You found our list of the best loyalty program ideas.
Loyalty programs are marketing strategies where businesses reward new and existing customers to encourage repeat purchases. Examples of loyalty program ideas include discounts, bonus points, and giveaways. Loyalty programs aim to ensure brand loyalty and increase sales and customer base.
Loyalty program ideas are similar to marketing event ideas and help promote brand awareness. Loyalty programs can be part of your marketing gift strategy, and you can work with promotional product companies to send out corporate swag.
This article includes the following:
- loyalty program ideas for small businesses
- loyalty program ideas for large companies
- customer loyalty program ideas
- employee loyalty program ideas
- innovative loyalty program ideas
Let’s get started!
List of loyalty program ideas
If you want to draw inspiration for your brand’s loyalty program, then you should check out this list of the most valuable ideas.
1. Discount for First-Time Purchase
One of the most popular loyalty program ideas most businesses adopt is offering discounts for first-time purchases. If you are just starting, then discounts are one of the best loyalty program ideas for small businesses. You can use this option to make a good impression on new audiences and encourage them to become returning customers.
For instance, if you own a new online store, then it is hard for shoppers to feel comfortable buying from you since they are still determining what to expect. To remedy this issue, you can offer a $15 discount on all purchases for first-timers once they sign up and create an account with their email address. Most shoppers are fans of deals, and incorporating this idea is an excellent way of subtly convincing them to purchase your product or service.
Banana Republic is a well-known retailer that offers a 20% discount on first purchases for new shoppers. To access this discount, shoppers must sign up with their email addresses.
2. Referral Rewards
One great loyalty program idea that small and large companies can adopt is offering referral rewards. Word-of-mouth advertising is a well-known and effective means of getting new customers and increasing brand loyalty. Usually, referred customers will likely make repeated purchases because they know close contacts also use that product or service.
You can implement this idea into your brand’s loyalty program by offering rewards for existing clients who refer new clients to your brand. Fortunately, many brands offer custom links that longstanding customers can share with their contacts. Then, once references purchase or sign up using customers’ links, they automatically get access to reward points or discounts.
Another option would be to host an online referral contest where existing customers can tag their contacts to either make a purchase or follow the brand page. The participants with a high number of referred contacts gain access to discounts or freebies. For example, Dropbox rewards users with 500MB to 32GB of storage space for each referred friend.
3. Special Event Offers and Rewards
If you are looking for innovative loyalty program ideas, then providing special event offers and rewards is a great starting point. For example, if a client or customer celebrates their birthday, then you can offer birthday discounts, gift cards, or coupons for a limited time. This offer will encourage customers to make purchases, which will increase sales.
You can also use special event offers as an employee loyalty program idea by providing freebies to employees celebrating birthdays. This idea will also increase brand loyalty because of your recognition of their special days. Similarly, you can offer special discounts, gift cards, coupons, reward points, or cash-back programs on special days like Christmas, New Year’s, Halloween, and Hanukkah. For instance, AMC Theatres offered special $5 Fan Fave tickets to movie lovers to watch four select movies at any theatre to celebrate Black History Month.
You can even incorporate the popular buy-one-get-one-free method to encourage patronage. These special event promos often nudge shoppers to make bulk purchases so they can enjoy these deals.
4. Free Trials
Leveraging the effectiveness of offering free trials is important. Free trials are among the top loyalty program ideas for large companies looking to increase patronage and encourage repeat purchases. This idea is beneficial if you offer an expensive service, subscription-based products, or own an app or software company.
You can encourage new audiences to try out your products for no fee for a limited period. This idea is a great way to eliminate hesitations and objections potential shoppers may have against your product or service. If customers like what they get from these free trials, then you will almost certainly get repeat patronage without further marketing.
A typical example of a brand leveraging on this method is Fitbit. The company offers a 90-day free trial when you opt for the premium app. During this period, you have access to all functions without any restrictions. Once the free trial is up, you are back to paying $9.99 per month. Spotify also offers a three-month free trial for new users looking to upgrade to Spotify Premium.
