Customer loyalty: 5 levers for retailers
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November 18
Key Takeaways
- Customer loyalty is about bringing back a customer you have already won, through loyalty programmes, fine-grained segmentation and personalised communications across every channel.
- 5 levers structure an effective customer loyalty strategy: campaign automation, advanced segmentation, multichannel engagement, results analysis and rewarding loyal customers over time.
- Data is the fuel: without a CDP or a loyalty engine connected to the CRM, personalisation remains declarative and programmes turn into cost centres.
Today’s retail landscape retail a vast digital chessboard, where every move can tip the balance of the game. In this complex game, customer loyalty has become the queen—the key piece capable of turning the tide of the game. The rise of e-commerce, accelerated by the recent health crisis, has reshuffled the deck, transforming the traditional rules of customer engagement. French e-commerce surpassed the 196 billion euro spending mark in 2025, with the average order value down 3% to 62 euros (Fevad, 2026). Customers are shopping more frequently, in smaller amounts, and comparing pricesmore often. Faced with these challenges, retailers must redouble their efforts to turn a first sale into a long-term relationship. Let’s explore together the five effective levers of customer loyalty, powered by a Marketing Automation platform that includes a loyalty module.
What is customer loyalty in retail?
Customer loyalty in retail refers to the marketing actions that increase the purchase frequency and lifetime of a customer already won by a brand. It can combine several strategies such as a loyalty programme (points, tiers, benefits), segmentation of purchase data and personalised communications, both in store and online. Its benchmark indicator is customer lifetime value (CLV), complemented by the repeat-purchase rate and the retention rate.
Three indicators to track as a priority
- Retention rate: the share of customers active in one period who buy again in the following period.
- Purchase frequency: the number of orders per customer per year, to be compared between programme members and non-members.
- CLV: the cumulative margin generated by a customer over the entire relationship.
- Programme enrolment rate: the share of revenue generated by programme members.
1. How to automate your customer loyalty campaigns
Automating loyalty campaigns allows retailers to manage loyalty programs without excessive manual effort. Automated loyalty programs, based on loyalty points and rewards, encourage customers to make new purchases more frequently. For example, a customer who earns points with every purchase can redeem them for discounts or exclusive gifts, which encourages repeat purchases and strengthens the relationship with the brand.
The True Cost of Customer Retention vs. Acquisition
According to Brand Keys' 2025 Customer Loyalty Engagement Index, the cost of acquiring a new customer is now 15 to 22 times higher than that of retaining an existing one, a 20% increase since 1997 (Sens du Client, 2025). Automating loyalty programs helps reduce these costs by maintaining consistent engagement with existing customers.
Connect the Loyalty Engine to Marketing Automation
The integration of a loyalty engine into the Marketing Automation platform Marketing Automation responsiveness and personalization while increasing the effectiveness of loyalty campaigns. This approach allows for the personalization of communications based on customer behavior and preferences, thereby improving the relevance and impact of marketing messages.
2. Identifying regular customers to target them better
Identify regular customers to better target them
Segmenting customer data allows retailers to identify regular and loyal customers and create specific segments for targeted marketing campaigns. By distinguishing between occasional and frequent shoppers, retailers can personalize their messages and offers. A targeted campaign aimed at regular customers with exclusive offers or product previews can significantly increase the purchase rate.
Why prioritise existing customers?
It is essential to understand that the probability of making a sale to an existing customer is 60 to 70 percent, whereas it is only 5 to 20 percent for a prospect (Marketing Metrics – Paul W. Farris). This underscores the importance of targeting existing customers with offers tailored to their specific segment. By using advanced segmentation tools, retailers can identify their most profitable customers and offer them additional benefits, such as exclusive discounts, special loyalty programs, or invitations to private events, thereby increasing the likelihood of making more frequent sales.
Which customer loyalty lever should you activate by segment?
