Why does customer loyalty pay off more than discounts?

Many small business owners – cafes, bakeries, service shops – think that a discount is the easiest way to attract customers. But are they sure it is?

Discounts disappear quickly, and with them…. the customer. Loyalty, on the other hand, stays – and brings real, long-term profit.

In this article, you will learn:

• why customer loyalty produces better results than discounts,
• how to implement a simple and effective loyalty program without an app,
• how to use the Loymee tool to build loyalty at no cost.

Are the discounts working? Yes. But only for a while.

Price promotions can work on an ad hoc basis – to open or sell out. But they are also a trap.

When you get customers used to discounts, they only buy when something is cheaper. The result? Margins drop, and the customer relationship becomes purely transactional.

Discounts:

• attract price-sensitive (not necessarily loyal) customers,
• reduce the perceived value of the product/service,
• are difficult to scale in a small company,
• generate one-time profit, not long-term revenue.

Loyalty is a strategy, not an opportunity

Unlike discounts, a loyalty program builds a relationship and trust. Customers keep coming back because they feel appreciated – not just because something is cheaper.

Why customer loyalty pays off:

• Lower customer retention cost (cheaper than acquiring a new one),
• Larger shopping cart – loyal customers spend more,
• Stable revenue through repeat visits,
• More recommendations – satisfied customers refer further,
• Ability to build brand without pressure of discounts.
  

Loymee – digital loyalty without apps and plastic

With the help of Loymee.com, you can implement a modern loyalty program in less than 15 minutes – no apps, no cards and no fuss.

How Loymee works:

• customer adds digital loyalty card to Apple Wallet / Google Wallet,
• you scan its QR code and award points,
• everything works on a smartphone, tablet or laptop,
• no need to print anything or train a team.

Loymee = simple loyalty. Real benefits.

The statistics are clear: loyalty is profit!

1. Loyal customers spend more (about 3x)

According to a SmallBizGenius / LoyaltyLion report, customers participating in loyalty programs spend up to 2.5-3-4 times more each year than others.

2. Lower cost of customer retention vs new customer acquisition (up to 5-7x)

Industry studies confirm that the cost of acquiring a new customer can be as much as 5-7 times higher than the cost of retaining an existing one.

3. Retention increases by about 25-30%

Studies show that a loyalty program can increase customer retention by 25-30%, which translates into more stable revenues.

4. 83% of customers are more likely to return to companies that offer rewards

According to Queue-it data, more than 83% of consumers say they return more often to brands that reward them for their loyalty.

Instead of discounts – rewards for loyalty

Instead of giving out discounts:

• give the customer something real after a few visits – e.g., free coffee, dessert, service,
• charge points digitally – no plastic and no unnecessary apps,
• build trust and motivation to return.
  

With Loymee, it’s simple!