Bringing The World's Most Successful Customer Loyalty Programs

More than 70% of consumers will likely recommend a brand with a good loyalty program!

The stat justifies why most companies have started offering loyalty programs. Cashback, discounts, access to events, and exclusive items are some of the common examples of loyalty programs that a customer may experience in today’s world.

But The catch here is: Not every loyalty program works for every firm.

Although loyalty programs are effective for a number of reasons, they are nothing new. Almost each of them falls into a tier, social media, or point-based loyalty system.

Therefore, most retailers or owners are looking to shake things up and choose a suitable loyalty program for their firm.

Here, are the most effective loyalty programs that you can get inspired from and learn something from!

World’s Most Successful Customer Loyalty Programs

Sephora Beauty Insider Program

It comes to loyalty programs, no list is complete without Sephora. With more than 25 million loyal customers, Sephora stands as one of the most popular loyalty programs in the world. The company uses a simple point-based system where the customer will get a point on each purchase and then redeem the points whenever he wants.

What’s Exciting About It

Sephora gives customers the flexibility to choose how they want to redeem the rewards. The customer can choose to get a gift card, samples, a free shipping facility, and access to exclusive events.

Starbucks Rewards

Starbucks is the trendsetter in using mobile applications to manage loyalty programs. The idea behind this loyalty program is to make customers use the mobile application to make a transaction. This helped Starbucks to collect data related to customers’ buying preferences, buying frequency, and customer lifetime value.

What’s Different About It:

The mobile application gives the firm the capability to provide customers with personalized experiences. Mobile applications made redeeming and gaining rewards at their fingertips for all customers.

Pomelo Perks

Who doesn’t like cashback? And Pomelo Perks gives you exactly what customers like. This DTC fashion brand has launched a cashback rewards program to allow customers to spend money and save their money simultaneously.

What’s The Logic Behind It:

The company allows customers to get up to 5% cashback within 30 days. This led customers to make another transaction on the application within 30 days only and the cycle continues. For firms that are low on loyalty budgets, adding the minimum order amount is beneficial.

Bank of America Preferred Rewards

Bank of America follows a tier-based loyalty program based on the three-month account balance of the customer. The bank offers different flexibilities and advantages to customers in different tiers.

For instance, Customers who are on the first tier, also known as the Gold tier, can leverage rewards like a 5% interest booster, and a 25% bonus on the credit card. In the same way, these features and advantages will increase with the increase in tiers.

What’s The Logic Behind It:

This motivates customers to maintain the required balance in their accounts. To say, to leverage the benefits of the Gold tier, one has to maintain $20,000 to $50,000 in his account whereas, to avail of the benefits of the platinum tier, one has to maintain a $50,000 to $100,000 balance in the account.

Hilton Honors

Hilton Honors is launched by Hilton to retain its customers using a point-based system. Customers can redeem the earned points to pay for the hotels. The program is applicable to more than 6800 properties in almost 122 countries around the world. The points can be earned by making transactions at hotels or using the Hilton credit card.

What’s The Logic Behind It:

The best thing about the Hilton Honors program is that it allows customers to earn multiple points on a single transaction. Also, this simpler redemption process inspires users to go back to Hilton properties and make transactions.

Key Takeaways

Loyalty programs are great ways to increase your customer retention and build a loyal customer base.

But undoubtedly, your customers make the whole difference here!

So, whether you are using an emotional connect approach like The Body Shop or you are using a cashback loyalty approach like Pomelo Perks, always keep your target customers in mind.