4 Ways A VIP Loyalty Program Boosts Business

ways vip loyalty program helps business increase customer spending

To generate repeat revenue in business, it’s in your best interest to retain your customers for as long as possible. With the everlasting increase in paid advertising prices, the cost of new customer acquisition is sky-high, and it will be even more so in the future. Therefore, it’s vital to focus on customer engagement and retention. 

The only question is how. What is the best method to keep consumers engaged and paying?

While there are several options you can utilize in this regard, offering a VIP loyalty program is one of the most powerful ones by far. Customers in all industries love to be considered a "Very Important Person" and reap the rewards, real or perceived, of that status.

The Omnipresence Of VIP Loyalty Programs 

From hospitality and all the way to retail and iGaming, nowadays, VIP loyalty programs can be seen in every industry, and it’s for a good reason. It’s an evergreen customer retention strategy that still works like a charm to this very day. 

To name a practical example, hospitality giant Marriott has an Athletic VIP Card Program which offers a 25% discount off the regular room rate. Also, one of the most popular athletic apparel companies, Nike, with its Nike+ VIP Program allows its users to access custom-tailored personalized services, both online and in-store. Last but not least, Caesars, which is an iGaming brand is considered as one of the best Illinois betting apps, and with its Caesars Rewards and iRush rewards, it offers a wide range of perks for its users. 

Below, we’ll go in deeper and cover several aspects of how having a VIP loyalty program will help your business. Here are the 4 top ways VIP loyalty programs boost business big time: 

1. A Perception Of Status 

Typically, achieving a high tier in a VIP loyalty program gives a feeling of achievement and status. Since maintaining that status requires some level of consistency and repeat business from a customer, they will remain motivated to keep chipping away at it as not to lose the position they’ve worked so hard to earn. 

In psychology, this is known as the consistency principle. To make it work in your favor, all you need is to create an environment that plays on their desire to uphold their status or an outward perception of themselves. 

2. It’s A Way To Differentiate Your Offer 

When prospective customers enter the comparison shopping mode, they will look at what makes your business a better choice than your competitors. A lack of a VIP loyalty program will instantly make you a less desirable choice in their eyes, so you simply cannot afford not to have one. 

Of course, the rewards themselves must be at least comparable to what the competition offers, but ideally, they should be more lucrative or at least better presented. 

3. Gamification Equals Engagement 

A human mind loves the concept of playing a game, and our brains are wired to give us a dopamine hit every time we make some kind of progress. Hence, as a business owner, you should strive to make those connections whenever possible in a favorable way to you. For instance, much like in a video game, you could display an animated level-up sequence or a progress bar every time a customer performs an action that lets them “level up.” 

This is very simple to do if your business has any kind of digital presence or an app. To give you an idea, this could be every time they make a purchase, leave a review, mention your brand on social media, etc. Then, simply design the system in a way that lets them unlock certain rewards at every new level. 

4. It Makes Your Customers Feel Valued 

By making your customers feel appreciated and valued, they will be inclined to reciprocate it and return to your business often. After all, that’s what a VIP loyalty program is all about – to make that emotional connection, instill a sense of belonging, and reward their loyalty. But you must come up with ways to make it less transactional. 

At the end of the day, an invite-only event only accessible to your most loyal customers is a far better motivator than, say, a couple of dollars off their next purchase (although you can certainly use both if applicable to your business). 


Given the points above, you’d be shooting yourself in the foot not to offer a VIP loyalty program. Creating and improving loyalty programs for a business really is a no-brainer.

And if you have one in place already, try to think of ways to improve it even more. After all, it helps increase your customer retention, which drives your business forward.

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