Different Types Of Loyalty Programs To Retain Customers

Different Types Of Loyalty Programs To Retain Customers

Customers matter to any type of business out there. They can make and break your business – depending on how you treat them. Of course, as a business owner, you are expected to give them the best product or service that they want. It is often hard to retain their loyalty to your brand if you do not reward them for it. To help you retain customers for your fast-growing business, you may consider using the following customer loyalty programs.

Points-based programs

This is considered as the most common loyalty program that business owners opt to give to their loyal followers. This systems will encourage your customers to spend on your brand or business since every amount they spend can be converted to a corresponding point which they can redeem later for better rewards. Points can be converted to discounts and gifts and can also be used for subsequent purchases. This program will suit businesses that have frequent purchases.

Non-monetary loyalty programs

Customer rewards can also be non-monetary in nature. This type of loyalty program will entitle your customers to something that they particularly want. With this option, you can offer them a reward that suits their lifestyle even if it is not related to your business. You can reward them for their frequent purchases with a discounted rate at a hotel or a spa service of their choice. This is all about understanding your customer’s business and lifestyle.

Tier loyalty programs

This system will encourage your customers to make not just repeat purchases but also to buy items with higher prices. This is a reward where more valuable benefits and rewards will be given to those who make higher value purchases. Basic rewards are still given to those who make basic purchases though. You can use this loyalty rewards system if you have a high-priced business.

Loyalty card programs

With loyalty card programs, your incentive plan is based on both customer demographics and transaction details. This is specifically used by retail businesses to reward their avid followers. A card is given to the customer and will be swiped on the POS terminal every time they make a purchase. Loyal customers are also rewarded with discounts, coupons and any other incentive that is not offered to non-participating customers.

Reward partnership programs

You may also reward your customers with benefits other than what you and your brand can offer. Many insurance companies use this reward systems to entice more customers to do business with them. It will be good to seek partnership with companies that are interested with such loyalty reward systems. This will benefit you and your chosen partner company as well.

Gift card loyalty programs

Another popular customer loyalty program is the use of a gift card. Gift cards carry your brand thus it will ensure that the customer will do business at your store. It can be given as a gift by your customer to their friends too thus increasing the potential number of clients for your business.

Loyalty programs are just some of the merchant solutions that you can make use of to grow your business. You can consider other merchant services like the ones we offer.