Loyalty programs: types and examples. Always stay connected

“Chief editor of the GetGoodRank blog, web analyst, blogger.
Who is a loyal customer and what distinguishes an ordinary customer from a loyal one? We consider the stages of loyalty formation and the reasons why customers leave for competitors.”

Optimizers work tirelessly to improve the quality of the interface and user experience, taking into account user behavior on the site and data provided by search engines. But users don't convert:

users come, look, read, mentally say thank you and leave the site. Some forever.

Today we tell you how to turn a one-time visitor into a loyal customer.

In this issue:

  • Who is a loyal customer?
  • Why users prefer competitors
  • How to turn a casual visitor into a regular customer?

Who is a loyal customer?

Let's understand the concepts. Who is a loyal customer and how does he differ from the rest?

There are no clear criteria for measuring customer loyalty. Marketers give the following definition:

Loyal client- a customer who has made more purchases than the average customer. This consumer makes purchases more often and uses additional services. The influence of competitors on loyal customers is much lower. Loyal users become recommenders of your brand in their circles. These clients are often called brand advocates.

Distinctive feature– loyal users are able to sacrifice something to receive goods and services of consistently high quality from a trusted supplier: buy at a higher price, endure supply interruptions, etc.

  • Loyal customers spend more than others (higher)
  • Brand advocates revive a business’s reputation by fending off isolated negative reviews. We have already talked about and what to do with them.
  • They become sources of traffic - loyal users recommend the company to family and friends. A word of mouth effect is created.
  • They become litmus tests - they are more willing to try a new service, product, or give an honest response.

5 steps to becoming a loyal customer:

First visit

He only chooses a supplier of goods, has no intention of buying here and now, determines whether the supplier is reliable, whether the site can be trusted, checks the convenience of the service (payment, delivery, cost of additional services), studies the assortment. GetGoodRank assessors evaluate websites using the same criteria.

Conversion Probability: low. The user can respond to a special offer, promotions, or a discount on the first purchase.

One-time client

Made my only purchase on the site. Rarely responds to letters and messages, does not update contact information. Reluctant to make contact.

Probability of repurchase: low.

Returning client

A buyer who came for a repeat purchase.

Probability of purchase: 27% higher than when you first visited the site. The buyer is already familiar with the seller, has tried the service, is convinced of the quality of goods and services, and the reliability of the service.

Returning client

A buyer with an established need for goods and services and who has chosen your website as a trusted service provider. But he is still considering competitors.

Probability of purchase: 45% higher than at the initial visit.

Loyal client

A buyer whose actions show a trend - a certain regularity of requests.

Probability of purchase: 54% higher than during the initial acquaintance with the site.

Why users choose competitors

Businesses know hundreds of reasons why users prefer competitors. We list the most important factors:

  • free shipping influences the decision of 49% of online shoppers
  • return option affects 35% of buyers
  • 33% of users will choose a site that has real customer reviews
  • 24% of users pay attention to the ease of ordering
  • 80% of buyers will go to competitors due to high prices
  • 54% of users consider delivery speed
  • 45% of users prefer stores with pickup points in their city

I'll tell you about my personal preferences:

  • I need the product here and now- product availability is a more important factor than price. I'm more willing to overpay than wait.
  • warranty and return- I will unconditionally give preference to the seller who gives a simple and clear guarantee: it is possible to return the goods within 14 days, replacement if there is a defect. It is important that the guarantee works here and now, and not 45 days after the examination and identification of the cause of the defect or breakdown.
  • Availability of customer support and after-sales service- The company’s attitude towards the client determines my loyalty. If a brand contributes to the customer in every possible way, it strengthens my attachment and loyalty.
  • user reviews affect me much less, than expected. I’m used to relying on my own experience and my own opinion. I read reviews about the product more than about the seller.

How to turn a casual visitor into a regular customer?

First visit - client

For a new visitor, it is important to make sure the store and website are reliable. To do this you need:

  • place information about the company in clickable accessibility
  • contacts (address and phone number) in a visible place on the site
  • live online consultant, instantly ready to help you understand the site

For a guest to become a client, it is necessary:

  • place the shopping cart in a prominent place on the site- this will immediately let the user know that this is an online store and he can buy the product here and now - about 17% of online stores do not show signs of “shop presence”. You can understand that this is an online store only by studying the sections and functionality of the site.

