Back to Insights
Retail Growth 3 min Read

Customer Loyalty: Points vs Discounts?

Marketing Team
Sep 28, 2025

Should you give a flat 10% off, or 100 Loyalty Points? We analyzed data from 500 supermarkets to find the answer.

Psychology of Points

Discounts give instant gratification but lower your brand value. Loyalty points build a habit loop, forcing the customer to return to redeem them.

Pro Tip:

Set an expiry date on points (e.g., 90 days). This creates urgency and brings the customer back sooner than they planned.

Implementation

Data shows that customers with loyalty points have a 35% higher Lifetime Value (LTV) than bargain hunters.

Key Takeaways

  • 1 Point = 1 Rupee is the simplest logic.
  • Send SMS when points are about to expire.
  • Offer double points on slow days (e.g., Tuesdays).
#RetailGrowth
Share Article

Solve your Retail Growth Headaches

Try the specific feature in Waves ERP designed to handle this exact problem automatically.

Download Free Trial