How can I get customers who truly care about my brand and stay loyal over time?
The customer loyalty trend has seen increasing interest from marketers over the years. Brands that provide exceptional service and value to their customers tend to reap the rewards.
Customers want to feel valued and cared for. This means they expect companies to listen and respond to them. And often, these responses come through actions such as good customer service or great communication.
What is customer Loyalty?
Customer loyalty is when customers return to purchase from a business they already know and trust. Loyalty programs help businesses build relationships with current customers, which is essential for long term growth and it helps you in customer acquisition with competitive advantage in market . Loyalty programs should be built around customer needs. These programs also provide additional benefits such as discounts, free shipping, rewards points, etc.
What is Customer Loyalty?
Customer loyalty refers to a loyal relationship between a business and its customers. A business that has a high level of customer loyalty will likely be successful, whereas one that lacks it may find itself struggling. The term “loyal” implies that customers stick around for a long period of time, and are willing to spend money with a company again.
One of the main benefits of promoting customer loyalty is because those loyal customers can help you grow faster than your sales and marketing teams. There are several other ways why customer loyalty is important to your business’ success.
Why is customer loyalty important?
Customer loyalty is extremely important for any business because loyal customers tend to spend more money, refer new clients, and return to purchase additional items from the company they already love. Loyal customers stay with businesses longer, and provide them with higher lifetime values. In short, it helps you to increase your customer lifetime value which is very important for your business growth. It also use to enhance customer engagement and customer relationships which helps you to making loyal customer base.
Increase share-of-wallet
Customer loyalty programs are one way to increase share-of-wallet. These programs reward first-time customers for returning to a specific brand or retailer with discounts, free products and other incentives. For example, if a customer buys $1,000 worth of groceries at Whole Foods Market, he or she could be rewarded with a $20 gift card to Amazon.com, which can then be redeemed toward future purchases.
Better word-of-mouth referrals (Mouth Marketing)
If you want to build a loyal following around your products or services, consider asking your customers to share their experiences with other people. While this sounds simple enough, it can be difficult to get started. It takes time to develop emotional connection and a relationship with your clients, so why would they bother telling someone else about your product?
Increased Trust
Customer loyalty is vital to any business. It builds trust with customers. They see you as a reliable company who cares about them. If they feel valued by your brand or by the service you provide, they are more likely to stick around. And if they don’t have a reason to leave, they’re less likely to go elsewhere.
How to keep customer loyal?
How to create customer loyalty program? It is what we always trying to build an emotional connection between our brand and customers to making them loyal to our products and stores.
Keep valuable customers loyal by giving them quality service, and delivering what they want when they want it. If you’re a business owner, then you already know how important loyalty is for your company. A great way to keep customers loyal is to deliver exceptional service. When I was growing up my parents always told me “you don’t treat someone like a customer, you treat them like family.” Don’t forget that it’s not about making money, it’s also about doing something right and keeping your word.
Customers usually appreciate being treated well, but some companies take it too far. There’s no point in having happy customers if you lose every single sale. Make sure you make the most out of each interaction with your customers. As an entrepreneur, you need to be able to turn away potential customers when necessary. You also need to be able to handle criticism from unhappy customers, as these criticisms can actually work to improve your business.
1. Be as generous as your customers
With the rise of e-commerce, many small businesses have been forced out of traditional brick-and-mortar stores. This has led to more competition among online businesses who are seeking ways to increase their market share. One way to attract new clients is through word-of-mouth recommendations. So, if you want to be successful, then you should make sure that your business is constantly improving itself so that people can see that you care about them. If they feel like you genuinely care about them, they will be more willing to recommend you to their friends.
2. Show your gratitude
If you want to show your gratitude to a customer who has been loyal to your business, then you can give them something special like free coffee or a discount voucher to their next order. It depends on how much your loyalty means to you. But if you are really grateful, you may also gift them with some products they have never tried before.
3. Provide benefits to your customers with every purchase
Every time you make a sale, you have an opportunity to build a relationship with a new customer. If you provide them with something they want or need, they’ll be more likely to come back to you when they need products or services in the future. For example, if you are a bakery, you can offer discounts to people who refer friends to your business. Or, if you are a hair stylist, you could give free haircuts to anyone who refers his or her friends.
