Customers tend to trust other customers more than your advertising, so it's important to leverage positive interactions to maximize customer value. You could also consider adopting NPS® and other feedback tools to gather qualitative information about your brand or encourage customers to share testimonials that you can share on your site.

Customers loyal to your brand are also the most valuable to your business. In fact, customers who have an emotional connection to your brand tend to have a lifetime value higher than your average customer.

These customers spend more with your business and should be rewarded for it — this is where a loyalty program becomes essential to building customer loyalty. A customer loyalty program is a program your business offers that rewards customers for their continuous purchases from you.

Rewards can be free products, early and exclusive access to new products or events, point systems, awards, exclusive merch — anything you want to do to share your appreciation with them for their business. Customers who join these programs tend to spend more money because they receive benefits for their business.

They already enjoy buying from your company, so why not give them another reason to do so? An easy retort to that question would be that it costs too much to offer incentives without getting anything directly in return.

This does appear to be true when you look at an individual purchase. However, loyalty programs benefit your business in ways that extend beyond just one or two transactions. If you question whether they're cost-effective, below are some key benefits that customer loyalty programs can provide to your business.

Xoxoday Plum. Xoxoday Plum is a powerful customer loyalty rewards platform that helps businesses engage and retain their customers through personalized reward programs. With Xoxoday Plum, businesses can easily create and manage reward campaigns that are tailored to their specific customer base, offering rewards that are both meaningful and relevant.

Yotpo is an incentive marketing platform that helps you build a custom loyalty program, whether tier-based, a point system, or referrals, to engage your existing customers and reach new ones. LoyaltyLion helps you create a loyalty program to help your customers feel valued, as opposed to being another number.

All businesses can benefit from building a customer loyalty program and rewarding customers with additional, exclusive benefits.

You might already be a member of some programs, like a frequent flier miles program or a referral bonus program. In an increasingly competitive and crowded market, loyalty programs can differentiate you from your competitors and keep your customers around.

Nowadays, customers are making purchase decisions based on more than just price. They make buying decisions based on shared values, engagement, and emotional connections with a brand. Customer loyalty programs are a great way to engage customers beyond just the point of purchase, to interface on shared values, and to provide even more value to customers — making them happier and more likely to keep purchasing from you.

You can also work with customers for recurring exchanges. For example, with home service companies, you could create a maintenance plan with homeowners where you come back on a weekly or monthly plan. This keeps the customer engaged and enrolled repetitively.

This word-of-mouth marketing draws in new customers at no acquisition cost and can generate even more revenue for your business. It's more cost-effective for your business to retain happy customers than acquire new ones.

Acquiring a new customer is X more expensive than retaining a current one. Online customer reviews are almost as trustworthy as recommendations from friends and family.

Customer loyalty programs that incentivize reviews and ratings on websites and social media will result in authentic user-generated content from customers singing your praises so you don't have to. So, now that you're on board with the value of customer loyalty programs, how do you start one?

The first step to a successful customer loyalty program is choosing a great name. It should incite curiosity and interest and urge customers to participate.

Most importantly, you must distinguish it from the myriad of other loyalty programs they might already be part of. The name should go beyond explaining that the customer will get a disco unt or will get rewards — it needs to make customers feel excited to be a part of it.

Image Source. Some of my favorite customer loyalty program names include beauty brand Sephora's Beauty INSIDER program and vegan supplement brand Vega's Rad ish Rewards. These clever, unique names hint at benefits but don't give them away — making customers curious to learn more and join.

Some customers are cynical about customer loyalty programs and think they're just a clever ploy to get them to spend more with businesses. To get customers excited, tap into the "why" behind your product or service to make your customer loyalty program as compelling as possible.

Briogeo is a customizable hair care product line. With just a few answers to a quiz, customers will have a shampoo and conditioner crafted just for their hair on their doorstep.

Its rewards program is just as customer-centric as its product. With no frills or distractions, customers know that this loyalty program is getting them closer to even more affordable hair care products.

It's a win-win. Another way to demonstrate your commitment to customer loyalty beyond just purchases? Reward non-purchasing customer actions. Customers watching product videos, engaging in your mobile app, sharing social media content, and subscribing to your blog are still valuable signs that a customer is engaging with your brand — so reward them for it.

Those who spend at a certain threshold or earn enough loyalty points could turn them in for free tickets to events and entertainment, free subscriptions to additional products and services, or even donations in their name to the charity of their choice.

