The various ventures being used by companies as customer loyalty programs can be of different forms. Some companies may opt for using just one of them, while others may use a combination of two or more models together.
A well-structured strategy that makes use of a combination of commercial incentives, market planning, event planning, market tactics, gamification, hardware, software, communication, etc, to help brands build up strong relationships with their customers is what is termed as customer loyalty programs. Retaining the customers for a longer time and finally advocacy is the most important goal of these customer loyalty programs.
The various kinds of customer loyalty programs that can be made to use are:
Point Programs
In the world of commerce, points programs are the most common type of customer loyalty programs. They are the simplest ones and are based on the principle of ‘ Spend more to get more.’ a purchase being made every time by a customer on your website or at the store, a certain amount of points gets credited in their account, which can easily be used up for their next purchase. These points get translated into some rewards and thus customers feel motivated to collect a large number of points and get hold of the rewards. This is a common program, which you can easily mention to your experts and ask to write a paper for me.
Tiered Programs
The best way to chalk out the perfect balance between desirable and attainable rewards is by implementing a tiered loyalty reward system for the customers. Initial loyalty will be rewarded by this and customers will be encouraged to purchase more. To sum up, this customer loyalty program is based on various levels or tiers of loyalty. Whenever the customers purchase something, they get loyalty points. With more points, the customers will move towards a higher loyalty level, with which they will get more rewards.
Spend-Based Programs
The amount spent by the customers at a business gets the customers loyalty credits in this Spend-Based Customer Loyalty Program. It is an easy to understand program that can be created and maintained effectively. With this program, you can effectively increase transaction amounts and decrease the churn rates.
Value-Based Customer Loyalty Programs
A loyalty program that is structured to be parallel to the values of your customers, the customers will be more likely to be your brand ambassador. But you need to reward your customers without rewarding them for real. How? First you will have to define your values significantly. Suppose if you are running an online store for pets and your customers value the welfare of animals. Then you can design a program, like a point system, where the purchases of the customers will get directly translated into currency. Thus, every time a purchase of, suppose, 50$ is being made, a sum of 5$ will be donated to an organisation for animal rescue.
The aim of this type of program is to develop a deeper connection with the customers by creating an ethical and strong relationship with them.
VIP Membership or Paid Programs
To enter the club meant for the VIP members, the customers need to pay an annual membership fee with which they will enjoy some extra perks. They can be able to avail some more discounts, have access to special service and unique opportunities. The benefits included under such a program must be exclusive to the customers to make it stand out from the rest.
Game Program
Games are a lovable thing by all. It would be a great idea if you can turn your customer loyalty program into a gaming application in encouraging repeat purchases, strengthening the image of the brand, entertaining the customers and increasing the customer loyalty in a more entertaining and attractive manner.
Partnered Program
Custom loyalty can be further enhanced by strategic partnership as that can be a great way to retain the customers as you will be offering them with more opportunities. At the same time, it will have a positive effect on the growth of your company by building up new partnerships and new business relationships. You will have to show your customers that you care about them and respect their needs by connecting with the customers on a deeper level through this partnered program.
Hybrid Loyalty Programs
Hybrid loyalty programs combine more than one type of loyalty program. For example, you may merge two different types of loyalty programs such as tiers and games, where your customers reach new levels of loyalty every time they play your game. Participation in the game should, of course, require a purchase.
In many cases, point-based systems are coupled with tier programs because it simplifies the calculation of points and motivates the customer to pursue the next loyalty level and thus, increase their purchases. To get more ideas on these kinds of programs, you can get in touch with my paper writer. Business strategies can be an interesting subject to write your academic papers on.