There are several best types of customer loyalty programs to boost retention. According to recent studies, nearly 75% of consumers report that they are more likely to make another purchase after receiving an incentive. Undoubtedly, a strong loyalty program is critical to keep your customers coming back for more products. As a marketing manager, you need to know the most effective loyalty programs to increase your customer retention rate. This way, you can build people based marketing incentives that meet your target audience’s needs. Read on to discover the best types of customer loyalty programs to boost retention.
First, referral programs are an effective type of customer loyalty program to increase your rates. Usually, referral programs rely on your business’s current customer base to promote products and services to new customers. For example, lodging companies might offer a $20 reward for referring a new customer. If the referrer gets the new customer to stay at the lodging location, the company would reward them with an account credit. Similarly, they might offer the referee a reward as well. Notably, one lodging company was able to increase their bookings by over 25% using this referral model. With a prosocial approach, both the referrer and the referee are likely to use your products or services again in the future. Definitely, implement a referral program to boost your customer loyalty.
Paid VIP Loyalty Programs
Next, you can also try a paid VIP customer loyalty program to keep customers shopping with your brand. Typically, paid programs invite customers to pay a monthly or annual fee to join a VIP member club. Ideally, your paid program should include member-exclusive benefits. Otherwise, it could lose its value. For example, you could offer your VIP members free shipping business or a 10% discount. If you keep your membership fees low, you can get more customers to join as well. Of course, paid VIP programs work best when you market them to your frequent buyers and existing customers. Naturally, they are more likely to use the perks and discounts. Absolutely, paid VIP customer loyalty programs are perfect to keep your current customers satisfied.
Point-Based Loyalty Programs
In addition, point-based loyalty programs are one of the most popular incentive models to boost brand retention. Typically, these programs reward customers with points each time they spend a certain amount. Then, your customers can redeem these points for credit towards their next purchase or a giveaway. Notably, many businesses use SaaS loyalty rewards platforms to send customers gift card rewards after they earn a certain number of points. For example, Tremendous provides a convenient online system to send virtual gift cards, physical gift certificates, and cash rewards. With instant delivery and free rewards redemption, this platform makes it easy to manage your points-based gifts. Certainly, implement a point-based loyalty program to offer valuable customer incentives.
Behavioral Loyalty Programs
Moreover, behavioral loyalty programs are another major incentive to secure customers. With behavioral loyalty, you can offer customers rewards for doing activities that you would like them to do. For example, you might offer a point-based gift or discount if they make three purchases in one month. To inform your behavioral loyalty program, you can use an enterprise data strategy and machine learning algorithms. Notably, many businesses implement these analytics system at their point-of-sale systems to analyze customer behavior. Then, they use these analytics to design effective behavioral programs. Undoubtedly, behavioral customer loyalty programs are a great rewards option if you’re looking to influence your consumer buying habits.
Game-Based Loyalty Programs
Furthermore, you can also implement game-based loyalty programs to encourage repeat customers and solidify your brand image. Often, game-based loyalty programs use a contest or sweepstakes to offer rewards. Ideally, the odds of winning should be no lower than 25%. This is essential to ensure your customers do not feel manipulated to win their business. In addition, you should make the purchase requirements attainable. For example, you can have your customers complete a gamified survey for a chance to win points, prizes, or giveaways. Typically, these quizzes work best when you’re looking to learn about your customer’s lifestyle or personality. This way, it doesn’t feel like a test. In short, gamified loyalty programs are one of the best types of customer rewards to maintain business.
There are several best types of customer loyalty programs to boost retention. First, referral programs are a great way to keep your current customers and recruit new ones. Next, you can implement a paid VIP loyalty program to keep consumers shopping with your brand. In addition, points-based programs work great when paired with SaaS loyalty rewards platforms to distribute incentives. Moreover, you can use a behavioral program to influence your customers’ buying habits. Furthermore, game-based loyalty programs are a fun, engaging way to keep customers. Consider these points to learn about the best types of customer loyalty programs to boost retention.