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Bloom Nutrition Announces the Launch of the Bloom Wellness Club Rewards Program

Bloom Nutrition, a leading known health and wellness supplement brand focused on creating holistic health, is thrilled to launch a brand-new loyalty program, “Bloom Wellness Club.” Designed by Zinrelo, a SaaS-based loyalty platform, the objective was to improve customer retention, increase customer LTV, increase subscriptions, and bring retail customers back to shop on our website. In addition, promoting referrals, promoting social media shares, and improving app downloads were necessary.

The Zinrelo development team played a pivotal role in the successful launch of “Bloom Wellness Club,” an innovative platform that offers users substantial rewards every time they purchase at Bloom Nutrition, regardless of where or when they shop. The Bloom Wellness Club stands out as a complimentary membership program that allows participants to accumulate 1 seed for every dollar spent on their purchases. Furthermore, members can also gather seeds or rewards by engaging in non-purchase activities like setting up an account, uploading receipts, providing reviews, referring friends, and enjoying a birthday bonus. Upon reaching a seed count of 250, users are elevated to the esteemed Sprout Club, and achieving 500 seeds promotes them to the prestigious Blossom Club. These bespoke rewards include exclusive access to new products, free shipping mini treatments, and access to VIP events.

This is why we wanted a platform like Zinrelo that was flexible and enabled plenty of exclusive and engaging features for everyone. – Greg LeVechia CEO – Bloom Nutrition.

Bloom Wellness Club is built with customers in mind, making the app accessible for all and providing an exclusive rewards system for all users. Customers get a bespoke and completely personalized experience so they can select the Bloom products they are interested in and have the chance to win regular discounts and rewards.

“Bloom wellness club was built on the belief that health and wellness should be fun and make everybody feel good, creating a wellness community for all. This is why we wanted a platform provider like Zinrelo that was flexible and enabled plenty of exclusive and engaging features for everyone. – says Greg LeVechia CEO – Bloom Nutrition.

“It’s a pleasure to have such a popular health and wellness brand on board! We’re proud to support Bloom Nutrition as they launch their loyalty program and bring new customer experiences to their visitors support them in their unique point-of-sale model and strengthen their customer relationships through their program. We felt an instant connection with Benefit cosmetics, as we both believe that meaningful and lasting experiences are the key to making customers happy and most importantly, loyal”. – says Jai Rawat, CEO at Zinrelo.

Source: prweb.com

5 Customer Loyalty Program Mistakes and How to Avoid Them

Did you know that 77% of loyalty programs fail within three years?

Customer loyalty programs have become essential for businesses to drive customer engagement and foster long-term relationships. However, common pitfalls of loyalty programs can undermine their effectiveness and performance. In fact, many large brands, including H&M and Old Navy, have faced severe drawbacks due to common mistakes in their loyalty programs.

Loyalty programs are among the most powerful tools to cultivate long-term relationships and customer loyalty. These programs entice customers with enticing rewards, exclusive perks, and personalized experiences, creating a sense of belonging and incentivizing repeat purchases. However, despite their immense potential, loyalty programs can have the opposite effect if not carefully designed and executed. In fact, a staggering 77% of these programs fail within three years, leaving businesses scratching their heads and customers feeling disenchanted.

The world has witnessed some colossal loyalty program failures in recent years, with even retail giants like H&M and Old Navy stumbling into common pitfalls of loyalty programs. Launching and managing a successful loyalty program requires a deep understanding of customer psychology, meticulous planning, and continuous adaptation to evolving market dynamics.

So let’s understand the common mistakes brands make in loyalty programs and how to avoid them.

Why Do Loyalty Programs Fail?

You must be wondering this, too, if you’re experiencing a setback in your loyalty program. But most marketers are so focused on the results that they don’t realize the basic aspects of a successful loyalty program: being customer-centric and adaptable.

Most loyalty programs fail because they are overly transactional. While others fail because of irrelevant rewards. But some loyalty program mistakes can ultimately jeopardize the program’s performance.

Let’s see what they are and how you can overcome them!

Loyalty Program Mistakes to Avoid

Pitfall #1: Lack of Clear Value Proposition

A loyalty program must have a clear value proposition to capture customer interest and engagement. When customers are unsure of the benefits and rewards offered, they may hesitate to participate. Furthermore, if customers don’t get enough value from the program, the chances of retaining them become very low.

Dillard’s experienced the same. The brand offered 1 reward point for every dollar spent on groceries and gas stations. Many other retailers offer the same reward structure. But with Dillards, customers can only redeem their points after accumulating 1500 points. So, customers have to spend $750 with the brand to enjoy 10% in return. Dillard’s attempt to streamline customer experience ended up reducing its value proposition.

Therefore it is important to communicate the value proposition of your loyalty program clearly. Highlight the exclusive rewards, personalized experiences, discounts, and other incentives customers can expect. Tailor your messaging to address your target audience’s pain points and desires, making it compelling and relevant.

Pitfall #2: Complex and Confusing Program Structure

Customers prefer a simple and convenient loyalty experience. A loyalty program with complex rules and complicated program structures can lead to customer confusion and frustration. If the earning and redemption processes are not straightforward, customers may lose interest or abandon the program altogether.

Let’s take the example of Old Navy. The popular brand revamped its loyalty program in 2021 to enhance customer experience. But in doing so, they complicated the program structure. Instead of offering different rewards to different customer segments, Old Navy made most rewards available to free program members and card-holding members.

To avoid this, simplify your loyalty program structure. For example, streamline the earning and redemption processes, and make it easy for customers to understand how they can accumulate points and redeem rewards. For example, you can use clear and concise communication to guide customers through the program journey and provide an intuitive user interface.

Pitfall #3: Inadequate Personalization

A lack of personalization in a loyalty program makes customers feel like just another number, diminishing their enthusiasm and loyalty. Likewise, generic offers and rewards that do not align with individual preferences and behaviors can result in disengagement. Investing in data analysis and segmentation can help you create customer profiles based on preferences.

You can, then, deliver personalized experiences, offers, and recommendations based on each customer profile. Furthermore, use data-driven marketing automation tools to send targeted communications that resonate with each customer’s preferences and past interactions.

Pitfall #4: Insufficient Communication and Engagement

Loyalty programs that fail to communicate regularly with its members often lead to a lack of engagement and reduced program activity. For example, neglecting to inform members about new rewards, promotions, or program updates can result in missed opportunities for engagement. To avoid this, establish a comprehensive communication strategy.

Use multiple channels, such as email, SMS, social media, and in-app notifications, to keep members informed and engaged. Regularly communicate program updates and offers rewards to maintain top-of-mind awareness and drive ongoing participation.

Furthermore, you should ensure that your promotions are on brand and effectively convey what’s being offered. Let’s take Uber Rewards, for example. Uber is available in over 80 countries. But its loyalty program is only available in 6. Where Uber went wrong with its program is communication. The brand consistently advertised its loyalty program globally. In addition, Uber failed to mention that the rewards will not be redeemable internationally in its policies.

Pitfall #5: Failure to Measure and Optimize

A loyalty program that lacks proper tracking and optimization measures cannot maximize its potential. Monitoring key metrics and analyzing program performance is necessary to identify areas of improvement and make informed decisions. Therefore, brands should establish a robust measurement and optimization framework.

Furthermore, you should identify relevant loyalty program metrics, such as enrollment rate, active member rate, redemption rate, average order value, and customer lifetime value. Then, regularly analyze these metrics and leverage data insights to identify trends, make program enhancements, and tailor strategies to boost performance.

Sephora – The brand that’s doing loyalty right

Sephora’s Beauty Insider loyalty program is among the most popular loyalty programs, and that has only been achieved because the brand successfully overcame the pitfalls mentioned above.

1. Clear Value Proposition: Sephora’s Beauty Insider program offers tangible benefits, including points that can be redeemed for rewards, exclusive products, deluxe samples, and special event access.

2. Simplistic Program Structure: Sephora simplified the program structure with three membership tiers (Beauty Insider, VIB, and Rouge), each offering escalating benefits and rewards.

3. Personalization: Sephora gathers extensive customer data to provide personalized product recommendations, customized offers, and tailored beauty tips through their app and website.

4. Proactive Communication and Engagement: Sephora actively engages with members through personalized emails, push notifications, SMS alerts, and their app, providing information on new products, offers, and events.

5. Regular Monitoring and Program Optimization: Sephora tracks metrics such as member acquisition, retention rates, and customer lifetime value. They continuously test and refine the program based on customer feedback and industry trends.

By effectively addressing these pitfalls, Sephora’s loyalty program, Beauty Insider, has become a successful example in driving customer loyalty and satisfaction in the beauty industry.

Conclusion

Avoiding common loyalty program pitfalls is crucial for the success and effectiveness of your program. By addressing issues related to value proposition, program structure, personalization, communication, and measurement, you can overcome these challenges and create a loyalty program that captivates and retains customers.

A well-executed and customer-centric loyalty program can transform your business, fostering brand advocacy and customer allegiance. By steering clear of these pitfalls, you can cultivate a devoted customer base that will drive sustainable growth and prosperity for your enterprise.

7 Crucial Customer Loyalty Program Metrics to Monitor Your Program Performance

Loyalty programs have become an integral part of businesses, offering a strategic approach to building strong customer relationships and driving repeat purchases. However, launching a loyalty program is just the beginning. To ensure its success and effectiveness, you need to monitor key metrics that provide insights into its performance.

Loyalty programs are designed to incentivize customers to make repeat purchases, foster brand loyalty, and ultimately increase customer lifetime value. However, without ongoing monitoring and analysis, it can be challenging to gauge the effectiveness of your loyalty program. By tracking and analyzing loyalty KPIs, you can gain valuable insights into the program’s performance and make data-driven decisions to optimize it.

Why Is It Crucial for Brands to Monitor Loyalty Program Metrics?

Measuring loyalty program performance enables brands to personalize the customer experience. By analyzing customer preferences, purchase patterns, and interactions with the loyalty program, brands can gain deep insights into individual customer behaviors. This knowledge empowers brands to deliver personalized rewards, offers, and communications that resonate with customers, fostering a stronger emotional connection and increasing loyalty.

Furthermore, benchmarking loyalty program performance against industry standards and competitors is essential for brands to stay competitive. By comparing program metrics and outcomes with similar businesses, brands can identify areas of excellence and areas that require improvement. This competitive analysis helps brands stay abreast of industry trends, uncover best practices, and differentiate their loyalty program, ensuring it remains compelling.

This blog will explore 7 crucial customer loyalty metrics that every brand with a loyalty program should monitor.

Critical Loyalty Program Success Metrics to Monitor Performance

1. Enrollment Rate

The enrollment rate measures the percentage of customers who sign up for your loyalty program compared to the total customer base. This KPI for loyalty programs is crucial for evaluating the program’s growth and determining the effectiveness of your marketing and promotional efforts. A high enrollment rate indicates strong customer interest and engagement.

Enrollment Rate Formula

Enrollment Rate = (New Sign-ups / Total Customers) * 100

You can monitor the enrollment rate by tracking the number of customers who sign up for your program over a specific period. Regularly analyzing the enrollment rate can help identify trends and improve your program’s visibility, incentives, and sign-up process.

There are several reasons why your program’s enrollment rate could be low. These include —

Ineffective marketing strategies or targeting the wrong audience.
Lack of enticing sign-up incentives or promotional offers.
Poor visibility or awareness of the loyalty program.

To improve your enrollment rate, consider offering enticing sign-up incentives, such as bonus points, exclusive discounts, or freebies. Additionally, optimize your marketing channels and messages to target potential customers most likely to engage with your loyalty program.

2. Engagement Rate

The program engagement rate measures the level of active participation and interaction within your loyalty program. It assesses how frequently customers engage with program activities, such as making purchases, referring friends, or leaving reviews. To monitor the engagement rate, track the number of program members who engage with your loyalty program within a defined timeframe. This can include making purchases, redeeming rewards, or interacting with program features.

Engagement Rate Formula

Program Engagement Rate = (Engaged Customers /Total members) * 100

A higher engagement rate suggests customers are interested in the program and taking advantage of the rewards and incentives. A poor engagement rate, on the other hand, shows that your rewards, communication, or overall approach need improvement.

You can enhance program engagement by gamifying your loyalty program. Implement challenges, competitions, and interactive elements to encourage customers to participate actively. In addition, consistently communicate program updates and exclusive offers to keep customers engaged and excited about the program.

3. Redemption Rate

The redemption rate measures the percentage of earned rewards that customers redeem. This metric is tied to program performance. If the redemption rate is low, you should reconsider your loyalty strategy. This is because a high redemption rate indicates that customers find value in the rewards, leading to increased engagement and satisfaction. At the same time, a decline in the redemption rate can be attributed to a lack of relevant rewards or a complicated redemption process.

Redemption Rate Formula

Redemption Rate = (Redeemed Rewards / Earned Rewards) * 100

To improve your redemption rate, simplify the redemption process and offer a variety of attractive rewards that align with your customer’s preferences. Then, communicate the value of the rewards effectively to encourage more redemptions and drive repeat purchases.

4. Percentage of Revenue

One of the major goals of any loyalty program is to increase repeat purchases. The percentage of revenue of a loyalty program helps you understand – if your loyalty program members purchase more frequently than non-members. The average order value measures the average amount customers spend per transaction.

It also helps in calculating the overall health and ROI of your business. For example, if you invest $1,00,000 in a loyalty program, your ideal percentage of revenue should be 80%. Want to calculate the approx percentage of revenue based on your investment? Use our loyalty calculator to measure the impact!

Percentage of Revenue Formula

Percentage of Revenue = Total Revenue / Number of Transactions

A low percentage of revenue indicates that your products and rewards offer little value to customers. You can increase the percentage of revenue by introducing tiered rewards, where customers earn higher rewards for reaching specific spending thresholds. In addition, you can implement personalized upselling and cross-selling strategies to encourage customers to add more items to their orders.

5. Customer Lifetime Value (CLV)

Customer lifetime value (CLV) is a vital metric that predicts the total value a customer will bring to your business throughout their entire relationship with your loyalty program. By calculating the CLV, you can assess the long-term profitability of your customers and allocate resources accordingly.

CLV Formula

CLV = Average Purchase Value * Purchase Frequency * Average Customer Lifespan

Increasing the CLV requires your program to be completely customer-centric. It needs personalized rewards and exclusive experiences to keep customers engaged and loyal to your brand. To do that, you should continuously analyze and segment your customer base to identify high-value customers and tailor your loyalty program to their needs.

