{"id":13368,"date":"2024-11-03T12:36:09","date_gmt":"2024-11-03T12:36:09","guid":{"rendered":"https:\/\/userpilot.com\/blog\/customer-loyalty\/"},"modified":"2026-03-23T12:00:23","modified_gmt":"2026-03-23T12:00:23","slug":"customer-loyalty","status":"publish","type":"post","link":"https:\/\/userpilot.com\/blog\/customer-loyalty\/","title":{"rendered":"Customer Loyalty: Types, Strategies, and Examples"},"content":{"rendered":"<p>According to <a href=\"https:\/\/www.deloitte.com\/content\/dam\/Deloitte\/nl\/Documents\/consumer-business\/deloitte-nl-customer-and-marketing-unlocking-loyalty-infographic-final.pdf\" target=\"_blank\" rel=\"nofollow noopener\">research by Deloitte<\/a>, 70% of customers spend more regularly with brands whose loyalty programs they&#8217;re a part of. Couple this with the fact that the average cost of customer acquisition continues increasing, and you begin to appreciate the importance of customer loyalty.<\/p>\n<p>Not only does cultivating customer loyalty <a href=\"https:\/\/userpilot.com\/solutions\/customer-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\">drive customer retention<\/a>, but it also helps with sustainable financial success since loyal customers bring repeat business with more frequent purchases.<\/p>\n<p>These are just some of the benefits you can reap by focusing on customer loyalty. But to reach this point, there&#8217;s a lot left to explore first. This article will help, covering key aspects like:<\/p>\n<ul>\n<li>What is customer loyalty?<\/li>\n<li>Why is customer loyalty important?<\/li>\n<li>Types of customer loyalty programs.<\/li>\n<li>Ways to measure customer loyalty.<\/li>\n<\/ul>\n<h2 id=\"2kiuv\">What is customer loyalty?<\/h2>\n<p>Customer loyalty is the emotional connection existing customers have with your brand, which leads them to repeatedly engage with and purchase from you over other competitors.<\/p>\n<p>Such loyalty generally results from <a href=\"https:\/\/userpilot.com\/blog\/positive-customer-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">positive customer experiences<\/a>, like great customer service or personalized interactions, that <a href=\"https:\/\/userpilot.com\/blog\/user-trust\/\" target=\"_blank\" rel=\"noopener noreferrer\">build customer trust<\/a>.<\/p>\n<h2 id=\"2ktcd\">Why does customer loyalty matter?<\/h2>\n<p>Earning and retaining avid fans isn&#8217;t easy, but if done right, the advantages are endless. For instance, here are just some of the reasons why building a loyal customer base is important:<\/p>\n<ul>\n<li><strong>Cost-effectiveness<\/strong>: Customer retention of existing customers is significantly cheaper than <a href=\"https:\/\/userpilot.com\/blog\/customer-acquisition\/\" target=\"_blank\" rel=\"noopener noreferrer\">acquiring new ones<\/a>. Specifically for SaaS, experts suggest it <a href=\"https:\/\/www.forbes.com\/councils\/forbesbusinesscouncil\/2022\/12\/12\/customer-retention-versus-customer-acquisition\/\" target=\"_blank\" rel=\"nofollow noopener\">costs four to five times more<\/a> to attract new customers than to keep existing ones.<\/li>\n<li><strong>Increased <a href=\"https:\/\/userpilot.com\/blog\/revenue-growth-formula\/\" target=\"_blank\" rel=\"noopener noreferrer\">revenue growth<\/a><\/strong>: Loyal customers tend to spend more over time. In fact, studies show that increasing customer retention rates by just 5% can lead to a profit increase of 25% to 95%.<\/li>\n<li><strong>Reduced churn<\/strong>: Once a customer decides to leave, the likelihood of them returning is incredibly low. However, fostering customer loyalty can help with that by significantly <a href=\"https:\/\/userpilot.com\/blog\/churn-prevention-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">decreasing churn rates<\/a>.<\/li>\n<li><strong>Greater brand advocacy<\/strong>: Loyal customers provide positive (and helpful) customer feedback and advocate for your business, recommending it to others. Such <a href=\"https:\/\/userpilot.com\/blog\/word-of-mouth-marketing\/\" target=\"_blank\" rel=\"noopener noreferrer\">word-of-mouth marketing<\/a> and referrals can generate up to <a href=\"https:\/\/www.brightlocal.com\/research\/local-consumer-review-survey\/\" target=\"_blank\" rel=\"nofollow noopener\">50% of all purchasing decisions<\/a>.