Loyalty reward programs attract new customers, keep them coming back, and increase sales, and can be tailored to meet specific goals.
A loyalty program rewards customers and encourages them to return often with the right kinds of rewards. Learning what works best for you and your customers will help decide the best rewards program.
Types of Reward Programs
There are several elements of traditional loyalty programs and choosing which one is best for your customers depends, in part, on our goals. Members join by sharing a little information (or more if you ask!).
Discounts
Discounts are the simplest and most direct way to incentivize customer loyalty. This approach offers customers exclusive price reductions on specific products or their entire purchase. This type of program works well for infrequent guests like travelers and students. It also is an immediate hook to get brand new loyalty members. By collecting valuable contact information, you can continue to talk to that customer for promotions or other programs.
Immediate discounts for brand-new members will get them to join, regular discounts will get them to stay and digging into the data using analytics will allow you to customize promotional discounts. Using machine learning, or simply digging into the data, will ensure you deliver personalized, appropriate offers at the right time to the right person.
Points
Points-based loyalty programs are another popular choice. These programs award points for each purchase and these points can be redeemed for rewards, discounts, or products. This system not only motivates customers to shop regularly but also lets them see tangible rewards for their loyalty.
Rewarding brand new members with points at joining is a great way to get them started. Tying bonus points to certain purchases help sell particular items or launch new products and can also allow partnering with vendors. Adding points for activities, like referring a friend or completing a survey encourage those members be your best promoters.
Digital Stamps
The classic stamp or punch card system remains a tried-and-true method but is no longer dependent on a paper card when digital. In this approach, customers earn a stamp or punch for each purchase of a certain item.
Stamps tap into customers’ desire for completeness and immediate rewards, creating a sense of achievement. After accumulating a certain number of stamps, they receive a reward, such as a free cup of coffee or a free car wash. Consider implementing a next-level program with membership tiers whereas after completing the challenge, the member moves into a next tier with additional reward opportunities.
Goal-Based Retailer Reward Programs
Deciding which program(s) to offer requires that you decide what you’re trying to achieve. Here are some examples of retailers who have achieved great success with rewards programs.
Irish retailer Maxol has excelled with its digital stamp program, rewarding Rosa Coffee drinkers and car washers for their purchases. The Maxol app issues “stamps” to reward frequent purchases of coffee and car wash and “stars” to reward recent visits and referrals. Maxol’s tiered program rewards super-members with Gold Star membership, unlocking additional offers and rewards.
Brezelkönig, a popular pretzel foodservice chain in Switzerland is part of the convenience retailer Valora brand portfolio. Making customers feel like royalty, The Brezelkönig app rewards customers for their frequency, with three tiers to enjoy. Every visit earns one “crown”, and a free product is awarded for every ten crowns collected. Crowns are collected automatically when customers scan the app’s QR code.
If you are hoping to increase traffic by loyal members, offering customized promotional discounts and offers is a great way to first encourage members to visit based on their preferences or behaviors and purchases. Once they visit, providing them with a coupon for another visit, especially within a certain time limit, will inspire them to return sooner.
7-Eleven in Denmark has mastered creating extra reasons to visit. For many people, their mornings begin with a great coffee they pick up on the way to work and perhaps a delicious baked croissant. It’s the perfect morning treat, and they enjoy it, even more, when they find an exclusive offer that encourages them to drop in the store later that day.! Analyzing this data and triggering just the right offer is one way 7-Eleven has increased its program membership and sales.
Achieve Loyalty Reward Program Excellence
Large or small, retailers have found that having a functional, sleek, easy-to-use loyalty app is the optimal way to stand above the competition.
Whether starting or looking to revamp a current loyalty program, the experts at Liquid Barcodes can help develop a simple-to-operate rewards program or integrate with a current program to add differentiating next–level programming.
Embrace the loyalty revolution and watch your business flourish!
About Liquid Barcodes
Liquid Barcodes is a leading global loyalty and digital marketing technology company specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with a process called the “customer connection cycle” to engage, promote, and reward customers’ activities in real-time across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry leaders across several global markets, by offering unique subscription, mobile payment, machine learning, personalization, gamification, loyalty, and other capabilities.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Before Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters.