6. Churn Rate

Customer churn rate refers to the percentage of customers who have stopped engaging with your loyalty program over a given period. High churn rates indicate that customers are not finding enough value in your program, leading them to discontinue participation.

Customer Churn Rate Formula

Customer Churn Rate = (Customers Left / Total Customers at the Beginning) * 100

To reduce customer churn, you must first analyze the reasons behind customer attrition. Then, offer personalized rewards and incentives based on individual preferences and purchase history. Implement targeted communication and re-engagement campaigns to win back inactive customers.

7. Net Promoter Score (NPS)

Net Promoter Score (NPS) measures customer satisfaction and loyalty by gauging their likelihood to recommend your loyalty program to others. NPS surveys ask customers to rate their likelihood on a scale from 0 to 10. Customers are then categorized as promoters (9-10), passives (7-8), or detractors (0-6).

NPS Formula

NPS = Percentage of Promoters – Percentage of Detractors

Brands should actively collect and analyze NPS feedback to identify areas for improvement. Analyzing NPS trends can help you address detractors’ concerns and leverage promoters to drive referrals and program growth. For example, you can engage with passives to turn them into promoters and leverage the positive feedback from promoters to attract new customers.

Conclusion

Anyone can launch a customer loyalty program. But its success depends on how well you can execute it. And successful execution of the loyalty program relies heavily on performance analysis. By analyzing and implementing insights gained from customer loyalty metrics, you can fine-tune your program, enhance customer engagement, and drive long-term loyalty. Loyalty programs are not one-size-fits-all, so continuously analyze and adapt your program based on these metrics and the specific needs of your target audience.

Don’t Have A Loyalty Program in 2023? Here Are 10 Reasons To Create One for Your Business

From turbulent economic stability to accelerated digitization, the customer experience landscape is evolving enough to test any marketing strategy. Brands and marketers are constantly searching for methods to sustain and scale simultaneously.

Today, customer retention is valued equally with customer acquisition. In addition, the growing competitive market has reflected the value of retaining customers. In such scenarios, loyalty programs have proven to be an effective tool to help brands retain their loyal customers and attract new audiences.

But why are loyalty programs so important? For starters, loyalty programs can increase revenue, as loyal customers are more likely to spend more money with you than new customers. A loyalty reward program allows you to reward your customers for their repeat business and encourage them to continue buying from you.

Furthermore, loyalty programs can help you stand out in a crowded marketplace, differentiate yourself from your competitors, and create a sense of exclusivity among your customers. They can also help you gather valuable customer data and insights to inform your marketing and sales strategies.

Let’s delve into the landscape of loyalty programs to understand how they can help you build a loyal customer base. But first, let’s see some stats that show why customer loyalty is important.

Why is Customer Loyalty Important?

52% of customers make extra efforts to buy from brands they are loyal to.
A 7% boost in customer loyalty increases the customer lifetime value (CLV) of each customer by 85%.
56% of customers prefer shopping from brands they are loyal to, even if cheaper options are available from competitors.
65% of a brand’s purchases come from loyal customers.
90% of customers claim to be equally or more loyal to brands now than a year ago.

10 Proven Advantages of Customer Loyalty Programs

1. To Retain Loyal Customers

Loyalty programs can turn one-time customers into loyal fans. How? Loyalty programs are built around rewarding customers to interact with a brand. These programs encourage customers to purchase repeatedly by offering discounts, cashback, coupons, or points.

Most loyalty programs offer loyalty points to customers on each purchase. Once customers have accumulated a specific number of points, they can redeem them for certain rewards. This point-based structure is prevalent as it keeps customers engaged and offers the flexibility to redeem the rewards they like.

Example: Starbucks Loyalty Program

Starbucks loyalty program, Starbucks Rewards, is one of the most famous & successful loyalty programs. Starbucks Rewards members can earn ‘Stars’ on every purchase via the loyalty app or card. Customers can either get a customized drink for 25 Stars. Or wait till they accumulate 100 Stars to get brewed hot or iced coffee or bakery items.

By offering rewards and benefits for repeat purchases, customers are likely to stick with a business they have already established a relationship with rather than trying out a competitor.

2. To Foster Brand Loyalty

Customers do not hand out their loyalty for free. If they are loyal to your brand, they expect you to be loyal to them too. And loyalty programs are an excellent means to show much you value and appreciate your customers.

Through loyalty programs, you can launch personalized campaigns, curate customized offers and discounts, or engage with customers. This shows customers that you understand their needs and are proactive in fulfilling them.

For example, you can identify which products a customer likes or want and send them a personalized recommendation with a curated discount. Or you can award members bonus points on special occasions to purchase a desired product.

This shows customers that your brand is more customer-centric and allows you to connect emotionally with customers, leading to strong brand relationships and long-term loyalty.

Example: Sephora Loyalty Program

Sephora’s Beauty Insider program provides a personalized experience for each member based on their purchase history and preferences. In addition, Sephora’s program is highly social, with members sharing their experiences and product recommendations through social media.

3. Boost customer lifetime value

Increasing customer retention rates by 5% can increase profits by 25% to 95%. A loyalty program can encourage customers to continue doing business with the company, increasing revenue over time. If the loyalty program is engaging and regularly offers beneficial rewards, it can incrementally boost Customer Lifetime Value (CLTV).

Example: Amazon Loyalty Program

Amazon Prime provides a seamless and convenient customer experience, with fast and free shipping and access to exclusive products and services like Amazon Prime Video. These compelling rewards have helped Amazon boost CLTV, with Prime members spending an average of $1,400 per year on the platform, compared to $600 for non-Prime members.

4. Encourages Word of Mouth Marketing

In the era of digitization, it is no wonder that brands are utilizing social media to win back customers. Many loyalty programs reward customers for referring the program to friends and family or on social media. You can also offer freebies or special perks in exchange for a specific number of referrals. This can help brands grow their customer base without spending as much on traditional marketing tactics. According to a study by Nielsen, 92% of customers trust referrals from people they know.

Furthermore, loyal customers frequently inform their friends and family about the program’s exceptional perks or exclusive offerings, resulting in new customers. Dropbox’s referral program has successfully encouraged referrals, with a reported 60% increase in sign-ups and a 3900% increase in daily sign-ups.

5. Provides Valuable Customer Data

Loyalty programs are data hotspots for brands. From signing up for the program to redeeming a reward, customers provide a vast amount of behavioral and demographic data to brands. And customers are readily sharing their information in exchange for rewards. In fact, 63% of Americans are willing to trade personal information for loyalty program benefits.

Marketing teams can use this data to track a customer’s preferences, purchasing habits, or interests and segment customers into different profiles. Then, you can analyze this data to enhance marketing and customer retention strategies by creating personalized offers, improving customer experience, personalizing outreach, and curating targeted monthly offers for each profile.

6. Increases Repeat Purchases

Loyalty program members receive special offers, discounts, and exclusive deals. These offers are typically paired with appealing rewards that encourage customers to make a purchase. For example, customers can get a free item on purchasing a specific product.

Furthermore, loyalty marketers often use targeted communication to encourage frequent purchases. For example, sending out notifications like — “only 10 more points for a free trip” or “last 24 hours to redeem a concert ticket” generate the FOMO (fear of missing out) effect in people. It motivates them to make another purchase to get exclusive rewards, increasing overall sales and revenue for the business.

7. Creates a Competitive Advantage

A well-designed loyalty program can help a business stand out from its competitors and attract new customers looking for rewards and incentives. This can give your brand a competitive edge and help it retain customers in a crowded marketplace. According to a study by Deloitte, 75% of customers say that loyalty programs are an important factor in their decision to do business with a company.

Furthermore, loyalty programs enable brands to create a unique selling proposition. Through loyalty programs, you can offer rewards and experiences that are valuable and tailored to the target audience, allowing you to retain customers more effectively.

Example: Hilton Rewards Program

For example, Hilton’s Honors program has over 100 million members worldwide and a reported increase in revenue per available room (RevPAR). Hilton Honors have differentiated itself by offering unique rewards through its program. Additionally, the program is integrated with the Hilton mobile app, which offers a seamless and convenient customer experience.

8. Navigate Economic Downturn

In the past few years, brands have experienced many global crises. First, with the pandemic, then the inflation. Both these significant events severely affected customer behavior and purchasing habits. While the pandemic accelerated digitization, inflation caused people to become cautious in their spending habits.

In such times, loyalty programs can be your best bet in retaining customers. The economic downturn makes customers more price-sensitive. You can offer more value by modifying your rewards to make them more transactional. For example, you can think instead of points, you can offer a loyalty currency in the loyalty program, which customers can use to purchase products.

Another option is to give cashback on each purchase. Since cashback rewards are tangible and can be used to make other purchases later, they are becoming popular in the UK, where inflation is at its highest.

9. Create Brand Advocates

When customers consistently have positive brand experiences, they are bound to share them with others. Loyalty programs can encourage social shares by rewarding customers for the same. For example, brands can reward members for mentioning them on social media. Furthermore, consistent and tailored rewards can help brands form emotional connections with customers and foster long-term relationships. These customers purchase from the brand frequently and recommend it to others.

10. Upselling and Cross-selling

Upselling and cross-selling are marketing techniques that encourage customers to purchase additional products or services beyond their initial purchase. In addition, loyalty programs can effectively incentivize customers to try new products or services or purchase additional items.

Through loyalty programs, brands can offer rewards or discounts for purchasing certain products or services. Loyalty programs can increase the effectiveness of upselling and cross-selling efforts by offering customers products or services more likely to interest them. This incentivizes customers to try out new products or purchase additional items, increasing the overall revenue generated from each customer.

Last Note on the Importance of Loyalty Program

Implementing a customer loyalty program is nothing but the near-perfect solution to the most common problem for every brand – market instability and growing competition. Creating a community, instilling brand emotions, and cultivating brand-customer relationships are steps that put your brand ahead of others.

Loyalty programs are a powerful tool that can help you cultivate a dedicated following of loyal customers who will continue to choose your brand over the competition. Not only does this increase revenue and customer retention, but it also creates a positive brand image and helps to build long-term relationships with your customers.

Top 5 Successful Brewery Customer Loyalty Programs

Loyalty was a crucial aspect of brand success for breweries before the digital era. The business flourished due to the patrons being loyal to their local breweries and seldom switching brands. But with the onset of technology, a wave of digital transformation is taking over the brewery Industry. Not just marketing but customer-brand interactions have increased in the digital world.

While this has introduced many new business opportunities, it has also made it easier for patrons to switch to a better option. In such a competitive market, breweries need to find ways to differentiate themselves and create a loyal customer base. One of the most effective ways to do this is by implementing a robust and engaging customer loyalty program for breweries.

By offering rewards, exclusive perks, and personalized experiences to loyal customers, breweries can build long-term relationships with customers that drive repeat business and help to establish their brand in the minds of consumers. In this blog, we will explore some of the top brewery loyalty programs in the industry and delve into the strategies that have made them successful.

Beer Industry Market Share: Brewery Distribution Across Regions

Data Source: WMStrategy

The global brewery market was valued at USD 660.2 billion in 2023 and is estimated to register a CAGR of 4.76% over the next five years. This growth is attributed to factors such as the popularity of diverse formulations and flavors, especially among millennials and Gen Z.

The United States, China, and Germany are currently the largest beer producers in the world, with the US craft beer market alone expected to grow at a CAGR of 7.02% from 2020 to 2025. Meanwhile, the United Kingdom, Belgium, and the Czech Republic are known for their rich brewing traditions. Craft beer has become increasingly popular, particularly in the US and Canada, where the number of craft breweries has steadily risen over the past decade.

On the other hand, the UK has a long beer brewing history, while Australia has a thriving craft beer scene. In the UK, a survey by YouGov found that 68% of beer drinkers would be more likely to visit a pub or brewery if they had a loyalty program. In Canada, breweries have embraced loyalty programs, while traditional breweries in Germany and Belgium have also implemented loyalty programs to incentivize customer loyalty, foster relationships, and increase sales and revenue.

Top Loyalty Programs in the Brewery Industry

1. Founders Brewing Co. – Mug Club

Founders Mug Club is a loyalty program that offers exclusive access to rare beers, discounts on merchandise, and member-only pricing at every brewery.

Benefits of the loyalty program:

20% discounts on all to-go drinks every day.
Access to exclusive merchandise and apparel sales.
Daily discounts on select drinks.
Members get access to exclusive Mug-club bottle releases.

What’s Unique:

With the rising inflation, Founders Brewing Co. leverages transactional rewards such as daily discounts, member-only pricing, & personalized rewards, such as customized mugs, to retain loyal customers. It works as a helping hand in crises, attracting further program members.

2. Red Rhino Club

Red Rhino Club was launched to increase customer lifetime value(CLV) and make the loyal ‘Rhino Tribe’ (Red Rhino Community) more strongly connected with the brand. The brand also offers a prepaid loyalty card to make transactions quick and cashless, making it “easy to use” for customers.

Benefits of the loyalty program:

Early access to New Product Launches / Special events / Food specials / Special Brunch
Members-only events every quarter with premium food and beverages
10% cash back on every visit and 25% cash back on every transaction with the Prepay card.

What’s Unique:

Red Rhino leverages experiences, exclusivity, special privileges, and community building to boost customer retention, brand interactions, and engagement. The brand collects data at every level, creating more personalized offers and better customer value propositions, such as —Priority Seating and reserved seats for members at the gazebo and rooftop.

3. Dogfish Head Craft Brewery – Off-Centered Society

The Off-Centered Society is Dogfish Head’s loyalty program that rewards members for shopping at Dogfish Head properties. Members can earn and redeem points at Milton Tasting Room & Kitchen, Brewings & Eats, Chesapeake & Maine, Off-Centered EmPOURium, Dogfish Head Miami, and the Dogfish Inn.

Benefits of the loyalty program:

Members get exclusive access to the Dogfish Head newsletter
Members can participate in ‘double point’ events to win extra points.
The program offers 25 points for referring to friends and family.

What’s Unique:

On becoming an Off-centered Society member, customers can earn and redeem points at Milton Tasting Room & Kitchen, Brewings & Eats, Chesapeake & Maine, Off-Centered EmPOURium, Dogfish Head Miami, and the Dogfish Inn! This gives customers access to many rewards and redemption opportunities, making the program appealing to a varied customer base. In addition, the Off-centered Society uses gamification in the form of ‘double point’ events to increase program engagement.

4. Foothills Brewing

Foothills Brewing offers customers a free loyalty program and a premium Mug Club membership at $49 for a lifetime. Both programs offer unique benefits to customers and a chance to create their groups or clubs.