<\/li>\n<\/ul>\n<p>The first step to unlocking these benefits is to drive customer loyalty by implementing loyalty programs and similar tactics. However, it should be noted that the effectiveness of these programs depends on your business model (B2B, B2C, etc.) and industry (e.g. tech or healthcare).<\/p>\n<p>To help you tailor your approach to your business context, we explore the various types of customer loyalty programs in later parts. We&#8217;ll also cover ways to validate the impact of your customer loyalty efforts, so you&#8217;re all primed for greater success.<\/p>\n<h2 id=\"7pbt2\">Types of loyal customers<\/h2>\n<p>Even within loyal customers, different segments exist based on their varying reasons for returning to your brand. Knowing the nuanced differences between these segments is useful when designing a loyalty program for each type.<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/how-to-measure-customer-satisfaction\/\" target=\"_blank\" rel=\"noopener noreferrer\">Satisfied customers<\/a><\/strong>: Enjoy and find consistent value in using your products or services, and have purchased or <a href=\"https:\/\/userpilot.com\/blog\/subscription-renewal\/\" target=\"_blank\" rel=\"noopener noreferrer\">renewed subscriptions<\/a> multiple times. However, they can be easily swayed by competitors offering similar capabilities or experiences.<\/li>\n<li><strong>Convenience loyals<\/strong>: Stay loyal due to the <a href=\"https:\/\/userpilot.com\/blog\/customer-communication-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">ease of communication<\/a> and accessibility your brand offers, valuing convenience over price. Unlikely to switch because that would disrupt said convenience.<\/li>\n<li><strong>Loyalty-program loyals<\/strong>: They&#8217;re not loyal to your company or product, but rather to your customer loyalty program, primarily motivated by the variable rewards it offers.<\/li>\n<li><strong>Low-price loyals<\/strong>: Only loyal to low prices and will quickly switch if competitors offer better deals. You can always win them back by offering lower prices. However, this makes <a href=\"https:\/\/userpilot.com\/blog\/how-to-increase-retention-rate\/\" target=\"_blank\" rel=\"noopener noreferrer\">long-term retention<\/a> of such customers incredibly costly.<\/li>\n<li><strong>Truly loyal customers<\/strong>: Repeat customers with greater customer lifetime value, consistently purchasing from you, and acting as <a href=\"https:\/\/userpilot.com\/blog\/customer-advocacy-examples\/\" target=\"_blank\" rel=\"noopener noreferrer\">brand advocates<\/a>, referring your company to friends and family.<\/li>\n<\/ul>\n<h2 id=\"1isoj\">Types of loyalty programs<\/h2>\n<p>Unfortunately, there is no one-size-fits-all loyalty program that can drive customer retention across all <a href=\"https:\/\/userpilot.com\/blog\/loyalty-segmentation\/\" target=\"_blank\" rel=\"noopener noreferrer\">loyalty segments<\/a>. Instead, you need to pick the appropriate program type that fits your industry and business needs.<\/p>\n<p>Here&#8217;s an overview of all the types of loyalty programs you can consider to help build customer loyalty:<\/p>\n<ul>\n<li>Points programs.<\/li>\n<li>Tiered loyalty\/subscription programs.<\/li>\n<li>Refer-a-friend programs.<\/li>\n<li>Spend-based programs.<\/li>\n<li>Mission-driven programs.<\/li>\n<\/ul>\n<figure class=\"gallery regular\">\n<div class=\"strchf-gallery\">\n<div class=\"strchf-gallery\">\n<div class=\"strchf-gallery-preloader\" style=\"background-color: #f8f8f8; line-height: 0; margin-top: 40px; padding: 30% 0; text-align: center; width: 100%;\">\n<div style=\"background: url(data:image\/gif; base64,r0lgodlhlaasapueaodg4kurq9pt0\/j4+jubm9xv1fly8ubm5qampqenp8rkyttu1mjiyli4uoxl5ezs7kysrle3t6cgokghoehh4cpdw9vb25qamr6+vsnjyc\/pz\/hx8b29vctexmlcwra2tuli4qqqquvr666urq+vr+tk5nra2pycnj+fn\/pz8waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaach\/c05fvfndqvbfmi4waweaaaah+qqeawd\/acwaaaaalaasaaadpji63p4wykmrvtjrzbv\/yciozgmeakqubou+cewcqqdaaueekccyuv3vv6lzzmikcslsop\/qqhrkrvqvweucach5baudaaaalakafaaoaaqaaauvodjncmceqgrokbpfkhc3wctkjx2gach5baudaaaalagaewaqaayaaauiiaach2iej0qqegoaxriujwqsxjet9xktmrxljykzserucaah+qqfawaaacwiabmaggagaaafkydwznkdngiqrg\/heuzqwauqviqiu3rtglextmxh1uq\/xizyo55giqxtgqiaifkebqmaaaascaataboabgaabsqgqaeiaz5owpojansdoc5qrdoq1diajqe63er0qsh4lsfpfqiaifkebqmaaaascaauaboabaaabrogii6kseeqvzbvwkii7baf+8a2vtvjmfkaeaah+qqfawaaacwiabmaggagaaafkcagjuroggvaomlfeju6krjovc+ank1t4wrdibdqvwi+h0lbup18gbaaifkebqmaaaascaatabsabgaabtpgmfiwaj7hca6nrlzsal1qpdzp+l4luhoq1qnm+fvmh1\/qrzamxddwjfcl4uwk222pdqeaifkebqmaaaascaatabsabgaabtmgadypajpplpvnk36v+xaiwz7bsmz32con4e+0ww1nwiaragpkaacbtlcrkvxwhakhdqeaifkebqmaaaascaatabsabgaabjpaagawebqniayddgwafzojxsleujmcw0airbsdycnginl2v2hwgddwjbif6re6x2aoqmk4cil6\/0rbach5baudaaaalakaewaaaayaaauticcojecjz1lsuzssr6kucljeil4yjf8mioro1yv+giyxkhyt0ril1yrbakpcach5baudaaaalakaewabaayaaau3iccojhbk2vgohieamuawb2etaunzhqdzmpxirlcudeqyueg0kpc3vmxgqt1ypf1xttopsmdzcaah+qqfawaaacwjabmagwagaaagmccbceguwixf4uewxcafegba8gxjq4odlfm0skvi5rew3ca933bzzhrwr+\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\/iqah+qqfawaaacwjabqadgaeaaaggcbup5mcgi9id4hgqsipbyxteyqkpuxqmqgaifkebqmaawascqauaa4abaaaag9eaqploc6webdgmq26raaaow==); display: block; height: 44px; margin: 0 auto -44px; position: relative; top: -22px; width: 44px;\"><\/div>\n<\/div>\n<div class=\"strchf-gallery-images\" style=\"display: none;\">\n<div style=\"max-width: 100%; padding: 0; margin: 0;\">\n<picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/patagonia-mission-driven-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/patagonia-mission-driven-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/patagonia-mission-driven-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/patagonia-mission-driven-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/patagonia-mission-driven-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png\" alt=\"Patagonia's mission-based loyalty program\" \/><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<\/div><figcaption>Patagonia attracts value-driven loyal customers through it&#8217;s mission of keeping Earth as its &#8220;only shareholder&#8221;, donating 1% of all sales to environmental causes.<\/figcaption><div class=\"strchf-gallery\">\n<div class=\"strchf-gallery\">\n<div class=\"strchf-gallery-images\" style=\"display: none;\">\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><\/div>\n<div style=\"max-width: 100%; padding: 0; margin: 0;\">\n<picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/dropbox-referral-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/dropbox-referral-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/dropbox-referral-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/dropbox-referral-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/dropbox-referral-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png\" alt=\"Refer-a-friend loyalty program example by Dropbox\" \/><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<\/div><figcaption>Referral programs only work if there&#8217;s something in it for everyone &#8211; which is what Dropbox does by giving both the referrer and referee extra storage upon successful account creation.<\/figcaption><div class=\"strchf-gallery\">\n<div class=\"strchf-gallery\">\n<div class=\"strchf-gallery-images\" style=\"display: none;\">\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><\/div>\n<div style=\"max-width: 100%; padding: 0; margin: 0;\">\n<picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/hubspot-point-based-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/hubspot-point-based-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/hubspot-point-based-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png 1x, https:\/\/images.storychief.com\/account_6827\/hubspot-point-based-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/hubspot-point-based-loyalty-program_a5d08fbf0441df2b6f1b24910d0463bd_800.png\" alt=\"HubSpot's reward points based loyalty program\" \/><\/picture>\n<\/div>\n<\/div>\n<\/div>\n<\/div><figcaption>HubSpot&#8217;s point-based loyalty program is effective because it&#8217;s simple &#8211; awarding agencies and consultants with points for tasks that benefit HubSpot.<\/figcaption><div class=\"strchf-gallery\">\n<div class=\"strchf-gallery-images\" style=\"display: none;\">\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><\/div>\n<\/div>\n<div class=\"strchf-gallery-controls\" style=\"display: none;\">\n<div class=\"strchf-gallery-control-prev\" role=\"button\">\u2039<\/div>\n<div class=\"strchf-gallery-control-next\" role=\"button\">\u203a<\/div>\n<\/div>\n<div class=\"strchf-gallery-nav\" style=\"display: none;\">\n<div role=\"button\"><\/div>\n<div role=\"button\"><\/div>\n<div role=\"button\"><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<h3 id=\"6id76\">Points programs<\/h3>\n<p><strong>Points programs are a <a href=\"https:\/\/userpilot.com\/blog\/real-time-customer-engagement\/\" target=\"_blank\" rel=\"noopener noreferrer\">popular way to engage customers<\/a> by rewarding them for specific actions, such as making purchases or <a href=\"https:\/\/userpilot.com\/blog\/real-time-customer-feedback\/\" target=\"_blank\" rel=\"noopener noreferrer\">providing feedback<\/a><\/strong>.