GetGoodRank also came across pseudo online stores - you can only submit an application on the website, but you can only buy the product offline.

  • CTA buttons- calls to action to try, order, buy, get at a discount work.
  • Delivery information is available along the purchasing path.(on the product page or in the cart). The user does not need to visit additional sections to understand the terms of payment and delivery of goods. Information must be reliable and up-to-date. There shouldn’t be something like this: “Oh, we don’t deliver to this region ANYMORE”
  • order without registration- an important option that increases confidence and the likelihood of ordering if the user has entered the site from a mobile phone, where filling out the registration form and confirming data is not very convenient.

One-time customer - returning customer

To increase the likelihood of a client returning, you need to get contacts and open preferred channels of influence. To do this you need:

  • receive an email address for news and advertising mailings, as well as for trigger letters (a trigger letter is an email message sent automatically after a certain customer action on the site that was not completed: the product was viewed, added to comparison, but not added to the cart, or added to the cart, but not paid for).

For example:

  • motivate the user to register and provide you with more data - this way you will better understand who your client is, what to expect from him (frequency of purchases, price category of goods). Users are more willing to leave personal information to enter a loyalty program or in exchange for a discount.
  • add a discount or special offer to your order for your next purchase- remember that it is to motivate the client, and reasonable, so as not to deprive you of profit.

Returning customer - a returning customer (aka repeat customer)

The main problem of online business- how to turn a returning customer into a constantly returning one. In our last newsletter, we talked about how providing permanent discounts is unprofitable for businesses and uninteresting for buyers. So, in order for the client to return with pleasure, it is necessary:

  • - simple, honest, interesting
  • rewarding users for consistency - discounts for volume of purchases over a period
  • high-quality customer support is exactly what can distinguish you from your direct competitors
  • information support for users - blog help for your site

Become for the user not an ordinary seller, but a partner in solving tasks and problems. When selling a product, provide the client with an information resource where he can find tips and instructions for use, initial setup, and troubleshooting problems on his own.

Provide quality customer support, with sufficient knowledge to assist the customer remotely. In fact, most recommendations boil down to “contact an authorized service center in your city.” This is sad.

Regular customers - loyal customers

A regular customer does not mean loyal. Perhaps a product that suits the client is available only from you, but the client does not like the quality of service, he is not ready to recommend you, and a change in pricing policy or a more advantageous offer from competitors will quickly tempt him.

In the person of a loyal customer, you get a marketer of your own who advertises your product more effectively than the best videos and banners. In order for a client to switch from regular to loyalty mode, it is necessary:

  • personalization- these are special offers based on the client’s preferences, views, and previous purchases
  • incentives for activity on social networks and on the website

Instead of conclusions:

The recommendations given may seem too general, but we see sites that are submitted for review. These are well-made sites, with a well-thought-out interaction algorithm, cool design and humane text, but there are no conversions. There are one-time purchases. We spend hours staring at the web viewer, watching as users explore pages and leave.

GetGoodRank checks all website factors that influence user trust and loyalty: from the registration and purchase process to the response of customer support and quality of service. We help identify and eliminate problems that prevent visitors from turning into regular users and then into loyal customers.

When developing a loyalty program, remember that blindly copying other people’s techniques is unlikely to create a complete product that optimally meets your requirements. This business requires a creative approach; you need to constantly come up with unique offers that can interest and delight customers.

A loyalty program requires strategic planning. They are designed to create long-term relationships with clients, and must change in accordance with the current situation, while certainly remaining attractive to clients.

Loyalty programs have a lot to do with personal human relationships. People attracted by a good program will quickly leave for competitors if the company shows disrespect or inattention. Conversely, long-term relationships, supported by gifts and attention, create a very strong psychological attachment in a person.

Before examining common ideas, we warn you that the performance of each idea must be considered in the context of a specific program. An idea shown here as bad may be quite workable under certain conditions, and conversely, implementing “good ideas” without paying attention to aspects of your business can cause financial and reputational damage. The information presented here is given “for thought” and is not a direct guide to action.

