It's Time to relook your loyalty program & strategy.

The main objective of Loyalty cards is to build a bond of trust and ensure repeat purchases from loyal customers.

I am a big fan of Amazon Prime which has over 80 million subscribers and members who enjoy free shipping, entertainment, and music from Amazon.

In fact, Amazon earns more from its prime members than it earns from selling products through product margins.

Normally the loyalty programs are tier based i.e. you have to reach a particular threshold before redeeming the points, which accordingly to me is one of the most frustrating experience and have a higher rate of drop-outs. (people finding the initial purchase threshold too high, tend to drop out of the program or become dormant members).

But if you want to strengthen brand loyalty, you can also choose to implement instant rewards campaigns.?

In this scenario, you’ll reward your consumers every time they complete a specific action of your choice – traditionally a purchase, but it can also be filling out a form, or answering a survey,?or even posting the shopping haul on social media.

The retailers need to rethink their strategy for loyalty programs

“Look beyond the transaction and truly give customers greater access to the brand”.        

The financial rewards were popular for a long time, but in the past few years, brands have been offering more experimental rewards like event invites and early access to sales previews, and launch event invites.

Starbucks?has one of the best mobile product rewards programs?that let their customers:

• Pay by phone.
• Get free in-store refills.
• Leverage personalized offers.
• Collect points for every dollar spent that gives them more free products.

Many loyal Starbucks app users look forward to their free drinks. It’s a perk that excites them and keeps them returning to the store.

Starbucks also offers free goodies beyond drinks.

Starbucks offers a lot of free stuff just for having the app – free songs, free games, etc.

They have moved away from the accumulation of points to the instant gratification of non-monetary items.??

Another example, is the sandwich shop Potbelly, a chain that is significantly smaller than Starbucks, which offers free first tastings and discounts on a random basis through its rewards app.

The latest news is that brand J.Crew is also revamping its loyalty program in order to make it more experiential and target the group who normally miss out on reaching the lower Tier for redeeming the points.

To learn more about loyalty programs and strategies,?click here.

In case you are a retailer and need bespoke strategies to grow & scale your business then feel free to reach out to me at?[email protected]

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