Creating loyal customers committed to your brand should be one of the most important focuses of your long-term marketing strategy. Utilising prize promotions can be a great way to build customer loyalty, increase retention rates and boost awareness for your brand. 

In this blog, our prize experts will cover everything you need to know about customer loyalty and how prize promotions can be a powerful marketing tool to create long-lasting brand loyalty. We’ll cover:

  • What is customer loyalty?
  • What’s the importance of customer loyalty?
  • How to measure customer loyalty?
  • How can prize promotions build customer loyalty?


What is customer loyalty?

Customer loyalty is how committed a customer is to your brand. A loyal customer will always choose your brand, product or service over your competitors, and special offers or discounts don’t easily sway them. 

Loyalty can stem from excellent customer service, high-quality products, or differentiation from the competition. In a study by Rare Consulting, 83% of customers surveyed said their brand loyalty stemmed from trust, showing how important it is for your company to build a meaningful connection with your target audience (which can be accomplished, in part, by tailored prize promotions).


Why is customer loyalty important?

It typically costs more to acquire new customers than to retain existing ones, making focusing on customer loyalty a cost-effective marketing strategy. Loyal customers tend to make repeat purchases and have a higher average order value, which is better for your business’s long-term success. 

These customers are also more likely to speak positively about your brand, recommend your products to friends and family, and defend your company online. In turn, establishing a positive brand reputation can help you acquire new customers. 


How do you measure customer loyalty?

Measuring customer loyalty is crucial to boosting customer retention rates, seeing how effective your marketing efforts are, and tracking your progress. Although many companies agree that customer loyalty is vital for success, it can be tricky to know how to measure it.

Here are five essential metrics that you can use to measure your customer loyalty:

Customer Retention Rate

Customer retention rate (CRR) is the percentage of customers you’ve retained in a specific period. You can measure this using this formula:

  • [(E-N)/S] x 100


  • S is your existing customers at the start of the period
  • E is the total number of customers at the end of that period
  • N is the number of new customers added

Comparing your customer retention rate to the benchmark for your industry can give you a rough idea of how your brand compares to your competitors and similar companies. For example, the average retention rate for eCommerce is 38%. However, this metric doesn’t tell you why your companies are loyal. For a deeper understanding, you’ll need to look at a range of metrics and customers’ answers to your survey questions.  

Net Promoter Score 

Net Promoter Score (NPS) measures the likelihood of customers recommending your product or service to others. This is a valuable metric for predicting future revenue growth and helps give you a sense of your customers’ loyalty. 

NPS asks customers a single question:

  • On a scale of 0 to 10, how likely are you to recommend our product/service/brand to a friend or colleague?

Customer Satisfaction surveys

Customer satisfaction (CSAT) surveys go deeper than NPS and ask customers how satisfied they are with a particular interaction. Although this doesn’t give you a clear indicator of long-term customer loyalty, it does give you an idea of whether you’re meeting your customers’ needs.  

Following up your CSAT or NPS question with a second question asking why the customer gave that particular score can be a simple way to gain deeper insights into your customers and their loyalty. 

Brand engagement

Engagement often gets overlooked when measuring brand loyalty, but this can be a beneficial metric. 

Here are some things you should be looking at:

  • The number and quality of reviews for your products and services. 
  • The number of interactions across social media channels 
  • The number of survey responses
  • The number of support requests 

Repeat and multi-product purchases

Loyal customers tend to make repeat purchases, so this is an essential metric to monitor to gauge your customers’ loyalty. Similarly, the number of multi-product sales can also be a useful metric. Customers who are willing to branch out to other products indicate that they don’t just like a particular product, but rather, they are fans of your brand and overall customer experience.


How can prize promotions build customer loyalty?

Running a prize competition or prize draw is a powerful way to increase customer retention rates and improve customer loyalty. 

An engaging and memorable prize promotion can provide your customers with a fun, rewarding experience that encourages customers to choose your product or service in the future and generate repeat business. It can also help create a buzz around your brand, boosting customer retention rates and attracting new customers. 

However, you’ll need to ensure your prize promotion is expertly designed to engage with your customer base in a meaningful way to ensure a long-lasting effect on brand loyalty.


Bespoke, expert-designed prize promotions

At Another Way, we’re experts at crafting bespoke prize promotions designed to connect with your customers and foster long-lasting brand loyalty.

Our founder, Andrew, has been active in the Promotional Marketing industry for over a decade. From Airbnb to Ocado, he’s worked with some big brands to create prize promotions that have a powerful impact on customer loyalty and retention rates. 

We specialise in creating bespoke, ‘once-in-a-lifetime’ prizes and experiences that truly connect with consumers. Whether you already have an idea in your head or you would like our team to brainstorm for you, we can make it happen. 

Check out our campaign inspiration to see what we can achieve, no matter your budget. 

At Another Way, we also offer complete campaign management to ensure your prize promotion runs smoothly. Our expert team will handle every aspect of your promotional campaign!

We offer:

  • Unique prizes and experiences 
  • Prize promotional mechanics
  • Pan-European and global prize fulfilment 
  • Winner management, selection and entry judging 
  • UK and multi-territory terms and conditions
  • Loyalty reward schemes and consumer incentives 
  • Complete campaign management

If you’re interested in working with us on your next prize promotion, give us a call at 0778 948 5123 or email us at

Or complete our online form, and a member of our team will be in touch with you as soon as possible.