How do you make sure you do everything possible to boost customer loyalty? You invest in customer acquisition, add quality leads, but this doesn’t provide value in the short-term. In fact, a new customer will never generate the same amount of income as a repeat one.

7 best loyalty programs to increase revenue

It is evident that you need to make an effort to convert your new customers into frequent ones. In this case, customer loyalty programs can give you a helping hand and bring a lot of profit to your business.

What stands behind the definition of customer loyalty? Let’s see how it can help in turning strangers into brand advertisers and loyal customers.

What is a loyalty program?

Customer loyalty programs are associated with an emotional connection with a brand that results in value and immediate benefit for a customer. Factors such as positive customer experience at your store and the satisfaction from your service also contribute to the way people communicate with your brand.

7 best loyalty programs to increase revenue

A great loyalty program can reduce the amount of money you invest in customer retention by providing rewards for clients who deal with your brand on a constant basis. Costco online customer service, for instance, is one of the most popular ways of engaging the audience who buy products online. Costco encourages its clients to make purchases that are more expensive and rewards them with loyalty points. They can be further used to get a reduced price for some specific products.

However, loyalty points are not the only ways to interact with repeat customers. There are different types of loyalty examples that any merchant can use for his or her own advantage. It can be overwhelming to decide which loyalty rewards program to choose in the beginning. We will help you to decide which of them is the most suitable for your business.

The best loyalty programs to choose for your business

1. Tiered Programs

You can grant your clients different levels of loyalty points once they fulfill a certain condition.

Tiered Programs can be based on:

  • Number of orders
  • Amount of money spent
  • Number of loyalty points

Let’s take a look at some examples. Sephora developed a rewards program mastering the tiered approach to their offers. The cosmetics retailer breaks its clients into different groups and challenges them with different tiers. Each tier is exclusive and appeals to the most loyal customers who spend a certain amount of money each month.

7 best loyalty programs to increase revenue

However, it may be a challenge to attract new customers with such an approach to loyalty programs. It is less obvious that newcomers would appreciate that type of a customer rewards program as they have to start from a less privileged tier.

2. Point-based programs

You can create a simple and straightforward loyalty program for your physical and online stores. When a client makes a purchase, he will receive a definite amount of points that can be used as discounts on further purchases.

What are the benefits for you?

You can increase the number of loyal customers who will stick to your brand and choose your shops as the best place to spend their money. This happens because it eliminates the need for clients to search for better deals from your competitors.

A good example of how these idea works is “my GNC rewards”, a transparent program that grants one point for each dollar spent. GNC keeps the program as simple as possible, making the loyalty points immediately accessible for the next purchase.

7 best loyalty programs to increase revenue

3. Entertainment-based programs

You can gamify the shopping experience, generating loyal customers while they take part in the games that you can embed directly on your website. One can source loyalty program ideas from various desktop games, launching a ”Spin and Win” game that requires an email address to participate.

7 best loyalty programs to increase revenue

You can expand the list of email subscribers and offer a coupon or a loyalty card that users can use later on. The only obstacle you may face is a scarcity of custom games that can be used on an eCommerce website. However, there are different developers who are ready to work out a custom game that will be in tune with your website’s design.

4. Gift cards

One of the most pleasant commerce rewards, gift cards can turn your clients into brand advertisers and spread the information about your company among friends and relatives. You can give such cards as a way to encourage clients to stay with your brand. On the other hand, such a loyalty program can help acquire more potential clients for your business.

7 best loyalty programs to increase revenue

5. Paid subscription

You can create exclusive offers for repeat customers who are willing to pay more for your services. Just convince your clients that it is beneficial to pay once a month/year to get instant access to special prices for your products.

What can you offer for a subscription?

  • Discounts
  • Free shipping
  • Access to limited deals
  • Members-only prices, etc.

You can create custom rewards programs to appeal to VIP clients who would feel special about your service. It is also important to personalize every new offer that your clients will receive after a paid subscription.

6. Partnerships

The spread of loyalty card programs and the abundance of choices for clients – all these factors make online retailers constantly seek ways to improve their offer. Some choose to collaborate with affiliate brands to create the best loyalty programs in their niche. A partnership with other brands should bring profit for each side; otherwise, there is no sense in adopting it.

Your customers will be delighted to discover that your company offers additional offers outside your niche. That will maintain interest in your products: your clients will wait with impatience for more deals and stick to your brand. Moreover, you will have an opportunity to extend your business reach and collaborate with numerous brands. This will allow you to draw additional revenue and discover the markets that are more profitable.

7. Non-refundable loyalty programs

One of the best examples of a loyalty program implies some sort of charity work. If you manage to find out what interests your client most, you can turn it to your advantage. For example, you can ask your clients to gain a loyalty card and exchange it for charity donations. Grant your client full control of how he or she wants to spend their loyalty card. They can choose to donate for or other similar services.

7 best loyalty programs to increase revenue

You can opt for a Square loyalty program – a special software that can help work out a suitable solution for your eCommerce store. The team Square uses its custom software to help businesses develop a personalized loyalty program.

How do I find the best solution for my business?

Keep in mind that focusing on long-term customer loyalty is called customer care too. How do you make sure you are good at it? Try several tactics that can help you achieve your goals in this field:

  • Know your ideal customers – make a survey to discover what matters to them. Use every opportunity to engage with clients and get to know their personal preferences

  • Monitor your competition – study the examples of loyalty to find inspiration. They might be using the programs made by Loyalty Lion, a Sephora loyalty program, etc.

  • Supply your website with necessary add-ons – ask your technicians which extensions they can install

Note that you will never know what type of loyalty program will be the most suitable until you give it a try. Don’t be overwhelmed by testing several ideas, and you will find your perfect customer care program!