What about an option that enables companies to collect information and behavioural data about their shopping habits in order for them to create a profile and offer unique marketing and communications. In addition to that customers will receive incentives or discounts. alright, this exactly what is called Loyalty Card Program.
Of course, as a business owner, you are expected to give them the best product or service that they want. It is often hard to retain their loyalty to your brand if you do not reward them for it. To help you retain customers for your fast-growing business, you may consider using the customer loyalty programs.
Types of Loyalty Programs
1- Points Loyalty Programs
With a points-based loyalty program, customers earn points for various behaviours, such as purchases and stores visits, which can then be redeemed for rewards. Today’s points programs are now rewarding non-transactional behaviour as well, including liking a social media page, downloading a mobile app, signing up to an e-mail list, etc.
So, every time a customer makes a purchase in-store or on your website, they get a certain amount of points depending on the size of their purchase. These points are translated into some type of reward. Whether it is a discount or a special customer treatment, customers seem to work toward collecting a certain amount of points to redeem their reward.
2- Tiered Loyalty Program
One way to find the right balance between attainable and desirable rewards is to implement a tiered system, which rewards initial loyalty and encourages more purchases.
In a nutshell, the tier program is based on levels of loyalty. Customers get points whenever they purchase something. The more points they receive, the higher the loyalty level they will reach. And the higher the level, the more rewards they will get.
In a recent study, 50% of respondents loyalty said they increased their spending or changed other purchasing behaviours in order to achieve a higher tier status in a rewards program. With this kind of reward program, it’s extremely important to communicate with your consumers–they need to know the program benefits, their current tier status, and how much more they will have to spend to get to the next level.
3- Cash Back Loyalty Programs
With this program: If you spend X amount of money, you will get Y amount of money back! this program help increases the transaction amounts spent by consumers.
4- Reward programs
This type of program sees a brand partner with other brands to offer their customers discounts with the associated brands. This provides customers with benefits beyond what the brand can offer. This type of program is best suited to brands with no customer-facing store or a brand that doesn’t interact with customers regularly such as insurance companies.
5- Non-Monetary loyalty programs
Customer rewards can also be non-monetary in nature. This type of loyalty program will entitle your customers to something that they particularly want. With this option, you can offer them a reward that suits their lifestyle even if it is not related to your business. You can reward them for their frequent purchases with a discounted rate at a hotel or a spa service of their choice.
Finally, Loyalty programs are typically designed to encourage repeat business by offering their customers better discounts and incentives the more often they buy. But companies are also looking to improve their knowledge about their customers and gain insight into their needs. This knowledge allows them to keep their customers happy which, in turn, increases retention and frequency of purchases.