Service loyalty program

In this section, you will learn about different types that are used by famous and successful businesses. Using a subscription program, companies sell their products to their customers when they subscribe to it.

This loyalty program is different from other traditional ones. The customers are not given the benefit of reward points or discounts. It is a unique program that customers get to never run out of the commodity. This method has been used by magazines and newspapers, where customers buy a subscription to get a regular supply. Now, the subscription method is used by various brands to increase the loyalty of customers towards their brand.

The most famous example is the subscription program of Amazon for grocery products. The name of the program run by amazon is the Amazon fresh. You can create a list of groceries that you need every month or week, and it will be delivered at your doorstep. You can also add, eliminate, or modify the things on the list too. Customers can get the subscription of their favorite coffee and never have to run out of coffee ever again. Now, the points program is quite a popular loyalty program and is used by many e-commerce businesses.

The companies provide reward points to their customers for every penny spent by them on their platform. These points can be used to get discount on their future purchases. The point program encourages customers to shop spend more. If a customer has points in his account, then he will buy products that he might not need immediately to get the remaining points.

This concept of the loyalty program is quite popular among cosmetic businesses. However, this program was first introduced by Starbucks.

Starbucks encourages its customers to pay through their app. For every purchase, customers will be rewarded with points that can be used to get a discount on a future purchase. Similarly, the point or reward program is used by Sephora cosmetic brand. Sephora is one of the biggest cosmetic brands and has more than 15 million loyal members. Sephora provides reward points to its customers for every purchase they made on its platform. They let customers use these points in different ways.

For example, they can use these points to get a discount on Sephora products. The cosmetic products of Sephora are costly, and in this way, customers can get a discount on those products without devaluing the price of its products. Like Sephora, there are other e-commerce websites such as Shein, Club Factory, Nykaa that uses point loyalty programs to retain customers.

The community program is a unique way of attracting and retaining customers. In this program, the businesses provide an opportunity for people to interact with like-minded people. It creates a community of people who shops from the same platform. Companies ask their customers to buy a membership to not only to get discounts and free delivery but also a chance to hang out with like-minded people. Sephora comes first in my mind when it comes to making the effective use of the Reward point loyalty program and community program.

As I mentioned before, Sephora has created a community of more than 15 million loyal customers using these programs. Customers can share the review of products on the community platform and can see the reviews of other community members. This loyalty program is a little different from other loyalty programs. Already established brands use this program.

The brands that have a substantial customer base in the market. As people are more likely to buy a paid membership of a known business than of an unknown company. Take the example of Amazon Prime. This membership is useful only for people who frequently buy from Amazon. This loyalty program is a unique loyalty program used by a few businesses like Nike.

It is a unique way to increase the loyalty of customers. In this type of loyalty program, the company provides tasks to its members and give them a reward when they achieve their milestones.

Through these apps, Nike promotes an active lifestyle and rewards its members with badges and other rewards when they reach a milestone. For example, a prize will be given to a member when he first finishes his 5k race. Similarly, the Shein e-commerce shopping website provides rewards to its customers when they check-in on their website regularly.

In a charity loyalty program, businesses engage their customers through their charity initiative. These businesses use their business values to attract customers. Customers become more brand loyal when they know the businesses they are interacting with are responsible for society and the environment.

ITC compony started a charity program. Best Loyalty Program Examples: Back to top The best retail loyalty program Brick-and-mortar retail experiences that focus mostly on returning customers for the offline experience, with no online tie-in.

See also the best eCommerce loyalty progr ams. Benefits Cosmetics — Beauty Loyalty Program Benefit Cosmetics is a manufacturer of cosmetics and is available at over 2, locations in more than 30 countries. The brand is best known for its famous Brow Bars, where Brow Experts offer their signature brow waxing service along with add-ons. Nordstrom loyalty program.

Here are some examples of small businesses running loyalty programs. The Daily Cut is a protein-focused salad bar in Singapore, started because founder Jonathan Yang wanted to eat nutritious meals but disliked raw vegetable salad. Read our case study of The Daily Cut here. A great example of a multi-store punch card! Plain Vanilla is a cafe with four outlets serving delicious baked goods, hand-crafted in small quantities, paired with great coffee and a welcoming ambience.