Lyft does a fantastic job of this with its LyftUp program. Riders can round up the cost of their ride to the next dollar and donate the change to the charitable organization of their choice — making it easy and rewarding for them to make an impact while using the service as they normally do.

For example, if you're offering cashback rewards as part of your customer loyalty program, assign a monetary value to your points so customers can visualize what they can earn and spend by continuing to purchase from you.

Credit cards do an excellent job of this by illuminating dollar-for-dollar how people use points — just watch any commercial offering points in exchange for dollars, airline miles, groceries, or gas.

Values are important to customers — in fact, two-thirds of customers are more willing to spend money with brands that take stances on social and political issues they care about. TOMS Shoes donate a pair of shoes to a child in need for every purchase its customers make. Knowing that providing resources to the developing world is important to its customers, TOMS takes it a step further by launching new products that help other important causes — like animal welfare, maternal health, clean water access, and eye care — to get customers excited about helping in other ways.

Once you've launched your customer loyalty program, make sure you're promoting the benefits of joining. If customers get rewards from purchasing from your online store, next to the price, share the points they could earn from spending that much.

You might have experienced this when flying on an airline that offers a loyalty rewards credit card. The flight attendants might announce that you could earn 30, miles toward your next flight — if you apply for the airline's credit card.

Other ways to do this include promoting the program on social media channels and adding on-site push notifications when customers complete an activity that earns them points. Co-branding rewards programs are a great way to expose your brand to new potential customers and to provide even more value to your existing, loyal ones.

Brands might offer loyal customers free access to co-branded partnerships — like T-Mobile's offer of a Netflix subscription with the purchase of two or more phone lines.

Everyone loves games and competition — so use that winning spirit to get your customers interacting with your brand more frequently. Lots of brands gamify their customer loyalty programs to earn valuable engagements within an app, website, or at point-of-purchase. Points are easily translatable for gamification.

Take Treehouse , which teaches coding and app development, and rewards engaged users with more and more points leading up to a badge — which users can then display on their websites and social profiles to impress colleagues and potential employers with their skills.

If you're operating with a growing business, you may not have much flexibility when it comes to your budget. However, you can still offer an attractive rewards program that fosters customer loyalty. While growing businesses don't have the same financial influence as bigger companies, these organizations can still create incentives that motivate customers to return to their stores.

When developing their rewards program, small businesses need to be creative and develop a unique system that mutually benefits both the company and the customer.

Take a look at a few common ways that growing companies leverage rewards programs to build customer loyalty. Punch cards are a common reward program for B2C companies. With it, customers get a business card that gets a hole punched after every purchase.

Once customers fill up the card with punches, they receive perks and rewards. The benefit of this system is that customers are guaranteed to return a certain amount of time to receive the reward, making repeat purchases and driving revenue.

Nothing Bundt Cakes has a popular punch card loyalty program that offers customers a free personal cake when they buy 12 of them. Opt-in email solicits the customer's email address for communication with your brand. Once the customer opts in, your company can email them offers or promotions.

Emails are cheap to compose and distribute and can be sent at almost any frequency. You can also use email automation tools to deliver emails efficiently. Free trials are typically thought of as incentives used to convert potential leads, but you can also utilize them in rewards programs too.

For example, say you have a new product or service that's about to launch. You can release a free trial to members of your loyalty program. This not only acts as a reward for customer loyalty but also works as a marketing tactic that primes your customers for a future sales call.

One way to add value is to look externally at businesses to partner with. By combining your resources, you can create an offer that benefits both you, your partner, and your shared customers.

Credit card companies like Visa and MasterCard do this all the time by offering cards sponsored by a specific brand. While having a credit giant on your side is nice, start by looking for local, non-competitive businesses you can partner with to add more to your offer.

You can incentivize loyal customers to become advocates by offering them an attractive reward for customer referrals. If your offer is good enough, customers will be happy to take the time to network your business with other potential leads.

Tracking points is a tried and true method of tracking customer loyalty. The two keys to making these programs successful are a worthwhile incentive and a reasonable timeline to earn the incentive. For example, if you sell workout gear, people might make purchases fairly often, and there are many different businesses to choose from.

Your incentive would need to be valuable — like a free t-shirt — and the buyer would need to be able to earn it quickly enough to keep them striving toward it, but not so quickly that the reward loses value. Loyalty discounts come with a bonus to the traditional customer loyalty programs we've covered so far.

