Implement Customer Loyalty Strategies – What do the big brands do?

Discover the secrets behind the success of big brands when it comes to implementing effective Customer Loyalty Strategies. In this concise article, we delve into the world of Customer Loyalty Strategies and uncover the practices employed by industry giants to cultivate unwavering customer loyalty.

What is a loyal customer?

There are many definitions of loyalty

Loyal customers are individuals who consistently choose to use and engage with your products or services. They demonstrate a steadfast commitment to your brand, often making repeat purchases or regularly utilizing your offerings. The concept of loyalty encompasses various dimensions and can be influenced by factors such as the perceived value of the products, the frequency of purchases, and the level of trust established between the customer and the brand.

Loyalty programs are businesses' efforts to connect with customers so that they continue to use products and services again and again. To do that, you need to focus on building a “long-term strategy”. From there, you will create interactions and create long-term relationships with customers, not for the purpose of increasing immediate sales.

There are tons of different rewards businesses can think of. In this article, let's take a look at the loyalty programs of famous brands. Maybe you can find the right strategy for your business.

Points-based loyalty programs

The points program is the most basic form. When applying a loyalty program based on accumulated points, the more money a customer spends on purchases, the more bonus points they receive. The number of points can be calculated based on the specific amount.

The famous brand that is applying for the points program very well is The North Face.

• The North Face's scoring program is very simple: $1 spent = 1 point earned.
• Earning points are applied when customers shop online and in-store. For every 100 points, the customer will receive a $10 reward to use on their favorite device.

Besides, The North Face also conducts many other programs: Members-only field-testing, dedicated customer service, and XPLR pass gifts,...

This will boost consumer spending, making them more invested in the brand and less likely to leave the brand.

The points program is considered the simplest type that any online business can apply to customers. If you are going to create a points-based rewards system on your eCommerce store, remember to make it simple and easy to follow. Ecommerce loyalty programs like Rivo make it simple not only for your customers to sign up, but also to use their points with on-page widgets, points balances, and even custom checkouts that allow customers to use points instead of cash. Remember, your points program can only help you build loyalty if your customers actually use it! 

Paid loyalty programs

This program requires customers to pay a monthly or annual fee to become VIP Members. The audience of the paid loyalty program is usually old and loyal customers unless your brand is a well-known brand.

The most important thing is to give members clear and distinct privileges.

Take for example the commerce site Barnes & Noble, they offer users a membership package for $39.99/year with benefits such as discounts, free ship, etc.

To motivate customers to join, it is necessary to show them that the return is greater than the cost of signing up for the membership plan (Example: save up to $60 for only $25/year). To promote further, it is possible to provide customers with reviews from previous customers to increase persuasion.

Value-based loyalty programs

Not all Loyalty programs require discounts. This method aims to build a loyal customer group based on the common values between the brand and the user.

Ben & Jerry's is a famous brand that creates ice cream flavors with the theme of social justice. For each purchase of these themed products, the company donates profits to charities that support animals, the environment, social programs and other causes.

Some community activities of the Ben & Jerry brand can be mentioned as:

• Donate $500 to Barre Area Senior Center
• Donate $1000 to Camp Exclamation Point, Inc. (CAMP!) — a one-week residential summer program for over 100 Vermont children.
• $600 Funding for the Fairfield Farmers Market Online

These activities make customers feel their donation is more valuable. In addition, it will create opportunities to better reach customers, and strengthen relationships with customers.

However, keep in mind that Value-based loyalty programs should reflect the core values of the brand. If your brand values something, your target audience will often agree with you.

Long-term subscription

Long-term subscriptions are not like other programs, typically focusing on gifts and benefits for members. Instead, it lets customers buy your products on subscriptions.

Take the example of the Bean Box brand below.

By selling products as long-term subscriptions, Bean Box has increased the lifetime value of its customers. At the same time, they encourage customers to choose a 6-month plan instead of a 1-month plan by saying "save 20%".

Bean Box's Long-term subscriptions

Although the average product price when buying a 6-month plan will be cheaper, the return value will be much greater than that of customers who come to buy only once.

This method is being applied effectively with stores at Shopify. It will help you grow your business more sustainably and in the long term. The best solution when using a long-term subscription on Shopify is to use support apps.

Seal Subscriptions & Loyalty is one of the top subscription optimization apps on the Shopify app store. It gives you complete control over your subscribers, products, discounts, churn rate, and cancellations with an excellent support team behind it to help you with whichever situation you find yourself in. In particular, it has been integrated with Beae - Landing page builder.

This article highlights the most effective Customer Loyalty Strategies for lead generation and maintaining a strong brand position. By gaining a deep understanding of customer consumption trends and delivering compelling value propositions, businesses can successfully cultivate customer loyalty.

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