Case Study Summary
The Toy Factory uses a small business loyalty program for retail to bring customers back more often, grow spending, and make every customer feel valued!
Company Overview
The Toy Factory is a specialty retail store that sells toys, collectibles, and gifts for families. To build repeat visits, the store launched a small business loyalty program for retail using customer data and advanced automation.
With Preferred Patron Loyalty™, The Toy Factory set up an easy way to track points, reward visits, and spot customer trends. This helped the team stay organized and keep shoppers engaged.
At a Glance
| Insights | This case study shows how a retail loyalty program can increase repeat visits, improve engagement, and grow customer value over time. |
|---|---|
| Client | The Toy Factory |
| Industry | Retail and Specialty Toys |
| Locations | Single store in the United States |
| Employees | Small team operation |
| Business Model | Retail sales with a points-based loyalty program that rewards purchases and repeat visits |
| Loyalty Platform | Preferred Patron Loyalty™ |
| Buyer Segment | Small Business Retail |
| Program Impact | Visits increased by 66% and spending grew by 38% from 2018 through 2025 year to date. Average spend per visit peaked 22% above the 2018 baseline. Mature reward redemption stayed strong, showing customers used and valued the program. |
The Challenge
Before launching a loyalty program, The Toy Factory ran promotions by hand. The store could not easily see who was coming back, what offers worked, or how rewards changed customer behavior.
The business needed a small business loyalty program for retail that could automate rewards, track results, and help increase repeat visits. The goal — make every customer feel important and valued.
The Solution
The Toy Factory chose Preferred Patron Loyalty™, a customer engagement platform made to power retail rewards programs. The platform automates rewarding customers and supports email and SMS outreach. It also gives clear insights to track participation and program performance results.
Core capabilities included:
- Automated loyalty program tracking with real-time customer data
- Flexible reward rules for purchases, visits, referrals, and milestones
- Targeted email and SMS messages with easy performance tracking
- Dashboards that show engagement, retention, and reward activity
Implementation Experience
Setup was fast and fully supported by Preferred Patron Loyalty’s onboarding team. Staff learned the tools quickly, and customers liked the simple digital rewards experience.
The Toy Factory saw measurable engagement gains early, and the program became an easy part of daily retail operations.
Measurable Results
All results below reflect verified performance from 2018 through October 2025.
Visit Growth
Visits increased by 66% from 2018 through 2025 year to date. This shows customers came back more often after joining the retail rewards program.
Spend Growth
Customer spending grew by 38% from 2018 through 2025 year to date. This growth supports the value of loyalty-driven repeat business for retail.
Average Spend per Visit
Average spend per visit reached a high point at 22% above the 2018 baseline and stayed strong through 2025 year to date.
Redemption Rates
Reward redemption stayed high in mature years, showing customers actively used the program and stayed engaged.
Win-Back Automation Results
The Toy Factory used birthday recognition campaigns with automated messaging to bring customer back. In a Birthday win-back campaign:
- About 40% engagement rate (strong engagement)
- 1,401 follow-up visits within 12 months
- $98,917 in follow-up sales within 12 months
- $132,153 in follow-up sales all time
These results show how a small business loyalty program for retail can drive repeat visits, and increase revenue with advanced automation.
Customer Loyalty Growth
The Toy Factory continues to grow its loyalty member base. This helps the store keep more customers engaged year after year.
What This Means for You
This case study shows what happens when a small retailer uses a small business loyalty program with automation, outreach and reporting. You can build stronger customer habits, increase repeat visits, and grow long-term value—without adding extra work for your team.
Looking Ahead
The Toy Factory plans to keep improving its retail rewards program using customer insights. The store continues to fine-tune rewards, run seasonal promotions, proactively communicate with its customer base, to keep customers coming back again and again.
Client Perspective
“The system is easy to use, easy to track, and the support team is outstanding.”
Key Takeaways
- A retail loyalty program helps increase repeat visits and improve retention.
- Customer engagement tools support better messaging through email and SMS.
- Automation helps small retail teams run strong rewards without extra effort.
- Preferred Patron Loyalty™ supports smart, data-driven decisions.
Next Steps
Preferred Patron Loyalty™ helps small retailers grow with affordable customer loyalty tools, starting as low as $29.95/mo, to drive real results. Learn how a small business retail loyalty program can help your small business:
Or visit www.preferredpatron.com to schedule a demo.
About Preferred Patron Loyalty
Preferred Patron Loyalty™ is a customer retention and marketing automation platform. We help small retail businesses increase repeat visits, improve customer retention, and use clear insights and reporting to make better decisions. Learn more at www.preferredpatron.com.