In the retailer’s marketing toolkit, loyalty programs have proven themselves as one of the most effective tactics for increasing revenue and inspiring customer loyalty.
Here are 3 picks for the most innovative customer loyalty programs, and what you can learn from each.
1. Sephora Beauty Insider
Sephora’s rewards program Beauty Insider is wildly popular. The company has more than 17 million active users, and members make up as much as 80% of the annual sales of Sephora. Based on a conventional point system, consumers receive bonuses for every purchase.
The creative aspect is that participants can select how their incentive points should be used.
Members of Beauty Insider will redeem their reward points for items like gift cards and discounts, helping cover the purchase costs without devaluing the goods.
Loyalty members will also earn points for more unique items. For instance, limited edition pieces, or makeup tips in-store.
2. Starbucks Rewards
It’s popular for retailers now to develop a mobile app to manage loyalty schemes, but it was a novel concept when Starbucks first launched My Starbucks Rewards with the Starbucks app.
It’s radically simple for consumers to run the system via their app — no punch card to forget or lose, no sign-in needed.
To receive loyalty points (or stars, in their case), consumers have to order or pay via the Starbucks app. This means the centralization of consumer purchases provides a goldmine of data regarding customer desires and behavior.
3. Apple
This one is a little different, but there are few more fanatical and loyal brands to follow than Apple.
Often, no loyalty plan is the most creative loyalty program. Not every retailer can build a loyal and devoted customer base – the way Apple does – by providing benefits and rewards. But it may be retailers that offer genuinely unique items.
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