10 Creative Customer Loyalty Program Ideas And Examples

The importance of customer loyalty is equal for both established businesses and startups. That's why they come up with exceptional customer loyalty program ideas that attract customers, maximize engagement, and retain them. These programs also bring impressive returns as loyal customers spend more than others.
Are you looking for customer loyalty program ideas? Rest assured. Quest Labs shares ten winning loyalty program ideas and how top-notch brands use them effectively.

10 Customer Loyalty Program Ideas To Improve Signups

1. Tiered Loyalty Programs With A Splash Of Fun

Tiered loyalty programs are structured programs with different levels of rewards. Customers move to better reward levels based on their spending or engagement. Members who reach higher tiers unlock more valuable rewards and exclusive perks. Therefore, half of loyalty program members wish to rise through the ‘loyalty program tiers’ and change their purchasing habits.

• Alaska Airlines Mileage Plan :

  The free loyalty program, Milege Plan, rewards users with 'miles' when they travel. This loyalty program has four tiers with exciting benefits and discounts. Each tier offers exclusive rewards, including preferred seating, complimentary same-day flight changes, and priority call routing.

2. Reward Points: The Classic That Never Fails

Points reward programs let customers earn points when they engage with the program. Members can then use these points to redeem rewards or discounts. But how do businesses gain profit by offering reward points to all the loyalty program members? Loyalty program members spend up to 164 percent more than non-loyalty members by redeeming their reward points. Also, the purchase frequency of members who redeem points is 73 percent higher than users who don’t.

• Sephora’s Beauty Insider Loyalty Program:

  The Beauty Insider program is a classic example of a loyalty program with rewards. Loyalty members earn points for all their online purchases. When they reach 500 points, they can get 10 dollars off their next purchase in Sephora’s stores or online.

3. Referral Programs: Engage Users To Refer New Customers

Referral programs encourage existing loyalty members to add new customers through referrals. 73 percent of customers recommend brands with impressive loyalty programs to others.
When loyal members bring in new customers, businesses have to reward them and the new members. The new customers become brand advocates and bring new customers to the loyalty program.

• Planet BrewDog Loyalty Program :

  Planet BrewDog has a loyalty program that rewards users who order beer. It offers £5 for welcoming new users and gives more rewards as new members engage more. Moreover, it encourages program members to refer new users and earn more exciting rewards.

4. Exclusive Member Benefits: Make Customers Feel Special

Loyalty programs with exclusive member benefits offer members special offers, discounts, or early access to services. This makes the members feel valued and appreciated, and as a result, more customers join the loyalty program. Are exclusive rewards a good choice in loyalty programs? Let's explore what customers have to say about the customer loyalty programs benefits.

• Expedia Rewards Program:

  Expedia lets loyalty program members collect points as they travel. Members of the loyalty program get exclusive rewards as they move through the program tiers. For instance, members can save up to 10 percent on hotel bookings.

5. Cashback Rewards: Reward Customers Instantly

Cashback rewards in loyalty programs improve customer engagement by giving them a percentage of their purchase back as a reward. Instant rewards offer immediate gratification, making the loyalty programs more appealing to customers.

• REI Co-op Membership Program:

  REI offers its loyalty program members a 30 dollars cashback when they purchase from its store and add a membership. The cashback is a bonus card for the member’s next purchase within thirty days.

6. Offering Personalized Rewards For Individuals

Personalization in loyalty programs improves customer engagement by offering them rewards based on their preferences and behavior. Businesses can use the customer data and purchasing history to personalize the rewards based on their interests. Personalized rewards also improve the customer experience and create a better connection between the customer and the business.

• Dollar Shave Club:

  The Dollar Shave Club loyalty program offers personalized product recommendations to members. Members also receive exclusive savings, birthday and anniversary gifts and free shipping.