Employee Rewards Teachers Product Team Small Businesses Tech Teams Clients. Prospects Vendors. Thanksgiving Work Anniversary Birthday Virtual Events Wedding. Amazon gift cards Zara gift cards Paypal gift cards Zomato gift cards Ikea gift cards. Flipkart gift cards Coinbase gift cards Tommy Hilfiger gift cards Adidas gift cards Mcdonalds gift cards.

Steve Madden ABM Rewards American Express Centrepoint Customer Rewards EBay GrabFood GrabMart IKEA Joyalukkas. Luxe Microsoft Nelly NLY Netflix Nike Nintendo Paypal PhonePe PlayStation Points for People Prepaid Visa Rakuten RentacarGift SHEIN STARZPLAY SWAROVSKI SWISS Sephora Shangri La Share Shoemart Shoexpress Skechers Skillshare Skype Spark Splash Spotify Spotlight Starbucks Steve Story Storybook Subway SuperGavekortet Superdry Swensen's Swissôtel T.

Comprehensive sales playbook on strategic gifting Digital gifting campaigns Sales promotion campaign Get more survey responses. Virtual rewards recognition Guides Motivate employees in organization. How to build a B2B loyalty program B2B loyalty programs Digital reward ideas to Drive Engagement Customer retention strategies.

How virtual prepaid cards solves international recurring payments issues Using virtual prepaid cards to manage marketing ad spend Omnichannel customer experience Experiential gifting Benefits of prepaid cards. Customer acquisition cost calculator Customer churn rate calculator Customer lifetime value calculator.

Engagement rate calculator Instagram engagement rate calculator Lead conversion calculator Loyalty points calculator Marketing ROI calculator Tiktok engagement rate calculator. Xoxoday has engaged third party vendors to provide services to clients in certain jurisdictions where Xoxoday does not operate.

Your use of the platform to send Rewards to recipients in those jurisdictions may be subject to additional or different terms. If you wish to send Rewards to recipients in the United States, for example, we have contracted with a Partner, and your use of the Services is subject to our Partner's Corporate Terms of Service and your designated recipient's acceptance of the Reward is subject to our Partner's Recipient Terms of Service.

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Integrations Work seamlessly with your tech stack. Solutions for Sales team Sales and channel incentives, Customer gifting and more. All Features Explore everything about Plum. Solutions for HR team Employee rewards for every stage. Employee Recognition Build a culture of appreciation.

Employee Communication Connect and align employees. Employee Rewards Connect and align employees. Employee Surveys Diagnose and act. People Analytics Data-driven people strategy. Platform overview Design, automate, and manage commissions at scale. Sales motivation and engagement Gamify sales incentive.

Revenue intelligence Make data driven business decisions. Sales performance management Unlock performance with commission. Data Integration Centralize your commission data. Giift LBMS Loyalty management platform. Giift Engage Drive customer engagement. Giift Marketplace Global exchangeable market.

Giift Pay Mobile payment loyalty app. Giift Box Create engaging offers digitally. Payouts Instant payouts to anyone. Benefits Financial wellness. Reward Marketplace Global redemption catalog.

Cross-Border Manage multiple locations. Digital Wallet Hassle-free payouts from one place. Data Insights Be data-informed for every decision. Technology Experience polycloud automation.

By role. Marketing Teams Wear your growth hack hat. HR Teams Delight your people at scale. Maximise ROI from Employee Engagement. Build Loyalty with Service Rewards. View all Integrations Explore all integrations. Partner with Xoxoday Explore all integrations. Redeem Rewards. Rewards across employee lifecycle, Anniversaries, Birthdays, Retirement, Festivals, Point based rewarding.

Start free trial. Glossary of Marketing Terms View Glossaries. Customer Loyalty Rewards Customer loyalty rewards are incentives that businesses offer to their customers as a way to encourage them to continue purchasing from the business and to build long-term loyalty.

What are customer loyalty rewards? Why is a customer loyalty rewards important? Customer loyalty rewards are important for several reasons: They help businesses retain customers : By offering rewards and incentives to customers, businesses can increase the likelihood that customers will continue to purchase from them, leading to increased customer retention rates.

They encourage repeat purchases : Loyalty rewards incentivize customers to make repeat purchases, which can increase revenue and profitability for businesses.

They build customer loyalty and trust : Offering rewards to customers can help build a sense of trust and loyalty between customers and businesses, strengthening the overall relationship and creating a positive association with the brand.

They differentiate businesses from competitors : A well-designed loyalty program with valuable rewards can set a business apart from its competitors and help it stand out in a crowded marketplace.