5. Special Offers for Reward Points
You can also decide to provide special offers in exchange for reward points. Also known as a point-based loyalty program, you award points to loyal customers known for making repeated purchases. Ultimately, your customers can redeem these points to win freebies, cash back, discounts, or gift cards.
You can offer customers these special offers for rewards points based on how much they have spent or how frequently they shop with you. Additionally, you can offer these reward points to users who engage with your social media pages, refer or tag family and friends, or write regular positive reviews.
By incorporating these unique offers that allow customers to gain reward points, they will likely increase their purchases and create brand trust. For example, Bath & Body Works uses the reward point method, where a shopper earns ten points for every dollar spent. If shoppers spend up to $100, then they automatically earn 1,000 points and can order any product for free.
6. VIP Membership
A VIP membership is one of large companies’ most popular and effective loyalty program ideas. Also known as a tiered loyalty program, this idea caters to the shopper who craves exclusivity. Customers want to feel special, making this idea an excellent choice for improving revenue and brand loyalty.
You can offer exclusive access to sales offers, free products, shipping, complete product information, and special deals. For more effectiveness, you could present customers with offers encouraging them to spend more to attain this VIP level. Sephora easily comes to mind when considering brands that offer this type of tiered loyalty program. The brand offers three levels of membership, each with exclusive perks.
7. Cash Back
Also classified as a point-based loyalty program, offering cash back is among the most common ideas many small businesses adopt. With this idea, you encourage customers to spend with the promise of offering back a percentage. Many customers seek ways to save more cash, which makes the cash-back loyalty program an effective idea.
For example, you could offer a 10% discount for purchases from $100 and above. Walmart, for instance, offers cash-back rewards when you purchase via the site, the Walmart app, or your Walmart MoneyCard.
Incorporating the cash-back policy into your loyalty program is a great way to reach and appeal to potential customers. You also encourage repeat purchases from new and existing customers, leading to brand loyalty. This idea also increases brand visibility, awareness, sales, and conversions.
8. Promotional Giveaways
Giveaways are among the most popular customer loyalty program ideas to encourage returning purchases and brand loyalty. You can select top customers or shoppers and offer free swag for their patronage. You can also provide giveaways to first-time customers or participants at any corporate event.
This gesture will surely leave an impression and increase their chance of returning for more purchases. These giveaways can be promotional items like water bottles, journals, tote bags, and wireless chargers. However, gift cards, vouchers, treats, or discounts are also giveaway options.
One example of a company offering promotional giveaways is Target. When shoppers create a free baby registry through Target, the firm sends expecting parents a welcome kit containing over $100 worth of goodies.
The best part is you do not need to organize regular giveaways to retain customers. Only one or two freebies are enough to create an impression that you are a great brand, encouraging more patrons to shop with you. A giveaway is a win-win method for brands because your customers are happy, and you get free publicity and loyalty.
9. Raffle Draw Contest
Raffle draws are one of the most underrated loyalty program ideas. This idea is a more engaging way of encouraging new and existing customers to purchase your products or services and increase brand loyalty. Organizing a raffle draw contest is relatively easy. You simply need to give participants tickets with unique numbers on them. After you sell all the tickets, select random ticket numbers. Then, give a prize to participants with the winning numbers.
With the promise of fantastic prizes, raffles are the perfect way to capture the audience’s attention and encourage patronage. Your customers will likely make more purchases to qualify for the raffle entry, and you can reward these purchases with prizes. Additionally, raffle draw contests are a great way to generate awareness of your brand, especially as customers will most likely be talking about it on their social media pages.
10. Personalized Email Communication
Customers like special treatment, and you can benefit from this emotion by regularly sending out personalized emails and newsletters. Email marketing is an effective marketing strategy that lets you build a streamlined communication network with new and existing customers.
This idea presents an opportunity to keep up with your customers, informing them of the latest promotions and discounts. You can also share entertaining content and send personalized birthday or anniversary messages. This method makes your brand appear more personable, and customers will likely patronize a brand that cares about these personal details.
Companies like Uber and Bonobos are popular brands known for their personified email marketing strategies with an almost-irresistible call to action included.
