How to build a loyalty program that keeps customers coming back

Learn how small and medium-sized businesses can launch stand-out loyalty programs that can drive sales, encourage referrals and compete with big-box stores.

It’s clear that we Canadians love our loyalty programs. Whether we’re grabbing a coffee, buying groceries or filling up the car, there’s usually a chance to collect rewards or points along the way.

For small and medium-sized operations, the opportunity is too good to miss. Nearly eight in 10 Canadians say they’re more likely to recommend a business with a strong loyalty program, and 85 per cent are more likely to keep buying from it.

But how can smaller businesses stand out when more and more programs are competing for customer attention? A 2026 report predicts that Canadian business spending on rewards programs and the technology behind them will rise by nearly 11 per cent a year through 2030, from approximately $3.2 billion in 2025 to $5.4 billion.

The good news is you don’t need to match big-box store budgets for your loyalty program to make an impact. A smoother, more personal experience can be far more appealing than another ad or push notification. Here are a few ways to build a loyalty program that keeps your customers coming back for more.

Make sign-up easy

A fussy enrollment process can turn people away before they’ve earned a single point. Lengthy forms, extra verification steps and unclear terms all add friction that can have customers saying, “no thanks.”

Tip: Make sign-up easy by integrating it into the flow of a transaction. For example, let customers join by providing a phone number right at the register, rather than sending them away to download an app or complete a lengthy form. The quicker the process, the easier it is for customers to agree.

Make rewards easy to use

Sign-up is only the beginning. Customers also need a simple way to use what they’ve earned. Even a valuable reward can lose its appeal if claiming it is a hassle. One survey found that a complicated redemption process made a program less appealing to 71 per cent of consumers.

Tip: Allow members to apply a reward before they pay. Whether they’re at the checkout counter, online or using a self-serve kiosk, they should easily be able to find and use what they’ve earned. If they forget to enter their phone number before paying, consider giving them a way to collect the points afterward. That kind of flexibility shows customers the relationship works both ways.

Keep the math simple

More points don’t necessarily make a program more appealing. Budget-conscious Canadians increasingly expect rewards to be easy to understand, with clear value they can use on everyday purchases.

Tip: Choose a straightforward earn rate – for example, 10 points for every dollar spent – and set a clear goal. That might be a free item at 60 points or $5 off at 50 points. Showing members their balance and progress at checkout lets them see what their points are worth and how close they are to their next reward.

Offer points worth earning

With saving money top of mind these days, a discount can help tip the balance when customers are deciding where to shop. But the best reward isn’t necessarily the flashiest – it’s something you know your customers want, based on what they already buy, order or book. Giving them a choice can make the reward feel even more appealing.

Tip: Start by discounting popular items that your regulars already buy. A café might offer money off on a small drink, while another merchant could provide a dollar-value discount customers can put toward whatever they need. Where possible, let members choose from a few eligible options. And don’t forget to mark occasions like a birthday or the anniversary of their first purchase. It’s the small touches that tell customers, “We know what you like.”

Make loyalty easier with Clover

It’s never been easier to show customers how much you value their business. Clover Rewards lets you do it right through your Clover point-of-sale system. Customers can join with a phone number, see their points and available offers and use any banked rewards before paying. On the merchant side, you can choose a dollar discount, set the required number of redemption points, and track signups, visits and redemptions from a dashboard.

How can we help?

If you want to learn more about how Clover can help you accept payments, run your business and sell more, please contact your Clover Business Consultant. You can also follow us on Facebook and Instagram.