Types of customer loyalty programs
Posted: Sun Dec 22, 2024 6:17 am
To increase customer loyalty and those who are just about to make a purchase, you can consider various ways to increase loyalty:
Discount programs
They are one of the simplest, most traditional and least effective types of loyalty programs. They can be simple, offering fixed discounts, or cumulative, providing discounts depending on the amount of the transaction.
Discount programs
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Typically, these programs help shoppers choose whatsapp number australia where to buy once they have already made their decision. They are most effective for fast-moving consumer goods (FMCG) and in low-price stores. Here, discounts really do matter for many shoppers. Large retailers often use discount programs to collect customer data.
However, a discount alone cannot make customers truly loyal. There will always be someone who will offer a lower price. Therefore, discount schemes, like any other loyalty programs, must be accompanied by communication at various levels.
Bonus programs
More complex than discount schemes, they involve the accumulation of points, usually equivalent to a certain percentage of the purchase amount, which can be used to pay for future transactions. Such schemes are effective in stimulating an increase in the number of transactions. Moreover, bonus programs with a limited validity of points can encourage consumers not to postpone purchases.
In fact, you pay with bonuses for the opportunity to interact with the client. Therefore, it is very important to use information about them correctly, making relevant personalized offers to them and avoiding excessive use of notifications, without abusing trust.
Multi-level loyalty program
This customer loyalty program involves giving newcomers a small bonus or discount. Then a progressive incentive system is used, in which the reward increases proportionally to the volume of consumption. This principle is often used in the work of airlines, hotels, private clinics and other organizations.
When such a scheme is complemented by value propositions, it becomes even more attractive. For example, the Reebok CARD program offers members access to exclusive promotions, special offers and events.
Multi-level loyalty program
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It's also important to get the message right. Reebok describes its program as "your ticket to the Reebok Fitness Community," emphasizing its ability to bring people together who share a common interest and lifestyle, inspiring them to reach new heights.
Cashback
This is a discount in the form of a refund of part of the purchase price to the card. It is a new generation loyalty program. The refund can be made as bonuses to a virtual card, or in the form of cash to a bank card.
The amount of cashback may vary depending on the company's offers. Some banks and companies offer higher rates than others. Accumulated bonuses can be used to pay up to 100% of the cost of a product or service, in accordance with the terms of a specific scheme.
Loyalty programs with cashback are especially popular among banking institutions.
Affiliate programs
They can be organized in various ways, including customer loyalty bonus systems or cashback. The main difference is that several parties are involved. Such schemes are often found in airports or large shopping centers.
An example of such a program is the Heathrow Rewards loyalty program for passengers at Heathrow Airport. Members can earn Heathrow Rewards points by shopping, dining, exchanging currency, using parking services and booking tickets for the Heathrow Express train at Heathrow Airport.
They can be used for purchases in airport shops, discounts on various services and services there, or exchanged for miles of partner airlines. In turn, the latter can also be converted into Heathrow Rewards points.
Value-based loyalty programs
Imagine that you are offered to become a friend, a partner, to participate in decision-making, to train together.
Nike has developed the Nike Training Club app, which is a kind of loyalty program. It offers workouts, nutrition and lifestyle recommendations, and a game element. It tracks your activity, running speed, sleep duration, and motivates you to improve your results. If you feel stressed, the app also offers tips on how to cope with it.
Discount programs
They are one of the simplest, most traditional and least effective types of loyalty programs. They can be simple, offering fixed discounts, or cumulative, providing discounts depending on the amount of the transaction.
Discount programs
Source: shutterstock.com
Typically, these programs help shoppers choose whatsapp number australia where to buy once they have already made their decision. They are most effective for fast-moving consumer goods (FMCG) and in low-price stores. Here, discounts really do matter for many shoppers. Large retailers often use discount programs to collect customer data.
However, a discount alone cannot make customers truly loyal. There will always be someone who will offer a lower price. Therefore, discount schemes, like any other loyalty programs, must be accompanied by communication at various levels.
Bonus programs
More complex than discount schemes, they involve the accumulation of points, usually equivalent to a certain percentage of the purchase amount, which can be used to pay for future transactions. Such schemes are effective in stimulating an increase in the number of transactions. Moreover, bonus programs with a limited validity of points can encourage consumers not to postpone purchases.
In fact, you pay with bonuses for the opportunity to interact with the client. Therefore, it is very important to use information about them correctly, making relevant personalized offers to them and avoiding excessive use of notifications, without abusing trust.
Multi-level loyalty program
This customer loyalty program involves giving newcomers a small bonus or discount. Then a progressive incentive system is used, in which the reward increases proportionally to the volume of consumption. This principle is often used in the work of airlines, hotels, private clinics and other organizations.
When such a scheme is complemented by value propositions, it becomes even more attractive. For example, the Reebok CARD program offers members access to exclusive promotions, special offers and events.
Multi-level loyalty program
Source: shutterstock.com
It's also important to get the message right. Reebok describes its program as "your ticket to the Reebok Fitness Community," emphasizing its ability to bring people together who share a common interest and lifestyle, inspiring them to reach new heights.
Cashback
This is a discount in the form of a refund of part of the purchase price to the card. It is a new generation loyalty program. The refund can be made as bonuses to a virtual card, or in the form of cash to a bank card.
The amount of cashback may vary depending on the company's offers. Some banks and companies offer higher rates than others. Accumulated bonuses can be used to pay up to 100% of the cost of a product or service, in accordance with the terms of a specific scheme.
Loyalty programs with cashback are especially popular among banking institutions.
Affiliate programs
They can be organized in various ways, including customer loyalty bonus systems or cashback. The main difference is that several parties are involved. Such schemes are often found in airports or large shopping centers.
An example of such a program is the Heathrow Rewards loyalty program for passengers at Heathrow Airport. Members can earn Heathrow Rewards points by shopping, dining, exchanging currency, using parking services and booking tickets for the Heathrow Express train at Heathrow Airport.
They can be used for purchases in airport shops, discounts on various services and services there, or exchanged for miles of partner airlines. In turn, the latter can also be converted into Heathrow Rewards points.
Value-based loyalty programs
Imagine that you are offered to become a friend, a partner, to participate in decision-making, to train together.
Nike has developed the Nike Training Club app, which is a kind of loyalty program. It offers workouts, nutrition and lifestyle recommendations, and a game element. It tracks your activity, running speed, sleep duration, and motivates you to improve your results. If you feel stressed, the app also offers tips on how to cope with it.