They can lead to increased customer advocacy : Satisfied customers who receive rewards and incentives are more likely to recommend the business to others, leading to increased word-of-mouth marketing and brand advocacy.

What types of customer loyalty rewards are there? Here are some common examples: Points-based programs : Customers earn points for purchases and can redeem those points for rewards such as discounts, free products, or exclusive perks.

Discount programs : Customers receive discounts on future purchases based on their past purchase history or loyalty to the brand. Free products or samples : Customers receive free products or samples as a reward for their loyalty. VIP programs : Customers receive exclusive access to special products, services, or events as a reward for their loyalty.

Personalized experiences : Customers receive customized experiences, such as personalized recommendations or product offerings, based on their loyalty to the brand. Tiered programs : Customers earn rewards based on their level of loyalty, with higher levels receiving more valuable rewards.

Cashback programs : Customers receive cashback rewards for purchases made with a loyalty program-linked credit card. What is a customer loyalty rewards program? Some common features of customer loyalty rewards programs include: Points-based system : Customers earn points for each purchase they make, which can then be redeemed for rewards.

Tiered system : Customers can earn different levels of rewards based on how much they spend or how frequently they make purchases. Perks and benefits : Customers may receive exclusive perks and benefits, such as free shipping, early access to sales, or personalized recommendations.

Personalized offers : Companies may use customer data to create personalized offers and promotions, based on each customer's purchase history and preferences. How can businesses measure the effectiveness of customer loyalty rewards programs?

Businesses can measure the effectiveness of customer loyalty rewards programs by tracking a variety of metrics, including: Customer retention rate : This measures the percentage of customers who continue to purchase from the business over time.

1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP

How to Create a Customer Loyalty Program · 1. Choose a great name. · 2. Create a deeper meaning. · 3. Reward a variety of customer actions. · 4 16 Best Customer Loyalty Program Examples & Ideas · 1. Offer First-Time Purchase Discounts to New Customers · 2. Present Special Offers in Ten ways to reward loyal customers · 1. Offer discounts for high-spending customers. · 2. Create a loyalty card scheme. · 3. Give away free items with multiple: Customer loyalty rewards