Bad ideas

A poorly designed loyalty program is usually a waste of money. Those that do not create their own image, do not have the intention of motivating the buyer to make constant purchases, and are not addressed to a specific group of people usually lose the competition.

Bad idea: let's give out gifts just for fun

Gifts “for nothing,” of course, are pleasant for customers, but they do not motivate them to make purchases. In addition, giving a gift for no reason creates unnecessary suspicion. Imagine that someone gave you some small change in a beautiful box for no reason - a rather strange act, isn’t it? Such a gift creates the feeling of a secret motive, which for the company could be poor sales or a desire to “melt down” an unprofitable product.

The gift must have a specific reason. This could be a public holiday, a client’s or company’s birthday, or a thank you for frequent purchases.

The reason for the gift must be clear to the client, clear and unambiguous. Thus, the reason for a gift for active purchases should contain specific criteria for assessing activity, for example, the total amount of purchases for the month, and the reason for attracting customers should indicate the required number of customers to receive the gift.

Bad idea: let's give out gifts once

Having received a gift once, a person expects it the next time. Having given the client something for his birthday, you need to take care of gifts for his next birthdays. Having provided large discounts for active purchases in the current month, you need to provide them in the following months.

Stopping regular gifts on certain occasions creates a feeling of inattention and loss of value to the company. Having given a gift once, and on the next occasion, “forgetting” about the client, the company gives a bad gift to itself.

Bad idea: we will implement the loyalty program in parts

In the pursuit of economy, companies forget that customer loyalty must be achieved on all fronts of the relationship. Creating a good image of a company through, for example, advertising is impossible if the company has rude salespeople or dirty, inaccessible points of sale. A loyalty card should provide specific benefits immediately, rather than come with vague promises of future discounts.

A fly in the ointment spoils a barrel of honey.

Bad idea: let's try to completely change the loyalty program, see how it works, and if something happens, return the old one

Changing a loyalty program is a responsible process, during which you need to make sure that customers will not be disappointed by the severance of certain agreements. Loyalty programs that change like gloves create the impression that a company's promises are unreliable, and can also cause a negative reaction among regular customers in the event of uncompensated cancellation of established privileges.

Bad idea: let's create bureaucratic difficulties in obtaining privileges

Often, in pursuit of profit, companies take a slippery slope: they declare in advertising significant privileges to attract customers, and create various difficulties for clients in obtaining these privileges in order to save budgetary funds.

This unique tactical move can attract visitors and increase sales in the short term, but strategically this path is unprofitable, as it creates a distrustful attitude of buyers towards the company’s advertising and even causes negative emotions among clients.

Loyalty program ideas that work

The best loyalty program ideas are usually created for specific conditions. A long-term loyalty program, closely related to the specifics of doing business and offering unique privileges to clients, supports the image of the company as holistic and established, and creates in people the impression of reliability and sincerity of the relationship.

Good idea: privileged position for regular customers, loyalty card

The creation of a club of regular customers for the vast majority of companies is a necessary step in competition. The importance of such a club for successful business development can hardly be overestimated; it provides financial support, creates an image layer in society, and provides feedback with clients. A large club of regular customers loyal to the company is like the foundation of a building.

The global standard for most of these loyalty programs is to provide regular customers with a plastic club card in exchange for receiving personal data. Possession of such a card is attractive to customers and is also convenient for keeping records of purchases by the company.

Customer Feedback

A successful business must adapt to the customer's desires. The better a company knows its customers, the more effective its sales policy will be. Customer surveys and analysis of completed purchases have been used in marketing since the beginning of its existence.

New technologies take these tools to a higher level. New generation electronic marketing tools allow for such deep analysis of demand that traditional methods are “blind” in comparison.

Convenient and detailed accounting

Cumulative discounts, bonuses, gifts for active customers and many other techniques require accounting for completed purchases. Traditional methods, such as manual analysis of receipts and vouchers, are inconvenient for the client and the company.

The use of plastic cards significantly reduces accounting costs and is also attractive to the client.

