Customer loyalty is important nowadays because it keeps your business alive and growing in a sea full of competitors who are trying to increase their share in the market. That is why brands are starting online customer loyalty programs to build customer loyalty. Online customer loyalty programs do not just benefit your customers, they also benefit your business by increasing your revenue, increasing your customer lifetime value, improving your brand recognition, boosting customer retention, and increasing customer loyalty.
According to statistics, 26% of members in a loyalty program said their membership encourages them to shop again at a retailer that they have shopped at before. Moreover, based on these customer loyalty statistics, 65% of a company’s revenue is generated from the repeat purchase of existing customers which is why it is crucial for a business to grow loyal customers through loyalty programs.
Just take a look at successful brands like Apple who created diehard fans who continuously support their business and shop with them. Apple fans continue buying their phones even with their exorbitant price tags. They have successfully built a loyal following of customers who will rush to get the latest release of their phones. Customer loyalty can be built by providing your customers with excellent service and creating an amazing product, but it can also be done through an online customer loyalty program that rewards your customers for shopping and staying with your brand.
In this article, we will explore:
What is an online customer loyalty program?
An online customer loyalty program is a marketing strategy and an online program that rewards returning customers or patrons for their continuous support towards your business. Customers who join a loyalty program can receive rewards such as discounts rebates, gifts, points, access to exclusive items or invites to events. Additionally, it allows your business to collect contact information of your customers and insightful data. Moreover, it helps you increase your customer retention rate, revenue and profitability by rewarding and acknowledging them which drives the growth of your business. Loyal customers are interested in your brand and not your competitors because they trust your product and services. They also talk and share about your brand’s product and services because they believe in it.
Types of online customer loyalty programs and examples
Points based
A points-based loyalty program rewards customers with points for each purchase. Loyalty points collected can be used to redeem rewards and receive discounts on your future purchases. For example, Marriot Bonvoy Benefits allows members to collect points which can be used for free stays, meals, and other experiences
Tiered program
A tiered loyalty program has different levels of benefits, the rewards and value of the rewards depends on the tier that the customer is under. The higher the tier the better the rewards which motivate customers to spend more to reach a higher tier. For example, Uber Rewards has 4 tiers in their customer loyalty program which are Blue, Gold, Platinum, and Diamond. The higher the tier, customers can receive special and exclusive benefits.
Subscription-based loyalty
A subscription-based loyalty program is a premium loyalty program where customers subscribe by paying an upfront monthly or yearly fee which can then be used to redeem and receive rewards. An example would be the Amazon Prime Loyalty Program which starts at $14.99 monthly. The subscription includes free and fast shipping, access to Prime Video, Prime Music streaming, early access to Kindle new books, and exclusive deals on Amazon Prime Day. It is one of the best loyalty programs out there and you can use this example to replicate it in your loyalty program.
Spend based
The spend-based loyalty programs work based on the amount spent by customers. The more a customer spends, the more rewards and discounts they can earn. Take for example Sephora Beauty Insider, the more money a customer spends in a year, they get to climb tiers such as VIB $350 (Very Important Beauty Insider) and Rouge $1,000 and unlock exclusive benefits and experiences such as access to exclusive events and early access to exclusive makeup products.
Referral program
A referral loyalty program rewards customers who refer your brand, products and services to their family and friends. Referral programs allow customers to share a valid unique link with their family and friends, and through this link, your business can track the successful referrals and reward those customers. For example, Prudential Buddy Up Rewards allows customers to earn unlimited rewards and $100 cash rewards with every successful referral.
Benefits of running an online customer loyalty program
- Boosts customer retention by giving your customers a good reason to stay and shop with you instead of your competitors through rewards.
- Lowers customer acquisition costs by focusing on retaining existing customers which is more cost-effective than paid advertising.
- Increases product sales by pushing customers towards a sale through discounts or rebates as it encourages them to spend more with your business.
- Boosts customer loyalty because you are showing appreciation towards your customers.
- Increases customer engagement by providing them an opportunity to interact with your brand through social media and later rewarding them with points or discounts.
- Collect customers’ data through the loyalty program which allows you to gain valuable insights such as their spending habits, product preferences, and purchase history so you can create personalized experiences.
Online customer loyalty program channels
Customer loyalty mobile apps
Mobile apps have been a popular way to increase customer loyalty and they are a form of online customer loyalty program. Businesses usually encourage customers to download their loyalty app during the point of sale by offering them a discount for their purchase which is a convincing method to increase members. A customer loyalty mobile app conveniently allows you to collect unique customer data and monitor your customer’s spending habits. It is also comprehensive, meaning you can do a lot with the loyalty app such as promoting products and creating unique weekly or monthly deals that members can access in-app including exclusive content and features.
Customer loyalty webpages
There are different ways to implement your online customer loyalty programs such as creating a webpage solely dedicated to your online customer loyalty program. A customer loyalty webpage is a convenient way to go into detail about your loyalty program, you can include FAQs and terms and conditions of your loyalty programs. Additionally, you can add forms to this page to encourage visitors or your customers to sign up and join your program. Moreover, you can also collect their contact information to send them personalized messages and deals.
To spice up your customer loyalty webpage, you can also add Interactive Content such as an Online Advent Calendar, Marketing Games, and Online Contests to your webpage. An Online Advent Calendar is a great approach to have customers constantly revisiting your website for daily rewards. Adding Marketing Games like luck games or 2d games allows customers to play and receive rewards, which is a great way to increase engagement with your customers. Moreover, you can run Interactive Contests to drive engagement and encourage your customers to participate to win rewards.
Customer loyalty gamification
Customer loyalty gamification uses game design and mechanics to boost customer loyalty by merging it with a loyalty framework. It is a fresh and exciting online customer loyalty program that drives engagement with your customers while encouraging them to spend with you through earning rewards in the game. Additionally, it turns sales into a rewarding experience by allowing your customers to earn points and climb the leaderboards to unlock exclusive rewards.
You can collect customer data through the games which you can use to create personalized experiences for your customers. Boost your customer loyalty and drive daily engagement by allowing them to earn points, rewards, and badges through daily tournaments. Use gamification tools to create games that will drive engagement and create loyal customers. With Dot.vu, you can utilize features such as badges and points, interactive progress bars, a leaderboard, levels, recurring gameplay, and Marketing Game templates.
Customer loyalty email marketing
Utilize email to create an online loyalty program by collecting customer’s email during the point of sale or making customers sign up and create an account on your website with their email. After collecting customers’ emails, you can create a mailing list specifically for your loyalty program. Moreover, you can send personalized messages to customers on their birthdays and offer them discounts and rewards. Furthermore, you can use CRM software to manage and track interaction with your customers which can be integrated with a loyalty platform.
Build loyal customers and grow your business with online customer loyalty programs
As we have learnt from above, customer loyalty is the backbone of a successful business which is why it goes a long way to build a loyal customer base. There are many types of customer loyalty programs which you can use such as points-based, tiered programs, subscription-based, spend-based and referral programs which you can implement in your loyalty program strategy.
There are also many online channels which you can use to deploy your loyalty program such as mobile apps, webpages, email marketing, and gamification. Gamification is the future of customer loyalty programs as it combines rewards with fun and exciting engagement. At Dot.vu, the leading Interactive Platform you can create Marketing Games which you can integrate with your website or anywhere you like. With over 300+ customizable templates, you can choose Marketing Games templates to start creating a game for your loyalty program just get started with a 14-day free trial today.
