Top Examples of Successful Customer Loyalty Programs

The effectiveness of a successful customer loyalty programs effectiveness is a function of the strategy that motivates the process and management system. Consequently, when the right customers receive the right motivation to buy a particular brand product or service rather than a competitor, they deserve some rewards. And history has many such brands that are popular or have attained popularity because of the way they treat their loyal customers who have, in turn, stayed with them. 

In other words, part of a business’s management duties is to continually give customers reasons to keep returning to the same brand. Perhaps the most common way many business managers adopt is special discounts and promo offers after a purchase. And if these customer loyalty programs are executed correctly, the customer feels like being in the spotlight and cannot resist the urge to keep buying from your brand. 

Benefits of implementing customer loyalty programs

By the way, loyalty programs are essential for several benefits they bring to your business. Some of the benefits include

  • An improvement in the ability of your brand to retain customers for an extended period
  • A significant increase in the revenue from more repeated sales
  • Increase in the customer lifetime value as they return to do more business than others
  • It allows the business to give back to the loyal customers in a show of appreciation
  • Improves the overall customer satisfaction with the business brand
  • It becomes a distinguishing factor between a brand and its competitors, allowing customers to know your brand for particular rewards and value
  • Promotes word-of-mouth marketing, which is the best marketing method, by the way, where satisfied and rewarded customers freely tell others in their circle of influence.
  • It builds a stronger bonding between the brand and the customers

You can learn about the best types of customer loyalty programs that work here. This particular one gives practical examples of the applications of these loyalty marketing programs that have yielded significant results for top brands across the world. 

Top Examples of Effective Loyalty Programs

  1. Designer Shoe Warehouse (DSW)

DSW has a long history of many traditional customer loyalty programs where the customer can grab a god reward from accrued points. This brand uses a point-based system that can accrue as the customer continues to buy more. The company also keeps the program running continuously and seamlessly without complicating the method with more sophisticated programs. But the customer has to log into an online system that quickly recognizes their name, phone number and payment information, including history.

However, in an automatic system such as DSW, customers have the temptation to forget about the program quickly. And when they do, they don’t get to earn the rewards they deserve from the loyalty program, and the business also loses on its goal. In other words, the more customers DSW enticed with the program, the more earnings they have as the customers spend more than they would have done ordinarily. 

  1. Amazon Prime

Amazon, as a brand, usually implemented the customer loyalty program’s VIP method and called it the “Amazon Prime”. This prime membership program attracts a flat annual fee to enjoy unlimited access to enormous benefits, including free 2-day shipping of millions of items from the online store. More so, Amazon improved the advantages of Prime status by adding streaming service and Prime Day sales that are exclusively available to Amazon Prime members.

Little wonder Amazon is always improving this service as many competitors are on their tail to take advantage of any slack. Some of their competitors include Walmart, eBay and Alibaba. Again, because you can also find many of their products on competitors’ platform, Amazon Prime becomes their only opportunity to step outside of the crowd and beat their competitors to it. Now, customers are increasingly convinced that Prime members spend about four times more than ordinary customers. 

  1. Apple

You may wonder, ‘what is Apple doing on this list?’. Amazingly, not doing any loyalty program is the most innovative loyalty program that a brand can use. Such is Apple’s case, where the brand hooks its loyal customers with the quality of the product itself. As a result, the brand has carved a niche of its own. Apple purely does not offer any reward or incentive to loyal customers. The brand believes in the unique qualities of the products it offers.

  1. Starbucks Rewards

Starbucks rewards have to come on this list for her Starbucks rewards system through the Starbucks customer app. The fantastic ease that the app brought the customers was second to none, and the response also went wild because it highly simplified the process for users. Also, the Starbucks app means there was no need to continually sign in on sire, sign-in details, not punch card to use. To earn the starts in Starbucks, download and use the app.

Also, the app can keep track of all spending activity of the user and other essential data that the brand uses to improve its service delivery. Data centralization through app use also brought quicker access to customers’ preferences and behaviour. Also, it gave a giant leap to the customer lifetime value with information on the frequently visited locations and seasonal favourites. Consequently, the brand now has what it takes to give out more relevant offers to specific customers and maintain a good relationship through fruitful communication. 

  1. Sephora Beauty Insider

Sephora Beauty Insider uses a top-rated loyalty rewards program with a staggering result of over 17 million loyal members. These loyal members are responsible for up to 80% of the total annual revenue from the brand. Here is the method: Sephora rewards each purchase from a loyal customer through the traditional points. However, the spice the brand added is the ability for members to choose the way to choose the reward they earn.

Since Sephora Beauty products are not cheap, the rewards make up for the prices in discounts, gift cards and special offers. As a result, being a loyal customer of the brand helps offset the high prices without compromising the products’ value. The loyal members who gain redeemable points can spend them on access to limited edition products or in-store beauty tutorials. 

On a final note, business managers can now cite several instances of how companies have implemented customer loyalty programs and gained tremendous results. More so, businesses now have to add their peculiarity and innovation to produce outstanding results. The proof of using these methods have also been evident that some processes are more beneficial than others. But eventually, each business type decides what is specifically useful to them and aligns with their overall business goal.

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