3/14/2025 (Updated: 12/5/2025) - by Elizabeth Levister - Small Business
What if you could increase your businesses profits by up to 95% just by keeping your current customers happy? Research shows that a 5% increase in customer loyalty can boost profits by 25% - 95%. And with 75% of global consumers saying they’d switch brands for a better loyalty program, the message is clear: if you don’t have a rewards program in place, you’re leaving money on the table.1
Loyalty programs aren’t just for big brands – they’re a powerful marketing tool for small businesses to increase repeat business, encourage referrals, and strengthen customer relationships.
Still on the fence? Let’s break it down: what loyalty programs are, why they’re a game-changer for small businesses, and how you can implement one that keeps customers returning again and again.
A customer loyalty program is a marketing strategy designed to reward repeat customers and encourage long-term business. The idea is simple: the more a customer shops with you, the more perks they earn – whether that’s discounts, freebies, or exclusive experiences.
These programs come in different forms: point-based rewards (customers earn points for each dollar spent), punch cards (buy 10, get 1 free), and membership perks (pay a fee for exclusive benefits). The key is finding the right program structure for your business and customers.
The right format for you will depend on the nature, scale, and size of your business. What makes sense for one business might not work for another. For example, online retailers might offer free shipping on orders above $75, while a local coffee shop might give you a free specialty coffee after you’ve purchased 10 drinks.
Implementing a loyalty program provides a business with the opportunity to show customers they appreciate their repeat business. Not only do they help small businesses retain customers and deepen relationships, but they also help attract new clients as well.
Brand advocates and loyal customers are the heartbeat of any business. In today’s competitive market, it’s simply not enough to offer great products at low prices. You must strive to build and nourish meaningful relationships with your clients with each interaction – doing so will help to create repeat shoppers. With returning customers spending 67% more than new customers, it’s easy to see why building a loyal client base is vital to your business’ long-term success.2 In addition to increasing your profit, loyal customers refer 50% more people to a business than a one-time purchaser (word-of-mouth referrals are essentially free marketing for your business).3
A loyalty program is becoming less of a luxury and more of an expectation of consumers. Beyond helping your business stay competitive, here are a few additional reasons why it’s smart to implement a loyalty program.
There are several types of customer loyalty programs you can draw inspiration from when creating your own. Here are five common types of loyalty programs to consider:
You know your customers better than anyone; you decide the best way to approach and design a loyalty program tailored to your business. It might take a few tries to get it right; be flexible, be open to customer feedback or suggestions, and be willing to pivot when necessary to keep the program relevant to your business and customers.
After you’ve completed your initial research, consider investing in a POS system to help manage your loyalty program. SouthState merchant services representatives can help you find the right product for your business goals. Contact a merchant services representative to get started today.
In observance of Veterans Day, SouthState locations will be closed on Wednesday, November 11. SouthState Customer Care will be open 8 a.m. - 5 p.m. ET. Transactions initiated or scheduled on a holiday are processed the next business day.