Benefits of the loyalty program:

Loyalty program members get bonus points on signing up and birthdays.
Members can join groups or clubs to enjoy extra benefits.
Mug Club members get 20% discounts on food every Monday.

What’s Unique:

Foothills Brewing uses exclusive and personalized rewards to boost program engagement. Mug Club members get a personalized Foothills t-shirt and a 20 oz. mug for ordering specific drinks. The availability of both free and paid programs helps it attract customers from different segments.

5. StillFire Brewing

‘Insider’ is StillFire Brewing’s free-to-join loyalty program. The Insider loyalty program was revamped at the end of 2022 to include new and better rewards and incorporate gamification.

Benefits of the loyalty program:

Members can redeem a buy one get one offer every Tuesday.
Every Wednesday, members can get $5 off packaged drinks and seltzer.
The top 5 Insider members earning the most points get gift cards at the end of every month.

What’s Unique:

StillFire is leveraging gamification through competitions and milestones to boost engagement. Members can also participate in the year-long competition to win exciting rewards, including the Stillfire Yeti cooler, 2024 Falcons ticket, StillFire swag pack, etc. The excitement and “want to win” approach encourages customers to earn points, leading to higher engagement and increased purchases for StillFire Brewing.

Conclusion

The brewery industry is a rapidly growing and competitive market. As it continues to evolve, the number of brewery loyalty programs are steadily increasing. This surge in the popularity of brewery loyalty programs can be attributed to 3 key factors—

Growing market share — With an expanded reach due to digitization, breweries have the golden opportunity to increase their loyal customer base. And this can be done through a data-driven and personalized loyalty program.
Risk of losing local patrons — With breweries stepping in the e-commerce world, the risk of losing local patrons to global brands has become significantly high. Loyalty programs allow breweries to reward local patrons and nurture long-term relationships.
Differentiation in the Market— Customer Loyalty programs can help breweries differentiate themselves from their competitors by offering unique rewards and incentives that stand out in the market. This can include offering access to exclusive events or limited edition releases, creating a sense of exclusivity that can help build brand loyalty.

By leveraging the latest technology and industry best practices, breweries can create customized, data-driven loyalty programs that reward customers for their patronage and provide valuable insights into customer behavior and preferences.

Unlock the Six Dimensions of Customer Loyalty Through Social Media

Social media has become such a big part of our lives that we check our phones, post things, and look at other people’s posts daily. It’s reached the point where a few individuals still don’t have a social media profile is seen as a peculiarity today.

The rise of social media has changed the way we share and discuss information, as well as engage with the brands we love. According to Statista, social media usage is one of the most popular online activities. In 2021, over 4.26 billion people were using social media worldwide, a number projected to increase to almost six billion in 2027.

It’s become normal to go to your favorite brand’s Twitter, TikTok, or Instagram page or at least see their posts in your feeds. From a business point of view, whether you have a well-known brand or are just starting, any social media platform is a good place to start building a community and a loyal following.

Many individuals keep thinking of “brand loyalty” as merely a campaign. Yet loyalty encompasses far more than that. A well-thought loyalty program must span across multiple platforms. How can we generate loyalty moments throughout a person’s life that are not just transactional? Brands need to create these special moments with their customers with the help of social media.

Social media is where billions of people create countless moments every day. Be where your customers are. Every second spent on social media impacts an individual’s decision-making process. But just being on social media is useless if you don’t engage with people. Zinrelo’s holistic loyalty approach with the help of social media is the perfect mix to unlock multiple dimensions of loyalty, including transactional, social, advocacy, engagement, behavioral, and emotional. There’s no one-size-fits-all answer to this question, as the holistic loyalty approach will vary depending on your customers’ needs. For example, transactional loyalty can help convince new customers to buy from you again, while behavioral loyalty and engagement-based loyalty programs can help customers trust your brand more. Each loyalty dimension has its benefits, and the best way to get the most out of them is to use them based on how customers respond on social media.

Let’s examine how brands use different loyalty dimensions on social media to achieve customer retention.

1. Transactional Loyalty: Starbucks Rewards Program

Starbucks’ loyalty program is one of the world’s most popular customer loyalty programs. In 2020, Starbucks launched a social media campaign called “Starland, ” a transactional loyalty program with a gamification element. Customers could participate in the Starland campaign by logging into their Starbucks Rewards account on the Starland website or mobile app. The virtual game involved clicking on stars to reveal prizes and earn bonus stars, which could then be redeemed for free food or drinks at Starbucks. Customers could also earn stars by making qualifying purchases in-store or through the Starbucks app. To promote the campaign on social media, Starbucks utilized various platforms such as Instagram and Twitter to share content related to the Starland game and encourage customers to participate and in turn others to participate.

The campaign ran for six weeks and was a huge success, with customers participating in the game and making purchases to earn stars and rewards. The Starland campaign increased customer engagement and loyalty through a fun and interactive campaign that incentivized purchases.

2. Social Loyalty: Beauty Insider by Sephora

Beauty Insider, which is Sephora’s loyalty program, is one of the most talked-about loyalty programs in retail. It is a social loyalty program that rewards customers for engaging with the brand through their purchases and social media activity. Customers can sign up for the program online or in-store and earn points for every purchase they make at Sephora, which can be redeemed for rewards such as free products and exclusive access to events.

Additionally, customers can earn points by engaging with Sephora on social media, such as following Sephora on Instagram or leaving a review. Beauty Insider members also receive exclusive perks, including free shipping and early access to new products. With rewards like below, brands like Sephora are able to strike an emotional chord with customers. Tamarah brown through the beauty insider program was awarded a free gift on her birthday, an effective way to deliver a customer loyalty program.
Overall, the program aims to reward and strengthen the loyalty of Sephora’s customers by offering them exclusive benefits and encouraging them to engage with the brand on a regular basis.

3. Engagement Loyalty: Piece of the Pie by Domino’s

If you want to excite your customers about your rewards program, one of the best ways is to create engagement via social media. Domino’s Pizza delighted pizza lovers everywhere by launching a new loyalty program promotion, “Piece of the Pie,” that allows customers to earn points for each online order they place.

To participate in the loyalty program, customers had to create a Domino’s account and place their orders online. For each online order, customers earn 10 points, and once they have earned 60 points, they can redeem them for a free medium two-topping pizza. One of the unique features of the Piece of the Pie Rewards program is its integration with social media. Customers shared their opinion with friends on Facebook, Twitter, or other social media platforms, encouraging them to order from Domino.

The program also includes a leaderboard that tracks customers’ progress and encourages friendly competition among participants. By encouraging more customers to enjoy Pizza together, discuss it with friends, and post images, Domino’s has effectively attracted more people to their community and provided them with clear opportunities to join, engage, and contribute.

4. Advocacy Loyalty: NikePlus Loyalty Program

Nike, the famous sportswear brand, launched its NikePlus loyalty program in 2018, which offered a range of benefits and rewards to its members. One of the key features of the program is its social media component, which encouraged members to share their experiences and achievements on social media using the hashtag #justdoit.

NikePlus members earn rewards for sharing their Nike-related experiences on social media, such as completing a workout or participating in a Nike-sponsored event. These rewards can include early access to new product releases, discounts on future purchases, and invitations to exclusive events.

By encouraging its members to share their experiences on social media, Nike has been able to create advocacy loyalty among its customers. Members feel a sense of belonging and community with other Nike enthusiasts, and this motivates them to keep using Nike products and sharing their experiences with others. This creates a positive feedback loop where members become advocates for the brand, which helps to drive even more loyalty and engagement.

5. Behavioral Loyalty: Ultamate Rewards program

You have probably heard of Ulta before. Ulta Beauty, Inc., founded in 1990, is the largest American network of beauty retailers with a wide variety of cosmetics, skincare brands, beauty tools, and equipment. Ulta launched its loyalty offering- Ultamate Rewards program and has been routinely updating the loyalty offer. According to Forbes, Ulta Beauty in 2022 had 37 million reward members as part of its program and Target was to reach 100 million loyalty members.

The loyalty program allows customers to earn points for purchases made at Ulta Beauty stores and online. Customers can also earn points by engaging with Ulta Beauty on social media, such as following the brand on Instagram or Facebook, sharing posts, and leaving reviews. In addition to earning points, Ultamate Rewards members receive exclusive discounts, free samples, and birthday gifts. Additionally, it uses social media to engage with its customers and promote its products, with a strong presence on platforms like TikTok, and YouTube.
To improve the effectiveness of behavioral loyalty brands like Ulta use machine-learning algorithms to segment different customers into actionable clusters such as deal seekers, high spenders, or occasional browsers. Depending on the insights obtained, loyalty program campaigns are set up for different categories of customers.
By incentivizing customers to engage with the Ulta Beauty brand both in-store and through its social media channels, Ulta has been able to create a sense of behavioral loyalty among its most devoted customers.

These customers are likely to continue purchasing from Ulta Beauty in order to earn points and access exclusive rewards, and they may also be more likely to share their experiences with the brand on social media, further strengthening their loyalty and encouraging others to try the program as well.

6. Emotional Loyalty: Coca-Cola Freestyle

The world-renowned Coca-Cola Company is a total beverage company with products sold in more than 200 countries and territories. The company’s purpose is to refresh the world and make a difference. Coca-Cola came up with a program called Coca-Cola Freestyle, a loyalty program, and a beverage dispensing machine system created by the brand. The machines offer a wide variety of beverage choices, including Coca-Cola products as well as other soft drinks, juices, and flavored waters. The machines are interactive and allow customers to mix and match flavors to create their own unique beverages.

In addition to the beverage selection, it also offers a loyalty program that rewards customers for using the machines and sharing their experiences on social media. Customers can earn rewards such as free drinks, sweepstakes entries, and other prizes by scanning QR codes on the machines and sharing their experiences on social media.

Additionally, the program is designed to create a sense of emotional loyalty and engagement with the Coca-Cola brand by providing customers with personalized experiences and rewards. Ultimately, Coca-Cola Freestyle is a unique approach for Coca-Cola to strengthen its emotional connection with customers by giving them a positive and memorable experience with the brand and rewarding their continued participation and interest. Brands like Coca-Cola share a deep, emotional connection with their customers as they tend to have a more holistic understanding of how they fit into their minds—what those customers need from the brand to make their engagement more fulfilling.

Final Thoughts on Building Customer Loyalty Through Social Media

Holistic customer loyalty programs often delight people so much that they feel compelled to share their experiences on social media, which can bring in new business and loyalty members. They allow you to promote your program quickly and enable you to make tweaks and changes based on customer feedback.

They also give you an action for which you can get points, which is perfect! Getting people to share something on social media is much easier than signing up for an account or sending a friend, and your program can give points when a social share button is clicked. Additionally, social media makes it easy for you to connect with your customers and talk to them, and it also makes it easy for your customers to give you much value.

Unveiling The Top 6 Power-Packed Customer Loyalty Programs in Latin America

Top 5 Loyalty Programs in Latin America

With many brands adopting digitization, the demand for customer loyalty solutions has increased considerably in countries like Brazil, Mexico, Argentina, and Columbia. The growing preference for online shopping also contributed to the rising popularity of loyalty programs in Latin America. As a result, the loyalty management market in Latin America is expected to grow at a CAGR of 13.2% during 2022-2026.

60% of customers in Latin America are enrolled in loyalty programs, and this proposes an opportunity for brands to strengthen their customer relationships.

Let’s see examples of brands in Latin America that are using loyalty programs for better retention, engagement, and revenue growth.

Top Six Loyalty Programs in Latin America

1. P&G Good Everyday

‘P&G’s Good Everyday’ is a gamified loyalty program focused on positively impacting society and the environment. P&G donates to charities of the member’s choice on every purchase. Members can also participate in various games and quizzes to earn rewards.

The quiz and surveys allow P&G to collect first-party data and design a more personalized customer experience within the loyalty platform.

Top Loyalty program in Latin America-P&G Good Everyday

Benefits of the program:

Members get a chance to win free products for a year.
Only loyalty program members get free samples of products to test.
Members can win personalized coupons or experiential rewards like dining, tickets, etc.

Key takeaway:

P&G leverages gamification to make its loyalty program engaging and interactive for members.

2. Leonisa Premium Perks

Leonisa’s Premium Perks is a gamified loyalty program to reward loyal customers with amazing perks and discounts. The brand leverages deep data analytics to predict customer demands. This helps Leonisa to curate personalized and exclusive rewards for different customer segments.

Customers can earn rewards for various activities, such as referrals and social shares. The brand also leverages gamification through multiple tiers.

Top Loyalty program in Latin America-Leonisa Premium Perks

Benefits of the program:

New members get up to 25% sitewide for a year.
Members get higher discounts on reaching higher levels.
Members receive 50% points from purchases made through referrals.

Key Takeaway:

Leonisa encourages customer engagement through personalized rewards and gamification. Leonisa has made its loyalty program highly immersive and interactive by offering rewards for referrals and social shares. Learn more about how Leonisa, a global brand, maximized customer retention & AOV through a Loyalty Program with Zinrelo.

3. AeroMexico Club Premier

Latin America’s first frequent flyer program, Club Premier, is extremely popular among customers for its personalized experiences. In addition, the program has a corporate club for businesses, allowing them to earn premier points and enjoy employee benefits.

The airline allows members to transfer their points from bank, hotel, and department store loyalty programs. Premier points expire after 24 months with no activity. But, members can regain their points up to 12 months after their expiry date by purchasing them at a preferential cost of 40% less.

Top Loyalty program in Latin America-AeroMexico Club Premier

Benefits of the program:

Club Premier members can get complimentary tickets with points.
Members can personalize their trip via the loyalty app.
AeroMexico credit card holders can earn bonus points and enjoy extra perks on flights and purchases.
Members can enjoy experiences like massages, holidays, and culinary experiences.

Key takeaway:

Giving customers the power of customizability has made AeroMexico the preferred brand among competitors. Behind this successful tactic is a robust technology platform that enables marketers to offer unmatchable customer experience.

4. LATAM Pass

LATAM Airlines offers appealing perks to customers with its ‘LATAM Pass’ loyalty program. Members can earn miles by flying with LATAM or associated airlines. In addition, the airline uses data analytics to understand customer preferences enabling brands to customize rewards.

LATAM airlines loyalty program members earn points by making everyday purchases using the LATAM Mastercard. In addition, members in the Black Signature tier also get preferential and personalized service at the airport and at home through Whatsapp.

Loyalty program in Latin America-LatamPass

Benefits of the program:

Members can enjoy exclusive elite benefits like cabin upgrades, preferred seats, etc.
Members are allowed additional baggage on LATAM flights.
Mothers traveling with infants receive services like a free bassinet and get a 1-year extension on elite membership.