Good idea: web integration

Online customer support today is a de facto standard in many industries, as well as a competitive advantage for the vast majority of companies.

The importance of this support is growing rapidly. Customers want to be able to get information and take action online.

Providing clients with at least some opportunities to interact with the company on the web has a very beneficial effect on the company’s image.

The appearance and functionality of your personal account can be adapted to specific conditions. You can also integrate card administration tools into existing projects.

Good idea: rewarding activity

To emphasize the value of active customers to the company, they can be given gifts or provided with additional privileges. It would also be a good idea to get them a more substantial card.

Material updated 05/04/2018

Successful marketing is based on successful and competent retention of old ones. To ensure that customers do not forget about the brand after the first purchase, increase their loyalty. The longer they use the company's services, the more money they will bring you (LTV). In this article, we will share the main techniques for maintaining customer interest, which directly affects the income of your company.

Before we get into ways to increase customer loyalty, let's talk about LTV and why it's so important.

What is LTV

The LTV (Lifetime Value) metric shows how much income a client brings to the company over the entire period of interaction with it. The longer he is interested in your brand, the more profit he will bring. Therefore, LTV is closely related to the concept of CLT () - the average time of interaction between a client and a company.

Basic formula for calculating LTV:

LTV = m*a*t

m—average bill during the reporting period;
a is the number of repeated operations during the reporting period;
t is the average lifetime in the metric of the reporting period.

The higher the LTV, the better for the company. Satisfied customers return again and again. Low LTV indicates that customers do not stick around and the company has a high user churn.

Reasons for low LTV and high customer churn

To solve a problem, you need to understand its sources. Users may refuse the company's services for several reasons:

  • Low quality of goods and services
    Start with what ends up in customers' hands. Nobody wants the purchased product to break a day after purchase, and the service to start giving errors. This greatly damages the company's reputation and scares away customers.
  • Low level of customer service
    Customers must be satisfied with the service. If a company is unable to solve a user's problem, he will lose trust in it.
  • Lack of competitiveness
    Companies must constantly improve to stand out from other brands.
  • Natural causes
    These include those factors that the company does not influence: the client’s move, a change in his hobbies or social status, etc.

How to increase customer loyalty?

Brands increase loyalty in different ways. It is important to find the methods that will work specifically for your business. Below are 8 working tactics that different companies use:

Use followers' social media posts to create additional content

Content created by active clients is the best way to diversify your content plan and attract the attention of those who are still in doubt. Moreover, users react positively when a brand uses their content on its pages on social networks. Most importantly, do not forget to tag the authors of posts.

For example, Soda Stream specialists regularly talk about their subscribers on the brand’s Facebook page and blog and share their feedback.

Give gifts just like that

Give small but pleasant surprises to users. Subscribers will be pleased that the company values ​​their participation in the development of the brand.

On New Year's Eve, the Yandex.Music service team selected the most active users and sent them a set of themed stickers and a hand-signed postcard:


Stickers will attract the attention of others and become an advertisement for the brand, and a hand-signed postcard will add warmth to communication with the client.

Listen to customers and improve service

For example, at the beginning of 2018, we made a survey newsletter in which we asked subscribers about topics that were interesting to them. Based on the answers, we have prepared a content plan for our blog:


Always leave the opportunity for customers to suggest their own idea that is not on the list, and encourage them to participate in the survey: a small prize - an additional discount, free shipping or test access - will increase the number of people willing to answer the questions.

Below are several resources that make it easy to create surveys and structure the information received:

  • To create surveys and votes, use Polldaddy, Survey Monkey or Google Forms. They offer simple settings and features.
  • ChartsNinja or Infogram can help you publish your results. Upload a table with the results and get an impressive chart or infographic.

Always stay connected

Clients are more likely to talk about your failures than your victories. A dissatisfied post about Kiehl’s became the beginning of an entire investigation:


Kiehl's has found a way to get out of the situation and reduce customer dissatisfaction. She apologized, sent a courier and sent the client’s product for examination:


Be different from your competitors

It's not about discounts, it's about features, services, resources and other things that provide value to your customers.

