Loyalty Programs to Attract and Retain Customers

Top 7 Loyalty Programs to Attract and Retain Customers

August 3, 2017 145 0 0

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Loyalty Program is the key to customer happiness. These loyalty programs play a significant role in customer attraction as well as in customer retention. Loyalty Programs are business techniques adopted by retailers to appreciate, reward, connect and retain customers for growth in business and to increase revenue.

Some of the effective loyalty programs used by online retailers to boost the business revenue are as below:

1. Impressing Customer with the Point Based Loyalty Programs

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The more a customer shops, the more points (s)he earns. These points get accumulated over a period which in turn can be redeemed as discounts, gift coupons or any other similar rewards. Point Based Loyalty Program enhances customer participation to reap benefits. This loyalty program is one of the flexible, user-friendly and simplest of all the loyalty programs.

Some of the leading online portals that utilize this loyalty program are:

– Flipkart – shopping on Flipkart using the HSBC credit or debit card or Internet banking, can earn you extra points. The accumulated points can be redeemed later while shopping for your favourite apparel or any other accessory.

– Paytm – shopping using the Paytm wallet (or any other wallet system) fetches you reward points or cash back offers.

– Expedia India – On every hotel, flights or package booking – the customer earns points which can be redeemed on the future bookings of flights or hotels.

2. Motivating Customers with the Retail Customer Loyalty Program

Retail Customer Loyalty Program aims in retaining customers by offering special rewards. Retaining customers is much economical than acquiring a new one. This type of loyalty program increases the chances of repeat customers which increases the business value.

The key mantra for this loyalty program is to treat the customer special. A regular update on the special offers via email or an SMS, indeed, adds significant value to the customer. This, in turn, impacts the business in a positive way to add more profit. Customers can earn rewarding points for referring a friend, and many leading companies and brands implement this loyalty program which is always a hit among the commoners. After all, a positive word of mouth works like magic for business growth.

Most of the online retailers implement this loyalty program. Some of the major brands considering this loyalty programs are:

– Myntra – Myntra Refer and Earn program rewards INR 500 on signup and INR 500 for a referral.

– Nykaa – Nykaa Refer and Earn program rewards a whopping 5000 points on referring a friend. Even your friend gets rewarded with an additional 3000 points for the successful first time shopping.

– Jabong – Jabong Refer and Earn program rewards about INR 1000 for referring your friend. Further, rewarding an additional 40% off on the first successful transaction.

Top 7 Loyalty Programs to Attract and Retain Customers

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3. Cheering Customers with the Gift Card Loyalty Program

Gift Card Loyalty Program is mostly a hit among customers. Gift card is one of the popular gifts appreciated by a customer and adds profit to the businesses as well. Gift cards allow a customer to buy the full price items and thus targeting for the healthy profit margins. Gift Cards also give the customer the complete freedom to choose a product from his/her favorite brand and to buy what (s)he wants. However, Gift Cards cannot be redeemed for credit or as cash. Some of the online portals implementing the Gift Card Loyalty program are as follows:

– Shopperstop.com – Customers who are shopping for more than INR 2500 at shopperstop.com are gifted with Makemytrip gift voucher worth INR 2500. This gift voucher can be redeemed on Makemytrip.com on a booking of minimum INR 5000 on select domestic hotels.

– Max Fashions – Customer who shops for INR 2000 and above is gifted with a Max instant gift voucher worth INR 500. These gift vouchers can be instantly redeemed on purchase of apparels and accessories at any Max outlets.

– Amazon India – Customer who shops on Amazon India via Couponraja can win gift vouchers worth INR 500. These gift vouchers can be redeemed on the Amazon India.

For the puzzle and game lovers, there are numerous websites online which conduct puzzle contests and the winners are gifted with the gift vouchers from different portals like Amazon, Flipkart, Myntra, Jabong, Makemytrip, and Expedia etc. Many websites present instant gift vouchers for new users on signing up on their web page, as a token of appreciation.

