Examples good customer loyalty programs

With a subscription program, brands offer their products on a subscription basis to turn buyers into regular customers. For example, a coffee brand could increase sales by offering different coffee beans as subscriptions.

The six-month plan would be more beneficial for the brand than when a client buys only once. Cashback programs make customers feel like they are getting something in return for their business. Cashback rewards give buyers money back to spend on other products and services. For example, a bank could offer a reward program that gives money-back prizes when the customers make purchases that fall into a predetermined category, such as when they use their credit or debit card at restaurants, grocery stores or home improvement stores.

This type of program satisfies most of the customers, making them more likely to stick with the bank. Refer-a-friend programs reward customers for referring friends and family members. Here, the existing clients act as brand advocates by referring your brand to their friends and relatives. When a new customer makes a purchase, the old client who referred the new one gets a reward.

A community program offers members access to a community of like-minded people. In this community, members can connect with each other, join special events, find inspiration, etc. Communities are essentially small clubs within the program.

They are built on specific interests, values or topics that are important to your customer. Through a community program, you can connect with your clients through their common interests.

You can create such a community on social media platforms. For example, a beauty brand's loyalty program could give members access to an online community on a social media platform.

There, beauty fans could share looks, ask questions and exchange tips. That being said, a customer loyalty program may involve giving away free products, coupons, discount codes, early access to new products and services, and so on, to the most loyal customers. The Loyalty Report shows that, on average, a typical consumer takes part in 14 customer loyalty programs but only has the capacity to actively engage with no more than 7.

What does this mean? You need to make sure you stand out from the crowd of similar customer loyalty programs out there, so here is our selection of 7 best reward-based programs by famous brands and small businesses from different industries and niches to learn from. With the Starbucks Rewards program, each purchase brings a customer closer to free drinks and food. To earn Starbucks loyalty stars, you need to order or pay using a special app. Using dedicated mobile apps to manage customer loyalty programs is now a common thing for many retailers, but when Starbucks first launched My Starbucks Rewards, they were among the pioneers.

If your business can implement a loyalty app, it could be a great way of collecting and centralizing customer data and transactions. Okay, earning miles and using them for future flights is one of those customer loyalty programs every airline does. But some companies go the extra high mile. Virgin Atlantic, for instance, has introduced its Flying Club a customer loyalty program that allows members to earn tier points.

If your goal is to build an attractive loyalty program, persuasive copywriting techniques should be your best friend. After all, rewards programs come down to the feelings of inclusion and exclusivity.

In its loyalty program, myAbercrombie, the company uses powerful copy , highlighting exclusivity:. The free and VIP categories make the program much simpler.

You get yet another special discount on your membership anniversary:. The opening sentence above the fold starts with a 15 percent discount, incentivizing your membership right off the bat. Following a tiered program approach, you join, earn points, and unlock new levels as you spend more. In addition to welcome discounts and birthday gifts, The Sill offers priority customer support to its VIP loyalty members.

Notice how friend referrals can get you points out of all the above. This is a smart way to combine your referral program with your loyalty club. You not only ensure that your existing customers are loyal to your store but also help them bring in new customers. Last but not least, The Sill gives you two options to redeem your points: 1 get free products or 2 take dollars off your next purchase. However, if you want to get a free product with your points, you need to buy at least one other item, which gives the company plenty of opportunities to upsell and cross-sell.

Especially this one, where they introduce the loyalty program and invite their subscribers to join:. And for every cent a business spends investing in a customer loyalty program, it is likely to reap multiples in return.

By contrast, when a customer walks away from your business, their income stream is lost forever. Customer loyalty is a precious commodity. If a competitor comes up with a better offer, then your customers will take it — even if they have a positive history with your brand. Companies should build credibility through personalized customer interactions that recall what has happened previously between the customer and the organization.

Of course, throwing in a perk or two at the point-of-sale can be what prompts a customer purchase in the first place. Gradually, however, a business would hope to build momentum as a customer is onboarded — with the goal of cementing a lifelong relationship.