If your product or service is no better than your competitors, customer service can be an advantage. For example, the owner of the comic book store Shield Comics puts aside books that interest them for his regular users, and even specially purchases publications if suitable ones are not available. In addition, he personally informs them on Facebook when something worthwhile comes into stock. This approach attracts a lot of buyers:

Be the most comfortable

Warby Parker makes new glasses faster than its competitors. Customers don't have to spend hours on the phone, fill out endless forms, and wait days or weeks for a response. Just contact the company on Twitter, and specialists will respond to you instantly.

Thanks to this approach, customers turn to Warby Parker again and recommend them to their friends:


“Glasses are like a pendant around your neck, but only for your eyes. This is what I repeat to myself the next time I buy a pair of Warby Parker glasses that I don’t really need.”

Think about how you can make common activities more convenient for users. Little things like automatic ordering, form filling, and reminders will make their lives easier. They should spend a minimum of time purchasing a product or service and a maximum of time enjoying it.

Solve your customers' problems

Give your customer a free extra benefit that will solve their problem and make their life more convenient. Then you will become for him not just a supplier of goods, but you will be practically irreplaceable.

Artemy Lebedev's studio created the Typograph service. It simplifies text layout. The EMAILMATRIX team has developed tools that speed up the work of email specialists.

Make quality your priority

Prove the quality of your product with action. For example, Standard & Strange showed in their newsletter what their shoes look like after 1.5 years of use:

Like any asset, customer loyalty is not given for nothing. But it's worth the effort.

The higher the loyalty, the higher the company's income and the lower the churn of customers. Satisfied customers will definitely tell their family and friends about you, and this is the best advertising.

Decide for yourself which of the proposed strategies to use, but try to make your brand irreplaceable and unforgettable.

In this article we talked about the features of LTV and how to increase it. Next time we’ll talk about how to correctly calculate LTV at each stage of the sales funnel. Follow the announcements of articles and stay in touch with us.

Today the word “loyalty” is used quite often. Moreover, it is used in various fields. What does loyal mean? Each person understands it differently. Let's try to understand its definition and main qualities.

Loyalty concept

The English word “loyal” has two interpretations:

1) a citizen’s loyalty to his state, its laws and authorities;

2) a benevolent, respectful attitude towards someone or something.

Loyalty is very similar to trustworthiness. However, it has one significant difference. Reliability is understood as our attitude to a wide set of certain rules and norms accepted in society. And a loyal person is one who has a good disposition towards something specific. it is possible according to a certain set of criteria that are presented to a person in relation to a particular object or subject.

How is loyalty acquired?

We encounter loyalty in childhood. Relationships in the family and with friends imply certain norms and rules of behavior. For example, when playing in the yard, children

They try to stay together and do not expose each other to adults if someone commits an offense. This means being loyal to your friends.

At school they try to instill in us pride in our educational institution. By participating in competitions and olympiads, the student represents the school and fights for its good name. This means he is loyal to her.

When applying for a job, we also encounter the requirement of loyalty. Management who cares about the well-being of their company is interested in loyal employees who can be completely trusted. Any serious organization pays great attention to employee loyalty.

What loyalty requirements do companies put forward?

A loyal attitude is unconditional compliance with the company's charter and standards of conduct. There is no point in establishing rules that no one will comply with. For the better functioning of the company, it is important that employees follow certain regulations. Each company may have its own list of rules, but there is a list that is the same for all enterprises. A loyal employee is one who complies with the following standards:


These are the basic rules, following which you need to pay special attention. The manager puts forward them solely in the interests of his company, so failure to comply with the charter may result in punishment up to

Loyalty indicators

You can understand whether a person is loyal or not based on several criteria. Companies usually have special people who determine whether an applicant is suitable for them. There are signs by which they conclude whether an employee will behave loyally. What are these indicators? Typically these include:

  • The applicant's interest in a vacant position in the organization.
  • Dedication to your work and a responsible approach to responsibilities.
  • Initiative and desire for the company to prosper.
  • The desire to increase professionalism and self-improvement.
  • Readiness for innovations proposed by superiors.

How is employee loyalty determined?

