Customer loyalty programs are nothing new. Many different types of businesses have used them successfully to improve their results over the years. However, the fact that many businesses now use customer loyalty programs has both positive and negative implications.
First and foremost, it is beneficial since it proves that loyalty programs yield positive effects for firms. On the other side, it makes it more difficult to design a loyalty program and rewards that will produce remarkable outcomes.
There is one way you can overcome this issue – by innovating.
Customers are accustomed to traditional programs, which rarely motivate them to make repeat purchases and have little effect on customer relationships.
To establish consumer loyalty, you’ll need to bring something new to the mix if you want to perform exceptionally well. Here’s everything you need to know about it.
A loyalty-points-based reward program can promote future purchases, resulting in more customer referrals to friends and family, word of mouth, brand loyalty, increased customer lifetime value, and more.
Here are some of the most innovative examples
1. Starbucks Loyalty Program
The Starbucks application was the first big loyalty/rewards program to do away with sign-ins and punch cards.
Customers receive stars when they use the app to make a purchase. Starbucks has consolidated payments and collects significant consumer data in this manner, which benefits in managing customer expectations.
2. Disney Movie Insiders
This program brings Disney fans together and builds anticipation for upcoming films. It is a rewards program at the same time. This is accomplished through tracking views in various forms and channels, as well as consumer involvement.
Customers are rewarded with one-of-a-kind merchandise, experiences, and future releases.
3. Amazon Prime
Amazon Prime is a monthly subscription service that allows consumers to get an infinite number of free expedited shipments. Amazon may differentiate itself from its competition by offering truly meaningful perks from its program for a nominal cost.