4 Types of Customer Loyalty Programs That Are Worthwhile

Loyalty programs are a great way to build customer loyalty, but not every program is created equal. Some are designed to benefit customers while others serve primarily as a marketing vehicle for retailers. In this article, it’ll explore four types of loyalty programs and explain how they work so you can determine if they’re right for your business:

Rewards points programs

With a reward points program you get points for buying. Every time you buy something, you earn loyalty points that can be redeemed for discounts or free items in the future.

Points are usually awarded based on the amount of money spent. For example, a store might award 1 point per dollar spent on retail and 2 points per dollar spent on dining. Some companies offer additional ways to earn rewards points besides simply buying from them; being referred by someone else who’s already a member and joining through social media are two examples of these types of programs.

Loyalty cards

Loyalty cards are the most basic type of customer loyalty program. They’re a simple way for retailers to track your purchases, which they use to offer rewards and discounts. You may have one if you’ve ever been given a card at a gas station or grocery store; these cards allow the retailer to keep track of how much you spend with them in exchange for some kind of reward (e.g., points that can be redeemed for gift cards or discounts).

But while these programs are useful for storing information about your purchases—and can be effective at bringing in new customers—they aren’t very good at keeping existing ones happy or retaining them through their lifecycle as customers change over time.

Membership programs

Membership programs are a great way to reward your most loyal customers. They’re generally free to join, and they can help you increase customer loyalty and retention by offering exclusive discounts, special events, and other perks.

In addition to giving your members access to these perks, membership programs also offer you data about who is interested in what rewards. This lets you tailor what you offer based on what people want or need most. For example, if someone has been a member for three months but hasn’t redeemed any of their rewards yet, they may be more interested in special events than discounted services.

Special experiences

You can also offer something special to your repeat customers. For example, if you have a restaurant, you could offer them a free meal or dessert in the house every five times they come in. Or if you own a clothing store, you could allow them to pick out any item of clothing for free every time they spend $150 or more.

It’s important that whatever experience your business offers is meaningful; otherwise, customers will feel like it was just given away instead of earned. But when done right, this kind of program helps create raving fans who will tell their friends about their positive experiences with your brand—and share them via social media.

Conclusion

There are a lot of different loyalty programs out there and each one is unique. The best way to figure out which type of program is right for your business is by considering your customers’ needs and wants, as well as your own goals. Then consider which types of rewards would be most appealing to them while still driving repeat visits from existing customers or drawing new ones in from competitors’ doors.