And to make this investment profitable, you need to have a customer loyalty program that is aligned with your business objectives and that helps you increase average customer lifetime value, satisfaction and recommendations.
There are many types of loyalty programs, from the simple “buy X, get one free” to communities with multiple reward levels. To help you choose the best one for your brand, we’ve detailed 7 types of loyalty programs.
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Types of loyalty programs, what are there and how they differ
7 types of loyalty programs
1) Points program
In this type of loyalty program, customers earn points for transactions, interactions or visits , which they can then redeem for rewards.
In their simplest form, these programs consist of the customer accumulating X points for every euro spent, which can then be redeemed for products from the brand later on. But many brands also reward behaviors not directly related to the purchase, such as following the brand on social media , subscribing to the newsletter, answering a survey or registering a visit to a physical establishment.
Rewards programs have the advantage of being flexible bulgaria phone number resource and customizable, while maintaining price integrity. By offering exclusive products in exchange for points, you can earn additional purchases to earn points and qualify for rewards. You can also use the rewards program to encourage desired customer behaviors , such as subscribing to your newsletter.
2) Partner Program
Many brands offer loyalty programs to their customers, and one way to stand out in this scenario is by offering varied rewards through collaborations with other brands . In fact, 68% of millennials are loyal to the program that offers the most rewards.
Partner loyalty programs offer you the opportunity to collaborate with other companies to offer shared benefits to customers. A good example of this is Nike’s loyalty program, which, in addition to personalized training, also offers exclusive benefits in collaboration with Apple, Classpass and Headspace. All of these brands reinforce Nike’s commitment to inspiring athletes around the world.
This type of loyalty program offers many advantages to brands, such as expanding the reach of the customer base, sharing fixed costs, accessing more information about users and strengthening relationships with other similar brands.
