Your Brand NEEDS a Loyalty Program – Here’s Where You Start:
Rewarding your customers for their brand loyalty isn’t a novelty anymore – most brands are utilizing some sort of rewards system. However, many brands have still neglected to invest in a strategically developed Loyalty Program, and are missing out on increased customer retention because of it.
While this may seem obvious, it’s proven that 86% of customers are more loyal to brands where they participate in loyalty/rewards programs. And when a customer is loyal, we know that they are going to make purchases 90% more frequently.
With those facts in mind, many brands have put time and resources into crafting successful loyalty programs that benefit not only their customers, but their business. Finding a system that works for your brand and appeals to your target audience can be tricky, but here are few perimeters we always recommend:
Make it as easy + simple as possible. We all know attention spans are shortening year over year – so making your loyalty program as concise as possible is key. We recommend 3-4 clear tiers, with all benefits outlined on your website.
It should be very accessible – to start. Your bottom tier should have a low barrier to entry to encourage participation. Each tier can increase in ‘difficulty,’ but should still be attainable for customers to climb up and up.
Make it feel personal. Who doesn’t love a birthday offer, or personalized picks based off of previous purchases?
Create a sense of urgency. Allow points to expire after a certain amount of time with no purchase, nudging customers to make repeat purchases to maintain their standing.
Go beyond just discounts. Sure, everyone loves a sale – but that doesn’t exactly ‘reinvent the wheel.’ Offer exclusive experiences, early access to new launches and unique benefits to your most loyal customers.
Need to see all of this in practice? We’ve compiled examples of our favorite loyalty programs from brands across industries:
Sakara
Sakara’s loyalty program has struck the perfect balance between rewarding both big spenders, and nurturing lower-spending customers to get to the next ‘level.’ Biggest spenders get what they really want – ACCESS, while entry level membership is focused on points.
Jenni Kayne
Jenni Kayne’s simplified tiers attach a clear, monetary value to each level, and list the perks that align with each. Customers can easily see the advantages that spending $500, $1500 and $3000 will bring them.
PrintFresh
Coined the ‘Dream Team,’ PrintFresh’s loyalty program feels like an exclusive (but accessible) club for those who love fun prints + cozy pajamas. The barrier to entry is simple – buy anything (even their lowest priced item) and become a ‘Nightie Novice,’ who can enjoy a 10% off birthday coupon, double points days and more. PF also offers many ways to earn points – beyond just making a purchase!
Haverhill
Like the examples above, Haverhill does an excellent job of clearly showcasing their tiers, the benefits of each, and how you can use your well-earned points. Haverhill also strategically leverages point expirations to encourage redemption and increase urgency.
While a good loyalty program is clean and simple to the customer, there are many moving parts to consider on the brand’s end. If you’re wondering where to start – look no further. Our team of retention marketing experts can design a captivating loyalty experience that engages new customers and retains current ones. Schedule a consultation with us to get started.