6 Best Customer Loyalty Program Ideas That Work
- Customer Experience, eCommerce

6 Best Customer Loyalty Program Ideas That Work

With the abundance of options on the market, customers are being spoiled by shopping choices, whether online or in-store. But you want your customer wants to keep coming back to you as a business. This is where customer loyalty programs come in.

According to Zendesk, 74% of global customers feel loyalty toward a particular company or brand. A global survey commissioned by Acquia also found that 59% of US consumers remain loyal to a brand for life once they become loyal to it. Are these numbers enough for you to decide whether to have a strategy for retaining your customers?

This blog is for you if you’re looking for the best ways to inspire customer loyalty. We’ve compiled the best custom loyalty program ideas that surely work.

What Is a Customer Loyalty Program?

Simply put, a customer loyalty program is a customer retention strategy that a business uses to encourage customers to continue purchasing from the brand. With this strategy, a business rewards its customers who buy from them instead of turning to its competitors.

A customer loyalty program is one of the most effective methods to increase customer loyalty and revenue. The ability to earn rewards can influence a customer’s spending behavior. When customers become loyal to a particular brand, they won’t mind paying a higher price as long as they can ensure the same quality of product and service they love. 

Top Customer Loyalty Program Ideas That Work

  • Points Program

Points Program - 6 Best Customer Loyalty Program Ideas That Work
Points Program

 

One of the most popular ways to inspire loyalty, points programs allow customers to earn points, which they can, in turn, redeem for cash back, freebies, discounted services, perks, credit on their next purchase, and much more.

Customers can earn points from their purchases by leaving reviews, celebrating birthdays, and referring their friends to the brand. They can then track their points using a mobile app, an online account, or a loyalty card.

What makes points programs effective is that customers can easily understand and know how to take advantage of them.

  • Tier-Based Program  

Tier-Based Program  - 6 Best Customer Loyalty Program Ideas That Work
Tier-Based Program

This next program can be paired with the points program. With a tier-based program, customers benefit based on their rank or tier. This rank is based on the rewards or points they get with every purchase. It’s like completing a level of spending to unlock the next level with more perks or benefits: the higher their rank, the better rewards or more exclusive and appealing benefits they will receive.

Furthermore, a tier-based program encourages customers to set goals for themselves. With the desire for better or more exclusive offers, they will be encouraged to try to reach the next level of spending. More customer spending means higher revenue for the business. 

  • Refer-A-Friend Program

The refer-a-friend program is exactly what its name infers. This program is a word-of-mouth marketing strategy that helps build brand trust and the brand’s customer base. It works by giving discount codes or custom links to existing customers, who then can share them with their friends and family. In exchange, they can receive rewards, usually points, discounts, or special offers, by referring friends or family members. 

In short, this program puts existing customers to use as brand advocates. When their friends or family members (new customers) make a purchase, the old customers who made the referral are rewarded.

  • Cashback Program

Cashback Program
Cashback Program

 

The key to a successful loyalty program is making customers feel like they are getting something in return when they purchase. A cashback program effectively does that. It gives customers back money they can spend on other products or services later.

  • Mission-Driven Program

Mission-Driven Program
Mission-Driven Program

A customer loyalty program doesn’t always need to be about giving rewards or discounts. It can also partner with a special cause, especially if the business has a strong social mission. This helps make the customers feel that they are helping others, making a difference, and improving the world we live in a while purchasing a given product or service. 

With many people choosing to do business with brands that share their values, a mission-driven program can increase customer engagement and improve brand loyalty.

  • Gaming Program

Gaming Program
Gaming Program

A gaming program adds fun to the buying process. It encourages purchases as the customers become hooked and enjoy a fun experience. The program works by giving game-loving customers a gaming environment where they can earn badges, rewards, or points. 

Here are a few ways to gamify a loyalty program:

    • Raffle
    • Prize wheels
    • Scratch-off
    • Mobile games

Final Thoughts

Having loyalty programs is useful for growing your business with more loyal customers. However, when deciding which program to implement, you need to pay attention to your customers and discern how you can improve their experience. Remember, the best customer loyalty program centers around the people you serve and their needs. 


Luke Carlino
Luke Carlino

Author Bio:

Luke is a Copywriter, Content Creator, and Social Media Manager working freelance for a range of clients, businesses, and agencies. He has many years of experience crafting quality content for various marketing requirements.

6 Best Customer Loyalty Program Ideas That Work

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