Traditional loyalty programs like marking paper cards each time a customer makes a purchase, points based systems and coupons are still solid concepts for good loyalty programs and can be easily updated by integrating a digital aspect to the program.
Check out our 4 top tips here: https://www.azpiral.com/4-ways-update-loyalty-program/
However, in recent years loyalty programs have evolved and new types of strategies have emerged, largely due to the technological advancements in loyalty software and the emergence of data-driven marketing. These trends have given rise to customer-centric marketing and engagement.
The 5 latest loyalty strategies that have taken over in 2017 include;
1. Exclusive promotions – Adopted by companies such as Sephora, French cosmetic company, offer exclusive promotions in a tiered loyalty program to their customers. Customers are motivated by these exclusive promotions to progress in the program. This type of strategy encourages continuous engagement and rewards the brand’s most loyal customers.
For more on this type of strategy read https://www.azpiral.com/top-tips-for-a-tiered-loyalty-strategy/
2. Non-monetary rewards – This type of strategy requires brands to really understand their target audience and offer a service or perk as a result of shopping with the brand. This type of strategy is very effective if a brand has close competitors and is reluctant to engage in a “discount race” to entice customers to shop with them.
Read more on this type strategy read https://www.azpiral.com/non-monetary-loyalty-strategies/
3. Charity-based rewards – Similar to non-monetary rewards, these require a deep understanding of the target audience. A brand collaborates with charities or donates a portion of the sale value to a charity on behalf of the customer. This appeals to customer’s better nature and offers a feel-good factor to buying with that brand. This is a powerful strategy for brands with many millennial customers. Toms, shoe brand, is an excellent example of this type of strategy.
4. Services to improve the shopping experience – Traditional loyalty programs can be amplified through digital technologies in-store. These digital technologies can enhance customers experience with the brand. These digital technologies continue to evolve and offer solutions for multiple challenges customers may face while shopping. Some examples of additional services to improve the shopping experience include branded mobile app, access to loyalty point’s management web page, free Wi-Fi in store or IBeacon technology.
For more Digital technologies and how they work in store read https://www.azpiral.com/top-10-digital-technologies-for-retailers/
5. Broader lifestyle applications – These require a deep understanding of your customer’s motivations and interests. Some Pharmacy chains and Health insurers have had great success with customer engagement and loyalty by rewarding positive health changes in their customer’s lifestyle. Walgreens pharmacy in the U.S launched their balanced rewards strategy that rewarded a behavioural change in their customers through health milestones and loyalty points. Creating a positive change in their customers and encouraging engagement with the brand.