4. Scratch the program completely
According to research, people are more likely to stay with a company if they feel valued by their employer. They also find it easier to remain satisfied if they have some degree of control over the way they work. In other words, employees who are given a lot of freedom and responsibility tend to be less happy at work. This can lead to staff turnover.
5. Build a useful community for your customers
A great way to build a community around your business is by providing valuable information and tips to help your customers get more out of your products and services. This can be done through email newsletters, social media posts, or even product reviews. By creating a strong community, you are ensuring that your brand is always at the forefront of your customers minds. They know they can count on you for the latest news, tips, and tricks about their favorite products.
6. Communicate effectively with your customers
If you are not communicating well to your customers, then they won’t be happy. Customer happiness can help increase brand loyalty, thus increasing sales. Customers should feel valued, respected and listened to. They should also know their needs are being met and communicated effectively. This means making sure that all communication channels have clear messages that are easy for them to understand and act upon.
7. Improve upon your customer loyalty program
Loyalty programs are nothing new. Many companies have them, but they have all been designed with one thing in mind – to get people to come back to their stores more often. While this can be very beneficial for businesses, there’s no doubt that it’s much easier said than done.
8. Continuously evolve your business overtime
Businesses must continuously evolve their services or products to retain customers. To ensure growth and success, businesses should constantly improve their offerings based on consumer feedback. This also helps them stay ahead of the competition.
What is a customer loyalty program?
A customer loyalty program is a way for businesses to reward customers who purchase from them. Customers may receive discounts, freebies, or other perks based on how often they shop at a particular business. Loyalty programs typically give rewards to repeat shoppers, which makes sense since frequent visitors are more likely to be satisfied with the service they received.
What is Cusrtomer Loyalty Program?
A Customer Loyalty Program is a form of reward scheme which gives customers discounts, freebies, etc., for buying from a company again. Companies use these programs to create positive experience between the customers and the brand, and encourage repeat business.
How do loyalty program work?
It works like this: When consumers buy something, they get a discount code (or voucher) which they redeem when they return to the store. The store credits the customer’s account with points that accumulate as they make subsequent purchases from the same business. Points can be redeemed for discounts on future purchases, gift cards, merchandise, or cash back. There are two main ways to present these points/discounts: coupons and vouchers. A coupon is an itemized list of discounts. Coupons are usually mailed to customers. Vouchers are pieces of paper printed with codes that can be scanned into a computer system to obtain a discount. Both types of incentives are effective because they provide immediate gratification and convenience. However, both require additional steps, such as clipping coupons or scanning barcodes, so they aren’t ideal if consumers only want to save money.
The following infographic explains why customer loyalty matters, what it looks like, and how it affects your bottom line.
Types of Customer Loyalty programs
Companies today offer various types of loyalty programs, such as cash back, points, and miles. These are some of the top ways to generate customer loyalty.
Point-based loyalty program
This type of incentive allows customers to earn points by making purchases. They can then redeem those points for discounts or other benefits. It is similar to earning savings bonds as a child which are later redeemed for gifts. Point-based loyalty programs differ from traditional loyalty programs in that they don’t require any action on the part of the customer. As long as you spend enough, you will eventually benefit. For example, Amazon offers its Prime members a free 30 day trial of unlimited photo storage and printing. They were able to capture the attention of more than 50 million people during their promotion!
Cash Back loyalty program
As the name implies, this type of loyalty program awards users financial incentives for completing certain tasks or spending at specific retailers. Cashback refers to rebates or discounts that are provided by participating companies after the customer spends money through one of their stores, online and physical. The most well known program is Ebates.com, which provides cash back on every purchase made using their affiliate links.
Tiered loyalty program
A tiered loyalty program has different levels of membership and benefits depending on how many times the person signs up. Customers can become a member either by paying a monthly fee (like Netflix) or by spending a set amount of money within a short period of time. For example, Starbucks has three tiers of membership—basic, gold, and platinum. Basic members get 2 Stars (out of 5 stars), Gold members get 3 Stars, and Platinum members get 4 Stars. There are various types of benefits available to members of each tier. For example, basic members have access to free drinks and food, while higher tier members have faster lines, better seating, and more comfortable furniture. Tiered programs do not usually involve any form of monetary incentives. However they do provide an effective strategy for retaining current customers and attracting new ones.
