What is better for local businesses, loyalty rewards or coupons?

When deciding between loyalty rewards and coupons for your local business, there are a few things to consider. Most importantly, you’re sure you understand what each option can and cannot do for your business.

Here’s a breakdown of the differences between loyalty rewards and coupons:

Loyalty Rewards:

Customer Engagement

Loyalty rewards programs are designed to encourage repeat business. You can build a loyal customer base by offering incentives for customers to return and make multiple purchases.

Long-Term Relationships

Loyalty programs help establish a long-term connection with customers. They encourage customers to choose your business over competitors consistently.

Brand Loyalty

Over time, loyal customers become emotionally attached to your brand. They are more likely to recommend your business to friends and family, further increasing your customer base.

Data Collection

Loyalty programs can provide valuable data about customer preferences, buying habits, and demographics, helping you tailor your marketing efforts more effectively.


You’ve probably heard that coupons can be a great way to attract new customers and boost sales. But did you know that they can also help your business build customer loyalty?

Coupons can be especially effective when you want to boost customer traffic or move excess inventory quickly. In addition, they can attract new customers who may have yet to try your business.

When used effectively, coupons can promote specific products or services that you want to highlight. They’re also great for one-time or limited-time promotions, such as holiday sales or clearance events.

In many cases, combining both loyalty rewards and coupons can be beneficial. For instance, you could offer coupons to attract new customers and encourage them to try your business, and then use a loyalty program to keep them coming back.

Ultimately, your decision should be based on a thorough understanding of your target audience, your business goals, and the competitive landscape in your local market. Consider experimenting with both loyalty rewards and coupons to determine what resonates best with your customers and yields the desired results for your business! Regularly analyzing the effectiveness of each approach and adjusting your strategy accordingly will help.