From airlines offering deals for frequent flyers to beverage companies offering special discounts for registered users, brands spend millions to develop and accelerate customer loyalty programs. The results are boosted customer retention, continuing loyalty and engagement, and more new signups than ever before.
When customer loyalty programs first began to launch, the press gave them a bad rap, touting them as “cheap promotional campaigns” and predicted them as merely a trend that would be over before it even began.
Yet, more companies than ever are jumping on the bandwagon, and it’s now become a necessity for any brand that means business.
However, it is tricky to get right. Too many businesses perceive loyalty rewards as short-term promotional freebies. While they work for the short term to attract existing and new customers, the real challenge lies in building long-term loyalty. This task is complex and requires careful planning and execution, but the rewards are worth the effort.
Here’s a look at some brands that are doing it right and how:
Starbucks
Starbucks has amassed a cult following that could partly be attributed to its brilliant, tiered loyalty program. A tiered loyalty program rewards customers according to their level of engagement or spending. It works because it’s easy to follow, and the app through which you can keep track of points is excellent. The best part is that the benefits at each level — free extras, exclusive access to limited-time drops, discounts, and special menu reveals — are all worth leveling up for.
American Express
American Express credit cards are sought-after and are already famous for their rewards. Not everybody gets easy access, meaning there’s an air of exclusivity. The company lavishes its members with benefits that are hard to get anywhere else, so the demand for its card climbs ever higher, but the supply remains stable. Depending on the card’s type, you earn points for every redeemable or convertible spend, which refers to the amount of money you can convert into points to Marriott Bonvoy or Delta SkyMiles, travel discounts and gifts from partnering brands.
The North Face
The North Face loyalty program is a masterclass in staying true to its roots and still benefitting the members. With every purchase, you earn a point equating to discounts that can be used on future spending. It doesn’t end here. Whenever you visit a National Park or Monument, you can earn points, and there are extra rewards for members who return old products through their Take Back program. Moreover, you also get invites to the annual member-only XPLR Pass Trail Days, which includes outdoor activities, lunches, guest athletes, and exclusive merchandise.
Connect with your customers
Every customer is different, and the secret lies in providing the best value while maximizing profitability and loyalty. No brand makes money from people who switch around constantly. So, get creative with your rewards! How do you make a connection with your customers? How do you let them know they are appreciated?
