Loyalty or Membership Programs
A Loyalty or a Membership program is a Marketing tool that aims at creating a "retention" program for customers so that the relationship between a brand and its customer may last, well, forever.
The power of this tool depends on how effectively it is used. Yes, that's right! It is very easy for a program to deviate from what it wants to achieve. Loyalty program should complement fully, and to some extent, mirror the growth strategy employed by the Business stakeholders. It is very easy for a program to become obsolete if it is not up to date with the overall objectives of a business. For example, a program offering lesser returns on purchase (in the form of Cashbacks or Coupons) would most likely fail if the brand's strategy focusses on aggressive growth.
The bottom line is - create a program that speaks the language of your brand, and not just offers discounts and promotions.
Types of Loyalty Programs
It is quite probable you have encountered at least one of many "avatars" of a Loyalty program out there. Well, typically, a loyalty program may be of following types, or even combination of more than one flavors.
Cashback
Tier based
Referral
Luxe Club
Interactive
Products based
When choosing a specific type of program, see how it aligns with your overall business strategy. The loyalty program should complement the business strategy, so that customer feels same message conveyed from each of brand's "speaking" points.
Want to know more about loyalty programs and how EarnNBurn is poised to create a perfect program for you?