It was said above that a loyal person is one who respects certain norms of behavior and rules. a person is invited for an interview to find out whether he is suitable for a vacant position. We can say that this is the first stage of determining the candidate’s loyalty.

Of course, it is quite difficult to understand from a short interview whether the applicant will be able to fully justify the expectations placed on him. However, you can get a general impression of him, familiarize him with the company’s charter and find out whether the employer’s requirements suit him and whether he will obey them.

After the interview, a suitable applicant is invited to undergo a probationary period.
term. This is the second stage of determining loyalty. During the probationary period, the employee works for the company and receives a salary, and management analyzes his behavior and attitude towards work. This is an important stage, after which a person is either hired for a permanent job or his services are refused. During the probationary period, the employee must show that he complies with the rules and regulations imposed by management.

From all of the above, it follows that a loyal person is a person who has his own opinion regarding something or someone and follows his principles. Such people are treated with respect not only by colleagues, but also by people around them outside of work. This is why loyalty is so highly valued in society.

All entries

Loyalty programs are a system of rewarding regular customers. They help manufacturers cope with competition, attract and form a pool of regular customers.

Recently, the effectiveness of such programs has been declining. This was confirmed by the COLLOQUY center, which conducted a study in 2015. The client does not see real benefits, perceives bonus programs as an attempt to sell unnecessary goods and stops trusting brands.

This doesn't mean they don't work. For each task, it is necessary to select a special loyalty program. In this article we will analyze 8 programs and help you choose the one that is suitable for your business.

1. Bonus for every purchase

Where it works: grocery, perfume and hardware stores, gas stations, catering outlets, airlines.

The more often a customer buys, the greater the discount he earns. With the accumulated points you can buy a free product or get a discount. The program works in the areas of quick and short-term purchases. A good example on the Russian market is the Podruzhka chain of cosmetics and household chemicals stores.

How it works?

When making their first purchase, the client issues a card to which bonuses are awarded. The more you buy, the more bonuses you get on the card. They can be spent on the following purchases: receive a discount or pay for goods in full.

Podruzhka chain of stores

In Podruzhka cosmetics stores, the assortment differs from the usual Rive Gausha or Letual. The chain's stores are located beyond the Garden Ring and in the Moscow region. The main location is residential areas where a pool of regular customers is formed. Therefore, the range of products is wide; for example, Japanese cosmetics can only be bought here. Affordable prices, flawless customer service.

The company has developed a flexible discount program for customers. The discount depends on the amount the client made purchases in the previous month:

Up to 1,000 rubles - 3%

1,000 – 1,500 rubles – 10%

From 1,500 rubles – 15%

With such a system, it is profitable to buy hygiene products, cosmetics and household chemicals in one place. If last month the purchase amount was 5,000 rubles, then next month the client will receive a discount of 750 rubles. The discount accumulates regardless of whether you accumulated this amount in one visit or came to the store several times. But if the client does not have time to use the bonuses within the next month, they automatically expire. This motivates you to buy constantly and receive monthly bonuses.

Pros:

  • a flexible discount system that motivates you to buy more and maintain a high discount;
  • accumulated bonus system;
  • personal communication with clients. Creates trusting relationships;
  • additional bonuses on purchases.

Minuses:

  • the program may not work if there is no communication with clients;
  • To participate in the program you need to make a purchase and receive a bonus card;
  • Feedback from the client is required;
  • To receive a discount, you need to present a bonus card;
  • complex implementation system.

Result:

Long-term relationships with the client are formed. A bonus program requires a system of rewarding the client at every stage in order to constantly maintain his interest. The program will work in online stores, offline points of sale, airlines and hotels. When implementing, you need to know not only the frequency of purchases, but also the average bill. The bonus must be equivalent to the cost.

2. Percentage of all purchases

Where it works: clothing boutiques, car services, flower shops in a residential area.

A fixed and permanent discount on your next purchase is a simple and ineffective type of loyalty program. The client does not know how much money he has accumulated on his card, so he is not motivated to make a purchase. In addition, to get a good discount, you need to buy often and a lot. Usually such a frequency is not needed, as a result the program is forgotten.

