In the face of competition, loyalty schemes are a great way to get customers to return and buy again. Whether you’re looking at encouraging repeat business or rewarding customers, the right loyalty scheme can have a considerable impact. This blog post presents five of the best customer loyalty schemes examples to inspire you.
Types of loyalty schemes
Value-based loyalty program
Value-based loyalty programs aim to create deeper brand connections by offering incentives. These programs give customers rewards that add perceived value to their interactions with your brand. For example, rather than giving a discount coupon to a loyal customer, a restaurant could reward the customer with a free drink on their birthday.
Studies show consumers are loyal to brands that offer individualised rewards and recognition. Starbucks does a great job of this by giving loyal members a free drink on their birthdays to show how much they value them.
They also give members exclusive access to special benefits. For example, their app sends push notifications to members about new product announcements and seasonal promos before anyone else.
Additionally, Starbucks allows members to send gift cards to other members and friends through the app to increase engagement, acquisition, and retention.
Paid loyalty program
A paid loyalty program is a program in which customers pay to be members. Such programs are generally offered by businesses that sell products or services. Members enjoy special discounts, free shipping, and other benefits that are not available to non-members. The fee for joining a paid loyalty program is typically charged monthly or annually. In most cases, the fee may be cancelled at any time, either by the customer or the business offering the program.
The Amazon Prime membership program is an excellent example of making customers feel they are getting value while paying more. The membership fee is £79 per year or £7.99 per month. In exchange for paying a small monthly fee, customers get reduced shipping rates on all orders shipped with Prime – and they can even get free two-day shipping on certain items if they choose the right options at the checkout.
The company’s Prime members are some of its most loyal customers and make up a growing share of its sales. This is because the subscription service encourages habitual purchases from Amazon by promising members a way to save money on shipping.
Point-based loyalty program
A customer earns points for every pound they spend at the business and can redeem those points for products or services. Customers are also rewarded with exclusive offers, deals, or events based on how many points they’ve earned.
Marriott seems to have figured out their way around the point-based loyalty program. They are an international hospitality company that operates hotels, resorts, and other lodging facilities worldwide. Their rewards program, known as Marriott Bonvoy Benefits, allows members to earn points for stays at Marriott properties and redeem them for free hotel nights. Customers can also redeem these points for flights on certain airlines, car rentals, gift cards, credit cards, and more.
Points are awarded based on your stay and membership level:
• Silver Elite: Customers are eligible for Silver Elite status if they stay ten nights in a calendar year. At this level, they receive 10% bonus points on hotel stays.
• Gold Elite: For Gold Elite status, customers must stay 25 nights in a calendar year. In exchange, they receive 25% bonus points on hotel stays.
• Platinum Elite: To qualify for Platinum Elite status, customers need 50 nights in a calendar year. At this level, they receive 50% bonus points on hotel stays.
• Titanium Elite: At 100 nights, customers earn the Titanium Elite status. For this, they get a 48-hour guarantee on reservation availability and an annual choice benefit.
• Ambassador Elite: For more than 100 nights, customers get Ambassador Elite status. This gives them access to a dedicated ambassador who can assist with bookings, reservations, or other needs. Ambassador Elites also get Titanium Elite benefits.
Tier-based loyalty program
A tier-based loyalty program offers different levels of membership based on the number of points a customer has accumulated. Each membership level has its own set of benefits, and customers can move up in their status by earning more points. You can create as many tiers as you like, such as bronze, silver, gold, platinum, etc.
DSW has a great tier-based loyalty program. It is a shoe retail outlet that allows customers to purchase shoes and accessories in-store and online. Customers can become members of the company’s rewards program, which has three tiers: DSW VIP Club, DSW VIP Gold, and DSW VIP Elite. These tiers are based on how many points you earn from spending money at DSW.
The more you spend at DSW, the more points you earn, and the higher your tier will be. This means that you’ll get more benefits, including bonus point events, free shipping on online purchases, access to exclusive events and sales, and more.
Game loyalty program
A game loyalty program is a reward system that uses play elements to encourage customers to interact more frequently with your brand. The idea is that by using these elements, you can get people to be more engaged and more loyal to your brand. Simply put, gamification makes loyalty programs more fun. Game loyalty programs are prevalent among brands that target younger generations – Millennials and Gen Zers.
With Nectar’s loyalty program, customers collect points for every purchase at a partner venue. The more points they collect, the more rewards they can redeem from those partners.
Recently, Nectar rolled out a new feature that uses push notifications to invite customers to “Scratch and win.” When the customer opens their notification, it simulates a physical scratch card for them to play. They then get feedback on whether or not they’ve won one of the prizes offered. This simple feature has proven very popular among users, as it gives them another fun way to engage with the brand beyond collecting points for purchases.
We are all familiar with how tangible objects can create positive emotional responses in humans. And by offering this type of experience through an app, companies like Nectar can digitally create those same kinds of responses.
If you need help creating a suitable loyalty program for your business, look no further than Perx. We are a customer loyalty platform that offers brands and retailers the ability to easily create reward-driven loyalty programs and manage their customers’ rewards. Book a demo today.