<\/p>\n<p>As the name suggests, customers earn points for these actions, which they can later redeem for various benefits, like discounts on future purchases.<\/p>\n<p>You can keep track of reward points through loyalty cards, online accounts, or mobile apps, making it easy for customers to see their progress, too.<\/p>\n<p>Plus, because point programs are so commonly used, most customers are already familiar with them and, therefore, more likely to participate.<\/p>\n<p>A great example is HubSpot&#8217;s Partner Program, which rewards agencies and consultants with points for activities that benefit Hubspot, like <a href=\"https:\/\/userpilot.com\/blog\/customer-onboarding-best-practices\/\" target=\"_blank\" rel=\"noopener noreferrer\">client onboarding<\/a> and successful implementations.<\/p>\n<h3 id=\"47ggq\">Tiered loyalty or subscription programs<\/h3>\n<p><strong>Tier-based programs <a href=\"https:\/\/userpilot.com\/blog\/variable-rewards\/\" target=\"_blank\" rel=\"noopener noreferrer\">reward customers<\/a> according to their spending levels, creating a system where increased investment in your business unlocks greater benefits.<\/strong> To unlock the next tier, customers must spend a certain amount of money within a set timeframe.<\/p>\n<p>This tiered design effectively motivates customers on lower tiers to rise up the ranks in search of more exclusive rewards. Many B2B SaaS companies do this by integrating loyalty elements, like access to extra features or <a href=\"https:\/\/userpilot.com\/blog\/types-of-customer-support\/\" target=\"_blank\" rel=\"noopener noreferrer\">priority support<\/a>, into their subscription models.<\/p>\n<p>However, tiered programs are far more common in B2C businesses.<\/p>\n<p>For instance, consider Ulta&#8217;s Ultamate rewards program, which requires customers to spend $500 and $1,200 annually to reach Platinum and Diamond status, respectively. Customers on higher tiers can earn points at a faster rate and exchange them for tangible gifts or limited-edition items.<\/p>\n<h3 id=\"4r1ao\">Refer-a-friend programs<\/h3>\n<p><strong>Refer-a-friend programs employ <a href=\"https:\/\/userpilot.com\/blog\/word-of-mouth-wom\/\" target=\"_blank\" rel=\"noopener noreferrer\">word-of-mouth marketing<\/a> tactics to incentivize customers to act as advocates, recommending your brand to friends and family.<\/strong><\/p>\n<p>In exchange for successful referrals, typically via referral links or discount codes, participating customers get rewards such as gift cards, cashable points, branded swag, etc. Such loyalty programs can also lower <a href=\"https:\/\/userpilot.com\/blog\/customer-retention-vs-acquisition-cost\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer acquisition costs<\/a> since they utilize existing customer relationships.<\/p>\n<p>Dropbox&#8217;s referral program is a successful example, where both the referrer and the referred user receive extra storage space.<\/p>\n<h3 id=\"c0pp0\">Spend-based programs<\/h3>\n<p><strong>Spend-based rewards programs are solely designed to recognize and acknowledge the value of high-spending customers.<\/strong><\/p>\n<p>They follow a simple principle: the more a customer spends, the greater rewards they receive. This approach <a href=\"https:\/\/userpilot.com\/blog\/customer-engagement-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">enhances engagement<\/a> with your most valuable customers.<\/p>\n<p>Spend-based programs are quite common in B2B companies that deal with enterprise-level clients. Zoom, for example, offers volume discounts for large enterprises that require many licenses.<\/p>\n<h3 id=\"5q46k\">Mission-driven programs<\/h3>\n<p>A <a href=\"https:\/\/userpilot.com\/blog\/b2b-loyalty-programs\/\" target=\"_blank\" rel=\"noopener noreferrer\">loyalty program<\/a> doesn&#8217;t always have to rely on giving customers discounts or material rewards. Oftentimes, intrinsic satisfaction does the trick just as well. This means implementing a cause-based program where you offer customers the chance to direct a portion of their purchases, like 5%, to a charity of their choice.