Customer Loyalty Programs are marketing vehicles used by all forms of companies to motivate returning customers. Due to the proliferation of Customer Loyalty Programs used by the major U.S. retail and restaurant chains, some consumers have come to expect these types of loyalty deals.
Find the concept of a Customer Loyalty Rewards Program, along with examples of existing active loyalty programs running in retail and restaurant chains here. Also, you’ll get more details about the benefits of building Customer Loyalty Programs to the retail supermarket or restaurant chains that use them
What is a Loyalty Program?
A loyalty program is a part of the overall customer satisfaction plan that rewards the customers for doing business with the company. The incentive can be in multiple forms including store credit, presents, discount coupons, prizes, or some other deal that will entice a customer to remain loyal to your brand.
Why Is Custome Loyalty Important?
Customer loyalty increases profits improve sales success and allows for sustainable growth. A well-designed and well-executed loyalty program can help you retain existing customers, attract new customers, reduce turnover and drive profits.
How does it support your business?
- Improved brand image amongst customers
- Increased customer loyalty
- Helps to transform consumers into brand ambassadors for your business
- Increased sales conversions
- A customer loyalty program helps to create social evidence
- Helps to get more customer referrals
- Loyalty services are not too costly
Customer Loyalty Programs Ideas
Some of the loyalty programs available include the following;
#1. An exclusive club for long-term supporters
Build an exclusive VIP club for your loyal members and give them something special. You can set a threshold for customers to meet in order to be a part of your VIP program. The fixed limit may be the total amount of money spent in a given period of time, the number of orders placed, or the number of customer referrals. They will be given exclusive programs, promotions, discounts, and also gifts as part of the VIP program.
#2. Make the incentive point system much easier to understand.
This is also one of the most popular loyalty program instances, in which consumers receive points for any purchase as a reward. Those points will later be exchanged for a special discount or special services. However, many businesses make this basic procedure so complicated that consumers become perplexed. Look at this example of a customer loyalty program, ‘earn 20 loyalty points equivalent to one dollar and earn 30 dollars to receive a 20% discount on your next purchase.’
It is not a reward, but rather a headache for consumers to comprehend. As a result, simplify the incentive point scheme as much as possible.
#3. Support a noble cause with reward points
Allow your customers to donate their earned reward points to a charitable organization. You can donate to charity with your collected Air miles by contacting the American Red Cross. You can also do this on your website.
For example, if you own a pet food company, you can encourage customers to donate their won points in the form of money to any animal rescue program. It’s a novel way to distinguish your reward program from the competition.
#4. Using your reward schemes, build WOW moments.
Create awe-inspiring moments for your customers. This is one of the most successful customer loyalty programs available. Emailing reward points or sending a cake on a customer’s birthday or anniversary is a wonderful way to express your love and appreciation for them. Who doesn’t like surprises, particularly on their special day? Believe me, the customer will adore it.
#5. Referral incentives
Getting new customers is much more difficult than keeping current ones, but it is not impossible. Allow your current customers to advertise your brand to their friends and family, and upon completion, reward all of them with appealing offers or discounts that they can use on their next purchase.
#6. Provide freebies after an order.
People enjoy receiving presents, and it will also entice them to return to your store. Enable your consumers to try new products as you grow your company by adding more and more of them. Offer them free samples of your upcoming items, allowing them to test them ahead of time, and you can also increase brand recognition by word of mouth.
#7. Collaboration with other businesses to have competitive deals
Strategic collaboration with other businesses is effective in customer retention. Also, to choose companies that are a good match for the relationship, you must first consider the customer’s preferences and purchasing habits.
Assume you sell cosmetics online. As a result, it would be ideal if you could collaborate with a spa or beauty salon to have more co-branded deals and offers. Customers will know like you care for them and are willing to go the extra mile and provide them with the best.
What Is the Concept of Retail Loyalty Programs?
Retail customer loyalty programs are forms of incentive programs designed specifically to address the industry-specific challenges that most retailers face. Since consumers have access to a vast catalog of goods from different brands, this market has an inherently high purchasing frequency.
Priorities of brands and retailers:
Retailers are seeing increased buying volume as well as increased competition. This is due to the fact that retail consumers typically have a higher basket value, which makes rivalry among retail companies, particularly fierce.
Brands strive to engage consumers and spread positive word of mouth. Brands distinguish themselves by default, so they must get their name out there. As a result, they appear to concentrate their efforts on increasing advocacy.
How brands and retailers view customer loyalty:
- Retailer loyalty schemes are often transactional in nature. Their incentives usually concentrate on making the purchasing process simpler by providing free delivery or extended return periods.
- Long-term commitment is fostered by brand loyalty programs. Customers are encouraged to consume content and interact with brands on social media to create buzz and positive word of mouth.
Who has the Best Customer Loyalty Rewards Program?
Starbucks, Amazon Prime, and Sephora have the strongest consumer loyalty services because they leverage their global scope, high brand loyalty, and repeat customers. More than just purchases and discounts, their loyalty services, such as ambiance mobile payments and priority experiences, play an important role in providing outstanding consumer experiences – and they also produce record revenue!