Paid loyalty program
Many retailers offer paid loyalty programs. These programs often require a payment upfront. The customer then receives some sort of benefit from participating, such as discounts, coupons, early access to events, or rewards that accumulate over time. Many times these programs are bundled together in one package where customers pay a single price for multiple services. These programs are commonly called “loyalty clubs” or “rewards cards”. Popular examples of paid loyalty programs include:
Macy’s Club Rewards – Customers enroll for Macy’s Club Rewards and earn points for their purchases. When customers reach certain thresholds, they can redeem their points for gifts cards, discounts, and other perks.
American Express OPEN – Members join through participating merchants, who share a portion of Amex points with consumers.
Delta SkyMiles – Members earn miles based on airline travel, hotel stays, car rentals, and other transactions made using their credit card. Membership is free but membership fees apply.
Hyatt Place Rewards – Enroll in Hyatt Place Rewards and enjoy exclusive benefits and amenities.
Rewards Programs
Some companies offer rewards programs as an alternative to traditional loyalty programs. With this method, customers receive reward points instead of cash back or other incentives. Companies may choose to reward customers for purchasing a product or service; opening an account; signing up for a newsletter; referring friends and family; etc.. Some of the most popular rewards programs are given below:
Starbucks – Earn 1 point per $1 earned in net sales. After meeting the required number of points, customers will receive a $5 gift card. Customers must sign up for the MyStarbucksIdeas app to participate.
Nike – Earn 1 point for each dollar of merchandise purchased. Redeemable for free shoes and apparel. Must be logged into the Nike+ mobile app to qualify.
CVS Pharmacy – Earn 1 point for every $10 spent. Receive 10% off all products when you register online.
Amazon – Earn 1 point for eligible items ordered via the website. Redeemable for Amazon Gift Cards.
Target – Earning 2 Target REDcard® Points for every $1 spent on purchases at Target. You can use these points towards future shopping trips at Target.
Value-based loyalty program
A value-based loyalty program provides rewards to its members based on criteria chosen by the company, which may vary between businesses. In this type of program, the company creates the value proposition around what it values most highly: service, convenience, quality, selection, value, etc. Value-based loyalty programs are typically based on cost rather than revenue. They are also very difficult to measure because there is no direct measurement of customer satisfaction. As such, these programs are only suitable in low churn industries where product differentiation is relatively easy (e.g., airlines).
Coalition loyalty program
Coalition loyalty programs are generally defined as those where the reward is given to all club members regardless of whether they have participated or purchased anything. This includes the frequent flyer programs operated by many airlines.
Recognized coalition programs include:
Airline Miles program
Star Alliance Frequent Flyer Program
Miles are awarded to customers who travel frequently on airlines sponsored by frequent flyer partners. This includes programs offered by American Airlines, United Airlines, Delta Air Lines, Southwest Airlines, and others. Incentive programs give airline passengers rewards for flying. Rewards include bonus mileage, special upgrades, free checked bags, priority boarding, and access to premium lounges. Some programs also award members with miles based on the dollar amount spent on qualifying flights.
Game-based loyalty program
In a game-based loyalty program, the business awards customers with various prizes in exchange for their participation in some sort of game. The prizes could be in the form of points that accumulate over time, discounts on purchases, tickets to events, etc. There are two types of games commonly used in these programs: skill-based games and chance-based games. Both require players to interact with the system in order to play. Skill-based games are often played through an application that requires participants to complete tasks using their smartphones. For example, users may receive a prize if they correctly answer trivia questions, solve puzzles, or play a guessing game. Chance-based games involve random drawings that determine winners. These usually take place once per day or week. Examples of games with this type of reward structure include sweepstakes, contests, lotteries, instant win games, instant win promotions, and virtual gift card programs.
How to end a loyalty program
Loyalty programs are great ways to retain customers and encourage repeat purchases. However, they’re also expensive to manage and require a lot of resources. So, how do you kill a successful loyalty program without killing off the customer base?
