How Many Types Of Customer Loyalty Programmes Are There?
There are different types of brand loyalty programs that take many forms. For some businesses, one form is suitable, while another business model requires another loyalty program. Therefore you need to understand the business module and think from the customer’s perspective to understand which model you need to implement. Sometimes you must combine two or three models to get the best outcome. Here in this article, we will discuss various brand loyalty programs and determine which is suitable for your business. But before diving in, you need to understand customer loyalty in-depth and the fundamental difference between brand and customer loyalty.
What Is a Customer Loyalty Program?
It is a well-structured strategic campaign which combines various factors such as software, hardware, communication, gamification, marketing strategy etc. With all this planning, the organization tries to build a strong customer relationship. These programs aim to enhance customer retention and create a good bond with these customers.
What Is a Brand Loyalty Program?
On the other hand, the brand loyalty rewards program helps to create a strong bond between a customer and a particular brand so that even after getting lucrative offers from similar brands, customers stick with your brand only. Thus you need to retain this loyalty towards your brand by providing special treatment to your customer, known as brand loyalty programmes.
Difference Between Customer Loyalty & Brand Loyalty
The significant difference between customer loyalty and brand loyalty is that the former helps retain any customer despite any brand and is more suitable for multi-branded platforms. In contrast, the second one is more brand specific and helps to retain specific customers towards a brand.
Types Of Loyalty Programs
Here we will discuss some popular types of loyalty programmes available in the market. Each loyalty program is designed to provide certain benefits to a target group. So check out these programs and choose the one best suits your business model. You can even select multiple or combine two or three programs to get better results.
Loyalty Programs Based On Expenditure
If you want to generate sales and retain your customers, this strategy is ideal for you. In this program, customers get loyalty credits they spend at a business. It is straightforward to create and implement and easy to understand for the customers. Furthermore, it can be maintained in the long run also. But the best part is it can be used effectively to increase the overall transaction amount and reduce the overall churn rate.
Value-Based Loyalty Program
This loyalty program is essential to increase brand awareness and enhance brand value. But in this case, you need to structure the loyalty program as per the customers, which is the trickiest part. At first, you need to understand and define values as values can differ from person to person. For someone helping old age people is considered to be noble, while animal welfare is a big thing for others. That is why you need to define it, and relate it from your consumer’s perspective. This way, they will invest their time and money in the campaign, and you can run your program effectively.
You can do one thing like start a loyalty program and engage your customers more and more and invite them to do a certain amount of purchases, among which 2% will be used in social causes. To maintain the social cause and show the results from time to time to make them feel appreciated so they can participate more in such ventures in the future.
Game Program
Using gamification is an excellent idea to make a program more attractive. Gamification helps encourage repeat purchases and also keeps them entertained, strengthening the bonding between you. This is a perfect way to enhance the brand image of those who don’t enjoy gaming.
Hybrid Loyalty Programs
As the name suggests, it is a combination of two or more types of loyalty programmes. By merging two different kinds of programs, you can attract a wide range of customers and make your strategy successful.
Final Words
Loyalty programs are a very important strategy that you must include to stay ahead of the crowd, as the brand battle is everywhere in today’s world. Hence, you need to stay ahead of your competitors and need to retain your customers.
