If you want to learn how to execute a successful customer loyalty and incentive program for your business, then you should visit https://www.lift-and-shift.com/wholesaler-and-distributor-programs

However, like everything else with advantages and disadvantages, customer loyalty programs can be gruesome sometimes. Even though you can compensate yourself with the promise of a rewarding output. There are disadvantages to it.

Here, you will learn about the top pros and cons of launching a customer loyalty program. 


What Are The Advantages Of Customer Incentives?

Increasing Customer Retention

If you want repeat customers, go beyond making the best product in the market. Why? Even if your product is the best, you may not be top of mind for your customers.

However, a loyalty program with worthwhile rewards is sure going to encourage these people to make repeat purchases with you. 

Profit is maximized

Customer loyalty programs as a reward system help you appreciate your customers without shrinking the profit that ought to accrue to the business. Here, you get people to make repeat purchases at full price, hoping to earn a certain reward once they fulfill the requirements.

Also, dormant buyers in your database may be motivated to buy your products, hoping to get the rewards.

Attracting new customers

Human beings are wired to always want more. So, it will easily attract people to do business with you if they see that there is something extra in it for them.

Getting more data from your customers

A customer loyalty program offers another source of acquiring data about your customers. This enables you to understand their buying behavior better and it would help in making decisions concerning sales and marketing in the organization.

Brand advocacy

People who are satisfied with their experience in the customer incentive would likely promote your brand and tell others about their experience. And since we are social animals as human beings, this could lead to an influx of customers.

What Are The Disadvantages Of Customer Incentives?

Risk of unsatisfied customers

If customers think the points required don’t match the value of the reward, or that your product itself is a fad, then the customer loyalty program might not achieve the goals you envisioned for it.

It may be expensive to manage

This is especially true if it’s in the early phase of implementation. It means you have to juggle providing your product to the market, monitoring the participants’ performances in the reward program, brainstorming on how to increase people’s participation.


You can’t be the only one who has thought of increasing customer loyalty via reward programs. Your competitors probably are doing the something, and if the customers perceive theirs to be better than yours. Then they will opt for your competitor’s.

It may be costly

If you want people to partake in your program, then you might have to use expensive rewards to differentiate your customer loyalty program from others. And this may not be good for your finances.