Loyalty and Retention

How Loyalty and Rewards Apps Help Create Amazing Retention

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When Sarah first visited ABC-Makeup, she loved the rewards she got on her purchases. ABC-Makeup's loyalty and rewards apps prompted her to return to the store over and over and ditch ABC's competitors entirely.

But why?

Let's first analyze this short story.

Sarah is a makeup artist, which means as customer she buys makeup regularly. When she visited a store, we named ABC-Makeup, she found that they had a loyal program that offered her rewards on her purchases.

What did Sarah do? She made ABC-Makeup her go-to store for her makeup needs because she knew she was getting something in return. Her purchases gave her a reason to come back.

These loyalty and rewards apps helped ABC-Makeup create customer retention, increase their sales, and retain Sarah and many others like her.

In this article, we're talking about loyalty and rewards apps and how businesses can use them, not only to attract new customers but more importantly to retain current ones and create customer loyalty.

What are loyalty and rewards apps

Loyalty and rewards apps are more commonly known as loyalty programs, rewards programs, or customer loyalty programs.

They are programs that allow customers to accumulate points that can translate into rewards, discounts, and vouchers on later purchases.

Let's take the Sarah example once more.

When Sarah visited ABC-Makeup, they enrolled in their rewards program. As a member, every purchase Sarah made translated into a number of points.

As Sarah accumulated points, she began getting discounts and cashback rewards.

Each customer loyalty program differs from the other. Some offer a specific discount or cashback reward when a certain number of points is reached and others offer several reward options.

When Sarah's purchases reached 1,000 points, she got a $10 voucher on her next purchase or she got the chance of free delivery on her next order of $50 or more. These are examples of rewards Sarah gets as part of her loyalty program with ABC-Makeup.

Why retain customers

But why would businesses consider loyalty and rewards apps or programs in the first place?

The main reason is that these loyalty programs help increase customer retention.

Why would businesses need customer retention?

Well for starters, the cost of acquiring a new customer is 5 to 25 times higher than retaining a current customer.

Not to mention, data shows that raising customer retention in your store by as little as 5% can grow your revenue by 25% to as high as 95%.

Who wouldn't want these figures?

In addition, customer loyalty programs offer a high return on investment. Loyalty programs aren't expensive but offer lots of value for your customers.

Take Gameball for example. We offer gamified loyalty programs, which means our programs not only retain customers but also provide your store with a unique customer-hooking experience.

Customer loyalty stats

Did you know that 58.7% of internet users consider loyalty and rewards apps and points as "one of the most valued aspects of the shopping experience?"

That's according to data by eMarketer on product loyalty research.

Moreover, data compiled by SmallBizGenius showed that 75% of consumers liked to shop at stores and brands that offered rewards. On the other hand, several companies said that 65% of their business came from retained and existing customers – not new ones.

"Loyalty program statistics and trends show how essential these services are for brands and businesses around the world. So much so that 77% of people are more likely to continue using a brand’s services if it has a loyalty program," SmallBizGenius adds.

Meanwhile, data by Bond shows that 73% of customers are "more likely to recommend brands with good loyalty programs."

This means that by using loyalty and rewards apps, you're able to build retention and create customer loyalty. Even better, having a good loyalty program you can both retain customers and attract new ones through referrals.

How to use loyalty and rewards apps

Now that you know the benefits of customer retention and how it helps your store and business, let's dive into the loyalty and rewards apps and how you can add them or install them in your store.

Put simply, these apps are software. They aren't standalone mobile apps. They are software that's embedded in your website or online store.

Let's take a look at Gameball.

If you have a website or online store that you use to sell directly to your customers, you can install Gameball directly through a software development kit (SDK).

Our Gameball SDKs allow businesses to quickly and easily integrate with our APIs. Not sure what that means? Get in touch with our Customer Support team.

Similarly, if you have a store on Shopify, WooCommerce, or Magento, you can directly add Gameball as an app to your online store through these websites' apps or integrations section.

Use rewards apps for retention

Retaining customers means you're turning your first-time buyers into regulars and getting current customers to keep coming back and not leave you for the competition.

You're turning current buyers to repeat customers, like Sarah.

But how do you get started in using loyalty and rewards apps to retain customers?

For starters, you'll need a loyalty program provider like Gameball and you'll need to install that app into your online store.

You'll also need to define the value of points accumulated in your store. How much money translates into how many points? This is all setup in the app itself once you install it in your site or store.

With Gameball, we have a table that allows you to set these figures early on so you don't struggle with the numbers.

Once everything is set, you'll want to tell customers about your loyalty program.

As a bonus, you can give current customers – those who have repeatedly purchased from you in the past, 100 or 1,000 points to start with so that they can use those points as a discount or reward on their next purchase.


In doing so, you're giving current customers who may have not been planning to shop at your store this week or this month, a reason to.

As a store owner, you get to decide on what the points translate to.

For example, by accumulating 2,000 points, the customer can get free shipping or a 10% discount on their next purchase.

Examples of rewards

So what kind of rewards can customers get when they become a part of a store's loyalty program?

Here are some ideas:

  • Free shipping
  • 5% or 10% discount
  • Vouchers
  • Cashback rewards
  • Free items
  • Free samples
  • Charity donations
  • Birthday offers or discounts (giving a special discount because it's a customer's birthday)

These are some examples of rewards store owners can offer in their loyalty programs. As you know, customers accumulate points as part of their rewards program. You can decide when a customer gets a certain voucher or discount.

For businesses that sell products like makeup and skincare products, rewards can include free consultations with a dermatologist or a makeup artist.

Sephora's loyalty program is a unique example of a tiered loyalty program. It's also one of the world's best loyalty programs. Sephora offers a tier-based rewards program that comes with tons of benefits to its customers.

In addition to what people can earn as rewards, you can create multiple options for customers to earn points.

For example, you can award points for information customers provide like their name, age, date of birth, and email.

Loyalty and rewards with Gameball

Gameball's loyalty programs are about the gamified experience we provide. Getting customers to shop, whether online or in-store, shouldn't be a tiring or unexciting process.

Rather it becomes an experience; a unique and exciting one.


At Gameball, we have several ways for customers can earn points. These include challenges, tiers, and cashback rewards.

Check out our product strategies to make the most of your Gameball loyalty program.


Loyalty and rewards apps and programs should be an essential part of your customer retention strategy.

Why? Because they offer many benefits that can help your store build better relationships with customers, create customer retention and help you make more sales.

As a store owner, you want your customers to be like Sarah. You want them to visit your store once, twice, and many times. You also want to keep them coming back to you rather than checking out your competitors.

Offering a loyalty and rewards program gives them more incentive to shop at your store. It also excites them to buy more.

So what are you waiting for?

Install Gameball today and enjoy a 14-day free trial.

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