Earning more repeat business is a key goal for a loyalty program. After all, the whole idea of being ‘loyal’ is about building a strong, lasting relationship between the customer and the brand.
Loyalty is a two-way street. Brands that want loyal customers need to earn it, not just with low prices, but by offering recognition, rewards, and meaningful engagement. Customers want to ‘trust’ brands that deliver consistently good service, keep their promises, and respect their preferences and privacy. If they don’t feel valued, they’ll shop elsewhere.
Achieving long-term customer retention is a key indicator of the health of a loyalty program, as repeat customers have a higher Customer Lifetime Value (CLV), deliver predictable revenue streams, and generate more purchase data that can be leveraged to deliver more personalised offers and recommendations. These factors demonstrate the customer’s decision to buy again. Repeat business can be measured in terms of recency, frequency, and monetary value (RFM).
- Recency is time-based—how recently a customer purchased can signal loyal behaviour. For many brands, customers who purchased recently are ideal targets for a second purchase incentive.
- Frequency measures purchases made in a period of time. High-frequency customers are usually already loyal so the challenge is to find new ways to increase this purchase frequency.
- Monetary value is an indicator of how much money a customer spends over a period of time – that can be weekly or years depending on the sector. Customers who spend the most are prime targets for more exclusive offers or experiences that help strengthen their loyalty to the brand.
A recent example of this strategy is when Marigold partnered with Great Wolf Resorts to design their loyalty program, with the goal of increasing repeat customer sales. As North America’s leading indoor resort operator, this family-focused destination offers water parks, entertainment, dining, and accommodation all in one place.
Their Voyagers Club concept is based around one guiding principle: make it inclusive. Earn on every transaction, from park to dining to room nights. No tiers or paid membership. In the first year of operation the club welcomed 1.7m members and saw a double digit percentage growth in repeat business rate. “The implementation and growth of this program has helped our team make significant strides in customer acquisition and has served as a major contributor to increasing repeat rates.” said Dave Van Saun, Vice President of CRM and Ancillary, Great Wolf Resorts.
Voyagers Club was recognised with an Honorable Mention in Customer Loyalty Strategy at the 2024 Loyalty360 Awards (read press release) and Dave Van Saun gave an interview with Loyalty360 to explain how the program has been a success (watch here).
To drive repeat business in a loyalty program, you need to go beyond just offering points. The goal is to engineer habits and create emotional connection with your brand. As Dave says in the interview, “What we found is that people who join Voyagers not only do they stay more with us but they tend to spend more and have more visits.” To receive the Great Wolf Resorts case study, or learn more about Marigold Loyalty, send an email to brendan.murphy@meetmarigold.com.
