A loyalty program is an advertising strategy designed to encourage consumers to continue to use or shop with a company related to the program. Companies can create loyalty programs through several different means, such as providing points or other rewards for customers who maintain a certain level of interaction with them. The creation of loyalty programs has become more sophisticated as companies have realized that word-of-mouth advertising through social media is no longer enough to guarantee customer loyalty. Creating a loyalty program through an internet portal provides a way for businesses to offer customers incentives and rewards without having to individually develop each incentive and reward. This streamlined approach allows businesses to offer customers a wide variety of incentives and rewards in a manner that is easy to manage and track.
Loyalty programs that are based on reward systems are extremely successful. Incentives can range from discounts on merchandise to cash back from participating in a service. Reward systems can be extremely specific or general, depending upon the type of retailer and the products they sell. Retailers that operate online have the advantage of offering high interest rewards programs through merchant accounts.
High quality merchant accounts offer a unique opportunity to create loyalty programs for repeat business. A loyal customer is much more likely to buy again from the same company than someone who has never bought from them. Providing incentives for customers to keep doing business with your company creates a powerful incentive for customers to remain with you long term. Many times, companies provide points or discounts for loyalty programs. These discounts or points can sometimes be converted into cash or gift cards which can be used at a store, on the internet, or anywhere for that matter. A combination of discounts and cash back offers great financial benefits for any company, especially those operating on a tight budget.
Payroll programs based on level of participation are a great alternative to high ticket items. Retailers that offer points or cash back for every dollar spent will find these tiered loyalty programs to be highly cost effective. Tiered programs reward customers based upon their level of participation in a program. For example, the more one spends, the more points or cash back they receive.
Developing a customer loyalty program based upon customer participation is not only cost effective; it is also easy to do. Tying products to participation requires no additional investment other than time and effort. Purchasing a customer loyalty card is one of the easiest ways to start such a program. These loyalty cards may be purchased for a variety of products including groceries, electronics, sporting goods, etc. Clients will be required to show their identification at the time of purchase and to keep the loyalty card at the participating retailers.
Sephora Beauty Insiders is one company that provides an excellent channel loyalty program, using its Beauty Insider rewards program for customers to earn points or coupons for everyday beauty treatments. The program allows users to earn points by simply referring friends and family. Each time a customer makes a purchase at one of the Sephora Retail locations with their Beauty Insider rewards points, they earn a Beauty Insider reward point.
Another popular brand that offers a membership fee for its beauty customers is Amazon. Amazon’s customer loyalty program works in much the same way as Sephora’s does. Customers are rewarded with points or coupons for every dollar that they spend. There is no additional cost to the customer other than the membership fee.
These types of programs are extremely popular with both men and women alike. Clients are motivated to purchase products from these companies because they understand how valuable those points are. Women love to buy cosmetics, hair styling tools, and all other beauty products. Men are equally interested in the latest technology and accessories. Therefore, these types of programs help both groups achieve their goals.