Posted on : 2023-05-29 04:55:18
Article : Good morning, Monday management solution for the TASK 243-Brand marketers action never ceases on the battleground for shopper loyalty.
In reward offering loyalty programs Points-based programs allow customers to accrue credits, or points. These points can then be redeemed against future purchases, securing them a discount and incentivizing them to continue shopping with the same brand. Not all loyalty programs are born equal, and not all brands want to give the same incentives to new loyalty members that they give to seasoned, repeat customers. This is where tiered programs come in. Tiered loyalty programs reward customers for repeat purchases. The more they purchase, the more points they earn, and the higher they will rise up through the loyalty tiers.
Instead of offering a financial incentive, value-based programs appeal to preferences and personal interests of their members. If your brand has a strong set of moral values that align with your customer’s interests, value-based loyalty programs could work well.
Starbucks- In 2021, Starbucks Rewards was fast approaching 21 million members — and for good reason. With the Seattle-based coffee chain’s loyalty program, it truly does pay to be a member. On top of delivering convenience to customers with cross-channel account top-up and queue-jump ordering, the Starbucks Rewards program gives members access to free in-store refills on coffee and tea. They also offer a points-based incentive scheme that keeps customers coming back, offering them unique giveaways and discounts as they accrue “stars.”
Sephora - In 2007, online and bricks-and-mortar beauty retailer Sephora launched its Beauty Insider customer loyalty program, and it paid dividends for the brand. Operating on a tiered basis, Beauty Insider gives customers exclusive, unique benefits. From bespoke sessions with industry-leading make-up professionals to personalized perks and product discounts, Sephora has created an engaging program that compels customers to keep shopping and skyrockets their customer lifetime value.
DSW VIP is a point-based loyalty program that gives members free shipping on every purchase, additional points for donating nearly-new shoes to someone in need, and even additional points for providing birthday info or buying online and picking items up in-store. The loyalty program has three tiers and provides enticing offers the more a member spends.
Kohl’s has always been a favourite destination for money-savvy shoppers looking to snap up a good deal, but this retailer’s loyalty program elevates their value-for-money offering one step further. With 100% free enrolment, the Kohl’s YES2YOU is an omnichannel, points-based rewards program that allows customers to earn points for every dollar they spend in-store, online, or in-app. To drive repeat purchases and add urgency to their offering, Kohl’s adds a 30-day lifetime to their rewards points. If customers don’t return and spend their points within 30 days, they’re gone for good.
End point-In the purest sense, loyalty schemes should be a way of saying thank you to a customer for remaining loyal. I do worry that this reward aspect is being diluted. It’s got a lot more transactional – use this card or you can’t have the low prices, not thank you for remaining with us. Those grocery customers who aren’t happy with that deal may join the growing numbers who shop at Aldi or Lidl.
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