Customer Loyalty Programs To Implement For Your Business
Loyalty programs are a great marketing method for every size business to implement because it builds customer satisfaction and retention. By creating a loyalty program, you are incentivizing your already existing customers for shopping with you again. According to Zinrelo, 20% of your customers will make up 80% of your revenue in the future. But loyalty program benefits don’t stop there. 65% of businesses use their loyalty program to attract new customers.
By implementing a loyalty program, you will grow your brand’s recognition and increase your sales. You can help your customer satisfaction and reach your customers easier with new products or promotions. Here are 5 types of loyalty programs you can use today. Here are 5 examples of loyalty programs your business can implement for higher returns and more customer satisfaction:
- Points-Based System
A points-based system is an easy option to implement because there is a wide selection of software that can easily manage it for you. If you have an app, it is even easier. Customers’ purchases translate into points to earn them discounts or promotions. An example of this is Dominos Pizza rewards, where overtime members earn free pizza.
2. Cash-Back System
Cash-back rewards are popular among credit card programs where you earn points that translate into dollars and can redeem when they stack up. For example, Amazon’s credit card will earn you cashback that can be applied easily to Amazon purchases.
3. Punch Card Programs
A punch card is a super-easy way for a brick and mortar store to implement customer rewards with little effort. An example of this is a local ice cream shop giving away free ice cream for every 10 purchased. The downside to this is people can lose their physical punch cards, but there are Punch Card Apps you can use to digitize this offer.
4. Tiered Rewards Program
Tiered rewards are more complicated than your typical points-based system, but can be beneficial because they can segment your customers better. An example of a tiered rewards system is Sephora, where shoppers can stack their points to redeem various beauty products. The first tier is a small promotional sample, but the second and third tiers are usually high-end that customers get excited to try.
5. Subscription Programs
Subscription programs can be difficult to implement because they cost money, but once someone is a subscriber it is very beneficial because the user chose to pay for it. If you can make it appealing, you could have regular customers all the time. An example of this is Costco, where customers pay to be a member to shop there and get Costco deals.
It is to be noted that we did not mention coalition rewards programs, which is where you partner up on a rewards program with other businesses. These can work great because your reach can be greater; however, usually, the coalition program is pushed more itself rather than your business.
If you are interested in starting your own rewards for your business, contact Elemerce for help strategizing your e-commerce business needs today.