Increase Customer Loyalty with Customer Loyalty Programs
Customer loyalty is critical to the success of your business. Acquiring new customers is five times more costly than retaining existing customers. According to research, existing customers are 50% more likely to try a new product and spend 31% more than new customers.
So what exactly is customer loyalty? Customer loyalty is a customer’s willingness to return to a company again and again to make a purchase. This is due to the enjoyable and remarkable experiences they have had with that brand. Customer loyalty nurtures brand trust and helps your business grow without the need to acquire new customers.
Customer loyalty programs can be carried out in different categories such as points-based, gamification, and social media. Let’s take a look at the main types of customer loyalty programs that are most used and how brands use them with examples.
Points Based Loyalty Program
Points-based customer loyalty programs are the most common type of rewards programs. It allows customers to accumulate points that can be redeemable for free products, discounts and other benefits. Customers don’t just earn points from their purchases. They can also earn points by sharing on social media, leaving comments, celebrating a birthday or by gamification.
For example, personal care brand Blume uses a point system called Blume Bucks in its loyalty program called Blumetopia. Customers can earn Blume Bucks (BB) to buy different products by following the brand on Instagram, placing an order or telling friends about Blume.
Ranking Based Loyalty Program
Rank or title based loyalty programs are based on a membership system where customers get different benefits based on their rank. Businesses often divide memberships into groups based on certain criteria such as sales or engagement. These reward programs give customers a goal. The higher their level, the more special and better rewards they get.
Underwear brand ThirdLove uses this tiered system for its Hooked Rewards program. Customers can start earning rewards right away by signing up for the program. The more they spend with ThirdLove, the more benefits they get.
Paid Loyalty Programs
Paid-based customer loyalty programs are based on providing various benefits to customers in exchange for a participation fee. These fees can be recurring or one-time.
A recent report by McKinsey shows that consumers are 62% more likely to spend more on a brand after joining a paid loyalty program.
The most common example of a paid loyalty program is Amazon Prime. While it may seem like a difficult model to emulate, paid loyalty can be tailored to many different business models.
Value-Based Loyalty Programs
A value-based customer loyalty program relies on connecting with customers on a deeper level. It involves donating a certain percentage of what is purchased to charities. This program does not actually reward customers. However, since the rewards are used to benefit society, they have a special place for them.
For example, Sephora allows members to donate reward points to the National Black Justice Coalition. For example, if you have 500 points, you can donate 10 dollars to the organization.
Keep Customer Loyalty at the Highest Level with Netmera
Loyalty and reward programs that provide continuous value to their customers are an effective way to increase repeat purchases, customer retention and customer lifetime value.
To make these programs more effective, you need to keep your customers engaged and engaged with special offers, giveaways and more with tools like notifications, pop-ups, and informative emails.
Thanks to the tools developed by Netmera to increase customer interaction, you can always keep customer loyalty at the highest level.
Thanks to the interactive instant notifications offered by Netmera, you can instantly present all the developments and offers regarding your customer loyalty program to your users. Moreover, by adding buttons to your notifications, you can ask your users to register or make a purchase without having to open the application and get your answer immediately.
With Netmera Mobile Marketing Automation, you can send the right message to your customers when they need or expect it. For example, the gift, discount, etc. that you set for your user who earns a certain point by using your mobile application. You can send the advantage in the form of automatic notification. You can automate periodic messages such as reminders, daily product or content recommendations and keep your customers active.
By using Netmera’s in-app pop-up feature, you can interact with your customers with content about their behavior within the app. You can trigger your pop-ups as a result of certain actions by customers inside the app, such as clicking a product, purchasing, opening the app, or completing an objective. Thus, you can always stay in touch with your users, increase their interest and increase customer loyalty to the next level.
Discover the tools Netmera has developed to increase customer interaction and loyalty.