Key Takeaway

Understanding customers’ needs, LATAM offers benefits that the customer wants most through its loyalty program.

5. MinisoLove

Miniso made headlines in 2022 when it upgraded Latin America’s ‘MinisoLove’ loyalty program. The upgrade includes the incorporation of gamification in the loyalty solution. The previous program allowed members to earn points on all purchases. But now, members can participate in various games called ‘MinisoPlays’ to win “hearts” (MinisoLove’s currency). Members can redeem hearts for physical prizes, discounts, unique product collections, and appealing experiences.

The brand collaborated with global leaders, including Marvel, Disney, and Coca-Cola, to make the program more engaging and interactive.

Top Loyalty program in Latin America-Miniso Love

Benefits of the program:

Members can redeem points to get discounts at every MinisoMiHappyPlace.
MinisoLove members also earn rewards for sharing their purchase experience on social media.
Members can earn rewards for playing games on the Miniso Mexico app.

Key Takeaway

Miniso achieved significantly high engagement and acquisition rates by incorporating gamification and loyalty partnerships.

6. Iberia Plus

The Iberia Plus loyalty program allows members to enjoy unique benefits and experiences. For example, members can earn ‘Avios’ (Iberia’s loyalty program currency) by flying with Iberia group airlines, spending with partners, or using the Visa Signature Card.

Iberia Plus members can also join the on-business program to enjoy perks for the whole company during corporate travels. In addition, Iberia offers an Iberia plus membership for children —Iberia Plus Kids — which allows adults traveling with kids to earn more rewards.

Top Loyalty program in Latin America-Iberia Plus

Benefits of the program:

Members can use Avios to book hotels, rental cars, flights, or experiences.
Members can pay for a friend’s ticket with Avios without accompanying them.
‘Infinita Prima’ members can forever access VIP lounges, priority boarding, and other exclusive advantages.

Key Takeaway:

Iberia provides members with varied earning and redemption opportunities that significantly enhance their loyalty experience.

Conclusion

Around 80% of brands plan to revamp their loyalty programs in the next two years. An increasing number of partnerships between retail and fintech brands is a clear sign of changing loyalty landscape in Latin America. To stay ahead of competitors, brands must choose technology and innovate with loyalty programs. Using deep data analytics can help marketers make informed decisions, and strategic consultation can mitigate market scenarios. Nonetheless, the technology infrastructure is critical to building future-proof loyalty programs.

Top 5 Loyalty Programs in Brazil: Driving Loyalty With Data and Strategic Partnerships!

Top Five Loyalty Programs in Brazil

The loyalty landscape in Brazil is evolving. Customers who previously preferred cash-focused loyalty solutions are moving towards experiences and personalized rewards. 84% of millennials want loyalty programs to have more experiential rewards over discounts and cashback.

In addition, the demand for digitally-powered loyalty programs is increasing in Brazil. Brands leverage data-driven offers and rewards to influence purchase behavior and encourage loyalty. Many brands invest in deep data analytics and advanced technology platforms to align their loyalty offerings with customer demands.

This article will decode what makes Brazil’s top loyalty programs so popular.

Loyalty Programs That Are Winning in Brazil

1. Nescafe Dolce Gusto

Nescafe’s loyalty club allows members to win exclusive and personalized rewards. Nescafe also allows members to sync their generation 1 and Neo machines with the loyalty program. As a result, members can earn loyalty points every time they use the machine.

Loyalty program members can also join the subscription plan, which allows them to win exclusive benefits as they spend more. In addition, the subscription plan allows Nescafe to collect valuable customer data like purchase frequency and product preferences.

Top Loyalty Program in Brazil: Nescafe Brazil

Benefits of the program:

Members receive a unique code on purchasing a box of capsules which can be entered on the website to win loyalty points or rewards.
Members can use the points to get product discounts or win exclusive perks.
Members get rewarded for shopping, engagement, and real-time consumption.

Key takeaway:

Nescafe has incentivized the complete coffee/tea drinking experiences for customers by adding flexibility in reward-earning opportunities.

2. Carrefour

Carrefour’s loyalty program, ‘My Carrefour,’ offers customers many point-earning opportunities via its loyalty app. From purchases to games, customers can earn rewards for frequently engaging with the brand.

My Carrefour members can access many customized coupons based on their purchase behavior. The brand also allows members to try out select products for free. In addition, members can participate in monthly challenges to win coins, which can be redeemed for rewards.

Benefits of the program:

Members receive personalized coupons based on purchase history and app data.
Carrefour Card holders enjoy exclusive benefits and interest-free installments.
Members are eligible for special discounts on finding purple tags on products.

Key takeaway:

Carrefour has leveraged personalization and data analytics to enhance customer experience and drive frequent engagement.

3. Seedz

Seedz is a coalition loyalty program in the agriculture industry. The platform connects buyers and sellers in the agriculture sector and enhances their shopping experience by incentivizing purchases and actions.

Benefits of the program:

Members can redeem Seedz for exclusive products and experiences like bill payments, mobile recharges, gift vouchers, and much more.
Members can redeem Seedz for their farm, which includes services like laboratory analysis, fertilizers, consulting, etc.
Members can enjoy free shipping on products by paying with Seedz.

Key takeaway:

Seedz is utilizing loyalty partnerships to deliver valuable experiences and rewards to customers.

4. United Airlines

United Airlines’ frequent flyer program, Mileage Plus, is among Brazil’s largest airline loyalty solutions. United’s partnership with 14 airlines and Star alliance allows members to earn and redeem miles across 39 airlines, other hotels, and rental partners.

The miles earned through loyalty programs never expire, allowing members to redeem them at their preference. Members can also share or request miles from other Mileage Plus members.

Top Loyalty Program in Brazil: United Airlines

Benefits of the program:

Members can get discounts on flights by paying part of their ticket fare using miles.
Premier members enjoy complimentary access to Economy Plus and
preferred seating, waived fees, upgrades, priority travel services, and more.
Members can earn bonus miles by completing specific actions.

Key takeaway:

United Airlines can deliver relevant and valuable rewards and experiences to loyal customers through loyalty partnerships.

5. VOILÀ Hotel rewards

Unlike other hotel loyalty programs, VOILÀ Hotel Rewards is not restricted to a single brand. Instead, members can stay at any independent hotel and still earn exciting rewards. In addition, members can redeem loyalty points globally with partners, including airlines, retailers, and rental companies.

The loyalty program allows members to transfer points to other VOILÀ members. Members can earn points for up to three rooms per stay. The brand leverages its loyalty app to track customer activity and understand their preferences & requirements.

Benefits of the program:

Members have complimentary access to the fitness & wellness center.
Members get access to on-property VOILÀ manager assistance.
Platinum Members enjoy experiences such as priority reservations, special welcome amenities, and complimentary access to the executive lounge.

Key takeaway:

Through data collection and analytics, VOILÀ Hotel Rewards delivers experiences and rewards that customers want, leading to higher customer satisfaction.

Conclusion

The loyalty program market in Brazil is expected to grow at a CAGR of 13% by 2026. Brazilian customers want to see loyalty programs from their preferred brands, leading to high competition in the loyalty market. As a result, brands should design innovative, data-driven loyalty programs to stand out from the competition.

Leveraging deep data analytics, advanced technical platforms, and strategic partnerships have become crucial for brands to boost loyalty and drive brand engagement.

Webinar How DefenAge, a skincare company, got 2.89X revenue with Zinrelo’s Loyalty Platform?

Beauty being an intimate industry with very personal choices of cosmetics and services demands a high level of personalization and targeting. A loyalty program backed with data analytics can accelerate the ability of beauty brands to personalize their approach, deliver experiences, and build engagement. New research shows a 222% increase in customer acquisition costs puts renewed focus on e-commerce profitability and repeat sales.

Loyalty program essentials to:

Increase revenue
Increase purchase frequency
Boost customer retention
What helped the DefenAge Skin Club Rewards Program succeed?

In this webinar conducted on 16th February 2023, industry experts Brad McLaughlin – Director of e-Commerce, DefenAge®, Annette Berg – Director of Customer Experience, DefenAge® and Dibyo Ghosh, Director of Enterprise Solutions at Zinrelo share their insights on how DefenAge, a leading beauty and skincare company, increased repeat revenue by 2.89X by launching a very successful loyalty program with Zinrelo. Watch the recording for the webinar below:

Watch the webinar recording here:

Key highlights from the webinar:

Why was DefenAge looking for a Loyalty Program

Defenage already had a high customer retention rate but wanted to increase it further while giving their customers a great luxury experience.
Purchase frequency – Increase re-order rate within current customers and increase AOV with upselling & cross selling.
Improve advocacy – Acquire new customers via referrals and word of mouth, social sharing (Earned media)
Improve branding & customer engagement – Building a better understanding of who we are as a company with a connection for our customers, and specific to their industry.
Provide a seamless experience to customers and also for the admin at the backen

Why did the loyalty program work

1. Contextual Program design

Zinrelo helped in the program structure by analyzing Defenage’s historical purchase data and understanding their business objectives.
This helped in creating a well-structured program that was tailored to our needs, which improved customer retention and repeat purchases.

2. Multi-dimensional loyalty – transactional to emotional, including advocacy

The big win was referrals & customer acquisition through advocacy.
Defenage achieved 100X of our investment for the setup of referral campaigns.

3. Ongoing strategic consultation

Custom reports: list of members downgraded on Jan 1, 2023.
TAT: 10 days – outside of Zinrelo’s contractual commitments
This helped in re-engagement, winback campaigns and boosted Jan sales (a typically low season)

4. List of recommendations made by Zinrelo based on analysis

Promotions (e.g., 5x points on the 4th July weekend for Purple tier members)
Optimum Tier thresholds Points – 3Tier
Win Back at 6 months
- Points expiration of 12 months (vis-à-vis 15) – business strategy to be aggressive
- Adding additional Tier Benefits apart from Tier Acceleration 1.25X for Middle Tier and 1.5X for Top Tier

Results

Repeat revenue per member: 2.89X increase
Purchase frequency: 71% increase
Customer retention: 31% increase
Referrals: ~ 100X ROI of referral module

Excerpts from the Q & A Section of the Webinar

Q1. How did Defenage keep new customers engaged?

Different activities to earn points which gets customers engaged with the brand keeps them coming back to the website.
Loyalty points and targeted campaigns with very specific customer attributes ensured the customers remained emotionally attached to the brand.

Q2. Apart from the numbers what other benefits can we get from a loyalty program?

Defenage have benefited in other ways that are difficult to quantify.
For example, there is a much better overall customer experience and delight – a bit of an emotional experience for customers, and that’s attributable to not only the program but the design and perks.
Conversion of website visitors to customers has increased and Defenage sees more traction on social media, increase in advocacy, and referrals.

Q3. Summer months are generally low volume for cosmetics products. How can a loyalty program help?

Focus on highest selling product and provide tier upgrades.
Targeted bonus points campaigns

The Role of Gamification in Loyalty Program for Increased Customer Retention

Video games have been hooking users since the 1980s. In step with gaming business models becoming more subscription based with in-app purchase opportunities, game publishers have steadily honed the game experience to be even more compelling. As marketers, we’re focused on the importance of segmentation and how to get the right messages to the right customers. That’s the foundation of any successful marketing campaign, including those focused on customer retention and loyalty.

Acquiring a new customer cost more than selling to an existing one. Repeat customers also spend more than your first-time buyers. This just shows the importance of customer loyalty. Customer loyalty programs can help retain customers and increase revenue. Traditional methods for loyalty programs work. But in the wake of today’s digital age, the competition has increased. Customers have more options to choose from among brands. Now, how can you make your loyalty program stand out?

Gamification is a good digital strategy to incorporate. Advanced data analytics, mobility, cloud services, and social media platforms have accelerated and improved the outcomes of gamification. Gamification is increasing the value of business across main elements like education, optimization of cost, and improvement in performance and engagement. The growth of smartphones enabled it to create its vast base. Gamification as a concept has taken off with the increased use of the Internet, social media, and mobile technology. This proves that companies are keeping an eye on this and are starting to see its benefits.

Gamified Loyalty Programs: A Customer Retention Strategy

The right sales gamification strategy can work wonders for engaging your customers and inspiring customer loyalty with robust loyalty program software. Listed below are some of the ways to make your gamification in loyalty programs strategy work-

1. Give customers what they want

More and more brands are offering loyalty programs. But not all the customers actively participate in them. This is a lost opportunity in gaining your customers’ trust and building a solid relationship with them to make them repeat buyers.

What many companies fail to realize is that monetary rewards are not all that drive customers to engage in loyalty programs. Many brands don’t succeed in their loyalty programs because they forget to prioritize their customer’s needs. When building a loyalty program, the goal is to acquire customers, retain them and increase their lifetime value. You’d want them to keep on choosing your brand against competitors.

To do that, you must understand your customer wants, needs, and preferences. Personalization is the key here. Through personalized rewards, your customers will feel that you value them. Let’s take the example of Victoria’s Secret, a leading lingerie retailer that has a separate brand geared for their younger audience called PINK. Perfect for the millennial crowd, the PINK Nation app ensures it merges the classic eCommerce experience with fun games and contests. It also reminds retailers that if a major percentage of your target audience comprises young, tech-savvy customers, then developing a custom app with games, rewards, prizes, including special promotions to get them more connected with the brand thus driving more sales can be effective.

2. Reward your customers

One of the effective sales gamification ideas is to use tiers for your loyalty programs. This way, it’s not just your customers who will benefit as your business can gain from it too. In this type of membership program, the customer’s rewards are based on their rank. You can set the milestone whether it’s based on how much they have spent in the year or how many purchases they have made. Since the customer advances on their rank, or tier, based on your metrics, it will encourage them to stick to your brand and engage more with its benefits structure.

Gamification makes leveling up your brand community more fun for your customers. Milestones and progress bars can be addictive with a human’s innate competitive nature. To make it easy for customers to monitor their progress, use visual indicators so they get a clear view of their status and how many more points they need to get to the next tier. The best gamification strategy is one that lets you customize your programs according to customer preferences.

Gamification techniques are applied by leading brands like Starbucks, in the My Starbucks Rewards program, to increase customer engagement and ensure repeat business. Starbucks Rewards program members receive incentives like free food and drinks, and customers receive points or “stars” with each purchase. Other unique rewards, such as a free birthday beverage and free refills become available as customers earn more stars. Those reaching the gold status get the best rewards. Starbucks provides incentives that give consumers a sense of achievement and reinforces the idea that they will be rewarded for their loyalty to the brand.