7. VIP Programs: Create an Elite Customer Group

VIP programs are an additional tier that you can include in your loyalty program. It is one of the best customer loyalty program ideas as it strategically improves sales volume and retains key customers. Make sure that you offer the customers in the VIP tier rewards that drive targeted purchases and effectively engage the top customers of your brand. As a result, the VIP program improves brand advocacy and prevents churning among high-value customers efficiently.

• H&M VIP Loyalty Program:

  H&M's VIP program members, who have over 300 points in the program, enjoy exclusive benefits over others. For instance, they can enjoy exclusive experiences, special member prices, access to special collections, and exciting competitions.

8. Subscription-Based Loyalty Programs: Ensuring Regular Engagement

Customers pay a monthly or annual fee to join the loyalty program and access exclusive benefits, discounts, free shipping, and other premium rewards. Customers who pay for the benefits are more likely to stay loyal, as they can access ongoing benefits

• Barnes & Noble Loyalty Program:

  Barnes & Noble offers a premium membership in its loyalty programs, where members earn two-time rewards. Members also have benefits like free shipping, ebooks, and unique birthday offers.

9. Experiential Rewards: Offer Unique Experiences

76 percent of customers say they develop positive feelings towards businesses that offer discounts. However, they seek more than just the regular rewards that most programs offer. Here are some customer loyalty program statistics to help you understand the impact of social rewards.

So, what rewards attract users to loyalty programs? Let’s explore possible loyalty program rewards and the percentage of customers who feel positive about each.

• Tesco Club Card Rewards:

  The history of Tesco Club Card rewards dates back to 1995. But how does Tesco take its customer loyalty programs to the next level? Tesco offers special prices to Club Card members, who can save up on their purchases every year.
  
  The rewards extend to 100 partners, such as Virgin Atlantic Flying Club, Disney Plus, and PizzaExpress. This experimentation of rewards is the pillar of Tesco's successful customer loyalty program.

10. Community Building: Create a Sense of Belonging

Community-building programs help loyalty program members connect with others through shared interests. Communities improve customer engagement and loyalty through exclusive events, forums, and social media groups.

• Rapha Cycling Club:

  Rapha Cycling Club is an excellent example of a global community of active cyclists. Its loyal members have access to exclusive offers, products, and experiences.

Build A Creative Customer Loyalty Program With Quest Labs

We have discussed ten customer loyalty program ideas that leading brands adopt. You might already know what among these ideas to include and not to include in your loyalty program. Quest Labs can help you build a loyalty program that engages and retains customers. Here's what Quest Labs can contribute to your customer loyalty program.

• AI User Segmentation :

Segment your users based on their preferences to give them offers and rewards that align with their interests.

• Gamified Engagement: :

Engage customers in a loyalty program through leaderboards, streaks, and exciting challenges.

• Loyalty Program Optimization: :

Collect user feedback at critical points and optimize a loyalty program to maximize benefits.

That's not all. We can also help you personalize the loyalty program rewards and experiences with user data. So, team up with Quest Labs to better understand customers and engage them for maximum loyalty program performance.
Book a free demo and talk to us to develop a winning loyalty program strategy.

FAQs

• How to add value through customer loyalty programs?:

  You can add value to your business through customer loyalty programs as they attract users through rewards and exclusive benefits.

• What do customers want from a loyalty program?:

  Customers look for exclusive rewards and personalization from businesses that offer a loyalty program. To maintain customer engagement, you can include free shipping, discounts, and products.

• How to measure customer loyalty program benefits for company?:

  You can measure these key performance indicators to understand the loyalty program's performance.

• Customer retention rates

• Repeat purchase frequency

• Customer lifetime value

• Are customer loyalty programs effective?:

  Customer loyalty programs generally improve user engagement and build customer trust. If you better understand users and offer them what they look for, they can help you maximize ROI.

• Which travel site has the best customer loyalty program?:

  Many travel sites offer exceptional loyalty programs. Some of the best examples include Alaska Airlines and Expedia.