Loyalty program is a marketing strategy that aims to maintain and increase customer loyalty to your business. The main goal of loyalty programs is to maintain customer loyalty. A close bond must be built with customers with the aim of increasing customer retention and engagement so that they don’t switch to your competitors. By implementing loyalty programs, customers will feel more connected and emotionally attached to your business.
The success of a business is determined by customer loyalty. Especially in an increasingly competitive market, it is important for a business to be able to build strong and sustainable relationships to retain loyal customers.
One of the effective ways to foster customer loyalty can be done through loyalty programs. There are various types of loyalty programs that can be tailored to your product and business goals.
Loyalty programs are proven to be effective in increasing sales and reputation of a business. In the Bond Brand Loyalty report, 73% of consumers are more likely to recommend businesses with attractive loyalty programs. The data shows that loyalty programs not only retain existing customers, but also increase the visibility of your business through positive recommendations from loyal customers.
What are the Types of Loyalty Programs?
Each type of loyalty program has its own purpose and function. Determining the right loyalty program will greatly affect your business in the future. Here are the types of loyalty programs that are commonly used:
- Point-Based Loyalty Program
The first type of program is a loyalty program that is based on earning points. This is the most common and most common type of program. Generally, customers will earn points every time they make a purchase transaction of your business products or services. The collection of points can be customized according to your business needs. For example, customers can earn points by participating in events or by filling out surveys related to your business. These points can then be redeemed for discounts, free products, or other rewards. - Tiered Loyalty Program
In a tiered loyalty program, customers are given the opportunity to reach various levels or tiers by achieving certain targets, such as the number of purchases. The more frequently customers make purchases, the higher the level they will reach. - Paid Loyalty Program
Is a loyalty program that asks consumers to pay a certain fee to gain access to various benefits or privileges. In a survey conducted by McKinsey in 2020, 62% of customers tend to make more transactions after subscribing to a paid loyalty program. - Value-Based Loyalty Program
Value-based loyalty programs are different from the three types of loyalty programs above. It does not provide explicit rewards, such as discounts or points. Instead, value-based loyalty programs offer non-monetary rewards to customers, such as charity donations. Value-based loyalty programs are perfect for businesses that want to build a more personalized relationship and build a strong ethical relationship with the customers.
Building the Future of Your Business with Loyalty Programs
Increasing customer loyalty is key to business success. Loyalty programs are key to retaining customers and building a strong brand reputation. With the right strategy, businesses can increase customer loyalty and gain long-term benefits.
Want to get the right solution for your business? Try a free demo now at Sprint Asia to learn more about the right loyalty program to improve your business performance.