Loyalty Lojalty can turn one-time customers into loyaltty fans. So, how do you edge them out? These rewards can take Free sample promotions forms: discounts, exclusive deals, early access to sales and products, or points that can be redeemed for products or services. Are they price-sensitive and would appreciate discounts or free shipping? The Atlas Coffee Club rewards program is a great example of this. This might be anything from waiving minimum order quantities to expedited delivery or offering an out-of-hours service.	That's right, customer loyalty programs can be a powerful tool not only for retaining current customers, but also for attracting new ones. Customer acquisition cost calculator Customer churn rate calculator Customer lifetime value calculator. They can lead to increased customer advocacy : Satisfied customers who receive rewards and incentives are more likely to recommend the business to others, leading to increased word-of-mouth marketing and brand advocacy. Outdoor brands have long done more than most to connect with their customers based on shared values. This motivates their customers in lower tiers to spend more so that they can attain these higher tiers of exclusivity. As that develops, they see you as more than a range of products. and subtract the costs of rewards and any other direct costs associated with those sales.	1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP	A customer loyalty program or rewards program is a customer retention strategy that motivates customers to continue purchasing Customer loyalty programs aren't just about offering discounts. They use the purchase history and customer-provided data to present customers Loyalty programs provide two key functions: They reward customers for their repeated patronage, and they provide the issuing company with a wealth of consumer	With a loyalty program, companies can offer points or benefits to customers. In return, customers redeem points for discounts, free products A customer loyalty program or rewards program is a customer retention strategy that motivates customers to continue purchasing How to Create a Customer Loyalty Program · 1. Choose a great name. · 2. Create a deeper meaning. · 3. Reward a variety of customer actions. · 4
Improve Discounted cookbook recommendations and strengthen your brand Loywlty, loyalty programs can enhance your brand and improve Cstomer communication. Like what you see? Done right, loyalty programs create a community of customers who share your values. Ultimately, the key is to keep the program flexible and data-driven. Success stories.	They can lead to increased customer advocacy : Satisfied customers who receive rewards and incentives are more likely to recommend the business to others, leading to increased word-of-mouth marketing and brand advocacy. From turbulent economic stability to accelerated digitization, the customer experience landscape is evolving enough to test any marketing strategy. Their program is designed to provide users with various benefits that allow them extra time, flexibility, and control — leading to a better customer experience. There are lots of different types of customer loyalty programs, like refer-a-friend programs that offer customers a discount if their friend signs up or makes a purchase, reward points programs, and programs that provide free perks. Use profiles to select personalised content. Gift cards by occassion. In conclusion, technology plays a crucial role in customer loyalty programs.	1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP	Customer loyalty programs aren't just about offering discounts. They use the purchase history and customer-provided data to present customers The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld In this type of loyalty program, customers get different benefits depending on their rank in the system. A customer who makes repeat purchases or engages more	1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP
What Is Ooyalty Back? Everyone races to Custimer their customers that they can best fulfill their needs. They build customer loyalty and Discounted cookbook recommendations ,oyalty Offering rewards to rewaeds can help build a sense of trust Thrifty fine dining offers loyalty between customers and businesses, strengthening the overall relationship and creating a positive association with the brand. Customer Loyalty Rewards Customer loyalty rewards are incentives that businesses offer to their customers as a way to encourage them to continue purchasing from the business and to build long-term loyalty. Get to know CleverTap from the scratch. Campaign builder. And loyalty programs are an excellent means to show much you value and appreciate your customers.	Additionally, word-of-mouth recommendations from satisfied customers can also help attract new customers to a business's loyalty program. This information can be used to inform future marketing and product development decisions, helping businesses to better meet the needs and wants of their customers. But why are loyalty programs so important? For example, the energy drink brand, Red Bull, has built a massive customer following by sponsoring extreme sporting events and teams. This works particularly well if the products or services are associated - for example, safety equipment or a maintenance contract to go with specialist machinery. Brand Loyalty: What It Is, and How to Build It Brand-loyal customers believe that a certain brand delivers both higher quality and better service than any competitor—and the price does not matter.	1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP	Loyalzoo is a loyalty points program software system that helps independent retailers and food businesses create and launch an in-store loyalty 16 Best Customer Loyalty Program Examples & Ideas · 1. Offer First-Time Purchase Discounts to New Customers · 2. Present Special Offers in Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP	Customer loyalty program examples · 1. Chubbies · 2. Powershop: “Switch your mates” · 3. Starbucks® Rewards · 4. Beauty Insider, Sephora · 5 1. Celebrate your customers. Everyone likes to be recognized for their contributions; your customers are no different. Feature a customer of the Ten ways to reward loyal customers · 1. Offer discounts for high-spending customers. · 2. Create a loyalty card scheme. · 3. Give away free items with multiple

Customer loyalty rewards - How to Create a Customer Loyalty Program · 1. Choose a great name. · 2. Create a deeper meaning. · 3. Reward a variety of customer actions. · 4 1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP

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You can unsubscribe anytime. For more details, go to the Privacy Policy. Loyal customers are arguably one of the most valuable assets any brand can have.

Not only are current customers more affordable than acquiring new ones, but loyal customers typically spend more and generate larger transactions. Continue reading to discover the importance of customer loyalty, see what customers look for in loyalty programs, and learn from brands that are doing it right.

Or, skip to our infographic to learn the best practices of customer loyalty programs. A customer loyalty program is a strategy designed to encourage repeat business, where a brand offers its customers rewards, discounts, and other incentives in order to attract and retain their business.

These programs are designed to build loyalty, and it pays off when done well. There are various types of customer loyalty programs, each with their own strategy. A points-based program is the most common type of loyalty program. They let customers accumulate points with their purchases which they can redeem for free products and other perks.

Some points programs even allow customers to earn points through other ways like leaving reviews, sharing posts on social media, having a birthday, and so on. A tier-based loyalty program is where a customer will get different benefits depending on their rank.

The higher a customer is ranked, the better their rewards will be. To get to a higher tier and earn exclusive rewards, customers need to buy and engage more with a brand.

Businesses will then rank their customers based on sales metrics and engagement. A paid loyalty program is when a customer receives immediate and continuous benefits once they pay a recurring or one-time fee. If a company can convince consumers of the value of their program, it can build higher customer value.

A value-based loyalty program is when a business donates a percentage of their sales profits to a charity or organization rather than offering the customer a reward. This is a great way for brands to embrace advocacy for various social, environmental, and economic issues.

The reward for the customer is knowing that their contribution of buying from the brand is going to something that benefits society.

Brands are not limited to using one program type. Combining different strategies can be an innovative way to earn customer loyalty and make the loyalty program unique and effective.

