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*NO PURCHASE NECESSARY TO PARTICIPATE OR CONSIDER. The promotion starts on 01/03/23 at 12:00:00. ET and ends on 4/7/23 at 11:59:59 PM. E.T. Open to 50 US and DC residents who are (i) US citizens and play the HNGRY CART digital game /games. For official rules, visit /hungrycartsweepstakes. Limit 1 entry per person per day, regardless of entry method. Not valid where prohibited. Sponsor: Retail Sports Marketing, Inc.; 10150 Mallard Creek St. Suite 500, Charlotte, NC 28262
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*NO PURCHASE NECESSARY TO PARTICIPATE OR CONSIDER. The promotion starts on 01/03/23 at 12:00:00. ET and ends on 4/7/23 at 11:59:59 PM. E.T. Open to 50 US and DC residents who are (i) US citizens and play the COLOR BLAST digital game /games. For official rules, visit /colorblastsweepstakes. Limit 1 entry per person per day, regardless of entry method. Not valid where prohibited. Sponsor: Retail Sports Marketing, Inc.; 10150 Mallard Creek St. Suite 500, Charlotte, NC 28262.
*NO PURCHASE NECESSARY TO PARTICIPATE OR CONSIDER. Advertising starts on 23.03.01 at 8:00 a.m. ET and ends on 7/4/23 at 11:59:59 PM. E.T. Open to residents of the United States and the State of Columbia (excluding Hawaii and Alaska) who are (i) citizens of the United States and play the BEACH RUNNER digital game via /games. For official rules, visit /beachrunnersweepstakes. Limit 1 entry per person per day, regardless of entry method. Not valid where prohibited. Sponsor: Retail Sports Marketing, Inc.; 10150 Mallard Creek St. Suite 500, Charlotte, NC 28262. A customer loyalty program, also known as a rewards program, is a strategy that helps retain customers and encourages them to continue buying from your brand. Read examples of the best loyalty programs.
Sometimes you need to give your customers a reason to keep buying from you. To increase customer loyalty, some companies offer special discounts to regular customers. This strategy is known as a loyalty program.
Loyalty programs, if done well and put the customer at the center, can help customers feel good about buying from you. There are many different types of customer loyalty programs that you can use to increase customer engagement. What you choose depends on your mission, product, and rewards program goals.
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A customer loyalty program (or rewards program) is a customer retention strategy that encourages customers to continue to buy from you instead of your competitors.
Like personal relationships, customer relationships are successful when both parties feel they are getting something out of the relationship. Customers support you when they buy from you, and loyalty rewards like discounts and freebies mean they get something in return.
According to Accenture, more than 90 percent of businesses have some kind of loyalty program, so it’s a good idea to implement one if you don’t already have one.
Customer loyalty programs can increase your business revenue. The more a customer likes your brand and the more they stick with it, the more likely they are to spend. For example, many shoppers buy more to get a higher program level or to get a discount.
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Customer loyalty programs increase customer lifetime value and repeat business – rewarding repeat customers for their purchases is an effective way to keep them coming back for more. Also, providing customers with a pleasant experience will make them more satisfied with your brand. It can also help you build relationships with new customers.
According to the Customer Experience Trends Report, 75 percent of customers make purchasing decisions based on their experience with a brand. Half of the consumers we surveyed also said that customer experience is more important to them now than it was a year ago. Customer loyalty programs can help create a more engaging experience and improve customer relationships.
Implementing a customer loyalty program is a great way to differentiate yourself from other brands that don’t already have one. A loyalty program can:
According to HBR, companies with successful customer loyalty programs grow revenue up to 2.5 times faster than their competitors and generate 100-400 percent higher returns for shareholders.
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Customer loyalty programs can also drive word of mouth marketing, especially when customers are rewarded for telling others about your brand. For example, you can reward customers with a discount for leaving a review on Yelp.
This also resonates with customer loyalty programs for referring friends. For example, when a customer refers a friend, you can reward them with a free month of service if their friend makes a purchase.
A customer loyalty program is one of the best ways to show customer appreciation. These programs reward repeat customers with discounts and services – essentially thanking them for their business.
A customer loyalty program can encourage your customers to take certain actions, such as subscribing to your newsletter. For example, you can encourage customers to sign up for a newsletter or text alerts by enticing them with a discount code in return.
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Loyalty programs work by offering customers incentives to buy or interact with a company. The goal is to retain customers, increase customer value, and show customer appreciation.
Customers can exchange points for discounts or gifts in a points program, and membership programs reward customers when they subscribe. Many companies use different types of customer loyalty programs. Learn more about each type and how they work below.
Points programs are one of the most popular types of customer loyalty programs. They are useful because points are easy to earn and redeem. Customers can redeem points for:
With so many brands using the points program, it’s a format that customers recognize, understand how to use it, and enjoy the experience.
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Tiered programs are like video games: after completing a spending tier, customers can unlock a new tier that gives them access to additional perks.
For example, you may have “diamond level” customers. Customers at this level will be able to earn exclusive prices on your most expensive products and services.
This will encourage your customers at lower levels to make an effort to reach the next level of spending. The more exclusive the reward, the greater the appeal to customers.
Not all rewards programs focus on tiers and discount codes. If your company is very mission-oriented, you might want to try a customer loyalty program.
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By aligning with the mission, you can strengthen customer engagement and drive repeat purchases through shared values. These programs can be more effective when you partner with a nonprofit that has a strong connection to your company’s mission.
Spend-based customer reward programs allow businesses to identify high-spending customers. In particular, airlines are moving from points programs to cost-based systems. This allows them to engage more deeply with travelers who pay more for less flights.
Gaming apps add fun to the shopping experience. This type of program involves a simple game, such as spin to win, which the customer plays to claim a prize. It may include a discount or a free item with the purchase of a product or service.
Who doesn’t love gifts? Free benefit programs provide loyal customers with additional products and services. Many free rewards programs allow shoppers to exchange points for free food or a free makeup sample.
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A subscription program, also known as a premium loyalty program, is one where customers subscribe and pay a fee in advance for a product or service and receive a reward for doing so. These rewards can be redeemed for future purchases.
Community customer loyalty programs drive customer engagement and can differentiate your existing loyalty program. For example, online clubs and groups can become a loyalty program, such as Sephora’s Beauty Insider Community.
Brands using these types of apps can allow customers to post questions, share photos of themselves wearing the product, and interact with others.
Referral programs reward customers for referring their friends and family. This word-of-mouth strategy can help convert loyal customers into brand advocates, and referrals can lead to someone else in the future.
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Referral programs can also reduce customer acquisition costs because the customer will be doing the work for you.
A paid loyalty program requires customers to pay a fee for loyalty benefits and provides immediate and ongoing benefits for participation. For example, customers can sign up for a $5-a-month subscription that gives them access to 50 percent of their purchases each month.
Cash back programs give customers cash back or money they can spend on a business. This helps customers feel that even when spending money, they are still getting something in return. This type of loyalty program is common among financial companies.
Want to implement a loyalty program but need some inspiration first? Check out these 16 examples of innovative customer loyalty programs from popular brands like Marriott, Sephora, Amazon, and more below.
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Marriott’s rewards program, Marriott Bonvoy Benefits, allows members to redeem points for