There are four common reasons why companies create or discontinue their loyalty programs. And once you get rid of them, it’s often too late. In other words, you’ve lost the customer before you even knew you had them.
You don’t have to let loyalty programs die a slow death. These are the reason why your loyalty program not working for your business and making unnecessary costs.
Reason 1 – Loyalty Programs Don’t Work
The first reason why a loyalty program will fail is when employees find out about it. If they know about it and become skeptical of the benefits, then they won’t want to participate. It’s especially true at small businesses, where word spreads fast. Employees might complain about not being able to use their hard-earned miles or points toward certain items. Or they might refuse to sign up for the program altogether. As soon as this happens, the loyalty program doesn’t have much value to most people anymore.
The best way to handle employee skepticism is to make sure that everyone knows what’s going on. Explain everything in detail so there aren’t any misconceptions. Make sure that all coworkers understand the rules, perks, and limitations of the program.
Reason 2 – Loyalty Programs Cost Too Much Money
A second problem with loyalty programs is that they cost too much money. A good perk does more than just keep customers happy. It also keeps employees loyal. That means they stay longer, work harder, and come back again and again to the company. But if a perk is too good to be true, it probably is.
A big mistake many businesses make is giving away too much benefit for free. Remember, you need to pay employees for every hour worked. Freebies cost extra money. You can’t afford both.
For example, consider a coffee shop that offers its employees $5 worth of breakfast each morning. This might seem like a fair deal. But the average worker only works 40 hours a week. At $5 per hour, that’s only 20 cents per hour. On top of that, the employer has to cover payroll taxes, health insurance, vacation time, sick days, etc. Even though the restaurant gives away $25 worth of food (breakfast) each year, the total amount of cash spent by the restaurant is closer to $50.
Instead, try offering something special to your high performers. Give them a bonus, raise, or a promotion. When you do this for a few months, you should see a significant increase in productivity. Now your workers are motivated because they feel they’ve earned it. They’re also less likely to quit or leave since they know they’ll receive a reward regardless of whether or not they meet their goals.
Reason 3 – Loyalty Programs Are Hard To Keep Up With
If you don’t update your rewards program frequently, then customers will lose interest. Most of us spend far more time shopping online than we do offline. We hate waiting around in stores for long periods of time hoping to score an item on sale.
When things change, we look elsewhere. So if you haven’t made changes to your loyalty program, then you’re leaving lots of dollars on the table. No one wants to invest in a product/service that’s not constantly improving.
One thing you can do to prevent this from happening is to periodically add new rewards. For example, offer a 10% discount on purchases after 30 days of membership. Then, after 60 days, give another 5%. After 90 days, a final 5%. Over a period of six months, you could end up saving thousands of dollars by rewarding loyal customers.
Another way to encourage customer retention is to send emails regarding updates in your loyalty program. Customers love getting information about specials and promotions. In fact, many people will actually sign up for your loyalty program simply because they received an email asking them to. Another great idea is to include coupons in your emails. This makes sense because it helps reduce clutter in peoples inboxes while increasing profits.
Reason 4 – There Aren’t Enough Rewards
One last reason your program will fail is because there aren’t enough rewards available to all participants. How do you decide which ones? The most popular solution is to pick three, maybe four different categories. Let’s say you choose: Cash Back, Discounts, Points, Special Offers.
You’ll notice that all of these items have the same number at the beginning. Why? Because you want as many options as possible. If you had two choices, you may pick Cashback over discounts, but would never choose points over any other category.
The reality is, however, that when you limit yourself to just four categories, you’re limiting your ability to grow your business significantly. Think of it this way…
Cash back rewards programs with multiple categories allow merchants to increase revenue without spending money. Merchants can lower prices, offer exclusive deals, and even extend free shipping indefinitely. These types of programs are extremely powerful and provide a lot of value.
The problem occurs when merchants try to make the rewards too complicated. For instance, instead of offering 4 or 5 different categories, they start throwing in more and more products into each category. That means fewer people will earn rewards, and therefore less money will go into your pocket.
We’ve seen many examples where merchants spend hundreds of hours creating a complex rewards system only to find that very few members take advantage. You need to be careful here. It doesn’t matter how clever your program is if no one uses it!
