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HomeIndustriesHash Retail Innovation7 Examples of Innovative & Creative Loyalty Programs

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 to a new one? That is because your current customers already know what you have to offer, and they’re already passionate about your brand. That’s why a comprehensive membership management system is very much essential to retain loyal customers. There’s a lot of competition in the market today. But, you don’t need to worry because you can still keep winning your existing customers with a loyalty program. The right membership software can help you offer the best and most unforgettable loyalty program for your customers. 

A loyalty program could be one of the most effective ways to retain your existing customers while attracting new ones. Many companies are now adopting the best membership system that is flexible for every member and allows them to create unique promotions. However, many are still contemplating the pricing scheme calculations. If you don’t have an idea about what kind of loyalty program you will offer yet, check out some of these creative loyalty programs to get inspired. Other than that, you can always use the help of a sophisticated membership management system. 

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1. Sephora’s Beauty Insider

7 Examples of Innovative & Creative Loyalty Programs

 

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.

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

Sephora also offers VIB and VIB Rouge programs. Those programs provide customers more prizes if they spend more money at Sephora for more loyal customers. 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 launched My Starbucks Rewards.

7 Examples of Innovative & Creative Loyalty Programs

 

To 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. This can make them easily provide personalized promotions and rewards according to the customers’ preferences and behavior.

If your store has a 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, funny 40th birthday gifts, credit card information, and many more.

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3. Amazon Prime

Amazon is famous for its 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

 

Amazon 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 increased its repeat sales; Prime loyal members spend an average of $ 1,500 per year on Amazon.com (four times more than other Amazon customers).

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

4. TokoPoints by Tokopedia

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

Although Tokopedia is not the first in Indonesia’s marketplace to provide such a loyalty program, 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
level up the membership status (classic, silver, gold, and platinum). The membership benefits can include free shipping, discounts, and cashback.

The process of building consumer loyalty can also be done through email marketing. However, sending email marketing to many consumers will be challenging to implement if you still use the manual method. Therefore, a marketing automation system is a right choice to automate relationships with clients. This system helps companies automatically send marketing emails to multiple recipients, perform SMS marketing, and create custom email templates according to company needs. 

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 reward their loyal customers properly. 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. Transactional gifts such as personalized sale days and various full-size gifts make e.l.f. ‘ss 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 its loyalty program. They do not give rewards in the form of points or prizes provided by other retailers, but an opportunity to make a real difference on a global scale.

7 Examples


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
appeal to the customer’s 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 that 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 unique ways; from attending The North Face events, checking in at specific locations, and experiencing memorable adventures, such as climbing the Himalayas in Nepal.

7 Examples of Innovative

 

The NorthFace’ss 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 as The North Face does, but you can still create loyalty programs 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 membership management software. This system can help you manage the membership database in a centralized repository, automate membership updates, offer various membership levels, and personalize the loyalty program you offer. If you are still contemplating which system to use, download the pricing scheme calculations to help you decide!

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HashMicro is a software development and enterprise resource planning (ERP) company. Consequently, we often provide articles about ERP and other systems that all businesses need.
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