Types Of Customer Loyalty Programs And The Tips To Create It

In customer loyalty program, brands reward their most loyal customer and it builds authority, and interest to stay connected. There are several types of customer loyalty programs that you can choose for your brand. Today we are sharing everything and it will give proper guidance that how effectively you could pursue in the future.

Here are the following types of the customer loyalty program and try as per the demand 

  • Point-based program – 

The main purpose of introducing this program is to increase the engagement of the audience on the applications of the brand. The more they will spend time, the more chances could be possible to purchase any product. When a customer purchases maximum products from an online store application then the brand rewards them with points. After having enough points, the brand turns these points into another reward like discounts, and cashback offers encourage the customer more to purchase. 

  • Spend-based program – 

In this program, the brand shares the amount a customer has spent in the business. There are the majority of brands that introduce stocks or any kind of NFT-based stuff – and if it works well in the market. Then it grabs the attention of the customer and they also participate in that campaign. With this campaign, the brand offers a reward for the transaction of the customer and also for active participation in the brand campaign. 

  • Tiered program – 

In this loyalty program, there are several tiers or levels of reward and customers need to complete every level to enjoy the best offers. This is the same as you play an online game where players need to cross every level after removing hurdles. In the end, they receive a reward to become a champion of the first level and approval to join the next level. Quite interesting and best for shoppers!

  • Game-based program – 

We were talking about games in an example but now we have a program where you only need to play a game. In this program, the brand turns the customer loyalty program into a game and now the customer needs to purchase unlimited to avail of the desired products or options. 

  • Partner-based program – 

If a brand has a thirst for success then it is the fundamental duty to take care of its customers. Get to know about each and everything of the customer, and offer what they really seek from a brand. The partnership of brand and customer creates a new history and enables the brand to reach another level. 

  • Hybrid loyalty program – 

Hybrid as the name suggests means two customer loyalty programs in one campaign. As we have mentioned above every program so here a brand can combine any two programs with their terms and condition. This kind of hybrid program has several benefits and could spend more time here. 

Here are the following ways that you shouldn’t forget while creating a customer loyalty program

  • Research is vital for business – 

Without research, you couldn’t understand the interest or preference of the customer. 

  • What does your customer want? 
  • What is their age/gender? 
  • Are they working employees or an entrepreneur like you? 
  • What is their lifestyle? 
  • What is their location? 

Similarly, many more questions await you so don’t underestimate the research for a customer loyalty program. An entrepreneur who understands the customer wins more effortlessly. 

  • The plan is required – 

A goal without a plan is worthless and that is why it is crucial to plan the goal properly. Mention the hurdles, business KPIs, purpose, and more that will give a brand proper direction to create a successful loyalty program campaign. 

  • Keep them aware of the campaign – 

Before launching the movie, the director keeps sharing the trailer on all the television or radio channels to gain the attention of the audience. This is the process to ignite the heat of interest so that majority of the people attend the first show on the first day of the movie. Similarly, this is required to keep your audience aware of this news of initiating the loyalty program in retail. There is an insane door where you could knock to keep them aware like – social media, emails, messages, advertisements, and podcasting. 

  • Keep it simple – 

Simplicity always wins the heart and if you want to develop a robust brand then –

  • Make the loyalty program available to every user and the rules of the award as well. Make it effective so that they come again and again to the brand. 

Wrapping Up – 

The success of Customer loyalty program depends on the research and proper awareness of the customer. When you are aware of the customer then there is nothing to be worried about the ROI from the campaign. 

Leave a Comment