Nowadays, there are more and more businesses in the marketplace. Therefore, customer loyalty programs are integral and it makes the brand different from the others. If you are running an online store on Shopify platform or a brick-and-mortar shop, the customer loyalty program is necessary.

Customer loyalty program benefits both shoppers and business owners. It brings customers many attractive offers and allows businesses to get more out of their sales.

Customers think that purchasing the products which they’re already interested in, from brands that they like, will lead to them being rewarded for their commitment. Besides, brands understand that they can attract shoppers who will have inflated average customer lifetime values because they offer customer loyalty programs and it will reward the patronage of consumers.

Hence, we can say that everybody wins if the business has a customer loyalty scheme set up for their brand. According to the recent study, 71% of buyers think an important part of their relationship with a brand is the customer loyalty program.

Let’s take a look at this program and see how to get it perfect!

Grow Brand By Giving With Customer Loyalty Programs

What is Customer Loyalty?

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Customer loyalty is the probability of a customer purchases from a store multiple times. Customers will make more than one purchase in the brands which combine an excellent shopping experience with high-quality products. If your business can combine them well, you can build a level of customer loyalty and trust that will lead to higher average customer lifetime values.

Why Do We Need Customer Loyalty Programs?

Customer loyalty programs let both sides receive more than just what they’re paying for. According to recent research, the purchaser is already signed up to an average of 14 loyalty programs, though they typically only engage with around 50% of them.

This means:

  • Every buyer is ready to join a new customer loyalty programs
  • The loyalty programs need to be simple and accessible to get the most out of them.

If you want to improve your customers’ service, use Facebook Chat Box to support them every time and everywhere even keep in touch when customers leave your site.

Best Loyalty Program Types

Here are many examples of loyalty program types of many famous brands. Merchants can see how they work and create a suitable program for your own.

Starbucks: Points for Purchases

One of the best coffee brands around the world, Starbucks, has built a successful loyalty program by rewarding them with points for their purchases. This delight almost customers. Clients receive certain benefits when they’re signed up to the customer loyalty scheme. Then, they can spend said points on other Starbucks goodies.

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Starbucks Rewards is really super accessible. Consumers are free to sign up, and it’s easy to use the app to track the progress through the Starbucks Rewards system. After downloading the app to your phone, enter your personal information, and after each time you make a purchase from one of a Starbuck store, you can start racking up your Starbucks Rewards points. In addition, this brand also uses clever graphics and straightforward copy for customers to get the most out of their customer loyalty program.

Creating an upsell and cross-sell campaign is also a good idea to boost sales.

Miles & More: A Tiered Customer Loyalty Program

Lufthansa is a German airline. It aims at both aviation lovers and business people with their Miles & More brand and it offers them a fantastic customer loyalty program. People receive points (or miles in this case) when they buy everything related to travel like car rentals and travel accessories. However, you need to have staple travel purchases including flights and hotels. These types of purchasing generate a large number of points.

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These points can be spent on similar products or hotel stays, flight upgrades, and a new case to take you on your trip.

This type of customer loyalty program is tiered because if you earn more points within a calendar year, your status is better, and you’ll receive the larger the rewards. Therefore, users get a chance to have complimentary upgrades on flights, lounge access, and more.

You can think about creating a tiered customer loyalty program for your brand and remember it needs to be worth it for them to stick around.

LUSH: The Eco-friendly Loyalty Program

LUSH is a UK cosmetic brand which has an eco-friendly customer loyalty program. Its scheme is really simple, both in concept and application and customers don’t need to sign up. They just need to collect five of the signature black pots which LUSH products come in. They’ll offer you a free face mask each time you return five pots back to LUSH and there, and they’ll recycle the pots for you.

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This program aligns so well with LUSH’s brand mission of fighting animal testing and protecting the environment.

Consider implementing an eco-friendly loyalty program if you’re running a brand with the mission of protecting the eco-environment.

Read more: 3 Ways To Turn Your Unsatisfied Customers Into A Valuable Resource

Nike: A Product-First Customer Loyalty Program

Nike is famous for sportswear. They created a product-first customer loyalty program with their club named NikePlus. The loyalty program of Nike encourages customers to get out there and exercise with the slogan “Just do it.” This program unlocks exclusive items and discounts that you can use for up to a year with the brand. In addition, the rewards aren’t just limited to Nike, people can unlock discounts with Headspace, Apple Music, and Classpass.

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These offers encourage people to get more involved with fitness and Nike believes that this will lead to more sales later on down the line.

Grow Your Business With a Customer Loyalty Program

So, you understand what is customer loyalty program, the importance of this program and many types of it.

Now it’s time to put it into action. Remember that loyalty programs are mutually beneficial for entrepreneurs, buyers, and brands.

Explore more interesting tips for business on https://blog.autoketing.com/.

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