
Customer loyalty is the need of the hour, as happy customers can help brands stand out. Your loyalty program can make a difference with so many choices available because how you value your customers matters significantly. Delivering a personal touch in each way can change the game altogether.
Moreover, 84% of consumers say that customers will choose a brand that offers a loyalty program–that’s a big number! But loyalty programs are nothing new. Initially started as distributing copper tokens that evolved into green shield stamps, today customers can enjoy loyalty benefits with a few taps on the phone.
But if we are given copper coins today to redeem rewards, will customers use them? We all know the answer is NO! Having said that, changing your loyalty program format with changing customer behavior and evolving marketplace is essential.
With different types of loyalty programs to choose from, like points programs, tier-based programs, subscription programs, etc., it is essential to add a touch of your brand value to let customers associate with your brand.
For example, a coffee shop might offer a loyalty program where customers who purchase any coffee can enroll and receive a stamp or point towards a free coffee after a certain number of purchases.
But sometimes, this process of making an ‘x’ number of purchases to enroll in a program can be pretty dull for customers. In a tier-based program, you must keep making purchases to unlock a new level of spending (tier) and earn associated rewards. This is a good way to entice customers and make them stick to your brand longer.
But for customers who spend more in a shorter time, it is essential to reward them differently. Because if you don’t, they might not feel valued and will go elsewhere. For example, if customers make a single-shot higher purchase, brands can enroll them directly into the loyalty program as well as reward them for their purchase. Above that, give them the flexibility to redeem those rewards on their next purchase.
For example, a luxury car dealership might offer a loyalty program where customers who purchase a high-end vehicle are automatically enrolled, earn points, and can redeem them for their next service appointments or accessories.
Even Airlines are shifting from points-based programs to spend-based systems as it enables them to interact and reward fliers who are spending more for fewer flights. Based on the ticket’s cost, Azerbaijan Airlines rewards its customers with travel points and discounts they can redeem for their next purchase.
Another way is integrating this feature with your tier-based program. For example, a retailer might offer a loyalty program with three tiers: silver, gold, and platinum. Customers who make smaller purchases might be enrolled in the silver tier and receive basic rewards such as discounts and free shipping. Customers who make single-short larger purchases should be enrolled directly in the gold or platinum tiers instead of making them go through all levels. Brands can offer them more exclusive rewards such as limited edition previews, early access to sales, invitations to VIP events, etc.
However, when designing such a loyalty program, make sure to offer valuable and desirable rewards to customers. With OptCulture’s loyalty program integration, businesses can track and analyze the data from their loyalty programs to determine their effectiveness in driving customer loyalty and repeat purchases.
We believe there are different types of customers with varying capacities of spending. Tailoring your loyalty programs as per their spending potential can help you deliver personalized services. And word-of-mouth promotion of such features can entice customers to make higher purchases and enroll for exclusive rewards– a total win-win.
To help you get started, we offer custom loyalty solutions and improve customer satisfaction, boosting your bottom line.
Moreover, 84% of consumers say that customers will choose a brand that offers a loyalty program–that’s a big number! But loyalty programs are nothing new. Initially started as distributing copper tokens that evolved into green shield stamps, today customers can enjoy loyalty benefits with a few taps on the phone.
But if we are given copper coins today to redeem rewards, will customers use them? We all know the answer is NO! Having said that, changing your loyalty program format with changing customer behavior and evolving marketplace is essential.
With different types of loyalty programs to choose from, like points programs, tier-based programs, subscription programs, etc., it is essential to add a touch of your brand value to let customers associate with your brand.
For example, a coffee shop might offer a loyalty program where customers who purchase any coffee can enroll and receive a stamp or point towards a free coffee after a certain number of purchases.
But sometimes, this process of making an ‘x’ number of purchases to enroll in a program can be pretty dull for customers. In a tier-based program, you must keep making purchases to unlock a new level of spending (tier) and earn associated rewards. This is a good way to entice customers and make them stick to your brand longer.
But for customers who spend more in a shorter time, it is essential to reward them differently. Because if you don’t, they might not feel valued and will go elsewhere. For example, if customers make a single-shot higher purchase, brands can enroll them directly into the loyalty program as well as reward them for their purchase. Above that, give them the flexibility to redeem those rewards on their next purchase.
For example, a luxury car dealership might offer a loyalty program where customers who purchase a high-end vehicle are automatically enrolled, earn points, and can redeem them for their next service appointments or accessories.
Even Airlines are shifting from points-based programs to spend-based systems as it enables them to interact and reward fliers who are spending more for fewer flights. Based on the ticket’s cost, Azerbaijan Airlines rewards its customers with travel points and discounts they can redeem for their next purchase.
Another way is integrating this feature with your tier-based program. For example, a retailer might offer a loyalty program with three tiers: silver, gold, and platinum. Customers who make smaller purchases might be enrolled in the silver tier and receive basic rewards such as discounts and free shipping. Customers who make single-short larger purchases should be enrolled directly in the gold or platinum tiers instead of making them go through all levels. Brands can offer them more exclusive rewards such as limited edition previews, early access to sales, invitations to VIP events, etc.
However, when designing such a loyalty program, make sure to offer valuable and desirable rewards to customers. With OptCulture’s loyalty program integration, businesses can track and analyze the data from their loyalty programs to determine their effectiveness in driving customer loyalty and repeat purchases.
We believe there are different types of customers with varying capacities of spending. Tailoring your loyalty programs as per their spending potential can help you deliver personalized services. And word-of-mouth promotion of such features can entice customers to make higher purchases and enroll for exclusive rewards– a total win-win.
To help you get started, we offer custom loyalty solutions and improve customer satisfaction, boosting your bottom line.
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