Turning customers into brand loyalists is not an easy feat. For one thing, you would like a predictable and repeatable strategy for incentive’s customers to shop from you over again.
And that’s where loyalty programs for customers are available.
With the proper initiative, you’ll turn first-time buyers into repeat customers, and keep your brand top of mind.
In this post, I’ll show you eleven loyalty programs for customers examples from top brands that you simply can model to drive more sales, improve customer retention, and builds stronger relationships with customers.
Let’s dive in.
A loyalty program for customers or rewards program may be a marketing strategy that rewards loyal customers that regularly engage with a brand.
By rewarding recurring engagement, you’ll increase customer loyalty and ensure continuous growth for your business. The thought behind an efficient loyalty program is that the more loyal customers are, the more rewards they’ll get.
There are different types of loyalty programs for customers, and during this post, I’ll share seven you’ll consider for your online store.
The points system focuses on the principle that the more you spend, the more points you get reciprocally.
Every time a customer makes a sale, they get a particular amount of points counting on what proportion they spent.
One example of a loyalty program for customers that follows the points program is by The North Face:
The North Face makes it easy for patrons to know how the rewards program works:
Customers earn 10 points for each $1 they spend online and in retail stores and five points for each $1 they spend in their outlets. Then, customers can put these points towards future purchases.
To increase customer engagement even further, The North Face has also developed an app where users can manage their accounts, buy new products, check their point status, redeem rewards, and more.
By rewarding customers with redeemable points, you increase your customer’s average order value and inspiring them to take a position in your brand meaning they’re less likely to modify to a competitor.
Use software like Smile.io to implement some extent system both online and offline if you’ve got physical stores. Your points system must be easy for patrons to know and calculate (e.g., $1 is one point). That way, customers can see the immediate value and don’t got to calculate the number of points each purchase gives them.
Paid programs involve inviting customers to pay a monthly or annual fee to hitch your VIP member’s club. For this sort of loyalty program to be effective, you would like to plug it into existing customers or frequent buyers. After all, new customers are unlikely to hitch a rewards program unless you’re an enormous, recognizable brand.
Most importantly, though, a paid program must include member-exclusive benefits. Otherwise, it’ll lose its value.
Take Barnes & Noble, for instance:
Their VIP program costs $25 a year, and it offers discounts, free shipping, and other benefits.
But how does one get people to pay $25 to hitch a loyalty program?
By showing the worth of your program compared to the value, as Barnes & Noble do:
When the worth of your loyalty program outweighs the value, people will join. And if they don’t? You’ll give them a final nudge by using testimonials from existing members to trigger social proof:
When offering a paid program, show customers the program’s value outweighs the value. It also helps to use social proof from existing members to stress that value.
Not all loyalty programs include discounts.
You can incorporate your business values into a program to create a stronger relationship together with your customers. In fact, if you structure a loyalty program around mutual values, customers are more likely to become brand loyalists.
The Body Shop has nailed this approach by making animal welfare a part of its program.
Besides earning rewards and getting VIP benefits, members have another unique benefit:
They can prefer to donate their rewards to Born Free USA (a charity for animal welfare).
Similarly, a core value of The Body Shop is environmental responsibility:
The Body Shop’s customers share these values, which makes the donation option even more valuable to customers.
This type of program creates a singular opportunity to attach together with your customers on a deeper level, which strengthens your relationship with them.
When offering exclusive membership benefits, consider making your company’s value one or more of the advantages. If they’re important to you, they’re likely to resonate together with your audience, too.
It’s common now for retailers to make a mobile app to manage loyalty programs, but when Starbucks first launched My Starbucks Rewards through the Starbucks app, it had been a replacement idea. Running the program through their app makes it radically easy for customers—no punched card to forget or lose, no sign-in required.
In order to earn loyalty points (or stars, in their case), customers must order or pay with the Starbucks app. Centralizing customer transactions this manner creates a goldmine of knowledge on customer preferences and behavior.
Go-to drink orders, customer lifetime value, frequently visited locations, seasonal favorites by shepherding customers toward the app, Starbucks can gather information on all of those habits and more empowering them to supply more relevant perks and communication to customers.
If a loyalty app is doable for your store, it is often an excellent thanks to collect and centralize customer data. Otherwise, a capable point-of-sale system can assist you to collect most of the equivalent information.
Cosmetic and skincare retailer Tarte turned to their loyalty program as to how to spice up social media engagement and user-generated content.
In the beauty industry, consumers are increasingly turning to user-generated content (like video makeup tutorials and selfies) to assist them to make buying decisions. Tarte capitalizes on this trend by incentive’s user-generated content and social media engagement. Customers can earn rewards points for activities like posting a selfie with Tarte products, writing online reviews, and video tutorials—transforming them into brand advocates.
Tarte’s program shows us that your loyalty program can incentive almost any behavior you would like from customers. It doesn’t need to be limited to encouraging them to spend more. Meaning customers can maintain their point-earning momentum in between purchases, and you’ll build brand awareness and authority.
The tier system focuses on levels of loyalty. Put differently, the more loyal your customers are to your brand (read: the more they buy from you), the greater the rewards they’ll receive.
