Some stores always have loyal customers, and to accomplish that, they set up loyalty programs, which motivate you to come back.
These programs give you rewards and build connections with benefits that keep you returning. When you earn points on your everyday shopping, you get special member-only deals and lots of benefits – and so do businesses. It’s mutually helpful.
In today’s market, you might start creating a meaningful loyalty program to set your store apart. Are you ready to learn more? Well, let’s jump in!
Point-Based Programs
Always think about how point-based loyalty programs give you an easy way to get some rewards and keep shopping quite a bit. You earn points for every buy and you trade those points for some discounts, free items, and special experiences. These programs link what you spend and what you get, showing the true worth of sticking with one brand.
Part of this will require you to join Sephora’s Beauty Insider program and start to earn points with every purchase. You trade your points for deluxe samples, gift cards, and special experiences. Doesn’t this keep you shopping there often? Enjoy a personal shopping experience! Just like that, the Starbucks Rewards program works in the same way. Earn Stars for each dollar you spend and exchange them for free drinks, food, and special items. Keep coming back and know your loyalty earns you rewards!
Are you thinking about which other stores have programs like these? Just to give you an example, Best Buy has free shipping, exclusive discounts, and extended return windows, so you feel valued and want to return. Get points for purchases through GameStop for exclusive deals and early access to new games, as this lures avid gamers who want the latest titles first.
Think about checking out the LEGO VIP program, where you earn points and gain early access to new products. In the same way, remember that a Nike membership lets you earn points, access exclusive discounts, and get early access, which makes you feel like a VIP with benefits only members get.
Let’s talk about Kohl’s and Nordy Club by Nordstrom. Both offer point systems where you earn on every buy and receive exclusive discounts and special benefits. It’s perfect for regular shoppers like you who want the most out of every buy.
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You might want more – check out H&M Members, Dell Rewards, Timberland Community, and Good Rewards. Earn points for your purchases and get exclusive discounts and special benefits. With these programs, you feel like part of an elite group, and it gives you many reasons to stay loyal to their brand.
So, you should think about how tiered loyalty programs fit into different industries and serve unique customers.
Tiered Loyalty Programs
You know, tiered loyalty programs reward you based on your spending and engagement and push you to spend more to climb higher. Picture Nordy Club by Nordstrom and Starbucks Rewards, where you’re encouraged to come back often and get benefits at each new level.
Just to give you an example, you should think about Sephora’s Beauty Insider program as an example. You reach tiers like Rouge and get first access to new products and restocks. So, don’t these exclusive benefits keep you active and spending more?
You might also think about other popular programs. Look at Marriott Bonvoy’s reward program. You earn points for stays, dining, and even golfing. Then, you redeem these points for travel, car rentals, and events like culinary shows and music festivals. That kind of flexibility seems hard to pass up, doesn’t it?
Another example is Uber Professional’s reward program. With each trip, you earn points and get extra during peak hours. Review your tier status every three months based on your points. The cool part? The extras help both your vehicle and your leisure time. So keep high ratings and low cancellations to keep these benefits!
Have you ever found a program too complicated? Well, you should think of Starbucks’ reward program, and they had a confusing tiered loyalty program and revamped it for an easier and more user-friendly experience. Do you see how simplicity is so valuable for keeping your customers loyal?
Next, check out Total Tools’ rewards program – it’s focused on your tool purchases and makes you feel like part of a community (kind of like the IKEA Family program). Ulta’s Ultimate Rewards program is similar to Sephora’s and gives you clear reasons to move up the ranks.
Lastly, find out how cashback programs can help with your loyalty and bond with a brand over time. It’s pretty tempting, isn’t it?
Paid Membership Programs
Just think about Sephora’s Beauty Insider program. Think about yourself getting into higher levels like Rouge. You get first access to new products and restocks. The special benefits keep you involved and make you want to spend more money – pretty tempting, right?
Now, you should think about other popular programs. Take Marriott Bonvoy’s program as an example. You get points for stays, eating out, and even golfing. You can trade these points for travel, car rentals, and events like food shows and music festivals. That kind of flexibility is hard to resist, isn’t it?
Think about Uber Professional. You get points with each trip and earn more during busy times. Every three months, your tier status gets checked based on your points. Sometimes, the rewards cover your car and fun activities, which is great. You need high ratings and few cancellations to keep those rewards.
What happens when a program gets too confusing? Again, you should think of Starbucks and its old-tiered loyalty program. It used to frustrate many of you, and they changed it so it’s smoother and easier to use, as this shows why simplicity matters for customer loyalty – so true!
Again, the Total Tools rewards program that’s focused on tool purchases – it’s similar to the IKEA Family program, which creates a sense of community and belonging. Ulta’s Ultimate Rewards program is sort of like Sephora’s, and it gives you clear reasons to move through their tiers – easy and helpful.
Paid membership programs can help you if you shop quite a bit. Take Amazon Prime, for example. It costs about $139 each year and has free two-day shipping, Prime Video, and exclusive deals. Walmart’s version costs $98 each year, and it gives free shipping, fuel discounts, and scan-and-go shopping.