A card with a fixed discount percentage is common in stores where purchases are made once every 3-6 months. For example, flower shops, clothing boutiques or car service. The discount does not provide additional motivation. Most often, they simply forget about it due to the widespread use of this loyalty program.

How it works?

When making their first purchase, the client receives a store card with a fixed discount. Bonuses do not expire, are not replenished or cashed out. The discount can only be used upon presentation of the card. The loyalty program no longer influences repeat purchases.

Loyalty program in GAP stores

When purchasing over 1,500 rubles, the client receives a bonus card with a 5% discount. There is no savings system, and an additional discount is given only on your birthday. A client can buy for 5,000 rubles and receive his 5%, or for 50,000 rubles and receive the same 5% - the discount percentage will not change. During sales periods the bonus card is not valid. The discount does not change, and it cannot be activated during sales.

Such a discount program is ineffective, but will be useful for stores that rent their own premises in residential areas. A convenient location and an additional discount will counteract a trip to the shopping complex. A card with a fixed discount will not motivate purchases in the same place: similar discounts await the client in the opposite boutique with a similar assortment and prices. Therefore, with the same discounts, the client will choose the store that provided better service.

Pros:

  • the system is inexpensive and easy to implement;
  • the client always knows his discount.

Minuses:

  • lack of recognition of the loyalty program. Everyone has similar programs;
  • limited action. If bonus points can be given, awarded or taken away, then this will not work with a discount. It is unchanging and constant.

Result:

The discount program is easy to implement, but does not motivate people to make more or more frequent purchases. The company's margins will decrease, but customers will not be interested. It is better not to use the program, but to rely on customer service or product quality.

3. Free promotional items

Where it works: grocery stores, gas stations.

Rewards for purchasing N quantities of goods are suitable for retail stores and service providers. The effect of the program is short-term. Competitors will also use this model, so bonuses are devalued. Especially if competitors have similar products on sale.

How it works?

The client buys two promotional items and receives the third one for free.

Loyalty program in the Gazpromneft gas station network

The Gazpromneft gas station network has a promotion: when you buy two products, the second one gets a 50% discount. The client saves ¼ or 25% of the total cost. The system increases the average check due to the obvious benefits that can be obtained here and now. If the client has a Gazprom Neft card, then bonuses for purchases are additionally awarded to the club card.

Motivation: bonuses and discounts on purchases. In the future, the client can count on free refueling.

The program works until the client knows the real price of the product. Prices in stores at gas stations are 15-25% higher than in supermarkets. At a gas station, a client will buy 3 packs of chewing gum at the price of 2 for 99 rubles per piece. and will spend 198 rubles. In the store, such chewing gum costs from 57 rubles per pack. For three packages the client will pay 171 rubles.



Loss when purchasing from Gazprom - 27 rubles

Lensmaster optics store chain

The Lensmaster chain of optical stores has the opposite example. Here, bonuses are not awarded immediately, but at a certain stage. When purchasing contact lenses, the client receives a card indicating the number of similar purchases. When he accumulates 10 seals, he receives a gift: the 11th pair of lenses as a gift.

The motivation for shopping at Lensmaster works productively only at first, until the client finds a similar product at a low price in another optician.

At Lensmaster you can buy 1-Day Acuvue Moist for Astigmatism lenses for 1,780 rubles.

The same lenses in Ochkarika cost 990 rubles.

When purchasing 10 lenses, the difference between purchasing identical lenses in Lensmaster and Ochkarik will be 7,900 rubles. With such a difference, a gift in Lensmaster no longer seems like a gift. The client will not return to the store where they are trying to make money on him by deception.

Pros:

  • the program is easy to implement and not expensive;
  • transparent client reward system;
  • It is not necessary to have a loyalty card to participate in the promotion;
  • clear and immediate benefits for the client;
  • motivation to buy more;
  • additional bonuses that can be exchanged for another product.

Minuses:

  • inflated prices for goods scare away customers;
  • the client feels deceived. The impression of the company is spoiled and a negative perception is created;
  • there is no direct interaction with the client;
  • the strategy should be thought out at least six months before the launch of the program. The company agrees on the product and price with the supplier, who is ready to provide his product at a low price. Otherwise, the price of the product on sale will be inflated;
  • high competition due to the prevalence of the program.

