Loyalty programs can be tiered, paid, point-based, or value-based depending on consumer preferences.
Customer loyalty programs can help retain customers and reduce the likelihood of losing them to competitor businesses. Maintaining these customer relationships can also boost brand awareness and advocacy.
When creating a loyalty program, businesses must first identify the gap in the market and craft a loyalty program to bridge it. It is also important to understand which rewards customers find most attractive. Determine if customers would prefer gifts with their purchases, special offers, discounts, or limited-edition products.
Further, staying in touch with loyalty program members helps keep the rewards program alive. Customers are more likely to extend their membership if they feel the brand sees, values, and interacts with them.
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[7 minute read]