Reason 5 – You Don’t Monitor Your Program
If you monitor your program regularly, then you’ll notice problems before they become big issues. For example, if you find that a certain reward isn’t being used much, you can easily change anything about it to see whether it increases sales. As soon as you feel like something needs to be changed, don’t wait until it becomes a major issue. Instead, make the necessary adjustments quickly and learn what works best so you can continually improve results.
Of course, monitoring your rewards program should also involve making sure that everything runs smoothly. Once again, if you keep a close eye on your program, you won’t have to worry about it failing.
Loyalty programs are usually short lived, for your or your customer’s benefit. The programs, marketing, and benefits should change over time. It’s important to not end loyalty programs by making them so annoying that current members stop participating. One way to avoid this is by establishing a time limit for the program at the beginning, and reminding users of the end as it approaches. You can also give something away or offer a one-time bonus to offset the negative feelings associated with losing the benefit.
How to measure customer loyalty program
In order to determine if the Customer Loyalty Program has been successful, we must first understand exactly what is meant by ‘loyalty’ and ‘customer’. What distinguishes a loyal customer from a customer who is not as loyal? Most companies use the term ‘repeat buyer’ or ‘returning customer’, as a basis for their definition of loyalty, but the truth is that neither of these terms mean the same thing. Indeed, some customers who buy frequently, such as high-frequency shoppers, might be considered repeat buyers, but they are still not really loyal customers. In contrast, some customers who buy infrequently but repeatedly return to a particular merchant could be described as loyal customers. However, even though these customers may be returning frequently, they still may not be classified as true repeat buyers, since they are not purchasing in a consistent manner. So, the question arises: Is measuring loyalty based solely on repeat purchases the best way to assess customer loyalty? Well, clearly not. The key factor here is trust. A customer trusts a retailer, and he/she feels confident about giving the retailer access to sensitive information and data. Therefore, there is a significant relationship between Trust and Return Visits; both factors influence each other and create a virtuous circle. If a customer trusts a retailer and feels secure when shopping at its stores, he/she will most likely return to those stores over and over again.
There are three key metrics that help measure how well a customer loyalty program has been successful. These include: retention rate, penetration rate, and conversion rate. Retention Rate – This refers to how many customers return to the program or redeem their rewards after they have left. Penetration Rate – This refers to the number of new members who join the program each month. Conversion Rate – This refers to whether the people who join the program actually spend money with the company.
Here we have listed some specific key factors which helps us to measure success rate of our loyalty programs:
1. Customer retention rate
According to research, customer retention rates are significantly higher among customers who have enrolled in some kind of reward or loyalty programs. These programs can be free or they may require a small fee. Loyalty rewards include special offers, discounts, cash back or points or miles. Many companies offer incentives for referring other people to their business. It is one way to increase sales while at the same time retaining current clients.
2. Negative churn
As a business owner, you know how difficult it can be to keep customers coming back. One way to attract new clients is through customer loyalty programs — but they don’t always work. A negative churn rate means that loyal customers are leaving your service or product because they have found something better elsewhere. For example, if you run a restaurant with a customer loyalty program, you may experience more churn if your restaurant has a higher-quality competitor nearby.
3. Net promoter score
A net promoter score is a measurement of customer satisfaction with a company or brand. It’s calculated based on whether customers are likely to recommend a particular product or service to their peers.
A net promoter score (NPS) is a number between -100 and 100 that represents how likely someone is to recommend a business or product to others. It measures customer satisfaction by asking customers if they would be likely to recommend a company or product to friends, family members, colleagues, etc.
4. Customer effort score
A customer effort score determines how much credit a consumer can earn based on his or her actions within a certain period of time. For example, if a customer spends $100 at a retailer during a month, he or she would get 1 point added to their customer effort score. If they spend another $50, they would get 2 points added to their customer effort level. After reaching 100 points, customers receive rewards such as discounts or free merchandise.
5. Purchase Habits
A purchase habit is a regular behavior that consumers perform every time they make a purchase. It can be something as simple as buying milk at the grocery store or ordering Chinese takeout on a weekly basis. According to a study by Nielsen, 70% of shoppers are loyal to certain brands. However, a majority of these customers only purchase those products once per month or less. As a brand owner, if you want to increase customer retention, focus should be placed on developing purchase habits that last longer than just one transaction.