Their loyalty program offers a free cup of coffee after every 10 cups spent, and was effective in turning their outlets into places where people could visit every day. Mission Juice serves cold-pressed juices, smoothies, and frozen yogurt in Singapore. Every bottle is made-to-order and cold-pressed for maximum freshness and nutrition at their one outlet. Mission Juice is a CandyBar customer! Read how they make use of our Prepaid Bundles feature here.

When they re-opened in a new location after a year of being closed, they made use of a loyalty program to rebuild their customer base and reward past customers.

Founder and CEO Larry Gardiner set out to create guilt-free, non-dairy desserts that tasted good and were healthy too. Business Owner Larry Gardiner was looking for a way to grow the brand and deepen his relationship with customers. When customers kept forgetting his paper punch cards, he switched over to a digital loyalty program and never looked back.

They have two outlets in a popular mall with plenty of foot traffic. As a relatively new brand, facing serious competition from dessert alternatives, Fruce used a loyalty program to reward loyal customers and encourage repeat business. The dressings and salad combinations were conceived by famed Japanese chef Teppei Yamashita. Interested in setting up a loyalty program of your own?

Check out Candybar. Visa is CandyBar's blog editor. He's a 3-time Quora Top Writer, and he's working on a project to write a million words.

But not every loyalty program is the same. There are different types of rewards programs you can use to build customer loyalty and make repeat sales. Points programs are the most common type of rewards programs. They let customers accumulate points they can redeem for freebies, cashback, perks, etc.

They can also earn points from sharing on social, leaving reviews, having a birthday, or through gamification. Bodycare retailer Blume uses a points system called Blume Bucks in its loyalty program, dubbed Blumetopia.

Customers can earn Blume Bucks by following the brand on Instagram, placing an order, or telling friends about Blume. Tiered loyalty programs are a type of membership where customers get different benefits depending on their rank. Businesses often rank membership into groups depending on certain metrics like sales or engagement. These rewards programs give customers a goal. Bra and underwear brand ThirdLove uses a tiered system for its program, Hooked Rewards.

Customers simply sign up for the program and start getting rewards right away. The more they spend with ThirdLove, the more perks they get. This tier receives more benefits, like free underwear with purchase and exclusive seasonal offers.

Paid loyalty, or fee-based loyalty programs, give customers immediate and ongoing benefits for a participation fee. These fees can be recurring or one-time. Paid programs may need to require proof-of-value to get signups, but the business can gain higher customer value from members. The most common example of a paid loyalty program is Amazon Prime.

While it seems like a hard model to mimic, paid loyalty can suit many different business models. The idea behind a value-based loyalty program is to connect with customers on a deeper level. It involves donating a percentage of purchases to charity or welfare programs. But it holds a special place for them, as the rewards are used to benefit society. Brands often create a hybrid loyalty program using this model. For example, Sephora lets members donate their reward points to the National Black Justice Coalition.

Not sure where to start? Ask customers what they want from a rewards program. You can easily run a survey or poll with your customer base to find out. Then create a rewards program accordingly. Here are our 7 picks for the most innovative customer loyalty programs and what you can learn from each. This will give you some customer loyalty program ideas to start your own today. Designer Shoe Warehouse or DSW has long run a traditional VIP loyalty program that rewards customers with points for each purchase and includes tiers of rewards that customers can unlock as they spend more.

The danger when rewards become automatic is that customers forget about the program. DSW needed a way to keep customers engaged with their program and remind them where they stood and what they could earn by spending more at DSW stores. In early , DSW launched an email campaign aimed at reminding customers about their program.

The campaign consisted of a personalized email detailing:. What made the campaign so successful was the level of personalization. Customers earn rewards for each purchase based on a traditional point system. The innovative part is that members can choose how to use their reward points. Beauty Insider members can redeem their rewards points for things like gift cards and discounts, helping to offset purchase prices without devaluing the products.

Loyalty members can also redeem points for more exclusive things, like limited edition products or in-store beauty tutorials.

Giving loyalty members the flexibility to choose enables Sephora to offer customers the deals and products they really want without cheapening the perceived value of their products.