Example of Customer Loyalty Programs to Attract Repeat Orders

Many businesses face a situation where customers only make a one-time purchase and then disappear. Sometimes, the problem is not the quality of the product, but the lack of a program that can “retain” them and make them loyal. This is where the importance of a brand's customer loyalty program comes in.

In fact, a customer loyalty program is not just about sharing discounts or gifts, but a strategy to build a long-term relationship between the brand and its customers. 

So, what are some examples of customer loyalty programs commonly used in marketing? Find out more in this article!

What Is a Customer Loyalty Program?

A customer loyalty program is a program that aims to maintain and increase customer loyalty to a brand. Generally, customer loyalty programs involve giving rewards, incentives, or special benefits to loyal customers.

Customer loyalty is considered important because it maintains good relationships with brands, boosts sales, increases customer lifetime value (CLV), and supports brand advocacy marketing strategies. By achieving these things, the risk of customers switching to competitors can be minimized.

Examples of Customer Loyalty Programs

In practice, customer loyalty programs are typically implemented in various formats. Here are some examples:

1. Special Discounts

If you want to run a customer loyalty program that is simple but attracts many customers, offer benefits in the form of special discounts. 

This method can be applied in various ways, such as offering percentage discounts, special prices for members, discounts on specific holidays, or incentives for customers who reach a certain number of transactions.

This method is considered effective because it is generally easy for customers to understand and provides immediate benefits. As a result, customers feel satisfied and are more likely to make repeat purchases.

2. Direct Gifts

Even though consumer shopping patterns continue to evolve, direct gifts are still quite popular. Some items that are commonly chosen as direct gifts include umbrellas, tableware, shopping bags, wall clocks, and merchandise with brand logos. 

From the customer's point of view, these kinds of gifts are usually popular because they can be used immediately. Meanwhile, from the brand's point of view, giving direct gifts has the potential to increase brand recall every time the item is used by customers.

3. Buy One Get One (BOGO)

Besides special discounts, Buy One Get One programs are also quite popular. This is because customers receive an additional product for free or get a lower price after purchasing the main product.

By taking advantage of this program, customers can get more products at a relatively similar price. This can certainly help them save money.

On the other hand, brands can take advantage of this program to accelerate inventory turnover and increase temporary cash flow. This is because customers are likely to make larger purchases or purchase more quickly than usual.

4. Loyalty Points

The next example of a customer loyalty program is loyalty points. These points can be earned after customers make purchases of a certain amount, complete a mission, or make a transaction using a specific payment method. 

Typically, loyalty points must be collected until they reach a predetermined amount, which can then be exchanged for special benefits. The benefits can be varied, ranging from free products, exclusive vouchers, free shipping, to membership upgrades. 

Before implementing a loyalty point program, ensure you create clear guidelines. This method tends to be more complex than the three methods above. The guidelines need to include technical details such as the point accumulation mechanism, point redemption scheme, and point expiration period.

5. Tiered Loyalty Program

A tiered loyalty program is an example of a customer loyalty program that features a tiered system, including bronze, silver, gold, and platinum. To earn higher rewards, customers should move up to a higher tier.

Actually, tiered loyalty programs are an extension of membership programs. These programs generally involve loyalty cards as customer identification and level markers. Examples of loyalty cards can be found among airline customers, premium fashion brands, and large coffee chains. 

These programs begin by inviting customers to join a community or membership club established by the brand. Once customers join, some special benefits are reserved for members. Additionally, brands can also provide special treatment, such as free shipping or invitations to exclusive events.

6. Value-Based Loyalty Program

Value-based loyalty programs are quite different from other types of programs. This is because brands do not provide explicit incentives to customers in the form of discounts or gifts, but instead convert them into a valuable contribution to a charity or social organization.

Through this program, customers will feel inner satisfaction and a deeper emotional connection because they know that their loyalty contributes to a good deed. 

7. Referral Program

Referral programs are conducted by encouraging customers to invite others to buy a brand's products. This invitation can be in the form of inviting them to create a new account, make their first purchase, or participate in an event.

If the customer completes the expected action, the customer who referred them will receive a reward, which can be in the form of a discount, loyalty points, free products, and so on. Not only that, but the person who was successfully referred usually also receives an incentive in the form of a discount on their first purchase.

8. Limited Events

Lastly, an example of a program widely used to increase customer loyalty is limited events. In this program, companies provide special benefits to customers at special times or for limited periods.

This program applies to both individuals and the general public. For programs that apply to individuals, companies can offer them at special moments such as graduation days or membership anniversaries. As for programs that apply to the general public, companies can choose payday, holiday season, or national holidays.

How to Increase Customer Loyalty

The above programs indeed help maintain customer loyalty. However, several other ways are also important to increase customer loyalty, including:

1. Improve Product Quality and Actively Innovate

Product quality plays a crucial role in maintaining customer loyalty. Even if customer loyalty programs are made as attractive as possible, if product quality is low, customers are likely to switch to competitors. Additionally, as consumer needs evolve, brands should actively innovate.

One example of a popular product innovation is the Apple Ecosystem, where Apple products such as the iPhone, MacBook, iCloud, and AirPods are integrated into a single service ecosystem. This innovation is brilliant because it discourages customers from switching to other brands by offering integration and convenience.

2. Managing User Personalization

The ultimate goal of the sales process is conversion. However, in the process, customers will be happy if the brand understands and pays attention to them, rather than simply viewing them as sales objects. 

Therefore, brands need to personalize using data to create relevant interactions with customers. The data used can include names, purchase history, product preferences, and browsing behavior. Here are some examples of personalization that you can apply:

• Mentioning names in emails or other messages.
• Sending follow-up messages after purchases.
• Offering bundles based on previous purchases.
• Giving discounts for frequently purchased products.
• Displaying product recommendations based on search history.

3. Optimizing Service

An aspect that is no less important than product quality and user personalization is service quality. Ideally, brands should be able to respond quickly, provide accurate information, simplify the transaction process, be professional, and help resolve issues completely.

With optimal service, customers will see your business as reliable, thereby increasing their loyalty.

Read also: How to Develop Convertational Commerce Platforms for Business

4. Request Customer Feedback

In addition to personalization, requesting and following up on customer feedback is also important. From a business perspective, this can be an effective means of evaluation and development because you are referring to real needs in the field.

From the customer's perspective, they can feel satisfied and more loyal in the long-term. In fact, there is a great opportunity to attract new potential customers. 

To get feedback, conduct online surveys, interviews, or monitor online review platforms such as Google Reviews. You can also analyze conversations on online media about your brand using social listening strategies. 

5. Create a CRM Platform

Did you know that a CRM (Customer Relationship Management) platform can also help increase customer loyalty?

This is because this platform is capable of storing customer data, monitoring interactions across various channels, and understanding their preferences. This way, customers do not need to repeat their information, while your brand can provide more relevant and personalized services.

However, developing a CRM platform comes with a few challenges, including collecting customer data, integrating with existing systems, and maintaining system performance. But no need to worry, because these challenges can be overcome by utilizing Web & App Development Services by cmlabs.

The cmlabs expert team is ready to assist you in developing a CRM platform that delivers real value to both customers and your business. If you'd like to learn more about this service, feel free to contact us. Get the best personalized offer tailored to your business needs!