While loyalty programs are a great way to retain loyal customers, they are also a great way to acquire new ones. The Starbucks Rewards program does just that by bringing customers closer to free drinks and food with every purchase.

They can then redeem those stars to get free drinks, food, and even Starbucks merchandise. Not only does this make it easy and convenient for customers to use regularly, it also allows Starbucks to gain valuable insight into behavioral analytics.

From go-to drink orders to seasonal favorites, Starbucks can gather information on all of these habits, allowing them to offer more relevant rewards to their customers. When it comes to redeeming their points, customers can use their points towards unique travel experiences such as a mountain climbing trip in Nepal.

Rather than offering basic discounts, The North Face curates experiences that help build a stronger connection between consumer and brand which speaks directly to their target market. While earning points in exchange for discounts and free products is effective, adding in a tier program helps gamify the experience by allowing customers to unlock new levels of higher-value benefits for spending more on the brand.

By spending more, customers access higher tiers that offer exclusivity to different products and services. This motivates their customers in lower tiers to spend more so that they can attain these higher tiers of exclusivity.

Not only do members get to choose their own rewards, but they also receive access to the Beauty Insider Community, where beauty lovers can share tips, advice, and all the new products that they love.

With its tier structure, customers can earn better and better rewards for their loyalty, even gaining access to exclusive events at the highest tier.

Plus, higher-tiered customers receive bigger discounts during sales events. This makes the entire experience more valuable to its customers and thus more successful. Although the ridesharing industry is fairly new, Uber has gone above and beyond taking over the industry. When you become an Uber Rewards member, you earn points with every eligible dollar spent on rides and UberEats orders.

These points can then add up to Uber Cash Rewards and other benefits like priority pickup and flexible cancellation. The more points that are ranked up, the higher the membership level, which unlocks even more rewards and benefits.

Their program is designed to provide users with various benefits that allow them extra time, flexibility, and control — leading to a better customer experience. From two free checked bags to priority seating, Alaska Airlines makes it fast and easy for their customers to gain exclusive benefits while traveling.

Make sure the event has an exclusive feel, that you provide good quality refreshments and that your customers have time for networking. Many firms entertain high-value customers at Christmas but what about an annual day out for a handful of your top customers - a trip to the races, for example?

It could become a fun fixture that customers look forward to. A few big customers may be responsible for a large proportion of your profits, so it's important to provide them with a special level of service. This might be anything from waiving minimum order quantities to expedited delivery or offering an out-of-hours service.

This works particularly well if the products or services are associated - for example, safety equipment or a maintenance contract to go with specialist machinery. If the order is particularly large, include these extras for nothing.

Give customers a reason to recommend you to friends by offering them discounts or free gifts in return for every new customer they introduce to your business. To find out more, see our FAQs. Keeping customers - the importance of loyalty. Creating a customer loyalty scheme.

Ten ways to keep your online customers loyal. Browse topics: Customer care Understanding your customers Selling more to existing customers 7.

Customer loyalty rewards - How to Create a Customer Loyalty Program · 1. Choose a great name. · 2. Create a deeper meaning. · 3. Reward a variety of customer actions. · 4 1. Customer loyalty points programs. Points programs are one of the most popular types of customer loyalty programs. Customers earn points when The theory is sound. Rewards can and do build customers' loyalty, and most companies now appreciate how valuable that loyalty can be. As Frederick F. Reichheld Customer Loyalty Points Program Examples · 1. Starbucks: Starbucks Rewards · 2. The North Face: XPLR Pass · 3. Designer Shoe Warehouse: DSW VIP

They already enjoy buying from your company, so why not give them another reason to do so? An easy retort to that question would be that it costs too much to offer incentives without getting anything directly in return.

This does appear to be true when you look at an individual purchase. However, loyalty programs benefit your business in ways that extend beyond just one or two transactions. If you question whether they're cost-effective, below are some key benefits that customer loyalty programs can provide to your business.

Xoxoday Plum. Xoxoday Plum is a powerful customer loyalty rewards platform that helps businesses engage and retain their customers through personalized reward programs. With Xoxoday Plum, businesses can easily create and manage reward campaigns that are tailored to their specific customer base, offering rewards that are both meaningful and relevant.

Yotpo is an incentive marketing platform that helps you build a custom loyalty program, whether tier-based, a point system, or referrals, to engage your existing customers and reach new ones. LoyaltyLion helps you create a loyalty program to help your customers feel valued, as opposed to being another number.

