7 Examples of Innovative & Creative Loyalty Programs

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7 Examples of Innovative & Creative Loyalty Programs

Are you aware that it is a lot  easier to sell your product to an existing customer than a new one? That is because your existing customers already know what you have to offer and perhaps they’re already passionate about your brand. However, this does not necessarily make them loyal to you or prevent them from shopping at other stores.

There are always retailers that have attractive offers that could turn your most loyal customers into theirs. But, you don’t need to worry, because you can still keep winning your existing customers with a loyalty program.

A loyalty program could be one of the most effective ways to retain your existing customers while attracting new ones. If you don’t have an idea about what kind of loyalty program you will offer yet, check out some of these innovative and creative loyalty programs to get inspired.

1. Sephora’s Beauty Insider

Sephora offers one of the most innovative loyalty programs ever through Beauty Insider. The program serves more than 17 million loyal members from various countries and they make up as much as 80 percent of Sephora’s annual sales.
7 Examples of Innovative & Creative Loyalty Programs

Customers swipe their Beauty Insider card at every purchase and then the card tracks the amount of money spent. Every dollar spent generate one Beauty Insider point, and customers can redeem their rewards points for things like discounts, limited edition products, gift cards, or even free beauty classes.

For more loyal customers, Sephora also offers VIB and VIB Rouge programs that offer customers more prizes if they spend more money at Sephora. This means that the rewards can be scaled up according to how much money customers spend.

2. My Starbucks Rewards

Nowadays, providing loyalty programs through mobile apps has become very common, but it was a fresh idea when Starbucks first launched My Starbucks Rewards.

7 Examples of Innovative & Creative Loyalty ProgramsTo get loyalty points, customers must order or pay using the Starbucks app. By centralizing customer transactions, Starbucks can automatically store all important information of their customers, so that they can easily provide personalized promotions and rewards according to the customers’ preferences and behavior.

If your store has its own mobile app that records customer data, then that’s great. Otherwise, you can still collect and centralize your customer data through an advanced Point of Sale system. This system acts the same as a loyalty app; it records important customer information such as their favorite products, their shopping frequency, birthdays, credit card information, and many more.

Read our related article: 7 Ways to Keep Your Customers Satisfied and Loyal

3. Amazon Prime

Amazon is famous for their Prime loyalty program. Customers who are members of Prime get access to unlimited free two-day shipping on millions of items, as well as other benefits that Amazon has added such as their streaming service and Prime Day sales.

7 Examples of Innovative & Creative Loyalty ProgramsAmazon faces heavy competition from other retailers like Walmart. Products sold on Amazon can also be found elsewhere. What distinguishes Amazon from other online retailers is the loyalty program provided. Through the Prime program, Amazon has managed to increase their repeat sales; Prime loyal members spend an average of $ 1,500 per year on Amazon.com (four times more than other Amazon customers).

4. TokoPoints by Tokopedia

To increase repeat orders from their loyal customers, Tokopedia, one of the most prominent e-commerce sites in Indonesia successfully launched their loyalty program called TokoPoints.

Although Tokopedia is not the first Indonesia’s marketplace to provide such loyalty program, but TokoPoints proved to be able to steal the attention of online shoppers, let alone Tokopedia has indeed managed to dominate e-commerce in Indonesia.

Through TokoPoints, Tokopedia customers can collect Loyalty and Points either through the site or the app. Points can be redeemed into coupons available in the Katalog Kupon, while Loyalty can be used to level up the membership status (classic, silver, gold, and platinum). The membership benefits can include free shipping, discounts and cashback.

5. e.l.f.’s Beauty Squad

e.l.f., a famous cosmetic brand from New York offers a loyalty program that is not less creative than Sephora’s which is known as Beauty Squad.

e.l.f. understands how to properly reward their loyal customers. A-Lister members (those who have more than 401 points) are given early access to new products and have the opportunity to choose new product colors. There are also transactional gifts such as personalized sale days and various full size gifts, which make e.l.f.’s VIP customers feel valued and special.

6. TOMS One for One

TOMS, one of the world’s largest shoe manufacturers and retailers, has chosen another way to offer their loyalty program. They do not give rewards in the form of points or prizes as offered by other retailers, but an opportunity to make a real difference on a global scale through One for One.

7 Examples of Innovative & Creative Loyalty Programs
With every purchase of a pair of shoes, TOMS customers earn the non-monetary incentives that allow them to donate shoes to communities in need and share profits with the Wildlife Conservation Society. This proves that a loyalty program does not always have to be in the form of money and can be something that appeal to the customers’ values and sense of worth.

7. The North Face

As one of the world’s most prominent outdoor clothing and equipment retailers, The North Face offers a flexible loyalty program which allows their loyal customers to redeem their points with rewards that best suit their lifestyle.

Through the VIPeak program, customers can redeem their points in some unique ways; from attending The North Face events, checking in at specific locations, to experiencing memorable adventures, such as climbing the Himalayas in Nepal.

7 Examples of Innovative & Creative Loyalty Programs

The North Face’s rewards are more than encouraging customers to spend more. They are not common discounts on products, but curated experiences that help strengthen the relationship between the customers and the brand.

You don’t need to award a trip abroad like what The North Face does, but you can still create loyalty programs that are tailored to your customers’ characters and lifestyles, which help strengthen the bond between you and them.

To make it easier for you to manage your loyalty and membership programs, consider using a membership management software. This system can help you manage membership database in a centralized repository automate membership updates, offer various levels of membership, and personalize the loyalty program that you offer.

 

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