3. Use compelling stories and material to engage customers

Utilizing gamification to engage your customers gives you many benefits. For instance, having loyalty programs helps you build a relationship with your customers. In turn, they become repeat customers and, potentially, even brand advocates. To do so, you can explore gamifying your programs in a fun and interactive way. This way, customers are more likely to interact and engage with your brand.

A good way to drive recurring behavior is by giving your customers a sense of accomplishment. For every challenge, there is a benefit. In turn, they will be motivated to repeat actions for your brand. Additionally, you can set multiple actions for each challenge or badge that is valuable to your business goals. After completing challenges and unlocking badges, you may also give your customers incentives for posting on social media, taking quizzes, and creating their own content.

An interesting example here is the NikeFuel app. Nike+ and Fuelband accessories allow Nike to connect with their customers gathering valuable information about them. The personal data collected is useful for enriching targeted content marketing campaigns. The NikeFuel app gives users incentives for using athletic tracking devices to compete against others while running and working out. This app can be linked to social media, which allows users to share and compare accomplishments. To make it more interesting and personalized, trophies and badges are awarded to those who reach the milestones and achieve accomplishments, this encourages customers to use their products and seek more rewards.

Conclusion

Applying gamification in rewards programs to experiences can take customers from a tentative introduction to a lifetime relationship with your brand. A modern loyalty platform should be balanced for each customer and cater to the individual needs of each customer. A series of gamified personal offers and experiences enables different pathways for customers to achieve different rewards, resulting in a stronger and more meaningful emotional connection with the brand.

As companies continue to evolve, the search for helpful technologies has become more important. Take advantage of gamification, as this is the most engaging tool you can use to improve customer engagement thus driving retention and customer loyalty. It’s also important to note that the best gamification software for your business is one that meets your specific needs and requirements.

The most effective and best loyalty programs integrate gamification and focus on engaging customers instead of just focusing on getting transactions from them. Organizations across all industries are turning to gamification to encourage, incentivize and reward users to engage and implement new business processes and applications. Loyalty and engagement can encourage customers to repeatedly choose one brand and its products over the competition.

Increase the Customer Lifetime Value Using Loyalty Rewards Programs [With Examples]

Many of the world’s most successful brands have risen to the top because they understand the importance of increasing customer lifetime value, also known as CLV.

Customer lifetime value (CLV) predicts the net profit attributed to a customer’s future relationship. It represents the total amount of money a customer is expected to spend on a company’s products or services over the duration of their relationship. CLV provides valuable insights into a business’s customer base, allowing it to make informed decisions that drive growth and profitability. Loyalty programs help brands achieve many different goals, from acquiring the most customers to boosting lifetime value and retaining more customers.

What Exactly is a Loyalty Program?

A loyalty program is a marketing strategy aimed at retaining customers and increasing their lifetime value to a business. It typically involves offering rewards, such as points, discounts, or special perks, to customers for making purchases or engaging with a brand. The goal of a loyalty program is to encourage customers to make repeat purchases, increase brand loyalty, and gather valuable data about customer behavior and preferences.

Loyalty programs can take many forms, from traditional punch cards and reward systems to more sophisticated digital programs that use customer data to personalize the customer experience. To be effective, a loyalty program must offer tangible benefits that are meaningful to customers, and it must be easy to use and understand.

The success of a loyalty program is measured by its ability to increase customer engagement and repeat purchases. Utilizing a well-designed loyalty program can help businesses differentiate themselves from competitors and improve customer satisfaction, ultimately leading to higher sales and profits.

Steps to Implement a Successful Loyalty Program:

a. Define goals

Determine what you hope to achieve with your loyalty program and set specific, measurable goals.

b. Identify Target Audience

Determine who your target audience is and what motivates them to engage with your brand.

c. Choose a Program Structure

Decide on the type of loyalty program you want to implement, whether it is a points-based system, a tiered rewards program, or a more sophisticated digital program.

d. Offer Meaningful Rewards

Ensure your rewards are relevant and appealing to your target audience.

e. Promote the program

Make sure customers are aware of the program and understand how it works.

f. Evaluate and adjust

Regularly evaluate the success of your loyalty program and make adjustments as needed to ensure it remains effective.

How to Increase Customer Lifetime Value Using Loyalty Programs

1. Drive Customer Engagement via Rewards

Suppose a company wants to see a significant increase in the value of its customers over the course of its lifetime. In that case, it will need to provide numerous incentives at each customer journey stage. You may build a strong relationship with your customers at every touchpoint throughout their journey by using promotions and rewards. These touchpoints include customer acquisition, activation, growth, and customer retention and reactivation.

By creating holistic experiences, loyalty programs can help businesses foster deeper connections with their customers, leading to increased customer engagement and lifetime value.

Example: Sephora Loyalty Program

Sephora loyalty program, Beauty Insider, is an excellent example of having a reward-everything mindset. It offers members opportunities to get savings, product samples, and access to exclusive events. This enables customers to earn attractive perks during every brand interaction. Its tier-based program has earned Sephora more than 25 million loyal customers, with significant sales and growth coming from its top tier.

2. Personalization is Key

One of the important steps in optimizing your customer retention value is to create personalization in the loyalty program. On average, 71% of customers express some level of frustration when their shopping experience is impersonal. Therefore, if your contacts with your customers are not personalized, there is a likelihood that they will churn rapidly. It can be devastating to your CLV-increasing efforts. At the core of a successful personalized loyalty program is a solid understanding of your customer, their needs, preferences, and offline/online behavior. So, the first step any marketer must take is to create a centralized pool of data.

The concept of customer loyalty eventually ties back to the value that the said customer brings to the table. There are many ways in which personalization can help increase the value of CLV. If there are higher store/website visits, then the chances of the customer engaging meaningfully with your business are higher.

Example: Netflix

For instance, Netflix leverages artificial intelligence, natural language processing (NLP), and machine learning to create personalized experiences for its customers. It is created based on the content they prefer to watch. This approach has helped Netflix to convince customers to renew their subscriptions month on month and spend more time on the platform. This resulted by giving it a churn rate of only 2.4%.

3. Encouraging Upsells and Cross-sells

Encouraging upsells and cross-sells through loyalty programs refers to the practice of offering rewards or incentives for customers who make purchases of higher-value products or complementary products. The goal is to encourage customers to spend more money on each transaction, which can increase overall customer lifetime value.

Imagine a coffee shop offering a loyalty program where customers earn points for every purchase. The points can be redeemed for free drinks, food items, and other perks. To encourage upsells and cross-sells, the coffee shop might offer bonus points for customers who purchase a specific combination of things, such as a medium coffee and a pastry.

Example: Coffee Shop Loyalty Program

Customers who purchase a medium coffee typically earn 2 points. However, if they also buy a pastry, they earn an additional 5 points. This incentivizes customers to make a larger purchase since they would receive more rewards for doing so.

The coffee shop can also use the data collected through the loyalty program to analyze customer purchasing habits and tailor the upsell and cross-sell offers to individual customers. For example, a customer who frequently purchases breakfast items may receive an offer for bonus points when they buy a breakfast sandwich and coffee. This loyalty program can help the coffee shop increase average transaction value and encourage repeat business, ultimately increasing customer lifetime value.

By offering these types of incentives, businesses can encourage customers to make larger or more frequent purchases, increasing customer lifetime value. Additionally, upsells and cross-sells can help enterprises to maximize their revenue by enabling customers to purchase additional products or services that complement their existing purchases.

Boost Customer Retention Value: Conclusion

In conclusion, loyalty programs can significantly increase customer lifetime value. Businesses can do it by providing incentives for repeat business, fostering deeper customer engagement, collecting customer data, encouraging upsells and cross-sells, creating brand advocates, offering personalized experiences, and much more. These programs can help companies to build stronger emotional connections with their customers, drive customer retention, and maximize revenue.

By integrating loyalty programs into the customer journey and using customer data to personalize rewards and offers, businesses can create a more relevant and enjoyable customer experience. Additionally, by offering incentives for larger or more frequent purchases, companies can encourage customers to spend more money on each transaction, increasing overall customer lifetime value.

Overall, a well-designed and executed loyalty program can be valuable for businesses looking to increase customer lifetime value and drive long-term growth.

Is Sustainability in Loyalty Programs Crucial to Retain Customers in 2023?

Along with the rapid digital revolution, the awareness of customers towards the environment has substantially increased. Gartner predicts that sustainability’s role in business will accelerate in 2023 and beyond. Customers’ growing awareness of green earth is a sign of behavioral evolution for marketers.

More than 63% of respondents agreed that sustainability is crucial for staying loyal to any brand. With access to information about everything, customers want brands to commit to shared values in achieving sustainable goals. 2 out of 3 customers are belief-driven buyers, making sustainability a top priority for brands.

Blending sustainability with loyalty is the key!

66% of customers are ready to pay extra for brands aligned with sustainable goals. For example, Madewell offers a $20 discount for its loyalty members when they return old jeans to their partner stores. Brands stepping up with rewards for sustainable goals are reaping benefits.

Carbon dioxide emission is a top concern for customers around the globe. As a result, brands with carbon offsetting programs are attracting more customers. For example, Shell Go+ has a CO2 offsetting program where loyalty members can join and continue fuel shopping. Brand purchases carbon credits matching the amount of fuel bought by program members.

To win customer loyalty, brands must acknowledge the role of a holistic approach toward loyalty programs. Customers chase sustainability, but brands should make it easy for members to give back to the environment and society. Recent years have embraced empathy among customers.

Brands are winning customer loyalty with sustainability.

1. Patagonia – 100% commitment to the environment.

The well-known brand has environmental sustainability at the core of its business. It’s loyalty program – Patagonia Pro is a premium program that has pledged 1% of its sales towards the restoration of forests and the preservation of the natural environment. The brand has acted strongly on its promise of safe practices in manufacturing products and enabling the environment to improve simultaneously.

2. IKEA – inspiring sustainable actions

IKEA’s loyalty program members get exclusive discounts for shopping sustainable products across dining, textile, furniture, and other categories. The brand couples sustainability firmly with a loyalty program. It runs contests for its loyalty platform members aimed at inspiring sustainability initiatives.

With robust technology infrastructure at the backend, the brand knows customer expectations and offers customized rewards. Also, integrating gamification in rewards for sustainable rewards ensures higher engagement rates. Furthermore, with more than 180 million loyalty program members, the holistic loyalty approach ensures consistent growth of the loyalty program.

3. Costa Coffee – sustainability comes first.

Following the pandemic, the brand revamped its loyalty program leaning towards sustainability. Even as a business, producing reusable cups and partnering with charitable organizations has proven the brand’s affinity towards sustainability.

With its loyalty program, it encourages people to take sustainable actions. Members can get a free coffee cup when they use 4 reusable cups, whereas regular cups need to buy 8. The loyalty program is accessible through a mobile app with educative content about the sustainability initiatives of Costa Coffee.

Sustainability in action = Sustainable revenue growth

The need to go sustainable is for more than just meeting customer expectations. The brands mentioned above have increased their sales significantly after deploying sustainability-driven campaigns. Patagonia, for example, experienced a 30% growth in sales when they launched their “Don’t buy this jacket” campaign. They focused on reduce, reuse, and recycle messaging.

Similarly, more than 16% of brands are introducing rewards for sustainability in their loyalty programs.

Following are benefits that brands can see beyond increased sales.

Increase in physical store visits: With the promotion of returning used products, packets, and clothes, retail brands are experiencing a surge in in-store visits. It allows retail brands to engage customers easily and boost their revenue.
Increase in brand affinity: Nearly 75% of millennials prefer connecting with brands with sustainability as their core messaging. Growing global environmental awareness highlights brands that align with a climate-friendly vision. Such brands are celebrated and earn brand recognition without investment. Additionally, it boosts the brand’s presence in social communities opening the gate for referrals and more loyal customers.
Loyalty partnerships: To achieve sustainable goals, brands partner with charitable organizations and carbon-offsetting companies that expand the potential member base. Partnerships allow members to use their points and give back to the community in multiple ways.

Shifting to a sustainable perspective demands steadfast commitment from brands. Brands need a holistic approach to include sustainable practices in their loyalty programs. At the same time, through consistent marketing and communication, marketers need to put their brand as the first choice.

Bonus strategies for implementing sustainable behavior

Reward customers with coupons for sustainable-first brands.
Partner with charitable & environmentally friendly organizations to allow members to donate their points to desired organizations.
Replace physical loyalty cards with digital cards.
Offer them loyalty points for returning used products using reusable shopping bags.
Give them discounts when they donate their points for carbon offsetting initiatives.

Sustainability is not a brand constraint but a catalyst for brand awareness and growth. Integrating sustainability in loyalty software demands a modern tech stack that is future-ready. Successful brands have seamlessly advanced in loyalty platform infrastructure to make it easy for customers.

Furthermore, a data-driven rewards program has allowed brands like IKEA to customize sustainable offerings, resulting in better customer engagement. It’s time to be ready for the future. It’s time to adopt a holistic approach.

How Growing Businesses Can Leverage Loyalty for Growth

Retaining customers is crucial for any business looking to drive growth and increase revenue. In today’s competitive market, brands must find ways to stand out and create long-term customer relationships. According to a recent survey by Accenture, 87% of customers believe it’s important to purchase from a brand that understands customers.

Innovative brands exceed customer expectations at every interaction, and remember, customers, don’t think in terms of channels as marketers do. They engage with brands in the most convenient way for them at that given time and place.

One effective way for businesses to retain customers is through loyalty programs. These programs offer rewards, incentives, and exclusive access to customers for repeat business. These programs provide customers with benefits and businesses with valuable data and insights about their customers.

By understanding customer behavior, preferences and demographics, businesses can tailor their marketing efforts and improve the customer experience. Also, loyalty programs can help brands differentiate themselves from competitors, boost word-of-mouth marketing, and encourage upselling and cross-selling. This article will explore how growing businesses can leverage loyalty programs to increase customer retention, and drive sales, eventually leading to growth. Let’s look at some ways growing businesses can benefit from a loyalty program.

1. Collect valuable data

Loyalty programs allow businesses to collect data on customer behavior and preferences, which can be used to tailor marketing efforts and improve the customer experience. Businesses can better understand customer preferences and tailor their loyalty efforts accordingly by collecting data on customer behavior, such as purchase history, frequency of visits, and average transaction value.

Additionally, collecting customer data at various touchpoints can help with personalization. According to an Accenture survey, customers said a brand had communicated in a way that was personal, and 71% said that it was because the brand had information about them or their family that they didn’t share directly. Loyalty programs are an excellent source for collecting zero and first-party data.