All businesses can benefit from building a customer loyalty program and rewarding customers with additional, exclusive benefits. You might already be a member of some programs, like a frequent flier miles program or a referral bonus program.

In an increasingly competitive and crowded market, loyalty programs can differentiate you from your competitors and keep your customers around. Nowadays, customers are making purchase decisions based on more than just price. They make buying decisions based on shared values, engagement, and emotional connections with a brand.

Customer loyalty programs are a great way to engage customers beyond just the point of purchase, to interface on shared values, and to provide even more value to customers — making them happier and more likely to keep purchasing from you.

You can also work with customers for recurring exchanges. For example, with home service companies, you could create a maintenance plan with homeowners where you come back on a weekly or monthly plan.

This keeps the customer engaged and enrolled repetitively. This word-of-mouth marketing draws in new customers at no acquisition cost and can generate even more revenue for your business. It's more cost-effective for your business to retain happy customers than acquire new ones.

Acquiring a new customer is X more expensive than retaining a current one. Online customer reviews are almost as trustworthy as recommendations from friends and family. Customer loyalty programs that incentivize reviews and ratings on websites and social media will result in authentic user-generated content from customers singing your praises so you don't have to.

So, now that you're on board with the value of customer loyalty programs, how do you start one? The first step to a successful customer loyalty program is choosing a great name. It should incite curiosity and interest and urge customers to participate. Most importantly, you must distinguish it from the myriad of other loyalty programs they might already be part of.

The name should go beyond explaining that the customer will get a disco unt or will get rewards — it needs to make customers feel excited to be a part of it.

Image Source. Some of my favorite customer loyalty program names include beauty brand Sephora's Beauty INSIDER program and vegan supplement brand Vega's Rad ish Rewards. These clever, unique names hint at benefits but don't give them away — making customers curious to learn more and join.

Some customers are cynical about customer loyalty programs and think they're just a clever ploy to get them to spend more with businesses. To get customers excited, tap into the "why" behind your product or service to make your customer loyalty program as compelling as possible.

Briogeo is a customizable hair care product line. With just a few answers to a quiz, customers will have a shampoo and conditioner crafted just for their hair on their doorstep.

Its rewards program is just as customer-centric as its product. With no frills or distractions, customers know that this loyalty program is getting them closer to even more affordable hair care products. It's a win-win. Another way to demonstrate your commitment to customer loyalty beyond just purchases?

Reward non-purchasing customer actions. Customers watching product videos, engaging in your mobile app, sharing social media content, and subscribing to your blog are still valuable signs that a customer is engaging with your brand — so reward them for it. Those who spend at a certain threshold or earn enough loyalty points could turn them in for free tickets to events and entertainment, free subscriptions to additional products and services, or even donations in their name to the charity of their choice.

Lyft does a fantastic job of this with its LyftUp program. Riders can round up the cost of their ride to the next dollar and donate the change to the charitable organization of their choice — making it easy and rewarding for them to make an impact while using the service as they normally do.

For example, if you're offering cashback rewards as part of your customer loyalty program, assign a monetary value to your points so customers can visualize what they can earn and spend by continuing to purchase from you. Credit cards do an excellent job of this by illuminating dollar-for-dollar how people use points — just watch any commercial offering points in exchange for dollars, airline miles, groceries, or gas.

Values are important to customers — in fact, two-thirds of customers are more willing to spend money with brands that take stances on social and political issues they care about.

TOMS Shoes donate a pair of shoes to a child in need for every purchase its customers make. Knowing that providing resources to the developing world is important to its customers, TOMS takes it a step further by launching new products that help other important causes — like animal welfare, maternal health, clean water access, and eye care — to get customers excited about helping in other ways.

Once you've launched your customer loyalty program, make sure you're promoting the benefits of joining.

If customers get rewards from purchasing from your online store, next to the price, share the points they could earn from spending that much. You might have experienced this when flying on an airline that offers a loyalty rewards credit card.

The flight attendants might announce that you could earn 30, miles toward your next flight — if you apply for the airline's credit card. Other ways to do this include promoting the program on social media channels and adding on-site push notifications when customers complete an activity that earns them points.

Co-branding rewards programs are a great way to expose your brand to new potential customers and to provide even more value to your existing, loyal ones.

Brands might offer loyal customers free access to co-branded partnerships — like T-Mobile's offer of a Netflix subscription with the purchase of two or more phone lines. Everyone loves games and competition — so use that winning spirit to get your customers interacting with your brand more frequently.