<\/p>\n<p><strong>If you&#8217;re a mission-driven company that believes in upholding certain values across all business proceedings, then this loyalty program type is right for you. <\/strong>You can even partner with a nonprofit that aligns with your brand\u2019s mission further to enhance the impact and appeal of this approach.<\/p>\n<p>For example, while not strictly SaaS, Patagonia&#8217;s &#8220;1% for the Planet&#8221; initiative is a mission-driven program, where they donate 1% of sales to environmental nonprofits.<\/p>\n<h2 id=\"foed6\">How to measure your customer loyalty program value<\/h2>\n<p>The fact that customer loyalty is partly influenced by the emotional connection customers feel with your brand makes it tricky to measure. However, certain <a href=\"https:\/\/userpilot.com\/blog\/key-performance-indicators-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">performance indicators<\/a> do exist to track loyalty behaviors and measure the success of your loyalty program accordingly.<\/p>\n<p>Which of these methods you use will depend on your goals, industry, and the type of loyalty program you implement. To help you decide, let&#8217;s go over all the methods and metrics you should consider:<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/nps-saas-complete-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Net Promoter Score (NPS)<\/a><\/strong>: Measures loyalty by asking how likely customers are to recommend your product or service, with scores categorized into promoters, passives, and detractors.<\/li>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/how-to-improve-customer-satisfaction-scores\/\" target=\"_blank\" rel=\"noopener noreferrer\">Customer satisfaction score (CSAT)<\/a><\/strong>: Assesses customer satisfaction through surveys that ask customers to rate their satisfaction with your product or service, typically on a scale. To easily <a href=\"https:\/\/userpilot.com\/blog\/customer-satisfaction-survey-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">create satisfaction surveys<\/a> and <a href=\"https:\/\/userpilot.com\/blog\/measure-customer-loyalty\/\" target=\"_blank\" rel=\"noopener noreferrer\">measure customer loyalty metrics<\/a> like CSAT and NPS, consider tools like <a href=\"https:\/\/userpilot.com\/\">Userpilot<\/a>.<\/li>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/calculate-lifetime-value-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">Customer lifetime value (CLV)<\/a><\/strong>: Estimates the total revenue you can expect from a single customer throughout their relationship with your business.<\/li>\n<li><strong>Average revenue per user (ARPU)<\/strong>: Calculates the <a href=\"https:\/\/userpilot.com\/blog\/how-to-generate-revenue-with-customer-expansion-strategies\/\" target=\"_blank\" rel=\"noopener noreferrer\">average revenue generated<\/a> per user or account within a specific time frame, often used in subscription-based businesses to gauge financial performance.<\/li>\n<li><strong>Account expansion: <\/strong>Refers to strategies aimed at increasing revenue from existing customers through <a href=\"https:\/\/userpilot.com\/blog\/upsell-opportunities-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">upselling<\/a>, cross-selling, or expanding <a href=\"https:\/\/userpilot.com\/blog\/product-usage\/\" target=\"_blank\" rel=\"noopener noreferrer\">product usage<\/a>, contributing to overall business growth.<\/li>\n<\/ul>\n<p>It should be noted that tracking these metrics on their own is not enough. To understand how your program is performing, you also need a <strong>base to compare your results against<\/strong>. Here are three ways you can do that:<\/p>\n<ul>\n<li><strong>Use external data<\/strong>, like industry benchmarks.<\/li>\n<li><strong><a href=\"https:\/\/userpilot.com\/blog\/measure-customer-loyalty\/\" target=\"_blank\" rel=\"noopener noreferrer\">Monitor loyalty metrics<\/a> over time <\/strong>to study any positive or negative changes.<\/li>\n<li><strong>Track customers not enrolled in your loyalty program<\/strong>, comparing their behaviors and metrics against those of loyal customers.