Certain companies and rewards programs may come to mind when you hear the term loyalty program. But loyalty programs can also be applied to other industries, including gaming. Gamers play games to earn perks and rewards, including anything from new gear to value-holding items (such as unique status or visual customization). This type of gamification is a great way to build customer loyalty.
Access to Special Offers
Customers are more likely to spend with brands they trust – and a loyalty program is a great way to build that trust. A customer loyalty program allows you to deliver personalized offers to your customers based on their historical data, behavior, and preferences. This type of individualized experience drives engagement, retention, and revenue growth. Loyalty programs can offer a range of benefits, from free products to discounts and rewards redeemable for future purchases. These perks incentivize specific behaviors, such as writing product reviews or sharing social media posts.
They can also reward existing customers for referring new ones to the brand. Many companies offer a “points for purchases” model, wherein the customer receives a set amount of points for every dollar spent. This can be especially useful for home service businesses with recurring transactions, like maintenance services. Starbucks has taken this a step further, offering a tiered system whereby the more you spend with the company, the higher your rewards. This makes the company look like an advocate for its brand and gives customers a reason to keep returning.
Access to Exclusive Events
Many brands offer exclusive events to loyalty program members that help create a sense of community. These special experiences can also boost brand advocacy. Customers who feel strongly connected to your brand will want to share their positive experiences with others. A key challenge is creating a personalized CX for each customer. Getting enough data is essential for this. If you don’t have enough information about a specific customer, it is difficult to predict what they might need in two months. Loyalty programs help solve this problem.
They enable businesses to collect zero-party data through incentivized surveys, questionnaires, and feedback forms. These programs also bolster a business’s first-party data by collecting valuable transactional and behavioral information about loyal customers. This data is invaluable for predicting and fulfilling future needs, providing the ultimate customer experience. For example, if you’re hosting an event with a popular band, offer select loyalty community members the opportunity to sit on the band sound check as an extra-exclusive pre-show warm-up. This will make them feel truly valued and strengthen their relationship with the band.
Access to VIP Treatment
Paid loyalty programs that offer perks-driven rewards help brands connect with their customers at an emotional level. These exclusive programs attract high-quality customers willing to pay a premium to connect with a brand in this way. This helps boost repurchase rates, basket sizes, and brand affinity while generating a positive ROI on members’ initial investment in these programs. Community-based customer loyalty programs that feature online clubs and groups are another great way to foster a sense of exclusivity.
These programs are also a great way to collect user-generated content and valuable zero-party data through incentivized surveys. They can also track behavior and generate a single customer view in brick-and-mortar and online environments. This is vital for enhancing the overall customer experience and optimizing channel performance. It’s no secret that happy and satisfied customers repurchase more often, spend more than their non-loyal counterparts, and act as ambassadors for your business.
Access to Merchandise
Whether it’s a gift, exclusive product drops, or merchandise discounts, customer loyalty programs give members a unique, complete experience. This helps them feel privileged, which can also help drive brand loyalty in the long term. Customer loyalty programs offer perks and discounts to customers for their continuous purchases. These rewards can include free products, early or exclusive access to new product launches, a points system, and more.
The benefits of value sharing through loyalty programs are often difficult to quantify. Using loyalty software and conducting customer feedback surveys can help businesses determine whether their loyalty program works.
Access to Customer Service
Creating VIP experiences for your loyal fans is a great way to make them feel like they’re special and that they get the royal treatment. This is one of the most important non-quantifiable benefits that loyalty programs provide, and it can directly impact things like acquisition, churn, CLTV, retention, and revenue. Gamification is a great way to boost engagement in your loyalty program, but it’s important to know your goals for using gamification.
For example, if you’re trying to learn more about your customers, a marketing quiz that asks questions and rewards them with images is an effective option. Similarly, you can implement a leaderboard into your loyalty program if you’re trying to encourage customer competition. This will motivate your customers to participate and keep them engaged, as they’ll want to climb up the ranks on the leaderboard. You can also use a prize wheel to encourage participation and reward customers for their success.