Lots of brands gamify their customer loyalty programs to earn valuable engagements within an app, website, or at point-of-purchase. Points are easily translatable for gamification. Take Treehouse , which teaches coding and app development, and rewards engaged users with more and more points leading up to a badge — which users can then display on their websites and social profiles to impress colleagues and potential employers with their skills.

If you're operating with a growing business, you may not have much flexibility when it comes to your budget. However, you can still offer an attractive rewards program that fosters customer loyalty.

While growing businesses don't have the same financial influence as bigger companies, these organizations can still create incentives that motivate customers to return to their stores. When developing their rewards program, small businesses need to be creative and develop a unique system that mutually benefits both the company and the customer.

Instead, they offer a chance to connect with like-minded people. Refer-a-friend loyalty programs are exactly that: They reward customers for referring friends, family, or colleagues, giving them discounts or special offers.

One company that uses a refer-a-friend loyalty program is Mahabis. Interestingly, they offer slightly different referral offers for different regions. For their U. Mention Me found that consumers most trust brand recommendations from their friends.

We know that offering a loyalty program is a great way to keep your customers coming back for more and turn one-time purchasers into real advocates for your business.

The first step to setting up a customer loyalty program is working out the right type of program for your business.

This means you need to understand your customers: what motivates them, their buying habits, and how they get value from your company. Emily is a B2B SaaS content marketer. rock climber. Find her on Twitter or at ek-byford. Understand Consumer Behavior, Convert More Customers Check out 10 consumer behavior studies that could reveal helpful insights into the minds of your customers.

Get the guide. Try for free. Recommended Reading. Like what you see? At the silver and gold tiers, customers get early access to sales and promotions. At gold, they get £20 off on their birthday.

Hospitality companies tend to use tiered loyalty programs, too. Hilton Honors is a notable example. Tiered loyalty programs are particularly effective in industries with fluctuating demand. Where purchases are frequent and consistent, and average order values low, exclusive tiered benefits can be less of an incentive to make repeat purchases.

With subscription-based loyalty programs, customers pay an ongoing fee to get access to perks, products or exclusive events. The benefits have to be significant. Subscription-based loyalty programs are best suited to frequent, less-considered purchases — such as books. Similarly, Amazon Prime gives customers unlimited to extremely fast delivery for a set fee.

Compare these industries to some of the luxury brands adopting tier-based loyalty programs. When Amazon launched Prime Video, they had a ready-made audience of Prime customers ready to adopt it, and they could strengthen the loyalty program by adding it as an additional feature.

The results can be huge. One notable example is TheCHIVE. To offer this superior experience, customer loyalty programs provide a great platform for brands. And photo entertainment website TheCHIVE is doing exactly this.

By rewarding their customers for photo uploads and social sharing, community is being put at the heart of their gamified blog. As a result, the brand has gained an active community of highly engaged customers.

By giving customers a reason to return to the site, they are more likely to shop again and again. The fashion and apparel ecommerce sector thrives on the allure of exclusivity and the joy of personal expression.

Loyalty programs in this space are uniquely positioned to tap into these consumer sentiments. Fashion brand Lively is an example of a loyalty program that makes its most loyal customers feel special. It rewards members with points on their birthday, when they refer a friend and if they follow Lively on social media.

Not only is it an effective loyalty strategy for a fashion brand, but customers also see the value of joining straight away. It also creates a strong and lasting emotional bond with the customer early on. This customer loyalty program is called Pulse Perks. It aims to encourage customer engagement on social media.

At the same time though, it also helps increase user-generated content UGC , customer reviews and photo submissions.

Meanwhile, people are four times more likely to buy a product if a friend or family member recommends it. These programs work because fashion is a highly visual and shareable industry. The key for fashion ecommerce brands is to tailor loyalty programs that not only reward purchases but also encourage brand interaction and social sharing.

This approach resonates well with fashion consumers who value both the product and the experience surrounding it. In the beauty and cosmetics ecommerce industry, loyalty programs play a pivotal role in enhancing customer experience and brand loyalty.

This sector, characterized by its emphasis on personal care, self-expression, and frequent product launches, finds unique value in loyalty programs that offer personalized rewards and exclusive experiences.

The aim of Annmarie Skin Care was to develop a loyalty program where members felt part of a community that shared similar beliefs and values. Beauty shoppers are more vocal on social media, for example.

The brand generated more than reviews too. It has a branded, easy-to-use loyalty page.

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