<\/li>\n<\/ul>\n<h2 id=\"frdpk\">Other factors that contribute to improving customer loyalty<\/h2>\n<p>Implementing a customer loyalty program doesn&#8217;t guarantee an uptick in loyalty. Instead, there are many other aspects you need to refine as well, starting with <a href=\"https:\/\/userpilot.com\/blog\/how-to-improve-customer-retention\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer retention best practices<\/a>, like the ones below.<\/p>\n<h3 id=\"b62p6\">Unparallel account management<\/h3>\n<p>While focusing on <a href=\"https:\/\/userpilot.com\/blog\/improve-customer-satisfaction\/\" target=\"_blank\" rel=\"noopener noreferrer\">improving overall customer satisfaction<\/a>, most businesses overlook what comes after sign-up, forsaking their users&#8217; ongoing onboarding needs. Instead, retaining B2B clients requires better <a href=\"https:\/\/userpilot.com\/blog\/saas-account-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">account management practices<\/a>, starting with assigning each account manager fewer partnerships.<\/p>\n<p>This way, they&#8217;ll have more bandwidth to provide exceptional experiences, by prioritizing <a href=\"https:\/\/userpilot.com\/blog\/proactive-support-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">proactive support<\/a>, regular communication, <a href=\"https:\/\/userpilot.com\/blog\/customer-feedback-collection\/\" target=\"_blank\" rel=\"noopener noreferrer\">collecting customer feedback<\/a>, and providing tailored assistance.<\/p>\n<p>To underscore the importance of proper account management, consider Semrush&#8217;s example.<\/p>\n<p>Their LinkedIn post about their recent acquisition of Search Engine Land became flooded by comments from old customers writing reasons for why they left Semrush. A common theme emerged: many cited inadequate <a href=\"https:\/\/userpilot.com\/blog\/saas-customer-support\/\" target=\"_blank\" rel=\"noopener noreferrer\">dedicated support<\/a> and account management as reasons for leaving.<\/p>\n<figure class=\"gallery regular\">\n<div class=\"strchf-gallery\">\n<div class=\"strchf-gallery-preloader\" style=\"background-color: #f8f8f8; line-height: 0; margin-top: 40px; padding: 30% 0; text-align: center; width: 100%;\">\n<div style=\"background: url(data:image\/gif; base64,r0lgodlhlaasapueaodg4kurq9pt0\/j4+jubm9xv1fly8ubm5qampqenp8rkyttu1mjiyli4uoxl5ezs7kysrle3t6cgokghoehh4cpdw9vb25qamr6+vsnjyc\/pz\/hx8b29vctexmlcwra2tuli4qqqquvr666urq+vr+tk5nra2pycnj+fn\/pz8waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaach\/c05fvfndqvbfmi4waweaaaah+qqeawd\/acwaaaaalaasaaadpji63p4wykmrvtjrzbv\/yciozgmeakqubou+cewcqqdaaueekccyuv3vv6lzzmikcslsop\/qqhrkrvqvweucach5baudaaaalakafaaoaaqaaauvodjncmceqgrokbpfkhc3wctkjx2gach5baudaaaalagaewaqaayaaauiiaach2iej0qqegoaxriujwqsxjet9xktmrxljykzserucaah+qqfawaaacwiabmaggagaaafkydwznkdngiqrg\/heuzqwauqviqiu3rtglextmxh1uq\/xizyo55giqxtgqiaifkebqmaaaascaataboabgaabsqgqaeiaz5owpojansdoc5qrdoq1diajqe63er0qsh4lsfpfqiaifkebqmaaaascaauaboabaaabrogii6kseeqvzbvwkii7baf+8a2vtvjmfkaeaah+qqfawaaacwiabmaggagaaafkcagjuroggvaomlfeju6krjovc+ank1t4wrdibdqvwi+h0lbup18gbaaifkebqmaaaascaatabsabgaabtpgmfiwaj7hca6nrlzsal1qpdzp+l4luhoq1qnm+fvmh1\/qrzamxddwjfcl4uwk222pdqeaifkebqmaaaascaatabsabgaabtmgadypajpplpvnk36v+xaiwz7bsmz32con4e+0ww1nwiaragpkaacbtlcrkvxwhakhdqeaifkebqmaaaascaatabsabgaabjpaagawebqniayddgwafzojxsleujmcw0airbsdycnginl2v2hwgddwjbif6re6x2aoqmk4cil6\/0rbach5baudaaaalakaewaaaayaaauticcojecjz1lsuzssr6kucljeil4yjf8mioro1yv+giyxkhyt0ril1yrbakpcach5baudaaaalakaewabaayaaau3iccojhbk2vgohieamuawb2etaunzhqdzmpxirlcudeqyueg0kpc3vmxgqt1ypf1xttopsmdzcaah+qqfawaaacwjabmagwagaaagmccbceguwixf4uewxcafegba8gxjq4odlfm0skvi5rew3ca933bzzhrwr+\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\/iqah+qqfawaaacwjabqadgaeaaaggcbup5mcgi9id4hgqsipbyxteyqkpuxqmqgaifkebqmaawascqauaa4abaaaag9eaqploc6webdgmq26raaaow==); display: block; height: 44px; margin: 0 auto -44px; position: relative; top: -22px; width: 44px;\"><\/div>\n<\/div>\n<div class=\"strchf-gallery-images\" style=\"display: none;\">\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-1_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-1_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-1_17ae6a9731bffb2bfc46db29f4719e48_800.png\" alt=\"Comments about Semrush's poor account management\" \/><\/picture><\/div>\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-2_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-2_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-2_17ae6a9731bffb2bfc46db29f4719e48_800.png\" alt=\"Comments