If you’re looking for a way to increase and improve your customer relationships — building connections with shoppers that are genuine, real, and long-lasting — loyalty programs may be the answer.
Loyalty programs are increasingly popular among brands of all industries. More and more consumers expect rewards when they demonstrate loyalty to your brand. And they don’t want any loyalty program — they want one that provides perks like discounts and free shipping. And provides these benefits right away.
Does this expectation leave you feeling stumped trying to build a loyalty program that aligns with your customers’ wants and needs? Take a look at our list of five elements that consumers want to see in every loyalty program, plus tips on how to create your own.
What Is A Loyalty Program?
A loyalty program is a brand-sponsored program that provides customers with special perks like discounts, free gifts, or exclusive access to sales. When a customer joins a brand’s loyalty program, they can earn additional points or rewards as they remain loyal to the brand over time by making continued purchases. At its core, a loyalty program is a way to forge stronger customer relationships and increase customer retention.
In 2023, over 90% of brands have loyalty programs. The customer loyalty management market is valued at over 5.5 billion U.S. dollars. What’s more, 80% of loyalty program owners plan to increase their investments in customer loyalty over the next three years.
Why Your Brand Needs A Loyalty Program
You might be wondering if you really need to invest the time and energy to create a loyalty program. Sure, your customers might appreciate it, but something like this is an added bonus rather than a given — right?
Today’s consumers not only appreciate loyalty programs, they expect them. 79% of consumers said they would more likely choose a retailer that offered a loyalty program over one that didn’t. And with so many companies now offering opportunities for loyal customers, it’s all too easy for shoppers to pass a brand that doesn’t have a loyalty program in favor of one that does.
Loyalty programs are one of your most valuable tools to build stronger, more authentic customer relationships. Customers enjoy loyalty programs because it makes them feel appreciated. You can utilize this type of program to increase customer engagement, see higher customer retention, and even get new customers, too.
Loyal customers will share their positive experiences with your brand by posting online reviews, either on your own website or on third-party review sites, like Sitejabber, where people go to help them make buying decisions. Those first-time buyers will then turn into loyal customers themselves and the cycle starts again.
Ultimately, all of these steps will make an impact on your sales and revenue growth. (Take it from North Face, which saw a 33% increase in topline revenue thanks to making changes to its loyalty program.) The benefits of a loyalty program are undeniable for brands of every size.
Building Your Loyalty Program: 5 Elements To Include
For your loyalty program to work, you need to build it around what your customers want. It exists for them, after all. So make sure it’s tailored to their wants, preferences, and needs.
If you aren’t sure what your target audience wants out of a loyalty program, ask them! Conduct a survey via email, social media, or face-to-face. In many cases, however, consumer preferences are similar across the board. Here are five things the majority of people want to see from a loyalty program.
#1. Exclusive Access
Insider information or exclusive access and sneak peeks are a great way to draw people in. Consumers crave exclusivity: According to psychology, we subconsciously want items or services that other people can’t have, believing them to be more valuable. So by offering something exclusive, you can motivate people to join your loyalty program and unlock the reward(s).
Implement exclusivity into your loyalty program by offering a product, service, or discount that “normal customers” (anybody who is not part of the program) are unable to access. Birthday gifts, early access to new products, even a special brand event or experience — any of these could be a good fit, as long as they are only available to members of the program.
Another option is to create a tiered system where people can work their way up to earn rewards that get more exclusive at each stage. This is what Ulta Beauty does, splitting its program into Member, Platinum, and Diamond, with the higher tiers able to access additional gifts and discounts that a basic Member cannot. (We’ll talk more about this strategy in a minute.)
#2. Immediate Rewards
No matter what you give members of your loyalty program — a discount, a gift, a sneak peek — they’ll want it right away. Today’s consumers are more impatient than ever. In a world of Amazon Prime and one-tap purchases, instant gratification is key, with people expecting access as quickly as possible.
In one study, 79% of consumers said they no longer want to accumulate points over time. Instead, they’re looking for instant benefits. 40% of consumers expect benefits from loyalty programs right away. They’re signing up for faster shipping, instant discounts, or similar perks.
Brainstorm how you can get customers their rewards ASAP. For example, if you’re offering a coupon code after a purchase, don’t use snail mail to send the coupon or make customers wait to access the code until their package is delivered. Make the code available for digital download as soon as someone completes their purchase.
#3. Free Shipping
Many brands offer free shipping as part of their loyalty program. People are often willing to pay more if their purchase will ship for free — just look at the success of Amazon Prime. 80% of consumers expect free shipping when ordering a certain dollar amount. 66% of consumers expect free shipping for all online orders.
While it isn’t feasible to offer free shipping for all customers, all of the time, it may be worth it to provide free or lower-cost shipping to people in your loyalty program. Crunch the numbers and consider whether you want to offer free shipping with no minimum purchase, or whether program members will still need to place an order of a certain size in order to receive free shipping.
#4. Reward Points
Reward points systems are another popular aspect of loyalty programs. They gamify the process and help consumers have a visible, measurable understanding of how close they are to earning rewards — and how to get there.
Your points system doesn’t have to be intricate or complex. Customers can get points by making a purchase, leaving a review, or whatever else you come up with. For example, you could structure your program as:
- $10 – $50 purchase = 10 points
- Follow us on Instagram = 25 points
- Leave us a review = 75 points
Once a customer has earned a certain number of points, they’ll get a reward — maybe a discount on their next purchase or a free product sample. (Think about a local coffee shop that hands out punch cards, with customers getting a free drink every 10 visits.) Of course, larger numbers of points can be redeemed for “better,” more desirable rewards.
#5. Discounts
The final thing customers are hoping to get out of loyalty programs? Discounts. Your loyalty program doesn’t need to reinvent the wheel. At the end of the day, we’re all just looking for ways to save a buck.
You can set up a points reward system, like we discussed in #4, to make your customers work for their discount. Or simply give them discounts for no reason — a one-time 25% discount upon joining the loyalty program, a lifetime 10% discount, or a surprise holiday 30% discount on certain items.
Offering discounts can actually help increase your sales as customers have an incentive to purchase more thanks to the lower cost.
Supercharge Your Loyalty Program With Sitejabber and Zinrelo
Sitejabber’s new integration with Zinrelo, a rewards and loyalty platform, makes it easier than ever to create a loyalty program your customers will love. Create a Sitejabber account and activate Zinrelo through your Sitejabber dashboard. Then set up incentives, giving customers rewards for the actions they take.
Using Sitejabber and Zinrelo in tandem is the best way to not only collect the five-star customer reviews you need, but to keep your happy customers around by rewarding them for their loyalty. Click here to get started today.