2. Increase customer lifetime value

Loyalty programs can increase customer lifetime value by incentivizing repeat purchases and fostering a sense of brand loyalty among customers. Through rewards and perks, such as discounts or exclusive access to products and services, loyalty programs can encourage customers to continue doing business with a company. For example, a growing business can incorporate a loyalty program that offers points or rewards for each purchase; this can encourage customers to return and make more purchases to accumulate more points or rewards.

e.l.f a famous brand in cosmetics uses the tiered loyalty system to increase customer lifetime value smartly. The customer gets a point on every purchase; as the points grow, so does the level, and the more exclusive the rewards get. In other terms, the more loyal your customers are, the more they buy from you and the more they earn rewards. Loyalty program tiers can help keep your customers engaged and the brand on top of their minds, leading to increased repeat business and customer lifetime value.

3. Boost word-of-mouth marketing

Satisfied customers who feel appreciated through a loyalty program are more likely to recommend the business to friends and family, increasing the company’s reach. For example, give VIPs an early look, access, or an upgrade if you launch a new product or service. This tactic makes them feel special, aids in amplifying the promotion of a product, and ultimately customers refer your product to friends or family.

It is important to note that, McKinsey reports that “70% of buying experiences are based on how the customer feels they are being treated”. When customers feel valued, they’re far more likely to have a positive experience with your brand, ultimately recommending it to others.

4. Personalized rewards:

By offering personalized rewards based on customer behavior and preferences, businesses can create a sense of exclusivity and encourage repeat purchases.

Targeted incentives: By personalizing the rewards and incentives offered in a loyalty program, businesses can ensure they provide rewards that are most relevant and attractive to each customer. This tactic can help increase customer engagement and retention.
Data collection: Personalization can also help businesses gather valuable data on customer preferences and purchasing habits. This data can be used to improve products and services and to develop targeted marketing campaigns.
Exclusive experiences: Everyone loves exclusive treatment! Personalization can create a sense of exclusivity and VIP treatment for customers. For example, businesses can offer personalized discounts, early access to new products, or special events to their most loyal customers.

5. Gamification:

Brands can use gamification in loyalty programs to make earning and redeeming rewards more engaging and fun for customers. This can be done by incorporating game elements such as points, badges, leaderboards, and challenges into the program. For example, customers could earn points for making purchases or completing specific actions and then redeem those points for rewards such as discounts or exclusive experiences. Furthermore, leaderboards and badges could create a sense of competition and recognition among customers. At the same time, challenges could encourage customers to try new products or engage with the brand in new ways.

For example, a coffee shop chain has a loyalty program where customers earn points for every purchase, and the points can be redeemed for free drinks or food items. To gamify the program, the coffee shop could add a “coffee connoisseur” badge that customers can earn by trying a certain number of different coffee drinks. Additionally, the coffee shop could create a leader board that displays the top point earners each month and give a prize to the customer who earns the most points. These gamification elements will encourage customers to try new items, compete with others, and keep returning to the store to earn points, badges and participate in challenges, ultimately helping the brand to grow.

6. Continuous improvement

Continuous improvement in a loyalty program means regularly evaluating and updating the program to make it more effective and beneficial for customers. This can include a variety of different actions, such as:

Adding new rewards: Adding new rewards to a loyalty program is a way to keep the program fresh and engaging for customers. For example, a retail store might add new products for which customers can redeem their points. This can increase customer engagement by giving them something new and exciting to look forward to.
Improving the redemption process: The redemption process should be as straightforward as possible. This could include allowing customers to redeem rewards online or through a mobile app or providing clear instructions on redeeming rewards.
Regular communication: This is a critical aspect of a loyalty program as it helps keep customers informed and engaged. It can include sending out regular updates on the program, such as new rewards or changes to the earning and redemption process, to keep customers informed and engaged. By regularly communicating with customers, businesses can ensure that their loyalty program is meeting the needs and preferences of their customers and effectively encouraging repeat business.
Use multiple channels: Regular communication can be done through different channels such as email, SMS, social media, or in-app notifications. Using multiple channels can increase the chances of customers interacting with the brand and engaging with the program.

Final Thoughts

In conclusion, loyalty programs can be a powerful tool for businesses to drive growth and increase revenue. By offering rewards and incentives for repeat business, brands can encourage customers to return and purchase more. By collecting customer data and tailoring marketing efforts, businesses can improve the customer experience and increase the lifetime value of each customer.

Additionally, loyalty programs can help businesses differentiate themselves from competitors, boost word-of-mouth marketing, and encourage upselling and cross-selling. Growing businesses must design loyalty programs to align with their target audience and business goals. Furthermore, it’s essential to keep the program updated and relevant to the customers and measure its success to improvise accordingly.

American Airlines to Starbucks – Why are leading brands revamping their loyalty programs?

Starbucks recently made headlines when it announced its popular loyalty program revamp. Before Starbucks, American Airlines and Delta were trending due to changes in their loyalty programs. As 2022 ended, major brands, including Chipotle, United Airlines, and Amazon, announced changes in their loyalty offerings. 71.6% of brands aim to revamp loyalty programs.

This brings us to the question – Why are brands revamping their loyalty programs?

The most straightforward answer is changing customer behavior paired with changing market scenarios. With inflation, rising costs of living, and digitization, customer behavior has evolved significantly. As a result, customers’ expectations and demands have shifted, causing brands to revamp their loyalty offerings.

Reasons why brands are revamping loyalty programs.

1. Lack of personalization

80% of consumers say they’re more likely to do business with a company that offers personalized experiences. But not every brand has the correct data at the right time & design to provide hyper-personalized loyalty solutions.

The revamp is centralized around a data-first approach by capturing it across customer touchpoints. Nearly 74% of brands prioritize efforts toward data capturing & deep data analytics to personalize the customer experience.

2. Increased competition

With technological innovation, customers are expecting more convenient and seamless experiences. On average, one USA citizen is part of 14 loyalty programs but active in a maximum of 6 programs. Customers are choosing better experiences amidst rising competition in the brand loyalty market.

Brands that fail to keep up with these trends risk losing customers to competitors who offer appealing loyalty platforms. Understanding this, brands are revamping loyalty programs to make them more interactive and engaging.

3. Offer more valuable rewards and experiences

72% of millennials spend more when offered valuable experiences. But, 97% of loyalty programs still rely on transactional rewards. Revamping the loyalty software to incorporate better rewards and relevant experiences can help brands to boost engagement & retention.

Loyalty partnerships, gamification, and integration of charitable associations are some features to have in your loyalty software. It offers members emotional ways to engage with your brand.

4. Rapid technological advancements

Digitization is taking the world by a revolution. Customers prefer digital-first brands because of the “ease of commerce” in this mode. 95% of customers want to engage with loyalty programs using the latest technology, like chatbots, AI, and VR. As a result, many brands have revamped their loyalty program to integrate innovative technology into their loyalty solutions.

For brands, it’s an opportunity to capture data through digital interactions and understand their customer better. A robust technology platform allows marketers to make better marketing decisions and craft targeted campaigns.

5. Boost customer lifetime value

The recent economic crisis has made customers conscious of their interaction with brands. With thousands of brands available at a touch, customers are switching to brands offering better deals.

Morrisons revamped its loyalty program to offer more personalized benefits instead of points. The personalized offering makes customers feel valued and appreciated, allowing brands to foster long-term relationships with customers.

Brands that recently revamped loyalty programs

1. Starbucks

The coffee giant made 2 significant loyalty program upgrades this year. First, it revamped its existing loyalty programs to add more partnerships with the ‘Reward Together’ program. And second, it launched the Starbucks Odyssey loyalty program, introducing NFTs and a digital community for members.

Recognizing the price consciousness among customers during inflation, Starbucks introduced new loyalty partnerships to provide more point-earning opportunities.

Changes in the program include:

Members will earn 2 stars for every dollar spent.
Members can now earn points for flying with Delta airlines.
Customers can now get iced drinks and tea for 100 points instead of the previous requirement of 150 points.
Members of the Odyssey program can interact with other members in the online community, participate in fun activities and earn NFTs as rewards.

2. American Airlines

The recent revamp of America’s largest frequent flyer program was focused on making it easier for customers to earn rewards. The upgrade enables loyalty program members to earn quickly & reach higher status. The brand added customer-tailored rewards matching their needs. Revamp allows members to earn miles on air and the ground through numerous loyalty partnerships.

Changes in the program include:

Members have more point-earning opportunities.
Activities performed during January and February 2022 counts for both 2022 & 2023 status.
Complimentary upgrade for gold and platinum members.
Complimentary upgrades are now also extended to 1 companion.

3. Dunkin Donuts

DD perks, Dunkin Donuts’ popular loyalty program, was upgraded to Dunkin Rewards in October 2022. The brand conducted a customer survey asking what customers want from its loyalty programs.

Customers responded with —flexibility, recognition, and variety as key things they look forward to. Dunkin Donuts responded to customer demands by adding more perks and flexibility to earn and redeem points.

Changes in the program include:

Members can earn 10 points for every dollar spent.
Members can now redeem food items with points.
Members can earn triple points on birthdays.
The points in Dunkin Rewards never expire as long as members stay active.

4. Marks and Spencer

Marks and Spencer recently announced the global launch of its revamped loyalty program — ’Sparks.’ The revamped loyalty program includes tailored offers, customized experiences, and unique perks available to customers globally. The brand created a digital-first customer experience through its loyalty app and Sparks card.

Changes in the program include:

Members can win free shopping every week.
Members are rewarded for spending sustainably.
The store surprises members with little gifts every week.
Members get access to tailored experiences with the brand’s partners.

5. Delta Airline

Delta Airlines aims to improve customer experience and boost engagement with its loyalty program revamp. By adding a variety of new benefits, Delta ensures that premium tier benefits are accessible and appealing. Delta’s new partnership with Starbucks lets customers earn miles daily while purchasing drinks.

Changes in the program include:

Delta has introduced choice benefits, including more personalized incentives for premium and diamond members.
Members can now gift their status to 2 other members.
Delta allows members to earn more points by linking their Starbucks accounts.
Members can now redeem miles on checked bags on domestic and international flights.

Some tips to ensure a smooth loyalty program revamp!

Use deep data analytics to understand what customers want: Revamping a loyalty program without sufficient customer insights can be misleading and adversely hinder growth. A clear understanding of customers’ demands and preferences is of utmost necessity to revamp the rewards program.
Adopt the latest tech stack: Loyalty programs need continuous upgrades. With innovation in the martech stack, brands should move towards headless commerce, AI/ML algorithms, and omnichannel approaches to stay relevant in the evolving market.
Have a clear strategy based on previous performance: Monitoring the current program KPIs allows brands to identify top-performing elements. Setting the right goals and KPI metrics ensures that the loyalty program is agile, adaptable, and never out of customers’ preferred choices.

Conclusion

A loyalty program revamp is essential and beneficial for brands. The evolving customer behavior demands change, and brands must be prepared to tackle changes efficiently without disrupting the members’ experience. A proper data-driven strategy with consistent strategic consultation can help brands revamp effectively with signs of rapid growth and consistent results.

Top 7 Customer Loyalty Programs in the United Kingdom (UK)

Customer Loyalty Programs in the UK

The recent market turbulence —the rising cost of living, persistent economic uncertainty, and the lingering effects of the pandemic — have left brands in the UK speculating about the future of customer loyalty. Over 56% of customers in the UK are ready to switch brands due to high prices. Loyalty programs have been the go-to tactic for brands in similar situations.

Many brands, including Starbucks and Tesco, are leveraging loyalty programs to foster customer loyalty. As a result, 2022 saw 71% of customers in the UK being loyal to their favorite brands. Let’s decode how some major brands in the UK are winning customer loyalty.

1. Marks and Spencer

Marks and Spencer revamped its loyalty program — M&S Sparks, bringing tailored deals, instant rewards, and a chance to support various charities. The program regularly offers customers a chance to win free products. Every week one lucky shopper who scans their loyalty card or app in-store can shop for free.

Benefits of the program:

Members get priority access to the latest deals and M&S sales.
Members enjoy personalized deals based on past purchase behavior.
Members can earn points (“Sparks”) on the go through the M&S mobile app.
The most loyal Sparks members regularly receive thank-you gifts in the loyalty app.

Key takeaways

M&S incentivizes customers to shop more and share reviews to collect customer data and curate personalized deals.
The brand focuses on empathy and emotions to build customer engagement by allowing customers to make charitable donations for purchases.

2. ASDA

Asda took gamification to a whole new level by making missions the cornerstone of its loyalty program. Unlike other programs, Asda members don’t earn points for completing specific actions; instead, they can participate in missions to accumulate virtual money in the cash pot.

The cash pot can be exchanged for Asda Points vouchers, which can be spent in-store and online.

Benefits of the program:

Members can win extra rewards on their favorite products.
Members can scan their cards to win milestone rewards.
Members instantly receive 10% cashback on buying Star products.

Key takeaway

Asda uses gamification to boost customer engagement with a unique approach to rewarding customers.

3. Nectar

Owned by Sainsbury, Nectar is a multi-partner loyalty program catering to customers of 300+ major brands, including Sainsbury, British Airways, Esso, eBay, and more. With a digital-first approach, Nectar allows members to win 3X more points via the loyalty app. The brand holds a “Nectar Double Up event” every year in partnership with Sainsbury to allow members to redeem points for double the value for a week.

Benefits of the program:

Members can bag in extra points with partner offers every week.
Members can enjoy more personalized recommendations from Sainsbury.
Nectar members can skip long queues with the smart shop feature.
Members get all-year-round access to special prices on products handpicked for them.

Key takeaway

Loyalty partnerships with hundreds of brands allow Nectar to offer customers more valuable experiences and rewards.

4. Morrisons

Morrisons replaced its point-based loyalty program with an instant-reward-based structure. The loyalty program allows customers to collect pounds instead of points, which can later be used to deduct money on purchases.

Benefits of the program:

Members can join the My Morrisons Club of their choice to get more perks.
Members get regular personalized offers based on purchase behaviors.
Members enjoy a basket bonus on frequent purchases, which amounts to unique experiences and rewards.

Key takeaway

Experiential rewards and instant gratification make the customer loyalty experience more exciting and engaging.

5. Co-op membership card

Co-op membership is one of the most popular supermarket loyalty programs. From amazing rewards to various activities, Co-op has many ways to keep customers engaged. For example, the loyalty program app allows customers to join communities, volunteer in groups, participate in activities, and even share their opinion on creating new products or services.

Benefits of the program:

Two personalized offers each week based on what members regularly buy.
Rewards earned by members are matched by the Co-op for social causes.
Special prices on Co-op services like Insurance, Funeralcare and Legal Services.