6. Referral Traffic
A referral program can be a powerful way to incentivize customers to promote your business. However, there are many aspects of this type of marketing strategy that must be taken care of before they can be deployed successfully. One of these things is creating a referral program that actually works. This is where your customer base comes in. If your customers are referring new people to your business, then their referrals have a much higher chance of converting into sales.
7. Social Media Mentions
A social media mention by a brand or influencer can have a huge impact on a customer’s perception of a product or service, but it also has the potential to increase or decrease a customer’s loyalty to a brand. That said, there are several ways brands can leverage their social media accounts to build relationships with customers and encourage them to become loyal advocates.
Best Customer Loyalty Program Examples
1. Sephora Beauty INSIDER
Sephora offers a points-based loyalty system. Customers use their Beauty Insider cards to track the amount of cash they spend. Depending on a customer’s average purchase threshold, they’re categorized into three different types of Beauty Insiders — these tiers identify the top spender among the already loyal group.
Every dollar spent earns Beauty Insider members one point. Shoppers can redeem these points for top-quality beauty products at checkout. Sephora understands its audience because it measures success in terms of dollars and rewards in cosmetics.
2. Virgin Atlantic Flying Club
Virgin Atlantic lets you earn miles and tier points for flying as well as through everyday purchases. You can use these miles to book flights in the future.
There are three levels of membership within the club, and each level offers different benefits. Each tier offers many benefits for the customers, but as customers spend more, they move up to a higher tier, and receive greater benefits.
3. Amazon Prime
With Amazon Prime, you get free, two-days shipping on millions of products for just $99 per year. For example, because Amazon acquired Whole Foods, Amazon offers its Prime members substantial savings on their grocery purchases.
This deal on efficient and reliable shipping on almost any products imaginable offers enough value to regular shoppers that the annual payment is worth it.
4. TOMS Passport Rewards
TOMS has a free, point-reward system that allows its customers to see what they value as an organization and how they give back.
Customers sign up for a free trial, make their purchases to accumulate points, and then use the points to purchase more products or services, obtain discounts, or donate the points to a charitable cause.
Customers are placed into one of three tiers based on how much they spend with the company, which determines their special offers and perks.
5. Hyatt Loyalty
Hyatt’s five-tiered loyalty program encourages customer loyalty by offering rewards for staying at Hyatt properties, but its highest level requires members to stay at Hyatt properties for dozens of nights per year and travel a lot more than the average person would.
Memberships offer members discounted rates at participating hotels, access to exclusive member-only offers, the ability to earn points for nights spent at the hotel and dining, spa treatments, Exhale classes and more. Customers can also choose which rewards they want to use their Hyatt points for (e.g. stay free nights at the hotel, fly business class, etc.).
6. Swarm Perks
Swarm, a location-based social networking app, uses Swarm Perks to encourage users to check-in at different locations and share what’s going on with their friends. With Swarm Perks users can get discounts for checking into different locations, such as a 20 percent discount at Best Buy.
Swarm keeps its loyal users coming back weekly by offering them fun activities like sweepstakes challenges. Customers are entered into a drawing for prizes after checking in at a participating location.
7. REI Co-op
REI’s Co‑op membership program is reminiscent of the outdoors equipment retailer’s origins as a cooperative — an organization that is truly owned and operated by its members and meets their needs.
The program makes customers think they’re doing something good for the environment by buying from REI because of the store’s commitment to this vision of giving back to outdoor conservation.
Co-op customers become lifetime members for $20. They’re then rewarded with 10% of their total amount spent at REI last year, access to deeply discounted garage sales, discounted wilderness and outdoor adventure courses, and members-only specials.
8. United Mileage Plys
United’s Mileage Plus program is designed to streamline the process for earning points on daily purchases, and then applying those points to pay for global flights, hotel stays, car rentals, and more for customers who use the program.
For the most frequent users of United Airlines, they can opt to become a Premier user and earn a MileagePlus card to use on purchases to rack up even more points. They can also get free checked bags, upgraded seating, priority boardings, and access to deals from partner hotels and car rental agencies.
