There are millions of brands on planet Earth. What makes a consumer loyal to one over the other?
It could be pricing or a favorite service. But in reality, buyers’ preferences are constantly changing. Your best customer today may pick your competitor tomorrow.
One way to shore up your business against the fickle favor of your customers is to create a loyalty program. Customer loyalty programs are designed to reward repeat purchases and encourage fans to stick with your brand for the long run.
If you’re thinking about starting your own loyalty program, we’ve got some ideas you should see. These concepts, with real-life examples, demonstrate just how many ways there are to structure a loyalty initiative. Find a few that inspire you!
Contents
- Points and rewards-based loyalty programs
- Experience and engagement-based loyalty program ideas
- Community-building loyalty program ideas
- Value and perks-based loyalty program ideas
Points and rewards-based loyalty program ideas
Chances are, you’ve seen brand loyalty programs in action yourself. Maybe you’ve even signed up for a few.
The points and rewards-based loyalty program concept is popular because it’s simple and instantly recognizable. Customers intuitively understand what your offer is without requiring a lot of explanation. A clear offer makes it easier for folks to say yes and sign up!
1. Points per purchase
This first loyalty program idea is perhaps the most straightforward: customers earn points for each purchase they make. We’ve all seen this one before, and we know the basic “1 point for every $1 spent” structure. What the points represent and the bonuses they unlock are up to you and will depend on your business model.
There’s also space for flexibility beyond the baseline program offers. You may add special bonuses for customer activities you want to incentivize. For example, perhaps you offer double points when people shop online over the opening weekend of your ecommerce shop. Or maybe you offer an extra 25 points when someone spends $200 on a single order.
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2. Tiered rewards
Want a loyalty program twist that can help drive your customers to spend even more? Consider building out a tiered program, where the rewards get bigger the more your customers spend.
Many brands structure this with bronze, silver, and gold levels—again, because it’s a simple structure that’s instantly recognizable to customers. Top spenders who make it into the gold tier unlock additional perks, like more points on every purchase and enticing offers like free shipping or first dibs on new products.
3. Punch cards
Punch cards have long been a hallmark of small business loyalty rewards programs. They’re easy to administer and track, and don’t require any real upfront investment, aside from the cost of printing your cards.
The concept is also super simple for customers to understand, and seeing those punches or stamps accrue on each visit is a clear incentive for them to return for more. Who doesn’t feel a jolt of excitement when they pull out their punch card at the local café and realize it’s their free coffee day?
4. Referral points
If you’re looking for a program that can drive two marketing objectives at once, consider building a points-based referral program, where customers earn points for sending others your way.
Referral programs are a powerful way to keep your word-of-mouth engine running, and offering points or a discount voucher helps encourage people who already know and like your business to tell others to give you a try.
You may offer additional referral points to people based on their level within your membership program, with the top-tier customers enjoying greater discounts or more perks for referrals.
5. Limited-time rewards
FOMO is a powerful force to leverage in your marketing. If you want to encourage people to return to your store quickly and spend even more, limited-time rewards can create a sense of urgency to do it.
Some businesses offer loyalty rewards with a time limit, giving customers a few weeks or months to use their bonus points or cash before they expire. This encourages customers who were on the fence about returning so quickly to come back and spend more, which doesn’t just bring in more revenue, it also helps ingrain a habit of shopping regularly at your store.
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Experience and engagement-based loyalty program ideas
You needn’t limit your loyalty program ideas to points-based systems. Offering perks for hitting certain milestones, taking specific actions, or engaging with your business in a particular way is another way to structure your program.
You can also start with a basic points-based system and add on experience and engagement-based rewards to further gamify the experience for your customers.
6. Birthday or anniversary rewards
To reward continued loyalty, why not consider offering special perks at milestones your customers hit each year? This could be a birthday reward or one that customers earn on the anniversary of their first purchase with your brand.
Many businesses offer birthday or anniversary rewards as part of a broader loyalty program, with a special discount code customers can use in their birth or anniversary month for an additional percentage off a purchase.
7. Early/VIP access to new products
The best loyalty programs make your regular customers feel special and celebrated. Giving them a sneak peek and first access to your newest offerings is one way to do that.
Consider segmenting your email marketing list and creating a special cohort of your loyalty program members. Then, send them an email giving them an early heads up about your newest offering, with a call to action to shop now and grab it before others even know it’s available.
This move has two benefits: It makes your best customers feel very important, and it drives them to make a new purchase with you.
8. Gamification challenges
Gamification keeps popping up in sales and marketing tactics because it works. Humans are hard-wired to seek rewards, and creating spending challenges that invite your loyal customers to reach for the brass ring can drive sales and delight your audience.
Starbucks offers the chance to earn bonus stars for a limited time on its rewards app.
An example would be a loyalty offering that invites members to spend X dollars in Y days to earn Z bonus. If you have an app or desktop login for loyalty program members, you can even include a graphic that shows how close they are to hitting their target.