about Semrush's poor account management\" \/><\/picture><\/div>\n<div style=\"max-width: 100%; padding: 0; margin: 0;\"><picture style=\"max-width: 100%; padding: 0; margin: 0;\"><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-3_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-3_17ae6a9731bffb2bfc46db29f4719e48_800.png 1x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" style=\"max-width: 100%; padding: 0; margin: 0 auto 0 auto;\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/poor-account-management-example-by-semrush-3_17ae6a9731bffb2bfc46db29f4719e48_800.png\" alt=\"Comments about Semrush's poor account management\" \/><\/picture><\/div>\n<\/div>\n<div class=\"strchf-gallery-controls\" style=\"display: none;\">\n<div class=\"strchf-gallery-control-prev\" role=\"button\">\u2039<\/div>\n<div class=\"strchf-gallery-control-next\" role=\"button\">\u203a<\/div>\n<\/div>\n<div class=\"strchf-gallery-nav\" style=\"display: none;\">\n<div role=\"button\"><\/div>\n<div role=\"button\"><\/div>\n<div role=\"button\"><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<h3 id=\"eu3hp\">Personalized experiences<\/h3>\n<p>Imagine if Amazon showed you a recommendation for a new gardening tool, even though you\u2019ve never searched for gardening supplies and have no interest in gardening. You&#8217;d likely scroll past it without a second thought.<\/p>\n<p>What if, instead, Amazon highlighted a sleek new pair of headphones based on your recent searches for tech gadgets? Now that\u2019s a recommendation you\u2019d click on.<\/p>\n<p>Just like you, most customers are more receptive to relevant promotions instead of being shown something generic. In fact, customers are now more willing to share their information in exchange for <a href=\"https:\/\/userpilot.com\/blog\/saas-personalized-user-experience\/\" target=\"_blank\" rel=\"noopener noreferrer\">personalized experiences<\/a>. Here&#8217;s an overview of the <a href=\"https:\/\/www.airship.com\/company\/press-releases\/airship-research-reveals-more-consumers-will-share-all-types-of-personal-information-with-brands-this-year\/\" target=\"_blank\" rel=\"nofollow noopener\">data customers are comfortable sharing<\/a>:<\/p>\n<ul>\n<li>Email address &#8211; 86%<\/li>\n<li>Customer interests (relevant to the brand) &#8211; 78%<\/li>\n<li>Customer name &#8211; 77%<\/li>\n<li>Browsing data on the brand&#8217;s website or app &#8211; 66%<\/li>\n<li>Customer demographics &#8211; 62%<\/li>\n<\/ul>\n<p>By collecting and leveraging such <a href=\"https:\/\/userpilot.com\/blog\/analyze-customer-data\/\" target=\"_blank\" rel=\"noopener noreferrer\">customer data<\/a> captured through your loyalty program, you can improve your recommendations and upsell or <a href=\"https:\/\/userpilot.com\/blog\/how-to-improve-cross-selling\/\" target=\"_blank\" rel=\"noopener noreferrer\">cross-sell more relevant products<\/a>, too.<\/p>\n<p>Tools like Userpilot can also help improve personalization. For instance, you can customize <a href=\"https:\/\/userpilot.com\/blog\/in-app-communication\/\" target=\"_blank\" rel=\"noopener noreferrer\">in-app communication<\/a> and guidance with tailored messages, surveys, walkthroughs, and <a href=\"https:\/\/userpilot.com\/blog\/onboarding-checklist-template\/\" target=\"_blank\" rel=\"noopener noreferrer\">onboarding checklists<\/a>.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/userpilot-flow-setting_62b0e0a1d5f2b86fa418078e6f415241_800.png 1x, https:\/\/images.storychief.com\/account_6827\/userpilot-flow-setting_62b0e0a1d5f2b86fa418078e6f415241_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/userpilot-flow-setting_62b0e0a1d5f2b86fa418078e6f415241_800.png 1x, https:\/\/images.storychief.com\/account_6827\/userpilot-flow-setting_62b0e0a1d5f2b86fa418078e6f415241_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/userpilot-flow-setting_62b0e0a1d5f2b86fa418078e6f415241_800.png\" alt=\"Feature announcement audience segmentation in Userpilot\" \/><\/picture><figcaption>With <a href=\"https:\/\/userpilot.com\/userpilot-demo\/\" target=\"_blank\" rel=\"noopener noreferrer\">Userpilot<\/a>, you can even personalize your in-app messaging based on audience specifics such as segments, roles, industry, and other custom conditions.