Offering tiers during a loyalty program for customers may be a good way to interact with customers and keep your brand top of mind. Further, tiers play on aspects of gamification where members reach higher levels, the more they “play.”
Take this instance from e.l.f.:
Their Beauty Squad loyalty club has three levels:
The more points a member has, the more exclusive the rewards they will get.
If you would like to motivate members to succeed in higher levels of a tier program, include percentages for every tier, indicating what percentage members have reached each level.
This drives members to succeed in a better level to realize social station among members that belong thereto tier and provides them something to aspire to.
Create a program that permits members to ascend supported customer loyalty. Base your tier program on points, how often people buy, or other important engagement metrics. Finally, offer greater exclusivity and benefits the upper members ascend.
Progress may be a great motivator.
The more people believe they’re nearer to achieving a goal, the more committed they’re to their efforts to realize that goal.
This is referred to as the endowed progress effect, and it’s an efficient psychological trigger you’ll use in your loyalty program to encourage repeat engagement.
A great example of this comes from Nike, which promotes a lively lifestyle:
Nike has several different training apps to assist members to reach their training goals.
The Nike Run Club and therefore the Nike Training Club apps reward users with badges and other rewards whenever they reach a replacement milestone like finishing your first 5k.
This is an excellent example of how you’ll use reach to encourage engagement.
Nike also knows that the more success their customers have with their training, the more loyal their customers are going to be.
Because people always link their success to the person or brand that made the difference.
For example, if you would like to find out to talk a replacement language and you employ software like Duolingo to try to so, you’ll attribute any success you’ve got to the platform.
Similarly, Nike helps customers recover training results, and their customers attribute these results back to the brand.
Encourage progress through your loyalty programs and help users meet up with to reaching their goals. It’s important that you simply position your product as a key “ingredient” in reaching these goals. When your product helps your members with their goals or challenges, they’ll buy more from you.
Amazon is well-known for its or her Prime membership program. For a flat annual fee, Prime members get access to unlimited free two-day shipping on many items, also as other perks, Amazon has added like their streaming service and Prime Day sales.
Amazon deals with heavy competition from other retailers like Walmart. You’ll find most of the products on Amazon elsewhere, too. Prime is how they differentiate themselves and convince customers to shop for products through Amazon exclusively. And it works Prime members spend a mean of 4 times quite other Amazon customers.
For retailers in similar industries where products and price points are very similar across competitors, your loyalty program can become a differentiation and competitive advantage.
Think of wholesale clubs like Costco. Give customers a reason to buy exclusively with you by offering value addition to your products and repair. By charging a membership fee, you’ll give yourself some flexibility to supply truly valuable perks. An upfront investment also encourages consumers to validate their purchase by spending more with you.
When talking about customer loyalty programs, we can’t skip Sephora.
Sephora features a comprehensive loyalty program (Beauty Insider) that gives many various benefits:
Besides using both some extent system and a tiered program, Sephora’s loyalty program also gives members exclusive access to a community of like-minded people.
In this community, members can connect with one another, find inspiration, check in for exclusive events, and more.
Sephora has used its loyalty club to create a brand community where users can interact with one another and Sephora.
By creating a platform like this, Sephora has access to tons of consumer insights that they will use for development also as other aspects of conversion optimization.
Speaking of customizing loyalty programs for your unique customers, TOMS has used its customer loyalty program to form a true difference on a worldwide scale. Not every loyalty program has got to fall under one of the four categories. It doesn’t even need to offer a monetary incentive in exchange for customer purchases and loyalty.
TOMS doesn’t give customers a loyalty card or offer rewards for each purchase. Instead, they appeal to their customer’s values and sense of worth. With every purchase, customers earn the non-monetary incentive of making change through various initiatives just like the “> just like the One For One shoe donation and profit-sharing with causes like the Wildlife Conservation Society.
TOMS loyalty program defies expectations with its effectiveness. That’s due to the chance they found where a deep understanding of their customers intersects with a supersaturated market. TOMS channels their customer’s desire to try to more with their dollar into a differentiating factor, setting them apart within the crowded footwear industry.
There’s a replacement sort of loyalty program in town it’s the subscription program.
This is not your traditional loyalty program where rewards and benefits are offered.
Rather, you offer your products on subscription.
Take Bean Box, for example:
To increase customer loyalty, Bean Box offers differing types of coffee beans as subscriptions, and customers don’t need to worry about running out of coffee.
By selling coffee as a subscription, Bean Box increases the lifetime value of their customers. And as of writing, they use a “Save 20%” incentive to urge customers to settle on the 6-month plan over the one-month plan.
After all, inviting customers to commit for 6-months has more value to Bean Box than if customers only shop once.
Create a platform where members can interact with others to share ideas, get inspiration and feedback, and more. this sort of program will work for any brand as long as you encourage conversations that are relevant to your brand and products.
If your product is suitable, offer it on subscription. Consumers are trying to find convenience, and therefore the quicker and easier they will get their hands on what they have, the higher. You’ll incentive prospects to settle on a subscription over a one-time purchase by offering a reduction on your subscriptions.
The key to creating it work is knowing your customers and improving how you provide value to them.
What sort of loyalty program for customers are you using? Have you ever seen other amazing samples of loyalty programs?
Leave a comment below.