Loyalty Programs: Advantages and Benefits for Customers

Have you ever bought a cup of coffee at a cafe and been offered another cup for free if you downloaded the cafe’s app? Did you know that the offer is an attempt by the cafe to run loyalty programs?

As a business owner, you want your brand to have loyal customers. One way to do this is with a loyalty program. Loyalty programs are considered beneficial for customers and loyalty programs can be profitable in terms of the brand itself. If you take an example for a coffee shop brand business, a loyalty program indirectly increases the chances of the coffee being sold more than not having a loyalty program at all. This has been proven through a case study from Loyalty Plant, that 52% of their customers regularly use vouchers or attractive offers from a brand at least once every two months. Of the total customers, 77% of them would buy more than 3 cups in one transaction.

Creating a loyalty program is considered more effective in retaining customers than having to create a new campaign to compete with other brands. Aside from being less costly for business owners, a loyalty program can move your business toward digital transformation. Implementing a loyalty program designed specifically for coffee shops, especially one that targets your own customers, is crucial for this transition to track customer behavior in a targeted manner.

Why use loyalty points?

Loyalty programs provide you with many benefits that you can’t afford to miss out on. Here are the benefits you get if you actively participate in the loyalty program and use your loyalty points:

1. Save on expenses
   The most common benefit of loyalty programs is that you get discounted prices. This saves you money on the items you buy. You can even get multiple discounts according to the terms of the loyalty program organized by the brand.
2. Strengthening the bond with the brand
   If you are an active member of your favorite brand’s loyalty program, you will certainly become close to your favorite brand. Not only that, you can have the opportunity to meet other fellow members in a community who share the same values and views on social, environmental, and other issues.
3. Strengthen bonds with brands
   If you are an active member of your favorite brand’s loyalty program, you will certainly become close to your favorite brand. Not only that, you can have the opportunity to meet other fellow members in a community who share the same values and views on social, environmental, and other issues.
4. Receive rewards
   The most common form of appreciation from brands for customers. The rewards that your favorite brand will give you usually vary, be it in the form of discounts, physical goods, special services, and others. You can read more about it below.
5. For customers, what actions earn you loyalty points?
   Loyalty programs generally rely on the use of points when you have performed an action and these points can later be redeemed into rewards or other benefits that the brand provides to you. Find out more about what actions typically earn you loyalty points and the types of rewards you can receive from your favorite brands.
   • Make purchases up to a certain amount
   • Following the brand’s social media
   • Signing up for the brand’s newsletter
   • Downloading the brand’s app
   • Registering for a customer account
   • Complete customer account profile
   • Inviting friends to shop with the brand
   • Share and use the brand’s referral code
   • Leave a review for the brand
   • Watch a brand’s promotional video

What types of rewards can you get?
The following are the most common types of rewards that brands offer you if you actively participate in brand loyalty programs:

1. Member-only discounts
   Your favorite brands will generally only give discounts at certain times for regular customers. However, it’s not uncommon for brands to give loyalty program members-only discounts even when it’s not discount season for regular customers.
2. Free shipping
   This benefit will save you money when you shop online. You don’t have to worry about the shipping costs of the items you order because your favorite brand has already paid for them.
3. Early access to the latest products
   When you are a loyal customer and actively participate in a brand’s loyalty program, you will likely be the first to be able to buy and experience the latest products from the brand. You will feel more special compared to other regular customers who have to queue first to get access to the product.
4. Exclusive experiences for program members
   Exclusive experiences that brands offer can vary, such as special access to brand events that feature your favorite public figures, special in-store VIP queues, and so on.
5. Free samples of the latest products
   It is not uncommon for brands to provide free samples like this so that you don’t miss out on the latest products that your favorite brand has released. You also don’t need to spend money if you are curious about the latest product.

Loyalty programs are there to strengthen your interaction and relationship with your favorite brand. Everyone would love to be considered special. Therefore, maximize your participation in your favorite brand’s loyalty program. If you are also a business owner, there is nothing wrong with implementing the same loyalty program strategy that your favorite brand does to increase your business growth. Try our free loyalty program service now.