<\/figcaption><\/figure>\n<h3 id=\"2uuba\">Churn survey analytics<\/h3>\n<p>An easy way to <a href=\"https:\/\/userpilot.com\/blog\/drive-retention\/\">drive retention<\/a> and, ultimately, loyalty is to figure out why customers are leaving in the first place and solve the problem. In other words &#8211; it&#8217;s time for <a href=\"https:\/\/userpilot.com\/blog\/churn-analytics\/\" target=\"_blank\" rel=\"noopener noreferrer\">churn analytics<\/a>.<\/p>\n<p>Start by triggering <a href=\"https:\/\/userpilot.com\/blog\/churn-surveys-saas\/\" target=\"_blank\" rel=\"noopener noreferrer\">churn surveys<\/a>, including them in your cancellation flow so they appear whenever customers try canceling their subscriptions. In your survey, make sure to include a list of possible churn reasons along with an <a href=\"https:\/\/userpilot.com\/blog\/how-to-analyze-open-ended-questions\/\" target=\"_blank\" rel=\"noopener noreferrer\">open-ended question<\/a> to uncover issues you might be missing out on.<\/p>\n<figure class=\"image strchf-type-image regular strchf-size-regular strchf-align-center\"><picture><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/churn-survey-userpilot_d9f4a5b6b504a6654dece3ded69d35c8_800.png 1x, https:\/\/images.storychief.com\/account_6827\/churn-survey-userpilot_d9f4a5b6b504a6654dece3ded69d35c8_1600.png 2x\" media=\"(max-width: 768px)\" \/><source srcset=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/churn-survey-userpilot_d9f4a5b6b504a6654dece3ded69d35c8_800.png 1x, https:\/\/images.storychief.com\/account_6827\/churn-survey-userpilot_d9f4a5b6b504a6654dece3ded69d35c8_1600.png 2x\" media=\"(min-width: 769px)\" \/><img decoding=\"async\" src=\"https:\/\/blog-static.userpilot.com\/blog\/wp-content\/uploads\/2026\/03\/churn-survey-userpilot_d9f4a5b6b504a6654dece3ded69d35c8_800.png\" alt=\"Creating churn survey in Userpilot\" \/><\/picture><figcaption>You can build churn surveys with <a href=\"https:\/\/userpilot.com\/userpilot-demo\/\" target=\"_blank\" rel=\"noopener noreferrer\">Userpilot<\/a> to uncover actionable insights into customer dissatisfaction, helping you identify pain points to improve the overall customer experience and loyalty.<\/figcaption><\/figure>\n<h2 id=\"3bh51\">Conclusion<\/h2>\n<p>Throughout this article, you&#8217;ve seen that many factors feed into customer loyalty. But at the root of it all lies trust. So, no matter what customer loyalty strategy you come up with, always prioritize understanding your customers and building genuine connections with them to earn their trust.<\/p>\n<p>How you go about implementing this practically will depend on your industry and business model. It could look like anything from regularly seeking feedback to investing in customer support tools that help refine the customer experience.<\/p>\n<p>Speaking of customer experience &#8211; looking to build personalized in-app experiences to retain and nurture loyal customers? <a href=\"https:\/\/userpilot.com\/userpilot-demo\" target=\"_blank\" rel=\"noopener noreferrer\">Get a Userpilot Demo <\/a>and see how you can turn new customers into satisfied brand advocates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customer loyalty is the emotional connection existing customers have with your brand, which leads them to repeatedly engage with and purchase from you over other competitors. Such loyalty generally results from positive customer experiences, like great customer service or personalized interactions, that build customer trust.<\/p>\n","protected":false},"author":19,"featured_media":249072,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[6195],"tags":[1035,207,5886,5149],"class_list":["post-13368","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-career","tag-customer-loyalty","tag-customer-retention-strategies","tag-drive-loyalty","tag-retention-strategy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Customer Loyalty: Types, Strategies, and Examples<\/title>\n<meta name=\"description\" content=\"Customer loyalty can improve revenue per user and help acquire new users through word-of-mouth. Explore best practices to build loyalty!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/userpilot.com\/blog\/customer-loyalty\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Customer Loyalty: Types, Strategies, and Examples\" \/>\n<meta property=\"og:description\" content=\"Customer loyalty can improve revenue per user and help acquire new users through word-of-mouth. 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