The table below summarizes, segment by segment, the customer retention strategies that should be prioritized.
| Segment | Observed behavior | Priority Lever |
|---|---|---|
| New customers | 1 purchase, less than 3 months ago | Automated welcome workflow, incentive for a second purchase |
| Regular customers | Frequent purchases, stable average basket | Tiers, bonus points, early access |
| Occasional big baskets | High amount, low frequency | Private sales, in-store invitations |
| Customers Losing Momentum | Deteriorating Recency | Automated follow-up, limited-time offer |
| Inactive Customers | No purchases in the past 12 months | Win-back campaign, reactivation of points balance |
3. Multichannel engagement: unifying the customer experience between store and e-commerce?
The Role of the CDP in Unifying Customer Data
Integrating customer data from various channels—physical stores, e-commerce sites, social media—is essential to delivering a consistent and personalized customer experience. CDP tools play a crucial role in centralizing this data, enabling retailers to track and analyze customer interactions across all touchpoints. A multichannel engagement strategy ensures that every customer receives relevant and consistent communications, regardless of the channel used.
A consistent experience between store and digital
A customer who shops online while also visiting a retailer’s physical stores should perceive the seamless complementarity of these two experiences, which are consistently integrated into a single ecosystem. If this customer has shown interest in certain products online, this information should, for example, be accessible to in-store staff so they can offer personalized recommendations. Similarly, interactions on social media should ideally be integrated so that every “like” and interaction (particularly via private messages) is taken into account in the overall customer profile.
One statistic speaks volumes: 81% of consumers are willing to pay more for a better customer experience (Oracle – Loudhouse). This means that retailers who invest in a multichannel engagement strategy can not only improve customer satisfaction but also increase their revenue. By offering a seamless and personalized experience at every touchpoint, companies can build customer loyalty more effectively and meet growing expectations for personalization.
4. How to analyse and optimise the results of a customer loyalty strategy?
Measuring the impact of your loyalty campaigns
Using customer data to measure the effectiveness of loyalty campaigns is essential. Analyzing customer performance and behavior allows for the continuous optimization of strategies. For example, if a loyalty campaign does not generate the expected return, the data can reveal valuable insights for adjusting the approach, whether by modifying the rewards offered or changing the communication channel used.
The key indicators to track to steer loyalty
By analyzing the right metrics (retention rates, customer lifetime value (CLV), customer engagement, etc.), retailers can identify which customer segments respond best to loyalty campaigns and which ones require a different approach. For example, if an analysis shows that loyal customers respond positively to loyalty point programs while new customers prefer immediate discounts, strategies can be adjusted accordingly.
5. Engage and reward loyal customers over the long term
Loyalty Programs: A Tool for Recognition
Long-term customer loyalty depends on recognizing and rewarding loyal customers. Retailers must therefore strike the right balance between attracting new customers and retaining existing ones. Well-designed loyalty programs often include reward tiers, where customers earn additional benefits as they advance through the program. For example, a regular customer might gain access to exclusive discounts, bonus loyalty points, or invitations to private events.
A profitable investment over the long term
These benefits create a sense of exclusivity and recognition, encouraging customers to remain engaged with the brand over the long term. This investment pays off: loyal customers are willing to spend 67% more than new buyers (Invesp), particularly to maintain their benefits (program tier).
Customer loyalty is essential for retailers looking to thrive in a competitive market. By using CDP and marketing automation, retailers can automate loyalty programs, segment customers for targeted campaigns, engage customers across multiple channels, analyze and optimize results, and build long-term loyalty among customers. A well-defined, data-driven customer loyalty strategy is crucial for meeting customer expectations and increasing retention rates.
Implementing these five customer retention strategies can turn a first-time sale into a lasting and profitable customer relationship, while significantly increasing profits and customer lifetime value (CLV).
Conclusion
The five levers work together, not separately. A loyalty programme without segmentation hands points to customers who would have come back anyway. Segmentation without automation remains an Excel file. The order of priority depends on the brand's maturity: retailers that have not yet unified their store and web data start with the CDP, the others with automated scenarios and per-segment measurement. The only trade-off that matters is the incremental margin generated per segment, quarter after quarter.