#1. Starbucks Loyalty Program
Starbucks Rewards is one of the world’s most successful loyalty programs! When you spend money at Starbucks, you earn “Star points,” which you can then redeem for rewards. In addition, you can pay by mobile via the app and receive updates about special deals and seasonal beverages.
Starbucks Rewards is so popular that it was listed eight times during the company’s Q4 2018 earnings call. Not surprising given that Starbucks Rewards members loaded over a billion dollars of cash into their cards in 2016, and the program had grown to 15.3 million members by November 2018.
#2. Amazon Prime membership program
Amazon’s Prime loyalty program has received a lot of scrutiny, but it’s difficult to argue that it provides incentives for loyalty to Amazon customers while still motivating members to return to Amazon to reap the benefits.
And what advantages! Users benefit from quicker shipping, exclusive access to movies and TV shows, Kindle books, and an overall better Amazon experience. It’s no surprise that there were 100 million Prime subscribers worldwide in April 2018, with the amount predicted to rise after Amazon Prime Day and also Black Friday/Cyber Monday.
#3. Sephora’s loyalty program: Beauty Insider / Beauty Pass
The Sephora Beauty Insider Program is divided into three levels: White, Black, and also Gold. Among the advantages are…
- Private sales and special events
- Discounts on your favorite labels
- On your birthday, you will be surprised
- Every 200 points, you will receive a brand gift of your choosing.
With such enticing perks, it’s no surprise that some Sephora Super-Shoppers will quickly rack up 50,000 Beauty Insider Points – the equivalent of spending $50,000!
The Best Restaurant Customers Loyalty Program
Customers are drawn in by good food and ambiance, but a strong loyalty/rewards program keeps them coming back. As a result, examples of the three best restaurant customer loyalty programs are as follows:
- Loyalty Program at Chick-fil-A
- The Dunkin’ Donuts Loyalty Program, DD Perks Rewards
- Panera Bread’s Loyalty Program, MyPanera
The Best travel rewards/loyalty program
Memberships, discounts, and loyalty schemes were first popularized in the travel industry. Most hotels and airlines also have points and memberships.
This section also contains sections with descriptions of examples of hotel and airline customer loyalty programs.
The Best hotel Customer loyalty services
The best hotel reward services go above and beyond providing free nights, space upgrades, and also unlimited ‘continental’ breakfasts. Examples of hotels with these customer loyalty programs are as follows:
- World of Hyatt
- Preferred Guest Loyalty Program at Starwood
The Best Airline Loyalty Program
These airlines have more than just seat upgrades, priority booking, and frequent flyer miles. This is how the best airline loyalty schemes attract travelers to come back for more. Among the best airline loyalty programs are;
- SkyMiles, Delta Airline’s Loyalty ProgramAlaska Airlines’ frequent flyer network
- Loyalty policy for Virgin Atlantic
The Best Product Loyalty Program
Generally, Loyalty services and memberships reward you for buying the brand’s products. This section is divided into two parts: eCommerce loyalty programs (which feature online sales or a strong online component) and Retailer Customer Loyalty Programs (which concentrate on brick-and-mortar retailer examples).
The Best eCommerce loyalty program
E-commerce businesses reward their loyal customers with membership discounts, unique events, and also special tiers.
- Frank Body’s Hotel Pink Rewards & Loyalty Program
- Adidas Reward Program 3Stripes.co
- Barnes & Noble
The Best Retail Customer Loyalty Program
Retail customer loyalty programs that are mostly focused on returning customers for the offline experience, with no online tie-in include;
- Best Buy Loyalty Program
- Benefits Cosmetics – Beauty Loyalty Program
- Samsung loyalty program
Who Has The Best Customer Loyalty Program?
The 20 Best Customer Loyalty Programs in Retail
- Starbucks. It pays to be a member — a free drink on your birthday, free in-store refills on coffee and tea. …
- Reebok. …
- Moosejaw. …
- Dick’s Sporting Goods. …
- Disney. …
- DSW. …
- Lancôme. …
- Baskin-Robbins.
What Are The Types Of Customer Loyalty?
Four types of loyal customers you need to know
- Active Loyals (43% of the adult population) Stay loyal to brands for both routine and special purchases.
- Habitual Loyals (23%) Stay loyal for routine buys but shop around for special purchases. …
- Situational Loyals (9%)
- Active Disloyals (27%)
Why Do Customers Join Loyalty Programs?
While it’s true that customers want you to care about them, the biggest reason customers join loyalty programs is still that they want to benefit financially, which means your program should offer them opportunities to do so. A points program is a simple but effective way to do this
Final thoughts
The primary aim of these services is to increase revenue and also to build loyalty. You could use these suggestions year after year, revising them as needed.
However, when designing your loyalty program, don’t forget to keep your overall organizational objectives in mind. Also, if you want to maximize the effect of the deals, make use of social media and your website’s homepage to highlight them.
What kind of loyalty program do you want for your company? Do you have any other suggestions for good loyalty programs? If so, please share your thoughts in the comments section.