11. Charity Donations
Classified as a value-based loyalty program, hosting charity donation events allows customers to contribute to a charitable cause. This idea aims to connect with your customers’ emotions. Many clients will likely patronize a brand if they know that a certain percentage of your revenue goes into a charitable foundation or social cause.
While this loyalty program idea does not necessarily reward the customers with discounts, coupons, or any points, it works effectively. Customers, in this case, are not particular about rewards since they know their cash goes toward helping society. This idea increases sales and puts your brand in a positive light, saving the costs of rewards or giveaways.
One example of a brand that employs this loyalty program idea is TOMS. As a result, one-third of the company’s profit goes to grassroots organizations in the country. As another example, Starbucks owns The Starbucks Foundation, which is known for contributing to worldwide nonprofits and communities that need support.
12. Paid Loyalty Program
A paid loyalty program is one where you require clients or users to pay a certain fee to enjoy unlimited benefits. This fee can be in the form of a subscription or a one-time payment. Either way, this loyalty program requires a lot of work because your product or service has to provide immense value.
Once you prove that your product or service offers value, new and existing customers will be willing to invest cash in your brand. You can even incorporate free trials before launching these paid programs to convince customers further why they should pay to enjoy these benefits. In addition, this idea fosters much-needed exclusivity most customers want.
You can even provide free updates, sampling, or shipping to retain existing customers and encourage new users to pay to join the network of exclusive members. While this idea seems quite similar to the VIP membership loyalty program, the former allows customers to choose whether they want a VIP membership. However, under this paid loyalty program, users must pay to use the service.
A typical example of this type of loyalty program is Netflix. The only way to access and enjoy the benefits of the streaming site is via a monthly or yearly subscription.
13. Brand Partnership
A brand partnership is a unique loyalty program idea that small and large businesses can incorporate. While loyalty programs geared toward your brand can be effective, partnerships with other brands are more effective. This idea can help achieve massive sales and increased conversion.
You will likely gain patronage from existing customers and those from the other brand. This idea is an opportunity for small businesses to gain mass recognition and garner more leads. Larger companies benefit from these partnerships by generating new leads and increasing brand recognition and credibility.
An example is the collaboration between Nike and Ben & Jerry. The shoe manufacturing company produced the Chunky Dunky Sneakers in limited quantities with a package box designed after the Ben & Jerry’s Chunky Monkey flavor pack. This unexpected collaboration was successful, with the Chunky Dunky Sneakers selling out quickly.
14. Money-Back Guarantee
You can consider the money-back guarantee if you want a great loyalty program that ensures brand commitment and credibility. Many brands have employed this method to encourage purchases. New customers may be skeptical about patronizing your brand because they still need to determine what to expect.
Offering these prospects a money-back guarantee encourages them to go ahead with purchases since they know they will get their cash back if unsatisfied. For example, you can offer a 30-day or 90-back money-back guarantee or return policy on all purchases. ALDI adopts this type of loyalty program to guarantee customer satisfaction. This offer also convinces new customers that you are confident about the quality of your product or services.
You encourage new customers to make purchases and convert them to returning customers if they are satisfied. This loyalty program idea also builds loyalty because it lets your clients know you are willing to go the extra mile to ensure their satisfaction.
15. Trade-Ins
Trade-ins are also effective loyalty programs you can incorporate into your marketing strategy. With a trade-in option, customers can return a previously purchased product along with its receipt and get a new product at an estimated value with the returned product. This option is especially effective if you sell luxury items.
An example is Levi’s SecondHand, where you can trade in your denim, and in return, you get a gift card for future purchases. This idea increases sales and ensures customer loyalty.
Conclusion
Loyal customers repeatedly buy from and promote a particular brand above others. Whether you are a small or well-known brand, creating a close-knit relationship with your customers is essential to your company’s success. You can adopt several loyalty programs to increase brand loyalty, awareness, and sales. If you need help determining what loyalty program ideas work for you, then you can start with this list and incorporate them as part of your brand’s marketing strategy.
For more rewards inspiration, check out our lists of client appreciation gifts and business gifting ideas.
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