It’s common knowledge that it’s cheaper to keep the customers that you have, when compared to trying to attract new ones. After all, acquiring a new customer can cost up to 10 times more than selling to a customer you have. With that said, a recent study done by the BIA Advisory shows that current customers spend 67% more than new customers, which highlights the importance of loyalty and retention.
How UK brands are keeping customers loyal
If you want to keep customers loyal, it’s helpful to look at how brands across the UK are doing this successfully. Pret a Manger’s subscription service is a prime example here. For £5 a month, you can get a 50% discount on five drinks per day. Although the company intended to increase the rate to £10 a month in February 2025, they decided to keep it at the current £5 due to the increase in loyalty they saw throughout their customer base.
Another example would be Sephora. They have a three-tiered loyalty program where points can be redeemed for products and experiences. The more you spend, the bigger benefits and rewards you unlock, including personalised recommendations and gifts. This isn’t just a tiered loyalty program either, as it also comes with access to the Beauty Insider Community Platform, which allows people to share tips and advice using products. Not only does this engage people on a deeper level, but it also encourages people to come back to the site time and time again.
It’s not just retail that’s using powerful incentives to encourage return visits, either. In the online world, many companies show that it’s possible to incentivise return visits, without loyalty programs or point systems. Bingo sites frequently offer promotions to returning users, which include buying 20 bingo tickets and getting 10 free. This is a great way to encourage people to come back, but at the same time, there are promotions for new users as well, such as awarding 150 free spins and a £50 bingo bonus when you deposit £10 as a new player. Not only does this encourage returning users, it also encourages new players, showing how promotions can target both ends of the spectrum for even bigger results.
Are loyalty programs the best way to ensure return customers?
Studies done by Invespcro indicate that 69% of consumers are influenced by loyalty programs, and are more likely to buy again from a retailer that offers one. Although loyalty programs can be seen as a source of expense, having a recurring revenue model is a great way to bring in more income. Not only does it encourage new customers to join, but it also offers incentives to existing customers, who are continually rewarded for the purchases they make. Statistics like this speak for themselves, but it does highlight a very powerful opportunity that even small businesses can take advantage of.
Whether you adopt a simple stamp system or a full digital gateway, loyalty programs remain a solid way to capitalise on returning customers, while offering new customers plenty of incentives.
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