Loyalty programmes are essential to keep the customers you have already gained. Today we will tell you exactly what they are, what types there are and how to create your own.
what are loyalty programmes?
A loyalty programme is a marketing strategy established by a company with the purpose of rewarding the purchasing behaviour of its customers, which produces in them a sense of loyalty and loyalty towards the brand.
Loyalty programmes offer, for example, access to shop credits, discounts, prizes or any other type of benefit that affirms their commitment.
what are the most effective types of loyalty programmes?
- simple points-based programme - the most common method of loyalty programmes. Frequent customers earn points that can then be redeemed for a reward, be it a discount, a free gift or a special deal. With this type of programme, customers strive to reach a certain number of points in order to redeem their reward.
- a tiered programme. With this type of loyalty programme, small rewards, such as initial offers, are provided for being part of the programme and then customers are incentivised to continue purchasing to increase the value of the rewards based on their level of loyalty. This helps solve the problem of members forgetting to redeem their points due to the large gap between the time of purchase and the time they receive the reward.
- a fee-based programme that allows customers to earn VIP benefits. This system can be beneficial for businesses that take advantage of frequent or repeat customer purchases. By paying a fee upfront, customers avoid inconveniences that could prevent future purchases. Amazon is a true expert in the ecommerce industry, but this model can also be useful for B2B companies that sell products to other companies on a regular basis.
- non-monetary programme structure based on customer values. Depending on your industry, your customers are likely to find rewards that are not based on discounts or monetary benefits more valuable. While any company can offer promotional coupons and discount codes, the brands that have the opportunity to connect deeply with their audience are the ones that do not reduce the value of their benefits in economic terms. Brainstorming with your colleagues is important and recommended here.
- partner with another company to provide integrated offerings. Strategic customer loyalty partnerships (or coalition programmes) can be very effective in retaining customers and growing your business. To determine which company to partner with, you need to understand your customers' lifestyles and buying process.
- if implemented correctly, these programmes can be beneficial for almost any organisation, even B2B companies. If your audience likes to have fun and makes frequent purchases, this type of loyalty programme can make the sales process more dynamic and interactive.
how to create a loyalty programme?
Now that you know what they are and the main types of loyalty programmes that exist, it's time to try to create your own. Following these three steps will make it really easy:
- Define your objectives: A loyalty programme is not about offering benefits and discounts to those who buy one of your products or services; rather, it is about finding ways to build customer loyalty to strengthen the relationship you have with them, so that, among other things, they attract the attention of those who are not yet familiar with your brand.
- Analyse your customers: Having a clear understanding of your customers' buying habits is critical to the success of your loyalty strategy. Knowing your customers and guessing what they will need allows you to more successfully determine their buying behaviour.
- Choose the right programme. Not all loyalty programmes are the same, just as not all consumer habits are the same, so it is important that you learn about different customer loyalty programmes and adopt and implement the one that best suits your situation.
Finally, you should remember that loyalty programmes have become a very powerful marketing and inbound marketing tool that helps to reaffirm the loyalty of your customers, in addition to significantly improving the offline and online reputation of your brand. So if you have not yet opted for one, this is the best time to choose and start doing it. Thank you for reading us and let's get to work!