– Rewards Programs –
Best Rewards Programs: In the retailer’s marketing toolkit, loyalty programs have proven themselves as one of the most effective tactics for increasing revenue and inspiring customer loyalty. As many as 84% of consumers say they’re more apt to stick with a brand that offers a loyalty program.
Studies show that it’s 5x easier to retain a customer than acquire a new one and that loyal customers spend 67% more on products and services than new customers.
Why Customer Loyalty is Important?
Customer loyalty is something all companies should aspire to simply by virtue of their existence;
The point of starting a for-profit company is to attract and keep happy customers who buy your products to drive revenue.
Customers convert and spend more time and money with the brands they’re loyal to. These customers also tell their friends and colleagues about those brands, too which drives referral traffic and word-of-mouth marketing.
Customer loyalty also fosters a strong sense of trust between your brand and customers — when customers choose to frequently return to your company.
The value they’re getting out of the relationship outweighs the potential benefits they’d get from one of your competitors.
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Store Customer Loyalty Cards You Must Get
1. Starbucks Rewards
Starbucks rewards loyalty program
It’s common now for retailers to create a mobile app to manage loyalty programs, but when Starbucks first launched
My Starbucks Rewards through the Starbucks app, it was a new idea. Running the program through their app makes it radically easy for customers—no punch card to forget or lose, no sign-in required.
In order to earn loyalty points (or stars, in their case), customers must order or pay with the Starbucks app. Centralizing customer transactions this way creates a goldmine of data on customer preferences and behavior.
Go-to drink orders, customer lifetime value, frequently visited locations, seasonal favorites… by shepherding customers toward the app.
Starbucks can gather information on all of these habits and more—empowering them to offer more relevant perks and communication to customers.
If a loyalty app is doable for your store, it can be a great way to collect and centralize customer data. Otherwise, a capable point-of-sale system can help you collect most of the same information.
2. The North Face Points Program
One example of a customer loyalty program that follows the points program is by The North Face:
The North Face makes it easy for customers to understand how the rewards program works:
Customers earn 10 points for every $1 they spend online and in retail stores, and five points for every $1 they spend in their outlets. Then, customers can put these points toward future purchases.
To increase customer engagement even further, The North Face has also developed an app where users can manage their accounts, buy new products, check their point status, redeem rewards, and more.
By rewarding customers with redeemable points, you increase your customer average order value and encourage them to invest in your brand—meaning they’re less likely to switch to a competitor.
Reebok has an alternative approach and one that may cost the brand less money than a gift-based rewards plan. They provide VIP experiences, training and wellness programs, partner rewards, and much more.
Also, members gain points for every interaction and transaction. As points accumulate so do the value of the rewards, even going as far as providing access to partner events and product releases.
4. Amazon Prime
Amazon deals with heavy competition from other retailers like Walmart. You can find most of the products on Amazon elsewhere, too.
Prime is how they differentiate themselves and convince customers to buy products through Amazon exclusively. And it works—Prime members spend an average of four times more than other Amazon customers.
For retailers in similar industries where products and price points are very similar across competitors, your loyalty program can become a differentiator and competitive advantage.
Just for signing up for their loyalty program, Baskin-Robbins gives out a free scoop of ice cream.
They’re mobile-friendly and members can pay with their phones, view the latest flavors, and even order customizable ice cream cakes.
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