3 Examples of Innovative Loyalty Programs

Retailers and many other businesses often offer loyalty programs where they provide rewards, discounts, and special incentives to attract and retain customers. Loyalty programs not only benefit the businesses by developing customer loyalty but also provide crucial insights about customers like how they are spending money on a brand, which products are more appealing to the customers, and more!

Today, there are hundreds of possibilities available for loyalty programs. For instance, some customers might prefer reward points while others would like to test a few free samples of the products that you are selling. Some customers might prefer discounts on MRPs while others would prefer free lifetime shipping.

So which loyalty program should you choose for your brand? Let’s take a look at the 3 best loyalty programs in India from where you can find some inspiration.

#1 Paid Loyalty Programs

A paid loyalty program is created for VIP customers who pay a certain amount such as a monthly subscription, weekly subscription, or yearly subscription. In return, the customers receive exclusive rewards, deals, sale offers, and so on. Paid programs are successful when you want to lock in customers for a long time. These programs come with great responsibility as you have to keep bringing rewards of higher value than what the customers have already paid for (as a subscription price). You must also be willing to provide personalized offers, exclusive members-only content so that customers feel more valued.

#2. Tiered Loyalty Programs

A tiered loyalty program offers various discounts and deals to the customers based on the amounts that they spend on the brand. When a customer reaches a certain level of spending money, they unlock new perks and benefits. Such programs allow deeper engagement of the customers with the brand. Here are a few things to take note of in the case of tiered loyalty programs:

They must be easy to sign up for.
The reward system must be easy to understand.
The gap between the two different levels of the program should not be very big.

#3 Cashback Loyalty Programs

In one of my discussions with the brand manager of Capillary Technologies, we came up with the conclusion that cashback loyalty programs have got a higher engagement rate in India. These kinds of programs allow the customers to earn money from their purchases. In a way, they add up to customers’ savings. Sometimes retailers offer loyalty points to the customers which they can redeem in their next order and get a discount of the price equal to the reward points.

Can you highlight what is common in all these loyalty programs? All of them are customer-centric. They value the customers and hence offer them huge rewards which in turn has led to their success in India.

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