Loyalty Programs give your brand a competitive edge and improve customer retention.
Campaign Examples:
Below we've included a small sample of possible campaigns using our powerful Rule Builder, but this list is far from exhaustive.
Factor-Based Segments
Offer three types of premium segments - Bronze, Silver, Gold. With every € spent, customers earn 1 loyalty point. Bronze members get a 1,2x bonus on every point earned and silver members get a 1,5x bonus.
For example, If customers have a loyalty score of 1000 points, upgrade to Bronze membership. If customers have a loyalty score of 2500, update to Silver membership. If customers have a loyalty score of 5000 points, update to Gold membership.
So, if customers are Bronze members, give 50% shipping discount on every purchase and a coupon code with 10% discount on one item every month. If customers are Silver members, give free shipping on every purchase and a coupon code with 20% discount on one item every month. If customers are Gold members, give free shipping on every purchase and 50% discount on one item every month.
- Make your most valuable customers feel valued.
- Focus your resources on high-value customers and deliver superior experience across touchpoints by segmenting your customers.
- Encourage customers to increase their spending to move up to the next membership stage.
Make 9 Purchases, Get the 10th Free
If customers order 9 times and the current order is less than 20€, they automatically receive the next purchase for free (100% discount).
- Incentivize customers to create a customer account so they can be part of the campaign.
- Understand the purchase frequency and purchase amount of each customer that has registered, then use the data to segment your customers and rewards based on the ‘loyalty’ of each customer.
- Increase the purchase frequency of your customers. Nurture your best customers by offering rewards for smaller acts of customer advocacy (like sharing content on social media or writing a review). This will allow you to strengthen your relationship with them before asking for referrals.
- Get personal with your top advocates.
- Offering something of value before asking for a referral will inspire your customers to continually submit high-quality referral leads.
Small Pre-Referral Action Rewards Loyalty
Nurture your best customers by offering rewards for smaller acts of customer advocacy (like sharing content on social media or writing a review). This will allow you to strengthen your relationship with them before asking for referrals.
- Get personal with your top advocates.
- Offering something of value before asking for a referral will inspire your customers to continually submit high-quality referral leads.
Purchase Frequency Cashback
If customers place their 3rd order above 20€ within 21 days, they get a 50% discount.
- The campaign supports all the important loyalty KPIs. The most important measures of customer health: Recency from last order; Frequency, and monetary value.
- Reward your “hero customers” and incentivize others to become one.
- Increase the average purchase frequency and the spend per visit (by defining a minimum order value).
Reward Repeat Customers with Cashback
If customers place their 3rd order above 20€ within 3 weeks, give a 50% discount.
- Reward repeat customers for their loyalty.
- Add time-sensitive conditions to reward a specific group of repeat customers.
Collect Loyalty Points, Get Discounts
If customers sign up, they receive 250 loyalty points. If customers are part of the loyalty program, they earn 1 point for every dollar spent. If the loyalty point count is exactly 500 points, send a coupon with 5% discount. If the loyalty point count is exactly 1000 points, send a coupon with a 10% discount.
- Simple to engage customers and keep them spending with you for longer.
- In these kinds of programs, it’s essential to measure the return rate, churn rate and attrition rate.
Premium Segment Double Reward
Implement a tiered loyalty program that offers members a single point for each Euro spent.
If customers redeem 250 loyalty points, send them a 5€ coupon code.
If customers have an overall order value of greater than €2,500 per year, upgrade the customer to the “Premium Segment”.
If customers are in the “Premium Segment” and redeem 250 loyalty points, send them a 10€ discount and 50% discount on shipping price.
- Boost your program’s customer engagement.
- By adding tiers to your program, you are challenging customers to actively reach new levels through completing purchases and engagement. This is a common technique known as gamification.
Points Equal More Rewards
As a member of this loyalty program, the more points you earn, the bigger the reward. If customer’s loyalty score is exactly 1000 points, send a 10€ discount. If customer’s loyalty score is exactly 2000 points, send a 50€ discount. If customers loyalty score is exactly 3000 points, send a 100€ discount. If customers loyalty score is exactly 5000 points, send a 250€ discount with a coupon.
- If you opt for a points-based loyalty program, keep the conversions simple and intuitive.
- Automatically implement a high free-rider hurdle. You are not giving margin away to everyone, only those that give you loyalty and earn rewards.
- Collect robust customer data and insights to drive business decisions.
Category-Based Loyalty Program
Members earn 2 points for every 1€ spent on Category X or Y, and they can get 1 point for every 1€ spent on Category Z.
- Control your stock by making it more interesting for loyalty program members to buy high-inventory items.
- Exclude high-demand items from your loyalty program.
- A great way to move surplus products or increase sales on a less popular item.
Individual Rewards for Program Members
Trigger automatically personalized emails to loyalty members with information and rewards that match personal preferences, past purchases, or upcoming events. For example, a travel platform could send personalized discounts to subscribers who visited London on their last trip.
- Loyalty customers only receive emails tailored to pique individual interests.
- Segment your loyalty subscriber lists based on personal preferences.
- Send recommendations for enhanced travel experiences based on subscriber bookings.
- Personalize emails with subscriber names and any relevant account information.
Loyalty Score-Dependent Rewards
Your campaigns should consider the balance of your customers’ rewards points, i.e. how many more they need to reach the next tier in the program.
If customers need less than 100 points to reach the next loyalty stage, give double loyalty points on their next purchase if they complete the transaction within the next 24 hours.
- Minimize the step to the next purchase for the customer. Give users an incentive to get to the next stage quickly.
- You can increase the purchase frequency of your top customers by offering them a range of time-limited incentives.
- Give your campaign a time limit to increase the urgency
If any of the terminology used in this article is not familiar to you, check out this comprehensive loyalty definition on our website.