The 5 Best Customer Loyalty Programs in Retail that You Can Learn From

Customer Loyalty Programs

The 5 Best Customer Loyalty Programs in Retail that You Can Learn From

By QueueBuster   Published:   May 2nd, 2024

Loyal customers are the biggest asset of a brand. It is cheaper to maintain current customers than acquire new ones. Also, loyal customers usually spend more and generate large transactions. One of the best ways for retailers to create a loyal customer base is by running a customer loyalty program that offers various benefits to consumers. Not only does it attract customers to a retail business, but also engages and satisfies them.

What are customer loyalty programs?

Customer loyalty programs are systems through which businesses offer rewards to their customers for making repeated purchases. From the business’s perspective, these programs encourage customers to buy frequently, thus increasing their sales.

Customer loyalty programs can be of different types – from refer-a-friend programs to rewards points and other perks. The primary purpose of these programs is to help retail businesses develop stronger relationships with their customers. The prime benefits of having customer loyalty programs for businesses include the following:

  • Helps improve customer retention
  • Encourages repeat business
  • Improves customer satisfaction
  • Boosts the customer’s lifetime value
  • Helps in building strong relationships with customers
  • Boosts revenue
  • Provides businesses with an edge over the competitors

As per a report from Accenture, different customer loyalty program members usually spend 10-18% more in comparison to other customers. This is extremely useful for small businesses, especially those in an excessively competitive space.

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    5 Examples of the Best Customer Loyalty Programs in the Retail Sector

    Amazon Prime

    Amazon Prime is a popular customer loyalty program offering tons of benefits to its subscribers. Amazon offers Prime membership to its regular users. This provides multifold benefits to the customers, such as 2-day shipping on various products, free shipping, and much more. Even though it is not a customer loyalty program in the traditional sense, it still involves buying a paid membership and providing value to regular customers.

    From the business perspective, Amazon claims that the program causes them to lose money every year. Although, they make up the same due to more frequent shopping transactions done by the customers. On average, a Prime member spends over $1500 every year. This is significantly higher than the $625 spent by other non-Prime customers.

    Starbucks Rewards

    The Starbucks Rewards program brings customers one step closer to getting free food and drinks with each purchase. To earn stars through this program, the customer needs to pay or order their food/drinks using a specific app. In fact, My Starbucks Rewards was a pioneer in offering customer loyalty programs through dedicated mobile apps.

    If a business can create a loyalty app, it would work as an excellent way of collecting and centralizing user data. This will make it extremely easy for businesses to understand the preferences and patterns of their customers. This can be used to improve marketing efforts. Not only this, but it can also make checkouts a lot easier for customers by placing orders and paying without the need to sign up each time.

    Sephora Beauty Insider

    Customer loyalty programs are extremely popular as well as effective when it comes to the beauty industry. Amongst them, the Sephora Beauty Insider program is in the most popular category. It is a traditional point-based system in which the customers earn points with each purchase. The primary reason for its success is that it allows the customers to choose how they wish to spend these reward points. They have a dedicated Rewards Bazaar in which new rewards are available for the customers to grab twice every week.

    Uber Rewards

    Uber Rewards is an integral part of Uber’s marketing strategy. Their customer loyalty program allows users to earn reward points which they can redeem to get numerous interesting rewards, ranging from miles to meals. Their program is designed carefully to provide the customers with benefits that can be used without constraints of time. The customers have complete control and flexibility to use them. Some of the most popular rewards offered by Uber include price protection, priority support, priority pickup, and flexible cancellations.

    Expedia Rewards

    Expedia is a popular travel portal. It helps its customers save money during traveling. They offer the best deals on hotel rooms and flights. With Expedia Rewards, customers can save about $35 per booking using the points they earn. Frequent travelers can save more money on travel and bookings. This is possible as they can earn more points and receive rewards through their three-tier program. Customers with Blue member status receive 10% savings, whereas members with Gold status receive spa credits and free upgrades. Their rewards program is one of the best ways to get luxurious travel perks without spending a hefty amount. 

    Types of customer loyalty programs Retail Businesses can offer

    Retail businesses can offer a variety of customer loyalty programs that provide different benefits and rewards to their customers. Here are some of the most popular types of loyalty programs that are best suited for customer-oriented businesses.

    • Customer loyalty points programs: This is undoubtedly one of the most popular customer loyalty program varieties. Using this program, customers earn points every time they purchase with a retail business. They can then redeem these points to get discounts or offers on further purchases. This kind of points program is great for boosting customer loyalty. This encourages them to buy regularly and repeatedly with the same retail business.
    • Mission-driven loyalty programs: All loyalty programs are not focused on giving rewards and discounts to members. Mission-driven loyalty programs ensure customers that the purchases they make will help ‘make a difference’ in the world. ‘Whereby’ is a great example of this kind of loyalty program. The company promised to plant a tree for each video meeting that takes place on its platform. These types of loyalty programs work best when partnered with a non-profit organization with the same mission. This is a unique way for businesses to differentiate themselves from their competitors.
    • Subscription programs: Subscription programs are also great for building customer loyalty as they ensure repeat purchases. Subscriptions provide customers with the opportunity to buy things they regularly require at a discounted price in comparison to one-off purchases. If your business involves selling products suitable for repeat purchases, such as health, beauty, food products, or cleaning products, subscription programs may work great to build loyal customers.

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      If you are running any retail business, this list of the best Customer Loyalty Programs will help you come up with ways to create a loyal customer base. You can take helpful tips from the most effective customer loyalty programs that are in continued use all over the world today. This will help ensure that your customer remains loyal to your business and, in return, receive multiple benefits and offers for their loyalty. Are you setting up a new retail outlet or looking for a change in your POS software to help manage your billings, inventory, CRM, loyalty and bookkeeping? Look no further than QueueBuster – the business super app of India. If you are starting a new business or looking to revamp your existing retail business with a new POS system, Book a demo with QueBuster today. Their POS application can help you manage your business efficiently and also boost your sales through loyalty programs and more.

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