Think about why these programs work so well for you as a shopper. The benefits create a strong sense of loyalty and commitment. Once you pay for a membership, you want to get the most out of it – leading you to shop more often with that store.
Check Best Buy’s rewards plan next. My Best Plus costs $49.99 each year, while Total costs $179.99. You get free shipping, exclusive discounts, longer return times, and protection plans – perfect for tech lovers like you.
There’s also CVS’s ExtraCare, costing $5 each month or $48 each year. You get 2% cash back, ExtraBucks Rewards, and extra pharmacy benefits, which makes it perfect for health and wellness shoppers.
GameStop has the GameStop Professional membership at $25 each year. You get welcome benefits, monthly coupons, free shipping, and benefits on your purchases – a great deal for gamers like you.
Lastly, you should think about REI’s Co-op Membership. With a one-time fee of $30, you get discounts on some purchases, deals on services, and special benefits – perfect for outdoor fans like you.
Value-Based Programs
So, you should think about value-based programs when looking for the best loyalty programs for retailers. Often, you’ll connect with mission-driven programs because they match your values. A program that gives part of your sales to a charity and causes that go hand in hand with your principles can build a strong bond with you. Check out Patagonia’s Common Threads Initiative, which focuses on environmental care and might encourage you to buy used products instead of new ones.
Just to give you an example, why does this mission-driven strategy draw you to ethical shopping? You connect with companies that reflect your values, make purchases that contribute to a bigger mission, and find more attractive shopping options that help everyone. It’s a win for everyone!
Since it helps to look for ideas from many other sectors. In healthcare, mission-driven initiatives like the Hospital VBP Program and the HAC Reduction Program reward hospitals for giving high-quality care and reducing complications. Don’t these programs inspire you by adding value to their operations?
So, look back at Patagonia. Their attention to sustainability with the Common Threads Initiative stands out – this inspires more than discount-based loyalty programs. How often do you feel more loyal to a brand that matches your values? Think about how lining up business practices with your values can affect both your loyalty and commitment.
Next, add a cause to your brand identity, just as Patagonia has done to set your business apart. Keep an eye on the effect because you will see your customers respond positively! Mission-driven loyalty programs are a powerful strategy for many retailers. You should definitely think about this path – it helps build customer loyalty and has a positive effect on everyone.
Hybrid Programs
You know, when you check out the best loyalty programs for retailers – you’ll see hybrid programs grabbing your attention, and they mix rewards into a single package just for you, with a unique experience. Hybrid loyalty programs combine points, tiers, and cashback for you to enjoy! They give you an experience suited to your tastes.
You might think about the Nike Membership. Here, you get personalized rewards like exclusive products and member-only events, plus points-based benefits and cashback. The same thing goes for H&M Members. As a member, maybe you earn points and rewards for eco-friendly actions and tiered bonuses, and they grow as you get more involved. It’s a pretty nice touch, right?
Are you thinking about why hybrid programs draw you in? For one, you love the flexibility! Retailers create custom loyalty solutions to match their business aims and your different needs. Take Sephora’s Beauty Insider as an example. You earn points for purchases and trade them for all kinds of products. Remember, you get tiered rewards like special event invitations and beauty services. In the same way, Nordstrom’s Nordy Club follows a pretty similar hybrid strategy. Maybe you earn points and tier-specific rewards like alterations and exclusive sale access. How about Astrid & Miyu’s Astrid & You program that mixes points and cash back with a rich loyalty experience for you?
But what about the challenges? You should know that building this kind of complicated system can be quite expensive. Custom technical solutions matter, and careful planning and oversight are often needed! You might need to keep changing the program to meet rising customer expectations. Explaining all the details of a hybrid program can be difficult. Companies need special tools to make everything clear and easy for you – it’s definitely expensive but worth it!
You should realize hybrid programs offer you a personalized strategy, and they help businesses grow in a crowded market, as this unique mix of rewards meets your needs and tastes.
Upgrade Your Rewards Program
I think it’s helpful to think about all you’ve ever learned and see how a great loyalty program can work well for you. You can choose from point-based, tiered, cashback programs, paid memberships, or even hybrids with cool rewards waiting just for you.
You might feel valued when you get personalized experiences from your favorite store, and they reward you for being yourself. It’s important to make sure to maximize these programs when they are easy to use and fit your preferences and give you something special. Often, it helps to feel unique and know someone sees your worth!
You should think about a well-designed incentive system made just for you. Does it look attractive now? At Level 6, we want to help your business with many different types of incentive programs. If you want to help with your sales team’s results and make your employees happier, you can depend on our skills for that! Start with our solutions like branded debit cards and employee recognition programs that match your business’s needs. It’s also good that we create custom programs to deliver real results.
You definitely should contact us today for a free demo. I think you’ll see how we help high-performing businesses get more ROI and sales! Keep growing!
Claudine is the Chief Relationship Officer at Level 6. She holds a master’s degree in industrial/organizational psychology. Her experience includes working as a certified conflict mediator for the United States Postal Service, a human performance analyst for Accenture, an Academic Dean, and a College Director. She is currently an adjunct Professor of Psychology at Southern New Hampshire University. With over 20 years of experience, she joined Level 6 to guide clients seeking effective ways to change behavior and, ultimately, their bottom line.
