying the needs of different types of customers, offering them discounts and personalized advantages, with the security of facing new market challenges using the most appropriate tools.

Read the interview with Valentina Torti, HQ Staff & CRM – IT Area Manager in Rinascente:

Bit2win for Rinascente

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