By Claire Cundill, Chief Business Officer, Leighton
Over the past few months, I’ve had many conversations about the importance of loyalty and the best ways to cultivate it.
It’s no secret that keeping an existing customer is easier (and cheaper) than finding a new one. But when it comes to building customer loyalty, good service, fair pricing and a bit of personalisation are just scratching the surface of what’s possible.
Working in digital, I see every day how software can help businesses build stronger relationships with customers. But I also know that for many businesses, it’s not always obvious how to make the most of these tools or even where to start. Here are four areas where I’ve seen software play a real role in keeping customers coming back.
1. Loyalty schemes (that actually get used)
Most businesses know about loyalty cards and points-based rewards, but a lot of schemes don’t work because they’re too clunky. If a customer has to jump through hoops to claim a reward, they’ll lose interest.
A good digital loyalty scheme makes earning and redeeming rewards effortless. The Starbucks app is a great example. Customers earn points and can see their balance in real time through a tiered rewards system where regular customers can unlock extra perks and exclusive offers. This encourages people to keep spending to maintain their status, rather than just redeeming points and moving on.
Airline frequent flyer programmes use a similar approach, offering perks like priority boarding and lounge access to frequent travellers. The more they fly, the more valuable the programme becomes, keeping them loyal to one airline rather than shopping around.
Small businesses can learn from these examples, using mobile apps or even simple email-based systems. The key is making it effortless but meaningful. Customers need a reason to stay engaged beyond just collecting points.
2. Keeping customers engaged (without nagging them)
People don’t mind hearing from businesses they like, but there’s a fine line between useful reminders and spam. The trick is using digital tools to send the right message at the right time, based on real customer behaviour, not guesswork.
Online retailers send abandoned basket reminders to nudge customers towards a purchase. But this only works if it’s done well. A generic “You left something behind” email is easy to ignore. A well-crafted message that highlights low stock or offers a small discount makes it feel helpful.
Streaming services do this brilliantly. Netflix doesn’t just tell you what’s new, it suggests what you’d want to watch based on what you’ve enjoyed before. This is where data makes the difference. Businesses that track customer habits, preferences, and purchase history can send messages that feel personal, relevant, and well-timed.
For any business using digital tools to communicate with customers, don’t just send messages. Make them matter. The more relevant and well-timed your communication, the more likely customers are to engage with it.
3. Turning customers into a community
Loyalty isn’t just about transactions. Some of the strongest customer relationships come from people feeling part of something bigger. The more emotionally invested a customer is in a brand, the less likely they are to switch.
Businesses that build communities around their brand don’t just create customers, they create advocates. Look at Peloton. People don’t just buy a bike. They join a group, compete in challenges, and share their progress. This sense of belonging keeps them engaged beyond initial purchase.
Smaller businesses can do this on a local level, whether that’s a private Facebook group, a customer forum, or exclusive inperson events. If people feel part of something, they’ll stay.
4. Subscription models that keep people coming back
More businesses are shifting towards memberships and subscriptions to build long-term customer relationships.
Take Amazon Prime. People don’t just sign up for next-day delivery, they stay for the extras, like exclusive discounts and free streaming. Retailers and hospitality businesses are experimenting with paid loyalty programmes, like Pret A Manger’s coffee subscription where customers get exclusive perks for a monthly fee.
Subscriptions shouldn’t just be about locking customers in. They should offer ongoing value that keeps people engaged.
The biggest mistake businesses make with loyalty is thinking it’s just about offering money off. While discounts have their place, real loyalty comes from making life easier for customers, giving them a reason to engage, and making them feel valued.
Digital tools make all of this easier, but only when they’re used well. The businesses that get it right use tech to build genuine connections with their customers. And when that happens, loyalty follows naturally.
leighton.com