If you want to turn your customers into brand advocates, you must seriously consider running some loyalty programs. Loyalty programs are scalable brand strategies that offer incentives to customers to buy from companies time after time.
However, there is no one particular loyalty retention program that you can put your hands on and say, ‘this is it.’ Every brand must come up with tailored programs to engage their consumers. With the right initiative in place, you can easily convert a one-time buyer into a lifelong loyal brand advocate or customer.
If you are still wondering why loyalty programs are essential, read this:
Returning customers spend three times more than one-time buyers. Not only this, but loyal customers also contribute to around one-third of the money spent online. Also, retaining an existing customer is much cheaper than convincing a new one.
Therefore, it is imperative to continuously optimize your customer retention strategy to keep your best customers happy and returning.
Top Loyalty Program strategies
Here are the top 5 loyalty program strategies that top B2Cs use for maximum returns. You can modify and implement them according to your business strategies and experience stunning results.
Encourage new customers by offering irresistible rewards
If you offer new customers an irresistible incentive during the registration or sign up process, you can actually retain them for the next several purchases. And by the time the incentives start to expire, you can establish new striking strategies to retain them moving forward. And once the customers fall into a pattern, they will never let you go.
For instance, many clothing brands give out first-time heavy discount coupons for new joiners.
Example: Get 500 off on your first purchase above 2000 or Get 40% off on all menus for your first five orders.
Introduce the Point System
Ecommerce sites like Flipkart and the North Face use the point or coin system to encourage customers to buy more from them. For instance, Flipkart lets customers earn one coin for every INR 250 they spend on their site or app.
And once the buyers have collected 50 coins, they can redeem it in exchange of products worth up to 1000. Similarly, the North Face lets customers earn 10 points for every dollar they spend and utilize the points to make future purchases. The point/ coin loyalty strategy not only increases customer average order value but also indirectly urges them to invest in your brand.
Consider Partner Program
Nike has a partner loyalty program, where they offer premium membership benefits in association with Apple, Headspace, and Classpass. Nike offers several fitness training apps to help its customers reach their fitness goals.
It is their strategy to retain customers and increase brand credibility. For example, if one of the members is finally able to shed his extra 50 pounds using Nike’s membership benefits, he will attribute his success to Nike only. Make sure, while collaborating with other businesses, you position your product as a critical component in achieving customers’ pursuits.
Offer Samples and New Products
A loyalty program does not have to be always about discounts and cashback. You can also send out new products as samples to your existing customers. You can do this either occasionally, or conditionally, or for special occasions, such as birthdays and anniversaries.
Example: Put up an ad on your home page or social media page stating that every customer, after their 10th purchase, will receive a sample hamper of new products to try on.
Or you can share samples or freebies along with each purchase, say above $20, to encourage more future buys.
Introduce the Tier System
The more they buy from you, the higher the rewards they receive. It is the motto of a tier-based loyalty program system.
Tier in a loyalty program is a new thing, a great engagement strategy, and a better branding campaign.
It also adds a fun element to your business, where members have to play the game to reach higher levels and open tiers.
For example, ELF cosmetics’ classic tier loyalty program has garnered them a massive base of loyal customers. Their loyalty program is called “Beauty Squad Club,” which has three tiers. The more points the member collects, the exclusive rewards they get. You can base your loyalty programs as coins and points or on how often they buy. On the other hand, you can choose any other engagement metrics. You make sure that the benefits are amazing, and the exclusivity is unparalleled.
The key to making a customer loyalty program work is understanding your customers’ needs and enhancing your value proposition.
Please contact us to know how NeuroTags technology helps brands to run effective Loyalty Programs.