Loyalty programs have proven to be one of the most successful tactics for spiking company revenue and increasing customer loyalty. An effective loyalty program encourages customers to return, and deals entice new customers.
Operating a customer loyalty program can be challenging, but it is a foolproof way to engage and please your customers. In fact, 75% of consumers favor companies with rewards programs.
Understanding how you can entice customers through customer loyalty will allow your business to thrive. If you are interested in learning about how to implement a loyalty program, here are the types of loyalty programs, plus 4 innovative customer loyalty program examples in 2022.
Customer Loyalty Programs
Customer loyalty programs are focused on encouraging repeat customers and business. This can be accomplished when a company offers customer rewards, discounts, and other deals that the customer will be drawn to.
In other words, when a customer receives a benefit or something that they enjoy, they are more likely to return. There are a few types of customer loyalty programs that each have their own goals. They are:
- Points programs: Customers earn points with each purchase. They can redeem accumulated points for rewards.
- Tier programs: Purchases and brand engagement let customers level up in tiers, each of which comes with new perks.
- Paid programs: When customers pay a fee to become a member, they are rewarded with exclusive membership benefits.
- Value programs: In place of customer rewards, the brand puts a portion of their sales to charities. Customers feel good about helping support a good cause.
While they vary in function, they all aim to accomplish the same goal: customer loyalty. Here are five examples of the most successful customer loyalty programs that attract customers.
1. Starbucks: Starbucks Rewards
Avid coffee drinkers know how well Starbucks Rewards markets its loyalty program to the public. Starbucks Rewards bring customers in by offering them free drinks, food, and even merchandise when earning points, or in Starbucks’ case, loyalty stars. The more a customer spends, the more points and free items they receive.
2. Designer Shoe Warehouse: DSW VIP
The DSW VIP program is renowned as it allows customers to unlock higher levels of benefits depending on how much they spend. This is a prime example of a tier-based program. The more a customer purchases, the more access they will have to different products and services.
3. Sephora: Beauty Insider
Sephora offers an extensive Beauty Insider Program where customers earn points for each purchase they make. They can also redeem those points for rewards that they choose, such as samples or exclusive beauty products.
4. Uber: Uber Rewards
Uber offers a variety of services that cater to customers. As an Uber Rewards member, you earn points with every dollar you spend on rides and UberEats orders. Once earning points, members can add up to Uber Cash Rewards and other benefits.
These companies and their popular customer loyalty programs exhibit how much customer offers can result in return business. If you are interested in learning more about how to attract returning customers and new clients, check out this infographic from Clevertap.