4. Appreciating Customer Loyalty with the Tiered Loyalty Program

The Tiered Based Loyalty Program is one of the effective ways to make your customer stay connected with the brand. A customer will have to climb different tiers to get a priority status pertaining to the brand. It is as good as collecting treasures to unlock the next higher level while playing a video game. Some of the best examples of the major online retailers are:

– Makemytrip.com – Makemytrip has different tiers namely – Silver Tier, Gold Tier and Platinum Tier. Silver Tier rewards the silver member with points on every hotel or package bookings. Gold Tier offers the gold member with a reward of INR 1000 on the Tier upgrade and a 2 night stay at a luxury hotel for retaining the Gold Tier. On upgrading to the Platinum Tier, the customer gets a reward of INR 5000 worth voucher for an International Holiday and a 2 night stay at a luxury hotel for retaining the Platinum Tier.

– Expedia India – Expedia+ has 3 tiers namely, +Blue, +Silver and +Gold. The customer automatically gets into a +Blue tier for the free membership. After the stay in 7 qualified hotels from Expedia booking, the Blue member gets upgraded to +Silver tier. The silver member gets upgraded to the final tier which is the +Gold tier after staying in 15 qualified hotels.

5. Valuing Customer Needs through the Coalition Based Loyalty Program

The Coalition Loyalty Program is an effective loyalty program to grow your company and to retain customers. This loyalty program involves a partnership with multiple brands and hence the funding and other liability – gets equally distributed amongst all. This loyalty program shows that you value and care for your customer’s needs by offering more than just your product. Some examples from the leading retailers are:

– Amazon India – Shopping with the Axis, HDFC, SBI, CITI bank and ICICI credit cards or debit cards offers cash back of up to 20%.

– Nykaa – Shopping with Citi bank credit and Debit cards offer a 10% of instant savings on the purchase of INR 1000 and above.

– Paytm – For every successful transaction using Paytm on Makemytrip, a customer earns 400 payback points.

– Myntra – Shopping on Myntra with Mobikwik Wallet offers flat 15% super cash on all the purchase.

– Amazon India – Big Bazaar offers up to 50% off on Cookware, Kitchen utensils, cleaning accessories, toys and sports accessories on the Amazon Now App.

– Paytm – Swiggy offers a flat 20% off on food order of INR 300 and above when ordered using the Paytm wallet.

Some of the Coalition Loyalty Programs charge an upfront fee for the dignitary or the special treatment for its customers. For instance, Amazon Prime users have to pay a subscription fee for 1 year to avail the Prime service which includes free shipping within a couple of days with no barrier on the minimum purchase amount.

6. Targeting a Clique with Community Based Loyalty Program

Community Based Loyalty Program targets a group of like-minded people. To illustrate we have the following :

– Adidas, the sportswear Behemoth, targets athletes or the sports community by rewarding with points while shopping with the Adidas credit card.

– Nykaa beauty businesstargets women customers with the most loved beauty brands and alluring cosmetics.

– Amazon India offers about 50% off on all the video games, consoles and gaming accessories targeting the video game lovers. Amazon India also offers up to 60% off on baking accessories and wine accessories targeting the bakers and wine lovers, respectively.

– Flipkart offers up to 50% and more on the baby products and also offers attractive combo offers on the baby bath and skin products targeting new parents.

7. Attracting Customers with Hybrid Loyalty Program

The hybrid Loyalty program is a combination of any of the above loyalty programs. It targets a specific group or crowd like students, housewives etc., and offers deal specific to the group or crowd. This Loyalty Program can be combined with a pure tier based loyalty program to customise the rewards and retain customers.

Through this loyalty program, retailers experiment with different combinations of programs to figure out the best outcome of loyalty programs. Hybrid Loyalty Program turned out into a good game as it has the potentials to solidify business by retaining its customers. This kind of loyalty program makes the purchase more fun and rewarding. For example:

– FoodPanda – For a purchase of INR 400 and above, the customer gets to participate in a competition to win exciting prizes like Apple iPhone 7, LED TV etc.

– Amazon Now – Amazon Now offers about 5% off on grocery shopping on a minimum purchase of INR 1000, and about 10% off on grocery shopping on a minimum purchase of INR 2000. The Big Bazaar instant gift vouchers or gift cards can also be purchased on Amazon, which can be later redeemed in the physical stores.

Source Links

http://www.jonomus.net/coupon/myntra-app-refer-and-earn/

http://www.nykaa.com/contact_us/index/otherfaq#nykaa-faq11

http://social.memberemail.com/Share.aspx?i=ef1bc57bb7e935c66349837b6becf4771ea0db8945e70aac


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