New year, new beginning! If you are a businessperson, you surely understand the benefits of retaining the customers you had the previous year as you look to win new ones this year. There is no better way of doing it than checking your loyalty program.
A loyalty program will earn you more customer referrals, achieve a higher customer retention rate, realize more sales, and turn regular customers to brand advocates. However, you need to implement a well-thought-out loyalty program that resonates with your product. It is an essential step in getting more market shares.
Type of Loyalty Programs
Before we look at the top 10 customer loyalty programs to consider in 2022, let us briefly highlight different types of reward programs. They include the following:
Point-based loyalty reward: Here, customers accumulate points when they make purchases, leave reviews, share on social media, or interact with the brand in any other way. The points can then be redeemed for freebies, cashback, perks, among other goodies.
Tiered loyalty: In this type of reward, customers are ranked depending on their purchasing power or engagement level. Customers get privileges when they shop according to their rank. You must have heard of VIP sections in some stores or eateries. These are usually reserved for loyal customers at the top tier. It motivates customers to achieve a bronze, silver, or gold level.
Paid loyalty: This is a fee-based loyalty program where customers are paid out to provide value to the business. It can be to get more subscribers or referrals.
Value loyalty: If you want emotional attachment to your customers, you can offer a value-based reward. It involves giving a percentage of purchases to charity or a social welfare program. Although customers don’t directly benefit, it is a good gesture that appeals to their hearts.
10 Best Customer Loyalty Program of 2021
Using loyalty programs to boost sales is not a new thing in business. Different companies have implemented it, and varying levels of success are realized. How you structure and implement your loyalty program will determine its success.
When creating a loyalty program, consider the following aspects:
Personalization
Emotional connection
Customer service
Transparency
Adaptation to changes
Some businesses have been exceptionally successful with their loyalty programs. We will look at some of those cases in this section.
Sephora Beauty Insider Loyalty Program
Sephora Beauty offers a 3-tier loyalty program that members can join for free. Presently, the program has over 25 million members and contributes to about 80% of Sephora Beauty’s annual sales.
Sephora Beauty’s reward program awards customers points for every dollar spent on the store. Customers freely spend their rewards as they wish, including exclusive deals on some limited products and beauty tutorials offered in the store. The program is effective in enhancing customer loyalty and boosting sales.
The Amazon Prime Program
Amazon, as it is known, is the king of eCommerce stores. It offers a hard-to-resist reward program with many benefits. It will cost you a fee to join the Amazon Prime program, but loyal customers get many advantages. These include but are not limited to streaming service, free shipping on millions of products, and access to Prime Day deals. View the complete list of benefits of becoming an Amazon Prime Member.
Amazon Prime is one of the loyalty programs with many members worldwide. By 2020, there were over 150 million Prime members. How does Amazon benefit from this reward program? Comparing the customers’ behavior, Amazon Prime members spend twice as much as regular shoppers on the store.
The North Face XPLR Pass Reward Program
The loyalty program lures shoppers to join for free to get one point for every dollar they spend. But that is not all! The North Face additionally offers gear testing, discounts, and free access to yet-to-be-released gears, only tested by the North Face athletes. Also, loyal customers are rewarded for their responsibility in handling the packaging bags.
One reusable bag is equivalent to 10 points, and using the mobile app is rewarded with 5 points. Why is the North Face XPLR loyalty program unique? It meets the customers’ specific requirements when shopping at the store.
REI CO-OP Membership Program
REI CO-OP has a unique loyalty program that benefits both shoppers and the enterprise. You pay just $20 to get a lifetime membership and enjoy all the benefits that come with it. Once you become a member, you will feel like part of the entire REI CO-OP.
Registered members get dividends. Simply put, the more you spend on the REI CO-OP products, the more significant share you get out of the annual profit of the REI CO-OP. You can accumulate your dividends and use them to buy more products. Additionally, the REI CO-OP members can buy heavily discounted returned merchandise. The company builds a community of loyal customers who advocate for its products.
GAP Good Reward Program
Very few businesses have converted one-time buyers into loyal customers, and GAP is one such enterprise that has achieved it. With the GAP Good Reward program, you can convert a single-brand user to a multi-brand customer.
It is free to join the GAP Good Reward program. Ordinary members earn one point for every dollar spent, while card members earn five points for the same amount. The points can be accumulated and redeemed for products across different brands under the GAP umbrella.
Chick-fil-A One Loyalty Program
This is an example of a tiered loyalty program. Chick-fil-A has used it to beat the competition from its greatest rivals. This loyalty program has 13 million active members, generating more sales for Chick-fil-A.
The program works in three steps: earn points for every dollar spent, receive rewards, and redeem the benefits. It is a four-membership tier, and the points you get depend on your level. New members at the bottom get 10 points for every dollar, while signature members at the top get 13 points for every dollar. Your additional benefit as a member also depends on your level, urging people to rise up the rank.
Delta Airlines SkyMiles Loyalty Program
Delta’s SkyMiles loyalty program is another perfect example of a tiered reward program. Flying is no longer just boarding a plane and taking to the sky, but it also comes with benefits. Given the competitiveness of the industry, different airlines are strategizing. Delta Airlines have an edge with its SkyMiles program.
The program is well-structured, easy to earn points, and tailors to motivate users to spend more with Delta Airlines. Being a tiered program, those at the top of the rank have more benefit. In this program, top-tier members are the medallions. They sit at the front and get more miles and waived fees.
Adidas 3Stripes Loyalty Program
The 3Srtipes is Adidas’s loyalty program for Asian customers. It gives members a $10 voucher for every $100 spent as the main benefit. You, however, get other privileges as a 3Stripes member. You can additionally get 20% off when you buy any product in your birthday month, free newsletters, and event invites.
The company can develop customer loyalty by creating that special attachment. Through the program, Adidas gets sales boosts.
Nestlé Loyalty Program
This loyalty program is self-explanatory from the screenshot below. You earn points when interacting with the product, including registering to be a member, rating articles on the blog, and referring your friends. The bonus points can be redeemed for great Nestle goodies.
Zappos Loyalty Program
The Zappos loyalty program is popular because it is customer-centric. You get most of the benefits when you become a member compared to what the merchandise gains. When you reach the VIP Perks member, the top tier, you get free expedited shipping. You also get fast refunds on any item returned, usually within 24 hours.
You earn one point for every dollar you spend and redeem them for VIP codes. Other ways to get extra points are logging into the store and reviewing the products bought. You also get more points for linking your Amazon Prime membership and shopping on select products.
The Verdict
Creating a well-thought-out loyalty program can give you an edge over your competitors. You, however, need to know the type of reward program that will work for your brand. Also, you have to consider the various aspects of a customer loyalty program to account for before implementing the program. Remember to appeal to them, connect emotionally, and maintain transparency. Create a loyalty program with the objectives in mind.