Key takeaways

The community-based loyalty program offers a sense of belonging to customers, generating emotional loyalty.
The opportunities to actively participate in exclusive experiences and give back to society make the loyalty experience worthwhile and engaging to members.

6. Boots Advantage

Boots is among the most rewarding loyalty programs in the UK. Focused more on transactional loyalty, Boots rewards 4 points to the Advantage card for every £1 a member spends. Each point is worth 1 penny, which equals 4% back for each shop.

Members can upgrade to Advantage Plus card for £20 per year, which offers a 10% discount on almost anything in Boots.

Benefits of the program:

Personalized offers through the Boots app.
Members get free access to health & beauty magazines.
Members who are also part of the parenting club can collect double points.
Students get a 10% discount on purchases.

Key takeaway

Offering significant returns to customers during inflation encourages customers to shop frequently with Boots.

7. Pets At Home

Pets At Home has created a community of animal lovers through its loyalty program. Like most loyalty programs above, the ‘Very Important Pet(s) Club’ doesn’t offer points. Instead, it grants plenty of other benefits to members and their pets, including exclusive discounts on regularly purchased products, free holidays for pets, and discounts on grooming.
The brand also donates to animal charities with every loyalty card swipe. Furthermore, the lost alerts on the app allow members to search for lost pets.

Benefits of the program:

Members can enjoy free holidays with pets.
Members can enjoy exclusive offers with partner brands and get advice on grooming and pet care.
Members receive tailored vouchers for their favorite brands.
Help animals every time you swipe your card.

Key takeaway

Building a community of pet lovers through its app allows Pets at Home to foster long-lasting relationships with customers.

Conclusion

70% of UK customers belong to a loyalty program. With revamping and precise adaptability, brands are navigating through the market with the power of loyalty software.

Moving from the traditional point-based loyalty solutions, brands are shifting towards instant rewards, personalization, and a digital-first approach to win back customers. With the proper strategic consultation, it becomes easy for brands to adapt loyalty programs for results.

Six Distinct Dimensions Essential for a Holistic Loyalty Program

In today’s landscape, there is no denying that the customer is king. Today’s shopper has more power than ever – with information at their fingertips and endless choices on where to buy their goods. In this world, there’s no wonder that brands are focusing more on customer loyalty and, by extension, their rewards or loyalty programs. Today, an average customer furiously hops between different websites and checks out multiple brands based on various factors before making a final decision. In comparison, many loyalty programs are static and outdated in today’s fast-paced digital economy.

The evolving customer expectations require brands to create personalized and holistic loyalty experiences. A holistic loyalty program should encompass all aspects of the customer journey. It’s not just selling flight tickets or booking hotel rooms; a comprehensive loyalty program should include all ancillary services — because they are post-pandemic keys to customer satisfaction and profitability.

What exactly is Holistic Loyalty Approach?

The holistic loyalty approach should combine technology with deep data analytics and strategic consultation to unlock multiple dimensions of loyalty, including transactional, social, advocacy, engagement, behavioral, and emotional. There is no one-size-fits-all answer to this question, as the holistic loyalty approach will vary depending on your customers’ needs. For example, while transactional loyalty will help encourage and convert new customers to repeat their purchases, behavioral loyalty and engagement-based loyalty programs can help improve customer trust in your brand. Each loyalty program has its benefits, and these elements work best when used in combination with each other.

Let’s look at each dimension that has its strength and is paramount to achieving holistic loyalty.

1. Transactional Loyalty

Transactional loyalty is accomplished by offering offers or discounts to customers, and it is a potent tool for bringing back customers. Transactional loyalty strategies are simple, easy to use, and give customers the indisputable feeling of getting a good deal. Instant discounts, in particular, entice customers to join loyalty programs. Transactional loyalty is an attractive and necessary ingredient in building brand advocates. Still, if combined with experiential loyalty, it elevates the member experience and creates a holistic and sustainable connection between brands and customers.

For example, The North Face provides its loyalty members with the perfect mix of Transactional & Experiential Loyalty rewards. As part of their VIPeak program, customers can earn points through traditional methods like making purchases and less conventional ways like attending events, checking in at specific locations, downloading the company’s app, and more. However, the most captivating factor of The North Face’s experiential loyalty program is its vast array of choices when members redeem their rewards. Customers can use their points towards unique travel adventures like mountain climbing in Japan or hiking to Machu Pichu. The North Face’s rewards program has propelled its customer experience to the summit. With different transactional loyalty strategies, brands should incorporate the right mix of offers depending on the customer’s interests and needs.

2. Social Loyalty

A well-planned and executed social loyalty program significantly impacts your brand. It increases early-stage customer engagement by encouraging customers to interact via social channels. Online recommendations, referrals, ratings, and reviews are all examples of Social Loyalty. It creates brand advocates by offering incentives to customers for referring friends. For instance, Sephora’s program to develop a community of influencers and reward them through personalized experiences was an instant hit among their customers. The campaign garnered more than 76k conversations and 1,500 active topics daily. They also expanded the program into multiple tiers. You can get more or fewer rewards based on spending over time.

Rewarding customers for their social loyalty enables you to build trust, provide a memorable customer experience, and strengthen their loyalty to your brand. Ultimately, social rewards programs can help you build brand advocates.

3. Advocacy Loyalty

While loyalty is often seen as clients’ purchasing behavior, advocacy is about what they say to others. Not only is advocacy free advertising, but it is also the highest endorsement your products and services can receive. When a happy user voluntarily advertises your products/services, that’s pure gold. Advocacy is significant for the effective customer experience. A critical driver for brand advocacy is the service and experience your brand can offer to customers. Happy customers go the extra mile to recommend the brand to their network. It is essential to provide consistent five-star quality, making the brands stand out from the rest. Brand advocates will share their experiences of interacting with a product.

“Shot on iPhone” by Apple is a creative way to encourage customers to use the product and uniquely capture different experiences. These user shots included photos ranging from colorful scenery to meaningful family photos. A creative way to encourage customers to use the product and uniquely capture different experiences.

Customers who feel part of a community co-create your brand with you.

4. Engagement Loyalty

At its most basic, engagement loyalty is how you interact with a customer to keep them interested in your product or service. On the contrary, keeping on top of your customer loyalty engagement means tracking how they are engaged, what type of engagement works, and, equally as importantly, what doesn’t.
Engagement loyalty programs incentivize customers for email sign-ups, newsletter subscriptions, survey completion, etc. This helps brands derive more profound insights into their customer base, leading to effective customer segmentation and better targeting. Moreover, this also enables brands to communicate more effectively with customers in a personalized manner through various mediums. If a customer realizes you will go the extra mile to please them, they are far more likely to feel valued — and to stick around. Engagement loyalty is an important strategy to increase customer loyalty.

5. Behavioral Loyalty

Behavioral loyalty is when a customer continues to buy/use a particular product or service. By nature, people tend to stick to convenience, which creates behavioral buying patterns. Rewarding customers for specific purchase behavior is another highly effective strategy. For example, if your website flashes, “Get additional 500 bonus points if you make three purchases this month,” it will encourage your customer to keep coming back. By enabling customers at multiple touchpoints, brands can succeed in creating more engagement and, subsequently, greater loyalty.

To improve the effectiveness of behavioral loyalty, machine-learning algorithms can be used to segment different customers into actionable clusters such as deal seekers, high spenders, or occasional browsers. Depending on the insights obtained, loyalty program campaigns can be set up for different categories of customers. Behavioral loyalty programs help in personalization, which can form the foundation for creating strong customer-brand relationships.

6. Emotional Loyalty

Emotional loyalty can be defined as a psychological preference and affective attachment, loyalty to a brand is demonstrated by favorable perceptions, opinions, and recommendations. Emotional loyalty is achieved when customers want to advocate for your brand because they feel connected. The human element in these relationships is natural, and customers crave that interchange from the brands they love.

Brands that share a deep, emotional connection with their customers tend to have a more holistic understanding of how they fit into their customers’ minds—what those customers need from the brand to make their engagement more fulfilling. A holistic loyalty platform helps brands connect with customers at an emotional level. A simple gift, free product, or exclusive promotion is an excellent way of extending thanks to a loyal customer. Through analysis of loyalty program trends and behaviors, brands can identify the best customers to target with elements of surprise and delight. Emotional loyalty lets you focus on understanding your customers’ perspectives, relating to them, and empathizing with them.

Final Thoughts

Combining the six distinctive dimensions can help you deliver a holistic loyalty program. A holistic loyalty program affects customers emotionally, ultimately helping the business with improved customer retention and increased business revenues significantly.

In addition, the multidimensional strategy can help companies to build relationships with their customers and create a sense of community and sustainability. A holistic loyalty platform doesn’t necessarily mean immediate revenue. What it does offer is exponential revenue build-up as your customers stay loyal and generate demand.

10 Most Popular Australian Loyalty Programs to Create a Successful Rewards Program [Updated]

Loyalty Programs in Australia Statistics

The Australian loyalty market has grown by approximately 12% in the last few years. The success of loyalty programs in retaining customers has caused a surge in popularity. Regardless of the niche, brands across the country are introducing new and revamping old loyalty programs to provide better value to customers.

Now, loyalty programs are not restricted to the big players in the market. Instead, many small and local businesses are taking the help of loyalty programs to increase retention and revenue.

Around 12.2 million customers in Australia make purchases to earn rewards. This statistic highlights the impact of loyalty programs. Let’s explore the top 10 Australian loyalty programs in 2022.

Top 10 Customer Loyalty Programs in Australia

1. Accor All Loyalty Program

Accor is famous for its exceptional services and exciting rewards.

In the last few years, Accor bought multiple hotel brands like Fairmont, Mantra, Mövenpick, SBE, Mantis, etc. This has allowed them to spread their reach and provide better incentives to the customer. That is why Accor decided to change its loyalty program completely.

Accor’s revamped loyalty program, ‘Accor live limitless,’ has become one of the biggest loyalty programs in Australia. On joining, members get access to countless exclusive benefits. Customers are rewarded for every little milestone they achieve. In addition, members can avail the benefits of the loyalty program at any acquired hotel.

For example, an Accor ALL member can book a room at Fairmont Hotel and still earn ALL reward points.

The hotel has also partnered with other businesses to reward customers at every opportunity.

Accor Loyalty Program Partners:

1. Airlines:

Qantas Airline
Air France KLM
Qatar Airways
Olympic Air

2. Mobility:

Europcar
Eurostar
Hertz
Avis

3. Lifestyle:

The Bicester Village Shopping Collection
Paris Saint-Germain Football Club
Delsey

How Does the Loyalty Program Work?

The Accor ALL loyalty program has five tiers — classic, silver, gold, platinum, and diamond.
Members earn three reward points for every US dollar spent.
Members can get at least a 10% discount on hotel booking with around 3,000 hotels.
When members reach a new tier, they get customized perks like late check-outs or dining and spa rewards.
The longer members stay at a partner hotel, the more status points they earn.

Accor’s increased reach in the hotel industry has played a significant role in its popularity. Moreover, since members can avail the rewards in not one or two but approximately 3,000 hotels around the globe, the loyalty program is a great deal for regular travelers.

2. Qantas Frequent Flyer Program

Qantas is one of the top airlines in Australia. The airline has created an attractive loyalty program with unique perks and benefits for its frequent flyers. For example, members can earn reward points for buying flight tickets or shopping at partnered brands.

The frequent flyer points can be redeemed for buying tickets and booking hotels. For example, a one-way economy ticket from Sydney to Melbourne can be purchased for 8,000 points.

Customers will reach higher tiers and better rewards as they spend more. For example, Platinum One tier members can enjoy priority boarding and status-only lounge access.

Qantas Frequent Flyer Partners:

1. Airline:

Accor
Air France
Air New Zealand

2. Hotels:

Airbnb
Hilton
Marriott Bonvoy

3. Cars:

Avis
Budget
Qantas Transfers

How does the Qantas Frequent Flyer Program work?

Qantas frequent flyer has five tiers — bronze, silver, gold, platinum, and platinum one.
The program charges a $99.50 fee while joining.
Members can earn from 800 to 1,400 points on purchasing flight tickets.
Members get $20 coupons for every 1,000 Qantas reward points.

While Qantas has a premium loyalty program, its perks still outshine the cost. The program is popular because of its personalized rewards and fantastic customer experience.

3. Coles Flybuys Rewards Program

Flybuys is a famous Australian loyalty program affiliated with Coles, Virgin airlines, Wesfarmers, and many other partners.

The loyalty program follows the traditional reward structure. The members earn points every time they shop at Coles. In addition, the loyalty program members can earn 2X points by shopping at partner stores.

These points can be redeemed for discounts, cash rewards, and even transferred to Velocity points. Customers can use the cash rewards to reduce their grocery bills or use Flybuy dollars to buy actual products, travel, or even repurpose points for frequent flyer miles.

Flybuys Partners:

1. Liquor:

First choice liquor market
Liquorland
Coles supermarket

2. Banking and insurance:

Citi
HCF health insurance
Coles Insurance

3. Shopping:

Kmart
Catch
Target

How does the Coles Flybuys program work?

The loyalty program is free to join.
Members can reward points for spending money at any of the partnered businesses.
Bonus points can be earned by purchasing exclusive products.
Members can redeem these points for Flybuy dollars to save money at any of Coles’s stores.

Coles Flybuys’ long list of partners makes earning and using points extremely easy for members who are rewarded for even purchasing the daily necessities.

4. Woolworths Loyalty Program

The Woolworths loyalty program, called Everyday rewards, is another top-rated loyalty program in Australia. In 2017, the program had undergone a massive backlash from its loyalty program members due to recent changes. The brand sought out why the customers were reacting negatively and, after analyzing the results, made some needed changes in the program.

The new Everyday rewards use a more data-driven and personalized approach to rewarding customers. Loyalty program members can earn points by shopping at Woolworths, BWS online, or any Woolworths owned/partnered business.

The points can be redeemed automatically or saved for a later date.
Furthermore, customers are awarded a discount coupon of $30 off if they earn 6,000 points before December 31.

Everyday Rewards Partners:

1. Shopping:

BWS
Big W
Pet culture

2. Fuel:

Bupa
Ampol
Caltex

3. Travel:

Qantas

How do Everyday Rewards work?

Points can be exchanged for monetary rewards once a member reaches 2,000 points.
With points boosters, members get up to 10 points for every dollar they spend.
Members can also earn points by shopping at Woolworths’ partner stores.
Members can save up to 10% on their groceries every month.

Everyday Rewards have made it extremely easy for members to earn back on their spending. The simplicity of the program has attracted many new customers to the brand.

