Manal Haddad

4 Customer Loyalty Programs That Actually Work

One of the biggest challenges of marketing is turning customers into brand loyalists. It requires you to develop strategies that encourage your customers to keep buying from you. This is where customer loyalty programs come in.

Loyalty programs are a great tool to convert first-time customers into loyal customers. The best customer loyalty programs boost customer retention, increase sales, and help your brand build long-lasting relationships with customers.

Here are some successful customer loyalty programs that are guaranteed to get your customers to keep coming back to you.

#1 – The Points-Based Program

The points-based program is one of the most successful customer loyalty programs. The points-based program is simple – every time your customer makes a purchase, they get a certain amount of points. These points can then be redeemed to make future purchases or upgrades. For instance, for every $1 your customers spend, they get 10 points. Once your customer has collected, let’s say, 100 points, they can redeem them to buy something worth $100 from your store.

A points-based program will keep your customers invested in your business over the long run in the hopes that they collect enough points to redeem it for something special.

#2 – Tiered Loyalty Programs

Tiered loyalty programs are similar to the points-based program system. This is because they allow your customers to earn points for every purchase that they make. However, in a tiered loyalty program, the points collected will allow your customer to join a certain tier. Each tier allows your customer to enjoy more benefits and additional perks. These benefits could include anything like birthday gifts, additional discounts, early access to sales and new products, etc.

#3 – Paid VIP Membership Programs

In this program, your customer will pay you a regular fee to become a part of your VIP member program. In return, they will get access to special services, additional discounts, and socializing opportunities such as parties and galas. To make this a successful loyalty program, you have to ensure that the benefits the program offers remain completely exclusive.

Amazon Prime is one of the most popular examples of a paid VIP membership program. They offer benefits to their VIP members, such as free shipping, cash back on purchases, and access to streaming services.

#4 – Value-Based Program

A value-based program focuses on your customers’ internal values that they hold dear. This program allows you to connect emotionally with your customers and build a long-lasting positive relationship with them.

The first thing you need to do to implement a value-based program is to select a program or charity whose mission is aligned with the values of your customers. Then develop a program that converts your customers spending into currency. For instance, if you run a books business, and you know your audience values reading, you could partner with a local community library. So, whenever a customer spends a particular amount at your store, you donate a specific percentage to the library. This will make your customers feel proud of themselves every time that they purchase from you.

Final Words

Before implementing any of these successful customer loyalty programs, you need to ensure that they are suited to your business. For instance, tiered loyalty programs are very popular in the makeup and beauty industry. You also need to make sure that any loyalty program that you use provides plenty of value to your customers. Moreover, you can even customize your customer loyalty programs to build strong relationships with your customers.

Follow me on Twitter:

Scroll to Top