Community-building loyalty program ideas
Loyalty program ideas designed to strengthen community can be part of a virtuous circle. The more your already-loyal customers feel like a part of a supportive community, the more they’ll want to recommit to your brand. Here are some ideas to help you reinforce the ties that already bind fans to your business.
9. VIP events or workshops
Similar to the idea that provides early access to new products for your VIPs, this concept gives loyal customers access to special events and workshops.
That event might be a holiday celebration, an early in-person shopping experience where they can see your latest collection first, or a workshop that ties into your business somehow.
No matter what type of event you choose to host, it’s an opportunity for you to strengthen relationships with your customers and for your fans to meet each other, which solidifies your business as a part of their social fabric.
10. Charity tie-ins
Consumers like to buy from like-minded businesses; 30% say they are loyal to brands that align with their ethical values. By incorporating a charity connection within your loyalty program, you tap into this powerful consumer mindset.
Consider letting your customers donate any unused loyalty points to a partner charity of your choosing. Or, create a matching funds offer, where you allow loyalty members to accrue points over a set timeframe, then donate a matching dollar amount to a charity (for example, if your loyalty members earn 5,000 points, you donate $500).
Kroger’s Community Rewards program allows customers to give to an organization of their choice every time they shop.
11. Customer of the month programs
The idea of selecting a customer of the month might feel a little old school, but it remains an effective loyalty program idea. People like to be acknowledged and celebrated, and when others see you highlighting your top customers, they might feel inspired to compete for the honor!
Create a celebratory corner in your store where you can honor your customer of the month with a framed photo and plaque. Then, set criteria for selecting your winner. Finally, decide on a special reward that comes with the title—maybe it’s a swag bag of branded merch, or perhaps it’s an additional discount for your top customer to enjoy during the month of their reign.
12. Bring-a-friend bonus
This is another loyalty program idea that can build community and may even introduce you to new future fans. Invite your current loyalty program members to bring a friend during the promotional period.
When they bring a buddy and both spend money, you can offer them each an additional perk, like a coupon to use the next time they’re in. This encourages the friend you just met to return to your store and, hopefully, become a repeat customer themselves.
Value and perks-based loyalty program ideas
People like to feel like they’re getting a bargain. These value and perks-based loyalty program ideas encourage repeat buying and give regular customers something extra as a thank you for their continued business.
13. Cash-back credits
Points-based and cash-back credit loyalty programs function in essentially the same way: customers earn additional money to spend with your business as a reward for their purchases. The difference is in the framing, and some businesses find their customers respond more positively to a cash-back credit offer.
Instead of offering points, you can give customers a gift card or cash back reward when they spend a certain dollar amount with your business.
14. Free shipping for loyalty program members
Big ecommerce brands like Amazon have made free, fast shipping an expectation for many consumers. But small businesses don’t always have the infrastructure or scale to offer that perk to everyone. That’s why adding free shipping as a perk for loyalty program members can be a big draw.
15. Double your points days
Sometimes it’s nice to give your loyal customers access to additional perks. If you have a points-based rewards system, consider offering times throughout the year where people can earn twice the number of typical rewards points.
Use this loyalty program structure to reward spending during times of the year that are usually slow for you. If you have a week or month where sales dip, you can create an offer of double points days to get customers in the door during that time.
16. Feedback and survey rewards
With 71% of consumers saying they “always” or “regularly” read online reviews when searching for a local business, encouraging your fans to leave feedback can do wonders for your lead generation.
If you want to build up your online reviews, offering loyalty members additional perks for writing a Google review can be a smart move. And if you’re trying to collect feedback on your business, consider incentivizing responses to customer surveys with additional perks, too.
17. Seasonal or surprise loyalty campaigns
Seasonal marketing tactics are always a great way to draw additional attention and sales for your brand. That’s why building out extra loyalty campaigns around special events can be such an effective concept.
You may offer more perks around big seasonal events, like Black Friday or Small Business Saturday, or you can make up your own special seasonal events to celebrate. Target, for example, hosts its Circle Week twice a year, announcing the date a few weeks in advance to build anticipation. Members of the Target rewards program can score big deals during the semiannual event.
Keep customers coming back with these loyalty program ideas
No matter how you choose to structure your offering, a loyalty program has the power to drive return business and build a solid base of returning customers for your brand. It can even help you connect with new prospects and grow your customer base even further. And because these loyalty program ideas often work together, you can make adjustments and additions to your program as the needs of your business and customers evolve.
If you’d like even more ways to find new customers and keep them coming back, contact us and we’ll show you how our solutions can help.
In the meantime, here’s a recap of the 17 customer loyalty program ideas and types we highlighted in this post:
- Points per purchase
- Tiered rewards
- Punch cards
- Referral points
- Limited-time rewards
- Birthday or anniversary rewards
- Early/VIP access to new products
- Gamification challenges
- VIP events or workshops
- Charity tie-ins
- Customer of the month programs
- Bring-a-friend bonus
- Cash-back credits
- Free shipping for loyalty program members
- Double your points days
- Feedback and survey rewards
- Seasonal or surprise loyalty campaigns
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