Before implementing a loyalty program, it is very important to assess the customer profile you are working with. This can be decisive regarding the success the company will have with the program. Simplicity, objectivity, and direction are key to attracting and retaining customers!
If you still have doubts about which program makes more sense for your company and your customer, read this article to understand the bond the customer builds with your company and which strategy will be best utilized.
Points Program
In this model, the customer receives points whenever they make a purchase. In other words, the more they spend, the more they earn. Points can be exchanged for other products or vouchers, for example. Thus, this model is ideal for retail and services that require recurrence like barbershops and aesthetic clinics. Therefore, it may be a bad idea to use the points program for furniture stores, for example, considering that most people buy infrequently at specific times like moves or renovations.
If such a company still wants to implement this program, it is advisable to provide coupons with validity that can be used by people other than the initial buyer. This way, the customer gains the benefit, transfers it to a friend or family member who can use it. This strategy increases the number of referrals your company will receive.
Paid Program
This model requires the customer to pay a monthly fee to participate in the VIP club. For this program to make sense, a solid customer base and partners who add value are necessary. The program must offer exclusive benefits.
The customer profile for these programs wants to receive benefits in the short term and use them in their daily routine. Therefore, it is ideal for health services, both for family members and pets, and also fits with entertainment. The more partners and benefits there are, the more loyal the customers will remain.
Tiered Programs
Customers move up levels as they become more loyal, and with each new level, they receive more benefits. This is a model used by Mercado Libre and Booking, for example. This program works a lot with the reward system for the customer, giving a sense of gamification.
It works well for a customer profile that builds an emotional relationship with the brand. Each level is a source of pride for them. It works very well for bookstores, wine shops, chocolate stores, and strong brand clothing and shoe stores. In these cases, well-being should always be added.
Partnership Program
By joining with companies of similar profiles, a large group is created that shares customers among themselves. A shoe store can unite with a clothing store, another of makeup, and various others in the beauty field. Thus, the customer who buys from one is introduced to the others. This has been the preferred model among young people and tourists.
It is ideal for establishments where customers do not build a specific bond with the brand or staff. They won't be loyal to one brand but understand they'll have other benefits. If your company is a retailer working with various brands, this program can yield great results. It also works well for cafes, restaurants, and ice cream shops in tourist cities.
Furthermore, it is also an excellent program for companies that are starting out, as the partnership with other companies will strengthen it and introduce it to the public.