A loyalty program is a marketing program in which a business tries to encourage repeat business by offering discounts, rewards, and special incentives. It is a way in which businesses appreciate their customers for their repeat business.
The success of a loyalty program is seen in high product sales and an increase in customer lifetime value (LTV). It also goes a long way in improving customer relationships and building new relationships as your loyal customers spread your name — a process known as word-of-mouth advertising.
Loyalty programs also improve brand reputation and give you valuable data about customers and their behaviors. It is one way to increase sales even during slow seasons. The importance of loyalty programs is plenty, but how do you go about implementing one?
In this article, we’ve shared five examples of innovative loyalty programs; continue reading to know more.
Loyalty Program Examples to Attract and Retain Customers
Lego, the popular toy brand loved by adults and kids alike, refurbished its loyalty program. Instead of giving away passive discounts, it relaunched a new program that rewarded its customers and created engagement.
Its rewards are highly segmented and personalized. Not everyone got every reward. Plus, the rewards were unique. Their experience was even more special by seamlessly merged offline and online purchases with a mobile wallet. Plus, customers got bonus point multipliers that doubled or tripled their bonus points on certain purchases.
With the LEGO VIP program, customers have multiple ways to earn and redeem rewards that make them feel like a VIP! The program was recognized by industry experts.
Amazon is renowned for its Prime membership program. Through this program, members are granted access to exclusive perks such as unlimited two-day shipping on millions of products and streaming services and the much-anticipated Prime Day sales.
With stiff competition from retailers such as Walmart, Amazon uses the loyalty program to stand out and encourage customers to shop with them exclusively. In fact, studies show that Prime members tend to spend four times more than other customers.
For retailers in a similar industry where products and prices are comparable across competitors, a loyalty program can be used as a powerful tool to create an edge over other businesses. Think of wholesale clubs like Costco; giving customers an incentive to shop with you by providing value in addition to your products and services is key.
An annual membership fee allows you to offer remarkable benefits that will encourage customers to make the most out of their purchases with you.
Disney Movie Insiders is dedicated to making the customer experience more magical with data-driven insights. From the beloved Marvel, Star Wars, and Pixar brands to the revamped loyalty program, fans can enjoy exciting rewards for their purchases and exclusive opportunities like Disney releases and unique merchandise. As many Disney fans have moved their movie nights to home this year, Movie Insiders has made it easier for them to earn points for engagement and get rewarded for every movie purchase.
Disney customers stay updated on upcoming releases by joining Disney’s Movie Insiders and earning rewards for their purchases. The program helps Disney understand what movies the customers like, how they like to watch, and more. All the while, Disney gets insight into how it can improve the program for its customers.
Disney Movie Insiders has expanded its network, making it easier for customers to earn points and receive rewards. With more and more people watching movies from home, Disney made sure its customers were still getting their rewards when they bought a movie! Its customers look forward to exclusive rewards like first access to upcoming Disney releases, unique merchandise, and special experiences.
They were ahead of the curve when they launched My Starbucks Rewards via its app. It’s so much simpler for customers — no need to carry a punch card or remember a sign-in. Making their loyalty program accessible through the app makes it incredibly user-friendly.
Customers need to order or pay with the Starbucks app to gain loyalty points. Doing this helps the company better understand customer preferences and behavior.
By encouraging customers to download the app, Starbucks can gain valuable insights into their preferences: from their go-to drinks to their favorite locations and seasonal favorites. They then use this information to ensure the rewards and communications are relevant to customers.
If a loyalty app is something your eStore can make work, it could be a fantastic way to organize and keep track of customer data. If not, a reliable point-of-sale system (POS system) should be able to provide you with most of the same information.
The Body Shop
The Body Shop is an ethical beauty products company, and it has done an amazing job of connecting its programs to its larger purpose — to fight for a more beautiful and fairer world. So, it ensures that via its loyalty program, the customers can donate their rewards from purchases to several partner charities associated with the brand.
With its focus on charity, the company has successfully positioned itself as a socially conscious brand. It also allows customers to support a cause they’re passionate about through their purchases and connection to the brand. This encourages customers to stay involved and make purchases, which in turn increases loyalty to the brand as people continuously see it reflect their values.
When planning your loyalty program, why not include ways to make a positive impact on the world? We’ve seen that this can be really beneficial, but for it to be successful, it’s important that your program feels genuine and not just focused on making money.
How POS Billing Software Can Help in Loyalty Programs?
POS Billing Software can boost your loyalty program in more ways than you can imagine. For one, You can track reward points for your eStore’s loyalty program using the best POS solutions. Your POS solution allows you to personalize digital receipts, which makes it easier for your customers to track their incentives. When they can track their progress and are close to unlocking a new reward, they tend to spend 39% more on average.
Plus, your POS software can track the information gathered from your loyalty program and enrich your CRM data. A POS Billing Software can even generate real-time reports for you, so you can inform decision-making for your loyalty program using data.
Plus, the best POS Billing Software will ensure that data collected using the loyalty program is stored safely and securely.
It takes years, excellent products, and devotion to building brands with an incredibly passionate and devoted fan base. There are very few brands like that, and one of them is Apple. Believe it or not, you don’t need to offer rewards and incentives to build a strong connection with your customers. All you need is an amazing product, great customer service, and benefits with every purchase — and you won’t even have to think about traditional loyalty programs.
But reaching there takes time, so in the meantime, a robust POS software and killer marketing strategy is your best bet. And you can leave one of the tasks to us — QueueBuster is one of the best POS solutions in the market. How? Download the app today, take a free trial, and find out for yourself!
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