5. The Coffee Club Rewards

The coffee club is one of the biggest coffee chains in Australia. The brand has more than 400 stores throughout the globe. It also has a loyal customer base of approximately 40 million customers.

The cost of membership for the VIP club is $25 a year. But it’s super easy to get the value if you are a regular customer.

The loyalty program offers members a buy one get one free deal on all hot drinks, free upsizes, and a 10% discount on food on Mondays, Tuesdays, and Wednesdays. If it’s the customer’s birthday, they get a free drink.

Members can track their rewards through the loyalty app or membership card. With the app, customers also get a chance to earn a dollar for every $10 spent.

How does the VIP Club work?

Members get three free coffees for just signing up for the program.
Loyalty program members can earn $1 for every $10 spent by scanning their loyalty cards in the store.
The loyalty app comes with exclusive member-only perks and rewards.
Members get access to many amazing offers and giveaways.

Along with a delightful menu, the personalized rewards only encourage customers to stay with the best coffee brand.

6. Myer one Loyalty Program

Myer one is the loyalty program of the well-known Myer department store in Australia. The program allows loyal customers to earn credits with every purchase.

Members get back around 2% of each purchase through the loyalty program. Hence, the program is very rewarding for Myer’s frequent customers. The program has three tiers members can reach after spending a specific amount.

Members can use the Myers One reward card to pay for purchases and manage loyalty points. There’s also an app where you can track your points and see how long it will be until your next Reward Card arrives.

Myers one partners include:

1. Travel:

Hertz
Europcar
Wilson parking

2. Shopping:

Hello World
IGA
Supa IGA

3. Fuel:

Caltex
Star Mart

How does the Myers one Work?

Members receive customized rewards on birthdays.
The program has three tiers — silver, gold, and platinum.
Members can earn two credits for each dollar spent at the Myer department store.
With every 1,000 credits earned, members get a $10 special reward coupon.

The monetary and coupon-based rewards make Myers One such a popular loyalty program. These rewards allow members to spend credits on whatever they want to purchase or transfer the money to their digital wallet for later use.

7. Priceline Sister Club

Priceline Pharmacy is Australia’s leading health and beauty store. The brand has more than 470 stores across the country. With approximately 7 million members within Australia, Priceline’s loyalty program is highly successful in retaining customers.

The Priceline Sister club has three tiers – the Sister club tier, the diamond tier, and the pink diamond tier. Members can win multiple awards based on which tier they belong to. After becoming a Priceline sister club member, customers also get access to exclusive beauty boxes, gifts, and partner perks.

Priceline Sister Club partners include:

1. Hotels:

Mariott Hotel
Four Seasons Hotel
Hilton Sydney

2. Airlines:

Jetstar
Virgin Australia
Regional Express

How Does the Priceline Sister Club Work?

Members earn a $5 voucher for every 400 points.
The program also offers quarterly rewards. If a member earns 1,000 Sister Club points in one quarter, they automatically receive a payback voucher.
Members can also earn rewards for taking beauty consultations.
With the Priceline sister club, points earned by members don’t expire after a specific period.

The Sister Club offers completely customized rewards like beauty boxes and birthday rewards. It powered the bond between the brand and the customer.

8. Katies Style Rewards

Katies is a fan favorite clothing brand in Australia. The brand has over 150 stores across Australia. With Katies style rewards, members get exclusive access to the latest clothing, items of the season, and special events.

Unlike many other loyalty programs, Katies style rewards do not include a membership card. Instead, the members are assigned a membership number using which they can track their points.

Katies Style reward points cannot be redeemed for cash. But they can be used to make purchases at Katies store and website. In fact, at Katies, members can earn coupons for up to $50 at a single time. Instead of following the common approach of digital vouchers, Katies prints the vouchers along with shopping receipts in the stores.

How Does the Katies Style Rewards Work?

Members receive a point for each dollar spent at Katies store or online store.
When members earn 100 points in-store, they get a $5 reward.
Members get $10 off on their first purchase by signing up for the program.
Members can use their scan membership number at the store to track their reward points.

Having the flexibility to use the vouchers for any product of the member’s liking is a huge plus point of Katies style reward program.

9. CommBank Awards

CommBank also follows a tiered structure for its loyalty programs. These tiers range from the classic card, the first tier, to the Ultimate card, the highest tier. The bank has partnered with many businesses, allowing members to earn points using their credit cards.

What sets the loyalty program apart is its ultimate card that offers many rewards without any monthly fee.

CommBank Awards partners include:

1. Airline:

Qantas
Velocity

2. Payment:

Netbank
Apple Pay

3. Shopping:

Myers
Australian Supermarkets

How does the CommBank Award Program Work?

CommBank awards have four tiers —Classic, Gold, Platinum, and Ultimate.
With CommBank awards, the number of points earned per dollar spent varies according to the member’s award card.
Members can track reward points through the CommBank or Netbank apps.
For e-shopping, customers can earn up to 10 reward points for each dollar spent.

The program uses a customer-centric approach to incentivize customers. That is why it has been very successful in retaining customers.

10. Velocity Frequent Flyer

Velocity frequent flyer is the award-winning loyalty program of Virgin Airlines Australia. Members can also earn unique family benefits like Family Points Pooling, membership Parental Pause, and access to their “Pet Frequent Flyer Program.”

Members can earn through the program’s everyday, travel, holiday, and credit card partners. The Velocity frequent flyer program has three tiers —silver, gold, and platinum.

Velocity Partners:

1. Airlines:

Singapore Airlines
United Airlines
Etihad Airways
Hong Kong Airlines

2. Cards, banking, and insurance:

Virgin Money
American Express
Bank of Melbourne
Bank SA

3. Shop, wine, and dine:

Snooze
Freedom Kitchen and Rewards
Youfoodz
Velocity Wines

How Does the Velocity Frequent Flyer Program Work?

With Velocity frequent flyers, members can earn rewards for flying, shopping, and booking hotel rooms.
Members can redeem award points for buying a flight ticket or shopping at partnered businesses.
Velocity frequent flyer points expire after 24 months of account inactivity.
Rewards can also be transferred to a family member’s account.

The expiry date is long enough to make the customer feel safe, but its presence keeps pushing them to purchase more quickly.

Top Australian Loyalty Programs: Conclusion

A few brands listed above have revamped their loyalty program and some have embraced partnerships and included different types of rewards to stay at the top of customers’ minds. This highlights how brands need to constantly keep themselves at pace with the changing market and customer behavior.

Zinrelo is a modern-day, loyalty rewards platform that maximizes repeat sales and per-customer revenue through 360-degree customer engagement, data sciences, and machine learning. Not sure about how your business can improve revenue through customer retention? Talk to our loyalty experts here.

What Is Emotional Loyalty and How to Implement It? (With Examples)

Today’s customers are the ultimate surfers, hopping between channels, devices, and sites as they shop. Covid fatigue is affecting virtually everyone. Customers are tired emotionally, psychologically, and physically from the toll the pandemic has taken on daily life. As a result, many customers simply want their shopping experience to be convenient, simple, and satisfying.

Today’s ever-connected customers have multiple choices at any given point. As humans typically do when presented with many choices, they rely on factors like brand experience, convenience, offers, price, and reviews to guide their choices.

With so many choices, how do brands stand out from the competition? The answer lies in emotional loyalty. Research from Forrester concludes that emotion is the biggest driver of loyalty in many industries. A study by Capgemini found that there are significant benefits to nurturing a relationship with emotionally invested customers.

What is Emotional Loyalty?

Emotional loyalty can be defined as a psychological preference and affective attachment, loyalty to a brand is demonstrated in this case by favorable perceptions, opinions, and recommendations. Emotional loyalty is achieved when customers want to advocate for your brand because they are connected with you. The human element in these relationships is real, and customers crave that reciprocity from the brands they love.

Brands that share a deep, emotional connection with their customers tend to have a more holistic understanding of how they fit into their customers’ minds—what those customers need from the brand to make their engagement more fulfilling. A holistic loyalty platform helps brands connect with customers at an emotional level.

Why is Emotional Loyalty Important?

Customers look for honesty, transparency, and authenticity in brand interactions. When they can rely on brands to deliver in a personalized and consistent way that leans into empathy and makes them feel appreciated, they’re more likely to choose you over competitors. Successful brands deliver a value exchange that deepens the connection with their most loyal customers and is purpose-driven, reflecting the values of customers and communities. This cultivates brand loyalists and advocates, future-proofing a brand and carrying it through times of disruption.

Of course, emotional loyalty does not happen on its own. Creating emotional loyalty requires an integrated and dynamic mix of activities and interactions between your brand and customers that drives personalized engagement at each touchpoint. Let’s look at some of the most important factors in nurturing emotional loyalty.

How to Cultivate Emotional Loyalty?

1. Create Unique Experiences

Customers want to be rewarded for their loyalty. From elite rankings to special events and unique experiences, offering one-of-a-kind rewards and customer experiences that make members feel special, valued, and appreciated is essential. Loyalty programs that offer exclusive, one-of-a-kind rewards, such as an invitation to a VIP event, help to make customers feel part of an exclusive community.

Alternatively, offer early access to sales or limited-edition rewards to make customers feel appreciated and build a greater emotional attachment to the brand. Investing in your customer loyalty initiatives to drive an emotional connection will significantly increase customer value and even attract new customers to your brand.

2. Offer Personalization

Customers today desire personalized connections with the brands they patronize. Providing such links and creating memorable experiences is more valuable than the everyday transactional and impersonal interactions that have become commonplace. Doing so can strengthen loyalty and gain an advantage over competitors.

To achieve this, placing your customers at the heart of your brand’s universe is crucial. Personalized customer service plays a pivotal role in achieving this goal. Just as it would be disconcerting if an old friend forgot your name or shared experiences, maintaining the ability for your agents to recognize returning customers instantly is vital for building trust and deepening relationships. Agents should have instant access to past support interactions and the customers’ overall history with your brand and pertinent information.

For instance, in an e-commerce business, when a customer contacts you, your agents should automatically access their order history, prior interactions, shipment details, and tracking numbers. Additionally, ensuring that customers are seamlessly connected to the same agent they previously interacted with further fosters trust and familiarity, which are essential foundations of emotional loyalty.

Utilize Data for Relationship-Building

Creating contextually relevant emotional connections with customers necessitates an emotionally intelligent system that breaks down data silos and integrates information from various touchpoints. When harnessed effectively, data empowers brands to engage existing customers through tailored communications.

Emotional Loyalty Program Illustration

Consider the Starbucks loyalty program, which expertly employs customer data to cultivate relationships. With every dollar spent via the app, customers earn two stars. Push notifications alert customers before their stars expire, along with instructions on how to preserve them. These notifications also deliver spontaneous time-limited discounts, opportunities to sample new menu items, and customized offers that coincide conveniently with lunchtime or the customer’s proximity to a Starbucks store.
All this insight derives from the customer’s prior transactions: their product preferences, visit times, and dining choices. This approach individualizes the bond between Starbucks and its vast loyalty membership and instills a sense of immediacy.

3. Leverage Data to Build Relationships

Building contextually appropriate emotional relationships with customers requires an emotionally intelligent ecosystem that eliminates silos and brings together data from across customer touchpoints. When used properly, data provides brands with the means to engage existing customers with tailored communications directly.

Emotional Loyalty Program Example:

For example, the Starbucks loyalty program uses customer data perfectly to build relationships. For every dollar the customer spends on purchases made through the app, they earn two stars. Customers receive push notifications to let them know their stars are about to expire, with instructions on how to save them. Other push notifications include spontaneous limited-time discounts, invitations to try new menu items for free, and other tailored offers that always seem to come through right around lunchtime or when a customer is in close proximity to a Starbucks.

All this information stems from the customer’s previous transactions: what products they like, what time of day they visit the store, and whether they prefer to dine in or take away. Not only does this personalize the relationship between Starbucks and each of its million-plus loyalty members, but it also encourages a sense of urgency.

4. Surprise and Delight

Brands that can demonstrate value to their customers beyond service and product offerings have the potential to form a deeper connection. One way brands add value and differentiate from the competition is by using surprise and delight tactics to show gratitude to their best customers.

A simple gift, free product, or exclusive promotion is an excellent way of extending thanks to a loyal customer. Through analysis of loyalty program trends and behaviors, brands can identify the best customers to target with elements of surprise and delight.

Examples of Surprise and Delight:

a) Gifts and Free Products: Sending a small, unexpected gift or a complimentary product to a loyal customer can be incredibly impactful. This unexpected act of generosity not only demonstrates gratitude but also makes customers feel valued and special. For instance, a cosmetics company might include a sample of a new product in a loyal customer’s order.

b) Exclusive Promotions: Offering exclusive discounts or promotions to loyal customers not only saves them money but also gives them a sense of exclusivity. This can foster a deeper emotional connection with the brand. An example could be a clothing retailer offering an exclusive sale to their top customers before the general public.

c) Offers: Using data and insights from a customer’s previous interactions and purchases, brands can tailor surprise offers to match individual preferences. For instance, an online bookstore might send a loyal customer a coupon for books in genres they frequently purchase.

Utilizing Data for Effective Surprise and Delight

To execute a successful surprise and delight strategy, brands need to leverage customer data effectively. This involves analyzing customer behavior, purchase history, interaction patterns, and preferences. By identifying your most loyal and engaged customers, you can target them with personalized surprises that resonate.

Benefits of Surprise and Delight

a) Enhanced Emotional Connection: Surprise and delight tactics tap into customers’ emotions, creating a stronger bond between the brand and the customer. The unexpected nature of the gesture can evoke positive feelings and leave a lasting impression.

b) Differentiation: In a competitive market, brands that stand out by going beyond typical transactions can differentiate themselves. The memorable experiences created through surprise and delight tactics set the brand apart from its competitors.

c) Word of Mouth and Advocacy: When customers are pleasantly surprised and delighted, they are more likely to share their experiences with others. Positive word-of-mouth marketing and advocacy can result in new customers and increased brand reputation.

Incorporating the surprise and delight strategy into a comprehensive customer loyalty program requires a thoughtful and strategic approach. Brands should continuously monitor customer feedback and analyze the impact of these surprise elements to ensure they align with customer expectations and aspirations.

Final Thoughts

We all know how powerful emotions can be; organizations that don’t capture, analyze, and understand customer emotions in real time will lag. Emotions can bring people closer to your brand or push them away. To build a genuine relationship with your customers, go beyond your products by fostering emotional loyalty. Focus on understanding your customers’ perspectives, relating to them, and empathizing with them. Ask yourself this question- are you loyal to your customers?

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