A customer loyalty program is an e-commerce marketing strategy that rewards loyal customers who frequently engage with a brand. Loyalty programs come in many forms, ranging from simple stamp cards to sophisticated, point-based reward systems, but all are geared toward bringing customers back to engage with a brand.
No blog post on loyalty programs is complete without Sephora —and with good reason. In this announcement email , they also feature some of the items you can buy:. After making it clear that AnthroPerks is not a paid loyalty club, the company explains the benefits of joining the program one by one:.
Anthropologie lists easiness-to-join as a perk. Here, the company explains once again that AnthroPerks is an easy-to-join and free program—just to clarify any questions you might have. As promised in perk 2, Anthropologie sends a birthday discount to your inbox when the special day arrives:.
While Sephora diversifies how you can redeem your points, Tarte has a different approach to how you can collect points in its loyalty program. More interestingly, you get different points for the actions you take. Buying a sample size, for instance, awards you a different number of points compared to a full-size product.
Sounds fair. Best of all, you earn your first points simply by signing up which gives you a sense of accomplishment and gets the ball rolling. The more points you earn, the more perks you unlock:. Delivering on its promise, Tarte gives club members early access to sales and nudges you to shop before others with the help of a countdown timer :.
Each month, they recap your loyalty status and how far you are from the next tier:. Including my full name, rewards status, and points left to reach the next tier, this email feels personalized and relevant.
Sorry, Tarte. In it, the company tries to win me back by explaining that my current points will expire soon unless I take action. In theory, coalition loyalty programs seem to make sense. Members can earn and redeem points at any of the participating member brands.
However, these programs engender loyalty to the program itself and not the actual brands, which is why the Plenti program eventually fell apart. More and more retailers are thinking about premium loyalty as the best way to increase loyalty with their best customers. Completely opposite from the traditional programs above, these fee-based loyalty programs require members to pay upfront for instant benefits that they can use anytime.
Because these programs are so valuable, retailers see more engagement, higher-order frequency, and greater average order value.
In addition, they can collect valuable data about their best customers. Being required to pay a membership fee would likely be too big a barrier to entry for the average customer, but therein lies the point. Premium loyalty strengthens relationships with your best customers and makes them even better. Those are the customers that are happy to pay for it.
Find out what makes customers willing to pay for loyalty programs. With premium loyalty also comes the need for specialized expertise in building, managing, and optimizing the program. Things like billing, accounting, customer service, and retail store employee training are all much different and more complex than with traditional loyalty.
After all, your best customers are paying for a membership, so that experience must be the best. From member acquisition and retention to enhanced benefits to billing and specialized customer service, these programs are a different animal than free programs.
See what traits to look for in a loyalty program vendor. Find out if a premium loyalty program is the right choice for your brand. The most important trait that all premium loyalty programs have in common is customer focus. The benefits are not purely transactional, though.
Experiential benefits like streaming video come with the membership. Members get a lot of value out of the program throughout their daily lives. Find out how Amazon paved the way for premium loyalty. Lower-level or casual customers may find the membership fee too much of a barrier to entry, but your most valuable customers will become even more valuable if the benefits are great. The key is listening to what your customers are truly asking for and building the program around that.
It may require hiring a very specialized vendor, but when executed properly, the results can be tremendous. Some programs provide elements from several different loyalty strategies. For example, tiered programs with points combined with transactional and experiential benefits. This premium loyalty tier offers free delivery on eligible prescriptions, as well as fast, free shipping and instant discounts on certain CVS Health brand items and monthly rewards that can be used in-store and online.
The free program appeals to most of its casual customers with its low barrier to entry. The fee-based loyalty program is attractive to its best customers because of the great value proposition. Coming up with a hybrid loyalty program could potentially appeal to your customers at all levels.
A free transaction-based program could get casual customers into your loyalty ecosystem. Companies in industries from books to beauty products offer alluring perks and rewards for loyal customers.
For loyal Target shoppers, the REDcard is a must-have. Points can be cashed in for store credit, and holders of Nordstrom credit cards can earn points three times faster. Sears may have recently declared bankruptcy and closed hundreds of stores, but the retailer is still rewarding customers with its Shop Your Way loyalty program, considered one of the best in retail. Shop Your Way comes with a long list of benefits.
You'll also get free shipping on your purchases, which is gold when you're pressed for time and can't get to the store. Although shoppers have to sign-up and get approved for a credit card to use the Amazon loyalty program , the experience is worthwhile, Skirboll said.
Courvoisier said the program ends up being a great deal for customers. The ease of use combined with the valued rewards serves to make REI Co-op a best in class loyalty program.
Starbucks is a great program for rewards — just be sure to use the app to maximize the benefits. Beauty aficionados who frequent Sephora should sign up for the Beauty Insider program to get access to a range of exclusive items to add to their beauty collection.
Sephora also recently announced the launch of three credit cards as an extension of its existing loyalty program that allows members to have even more exclusive perks and offerings. Michael Kors offers a tiered loyalty program that includes special surprise gifts, private events, special services, and free shipping.
Tarte Rewards members can earn points by shopping and by engaging with the brand through social media, by opening Tarte emails, and by referring friends. Tarte also rewards "Soulmates" — shoppers at the highest tier of its rewards program — with more perks such as expedited shipping, triple points during their birthday month, and exclusive products.
0コメント