Types of the loyalty programs
We believe that you joined at least one loyalty program in your life. But did you know that there are different types of loyalty programs? We have found the five most common ones.
Customers can earn points that can be redeemed for incentives or free products or services through loyalty point schemes.
This is one of the most common loyalty programs, and it frequently employs a punch card mechanism.
Starbucks, for example, has gone above and beyond to make its program more engaging and distinct from the competition by digitizing it and adding more unique prizes.
Tiered programs are similar to point programs in that they allow users to accumulate points by making purchases.
But, unlike with cosmetics brand Glow Recipe, the customer’s reputation as an ambassador for your brand will grow as they acquire more points.
Customers are entitled to various benefits depending on their tier, including free gifts, discounts, early access to new products, and unique voting privileges on products.
Tiers in incentive programs ensure that the customers receive actual value, whether they purchase once a year, once a month, or once a day.
If you know your consumers have strong opinions and ideas about corporate social responsibility, a value-based program may be the best option for both you and them.
Customers can receive non-monetary rewards such as charitable donations through these programs, allowing you to engage with them on a deeper level and develop a strong ethical relationship with them.
TOMS, a popular footwear manufacturer, has mastered this with its ‘Improving Lives’ campaign, which pledges to provide a pair of shoes to underdeveloped regions for every product purchased.
Omnichannel loyalty programs
If loyalty programs are to be successful in today’s complicated retail world, where consumers have access to any number of touchpoints with your brand – from two to ten – they can no longer be single-channel efforts.
Customers will be much more inclined to join your program and return to buy more from you if they can accrue points, awards, and bonuses whether they buy from you online or in-store. Providing members with new ways to accumulate and use loyalty rewards points will help your loyalty program stand out from the rest while also driving growth and retention.
Paid loyalty programs require users to pay a monthly or annual fee for access to special services, discounts, or unique opportunities.
These programs make your customers feel special, but in order for them to be effective, the benefits must be worth the cost of membership.
How do we implement a loyalty program at Smart Octopus Solutions?
CLIP is a strategy that includes a comprehensive set of solutions, services, research, consulting, mentoring, workshops, knowledge, techniques, and tools for a highly professional understanding of your customers’ needs. The purpose of CLIP is to improve your relationship with customers at all stages of interaction and to achieve all the goals associated with the loyalty program. The complete CLIP solution helps guide the development of your products and services and is a process that we provide together with different partners from different fields.