Loyalty Examples

Subscription Based Loyalty Programs: Wine Clubs

Subscription Based Loyalty Programs are becoming increasingly prevalent and an interwoven piece of the subscription product value proposition. An informative example of Subscription Loyalty Programs can be found in the wine industry, where there are many new entrants building on the traditional wine of the month club concept. This article profiles two of the most successful programs, Naked Wines and Firstleaf, in order to identify Subscription Loyalty best practices that any business owner can apply.

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Do Tiered Loyalty Programs Work?

Tiered Loyalty Programs can build real loyalty sentiment and boost retention by introducing a switching cost – members don’t want to lose their status. Each tier is achieved through a combination of spend and/or frequency, and benefits are progressively added for each threshold. The loyalty tier qualification criteria can be tweaked to enable a manageable audience for the most select benefits. Tier Based Loyalty Programs are a good fit for organizations that are well equipped to deliver the extra services – the highly competitive luxury department store sector provides useful insights and creative thought starters for this type of program. Nordstrom’s Nordy Club builds on their famous service heritage with benefits that keep high value customers coming back.

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5 Ways to Get Your Loyalty Program Design Revamp Moving

 

Over the last few years, I’ve seen client interest grow dramatically in revamping their customer loyalty program design.  The focus has increased as these programs have become a central marketing strategy, and the competitive intensity is fierce.  But change is never easy -- it takes a motivated executive sponsor and the right window of opportunity to get the project moving.  This article lays out some catalysts to get your customer loyalty initiatives moving, and tips on how to design a customer loyalty program for maximum impact.


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Effective Tips of Customer Loyalty Programs for Small Businesses

Is a Small Business Loyalty Program Worth it?

Small business owners are extremely busy, so adding a loyalty program to the list might seem like just more work. Or maybe you’ve tried a loyalty program, and it felt like you were only giving away rewards to customers who would’ve bought anyway. However, with a little set-up, you’ll find that your loyalty program will become the marketing engine for your business. And as highlighted in Software Options for Small Business Customer Loyalty Programs, POS systems that you may already have like Square, Clover and Toast have made it exceptionally easy.

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Software Options for Small Business Customer Loyalty Programs

POS Systems like Square, Clover and Toast have revolutionized Customer Loyalty Programs for Small Businesses. Each comes with powerful modules that can be enabled to identify customers and track their purchases, historically a capability limited to larger businesses with sizeable budgets. Combined, these platforms serve nearly 2.5 million small businesses, though a relatively small number are taking full advantage of the loyalty opportunity. This article will provide a review of the loyalty capabilities within each platform and help identify next steps for developing your loyalty program

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Gamification Loyalty Programs: Google Local Guides is the G.O.A.T

Google Local Guides may not come to mind as a Gamification Loyalty Program, in fact most consumers aren’t even aware of it. Take a closer look though, and you’ll see that it’s the GOAT of gamification in loyalty programs! How many other programs can tout so many members who have had such a transformative effect on their business? Google Local guides is tough to beat, with over 150 million Local Guides globally, who:

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Best Practices for a Successful Loyalty Consulting Engagement

Engaging with a loyalty consultant can provide a specific expertise, objective viewpoint or fresh thinking that benefits even for the most sophisticated loyalty firms and program operators. However, it can also be a challenge for program executives to manage the process and most importantly, get an actionable result from a loyalty consulting group. Well managed consulting engagements are based on loyalty insights and will deliver a viable program design that is well substantiated and will differentiate the brand.

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New audiences airlines can attract with better Loyalty Program Design

As noted in the Nov 5 New York Times Article How Frequent Flier Programs Are Changing in a Changed World, business travel is still way off of pre-pandemic levels, and US Airlines are battling to retain the loyalty of frequent travelers.   Tactics include lowering elite tier thresholds and increasing the credit allowed for non-flying transactions such as credit card spend. In addition, they are reducing focus on mileage due to the environmental concerns related to the notion of travelers taking unnecessary trips just to earn or retain their status.

Much of this response is due to the changes felt due to Covid-19, though as the author notes, some “may be disenchanted with airline loyalty programs, which, in the years leading up to the pandemic, had made upgrades and free tickets more elusive”.

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Using data analytics as the Loyalty Design engine to maximize loyalty kpi's

The driver behind most loyalty program reviews is a general sense that the current loyalty benefits are not performing well. The opinion is usually formed from a patchwork of observations, for example churn is increasing, redemptions are decreasing, share of revenue is flat, or overall costs are escalating – just to name a few. This article provides an overview of the LoyaltyLevers Foundational Analysis, which provides a fact-based view of Loyalty program performance with loyalty KPI’s across the three crucial questions:
• Is the program activating engagement among the members?
• Driving profitable behavior?
• Building loyalty sentiment and an emotional connection?

The LoyaltyLevers Foundational Analysis is a key part of the Discovery process. You can find more information here on the full loyalty design process and how this critical piece fits in. 

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