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.
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.
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.
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.
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.
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.
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.
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