94% of the UK population say they join loyalty programs. It’s an opportunity many businesses are missing out on! To get you started, here are some ideas for customer loyalty programs that might work for your business.
1) The Point System
The most common loyalty program, it’s is easy to implement and simple for customers to understand. Frequent customers earn points, which eventually earns them a reward. Whether it’s a discount or a freebie, customers work towards collecting a certain amount of points to redeem their reward.
This loyalty scheme works best for businesses that encourage frequent, short-term purchases.
2) The Tier System
One way to find a middle ground between attainable and desirable rewards is to implement a tiered system, present small rewards as an initial offering for being a part of the program, and then encourage repeat customers by increasing the value of the rewards as the customer moves up the loyalty ladder. This reduces the time between purchase and gratification, preventing members from forgetting about their points and never redeeming them.
Tiered programs work better for high commitment, higher price-point businesses like airlines, hospitality businesses, or insurance companies.
3) Partner With Another Company
Strategic partnerships for customer loyalty can be an effective way of attracting and retaining customers. Consider your customer’s everyday lives when decided which company would a good fit for a partnership. This understanding demonstrates you value your customers beyond what your company alone can offer them.
4) Competition or Game Loyalty Program
This type of programme is fun and engaging for the customer. However, it's important to make customers feel like you’re not duping them out of rewards. The odds of winning should be no lower than 25%, and the purchase requirements to play should be attainable.
This type of program could work for almost any type of company.
Remember to Measure the Effectiveness of Your Loyalty Program
It's important to continually measure your marketing success. The overall goal of your customer loyalty program is to retain customers and sustain long-term relationships. Implementing a mixture of the following measurement tools will allow you to tailor your loyalty program to achieve the desired results. Read our article 'How to Measure the Effectiveness of Your Loyalty Program'.