9. Odacite Rewards
Odacité Rewards is a rewards program that encourages customers to come back to the brand for their monthly skincare purchases. Customers earn one point per dollar they spend and are grouped into one tier depending on the amount they’ve spent.
Odacité’s rewards program offers rewards unrelated to shopping. Customers can earn points by sharing their Facebook page, asking friends to follow them on Instagram, sharing birthdays, and creating accounts.
Points can be exchanged by a merchant for a monetary value and then applied to a customer’s order for a discount at checkout. These tasks are easy and beneficial for both customers and the business, so they’re worth doing.
10. Starbucks Rewards
Starbucks Rewards is an app-based loyalty program where customers download the Starbucks app, add any amount of cash they’d like to their Starbucks Card, and then scan it at the register when they’re checking out.
Every purchase earns you two stars for every dollar you spend. Within the app, customers can play games such as double-stars days (earning double the normal amount of star points), free drink coupons on their birthdays, and other ways to gain extra star points.
Members can use the stars they earn to buy discounted items and free drinks and food.
11. PetSmart Treats
Everyone loves spoiling their pets with treats, toys, haircuts, and more! The PetSmart Treats loyalty program makes it easy for pet owners to save money while also doing something good for their pets.
Pet owners earn points for every time they spend (about eight points per dollar). You can use them in-store or online at any time. Members get free shipping, are notified about member-exclusive sales and in-store discount codes, can use their earned points for grooming, PetsHotel pet boarding, puppy training, or donate them to a PetSmart-associated animal charity.
12. Sweet Green Sweet Rewards
SweetGreen has a money-based loyalty rewards program. Members can use their mobile app to buy a salad at any store or through their mobile app and that payment goes towards their rewards. Members get $5 off their next meal for every $35 spent.
They also don’t charge anything for delivery and they get an additional $5 off their first purchase. Sweet Green has an application to make the management of customer profiles and rewards simple for everyone.
13. DSW
Designer Shoe Warehouse offers a VIP loyalty program that rewards customers for their purchases. Customers earn rewards on an incentive program that increases as they spend more. One of the benefits of the DSW loyalty card is that it doesn’t need a physical card. The company’s online system can recognize program participants by their name, phone number or payment information.
VIPs earn one point for every dollar they spend, and Elite members earn two points per dollar. And, each purchase also earns you 5% back in rewards and 10% for Elite members! The program includes free shipping on every order, a 50-point bonus for donating old shoes, a birthday reward, and a gift card for $50.
14. The North Face
The popular outdoor clothing and gear retailer has a customer loyalty program called the XPLR Pass. Customers can earn points by doing more than just spending. For example, they can earn points by referring friends, sharing content, or commenting on social media Participating in events sponsored by The North Face, bringing a reusable bag to stores, checking in at national parks, and taking part in surveys are just a few of the ways to earn points. Members earn 1 point per dollar they spend, and 10 points for every hundred points they earn. However, members are allowed up to 100 points per calendar month.
Another great benefit of using the XPLR Pass for your next trade-in is the Renewed Trade‑In Program. You can exchange your gently used items at our store for a gift card that you can use at any of our stores. You can return any items you purchase from us within 60 days. The program also offers exclusive opportunities to get early access to limited edition items and chances to wear test items before they are available to the public.
15. The Body Shop
As a company with a long-standing tradition of social responsibility, The BodyShop brings that sentiment to its reward program. The Love Your Body Club is points-based, but focuses a lot on building a strong community. Members earn one point for every dollar they spend, and a $10 bonus for every 100 points they earn.
The Love Your Body Club offers private parties and exclusive sneak peeks of new clothing lines. You can redeem points for discounts but also donate to a variety of charities through the app. Members also receive a 10% discount on their next purchase.
Begin (or Enhance) your customer loyalty program [Final Thought]
The best way to start building customer loyalty is by offering discounts, rewards, and special promotions to your customers. Make sure you reward them for staying loyal to you, rather than just buying from you. If you’re looking for something easy to implement, consider implementing a customer loyalty program. It could be a great way to build brand awareness while encouraging repeat business.
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