Start working on a loyalty program by choosing the tools you need for your business. Provide customers with a fixed discount or earn points for each purchase? The choice of format depends on the goals and objectives of your business.
Firstly, let’s define what types of loyalty programs are there.
This is the simplest, most common, old-fashioned, and least effective type of loyalty program. Discount programs can be simple or cumulative. Usually, the discount program helps the client to determine the place of purchase, provided that the purchase decision has already been made. Thus, discount programs work mainly for products in inexpensive stores, for customers that value discounts a lot, and large retailers use them to collect data.
Bonus programs are a little more complicated than discount programs. Bonus programs involve the accumulation of points (usually, their number is equal to some percentage of the purchase amount) to the card with the opportunity to spend them in one way or another (to make a purchase again). Bonus programs work perfectly to increase the number of sales. In addition, bonus programs in which points have an expiration date, unlike discount ones, can motivate the client not to postpone the purchase. In the Referral and Rewards app, you can set a % coefficient of the amount of purchase that will be automatically converted to dollars and transferred to your client ’s account. Later on, the client could spend the points towards a purchase or discount at your business location.
You pay with bonuses for the possibility of communication. Therefore, it is important to use the user data correctly. That is, make the right personal offers and do not abuse notifications (and trust).
The simplest version of the cumulative loyalty program, which is often used by small and medium-sized businesses is a variation on the system "gift for purchase". At the checkout, the customer is given special cards for stamps. Each time when buying, the buyer shows his card, on which the seller puts a stamp. When a certain number of stamps are accumulated, the client receives a free product. For example, in a coffee shop, after buying five cups of coffee, a customer receives a sixth coffee for free. Referral and Rewards loyalty and rewards program digitalizes the paper cards version, so your customer will not lose the card. That way, the process becomes much easier and enjoyable for both, your employees and clients.
In such a program, new participants are provided with a minimum bonus or discount. Next, a progressive incentive model is used, that is, the number of remuneration increases in direct proportion to the volume of consumption.
If such a program is supported by some value propositions, it benefits from this. The Reebok CARD, for example, provides access to exclusive promotions, special offers, and events. In this way, you could encourage your customers to spend more, and feel rewarded at the same time.
This kind of program will work if your product is not so easy to purchase (for example, these are tickets for events that are in great demand or exclusive vintage wine). VIP membership could be earned for a specific amount spent in your location, or purchased for a fixed price. VIP membership could provide its owner with a discount, access to VIP hall, invitations to featured events, or suit as a subscription for monthly wine delivery.
In this way, you create a whole army of very loyal fans of your brand.
Loyalty programs are designed to strengthen your brand, make customers feel appreciated, and bring in new customers while retaining existing customers. To learn more about the benefits of the Referral and Rewards program, contact us today. Better your business with the Referral and Rewards loyalty and rewards program.