Result:

The program is easy to implement, but if you don’t think through pricing, the client will be scared off by inflated prices and will stop trusting the company. The product itself should be interesting and liquid, so that there is no doubt about the need to purchase. The program is suitable for retail and e-commerce, where purchases are instant, and the client makes a decision here and now.

4. Multi-level bonus program

Where it works: supermarkets, car services, hotels.

The client makes the first purchase and receives a bonus, learns about the loyalty program, and can become a member of it. The benefit is clear: rewards for everyday purchases. Bonuses can be accumulated and exchanged for discounts or free goods or services. Next, you need to retain the client by rewarding them with new bonuses and gifts.

How it works?

The client makes his first purchase in the store and issues a loyalty card. Points are awarded to the card for every purchase. You can use the accumulated points to pay for purchases or exchange them for gifts.

Virgin Atlantic Flying Club

Virgin Atlantic has expanded its usual system of accumulating miles for flights and introduced a status system. Upon registration in the program, the participant becomes a member of the Red club. The status gives the right to exchange miles for discounts when renting a car, paying for parking or a hotel, when purchasing tickets for flights on holidays.

The next level is silver. When switching to it, the member is credited with 50% more miles. The status gives the right to check-in for a flight ahead of the queue and priority when boarding.

The highest client level is gold. In addition to the benefits of the previous levels, the client can use the services of exclusive VIP areas at airports.

Pros:

  • flexible points accumulation system;
  • accumulated points do not expire;
  • motivation to shop in one place;
  • additional discount for program participants;
  • clear system for writing off points;

Minuses:

  • complex and expensive implementation system;

Result:

The program will work in the field of reusable purchases and essential goods. Loyalty programs for airlines, hotels, and beauty salons are built using a multi-level reward system.

5. Partnership of companies for exclusive offers

Where it works: in large chains of grocery stores, communication stores, clothing stores.

The loyalty program can also be developed through offers from partners. For the program to work, the product must meet the customer’s needs and the purchase process must be convenient. Such a loyalty program with several partners can be effective when the audience is growing in a new company or when the customer base is expanding. Interaction with customers and control over the quality of purchases is monitored using CRM systems.

How it works?

The client issues a bonus card, which already contains offers from program partners. For each purchase, the client receives points on the card, which can be used as a discount on purchases or gifts.

Loyalty program "Svyaznoy-Club"

This is one of the largest loyalty programs in Russia. In 2014, it had 19 million participants - 13 times more than Aeroflot. The number of partner companies has exceeded 50.

Customers receive bonuses for purchases. The club card is charged from 1% to 14% of the purchase amount. Bonuses can be spent on purchases or used as a discount.

The CRM system divides all participants according to the nature of joining the loyalty program. You can participate in the program through purchases at offline points of Svyaznoy and partners or through the Svyaznoy online store. Holders of a Svyaznoy Bank bank card automatically become members of the club.

When making purchases, the CRM system takes into account the following data:

  • using a mobile application;
  • nature and frequency of purchases; participation in bonus programs;
  • average check;
  • management of bonuses. The client can spend all bonuses at once or use them as a discount on a purchase;
  • response to emails and calls.

A complete picture of the client’s behavior helps to formulate the right offer for the client. The CRM system analyzes the data and makes an offer to the client based on previous purchases, taking into account the price segment.

For example, a client purchased a laptop from an online store. When placing an order, the system will offer to immediately buy related products. For a purchase, the client will receive a smart card and 1000 bonuses on the card as a gift, which he can spend on his next purchase or exchange for a gift.

If a client buys a mouse for 190 rubles, he will not receive a gift, and the number of bonuses will be significantly less.

The system encourages the client to make a larger purchase at a time in order to save on points in the future.

Pros:

  • participation is free. There is no initial purchase required to enroll in the program;
  • wide geography of the program. Partners work throughout Russia;
  • competent co-branding. Program partners represent food, entertainment, medical and other service sectors;
  • multi-level reward system. The more the client spends, the more and more valuable bonuses he receives;
  • individual offers. Each customer receives an offer based on previous purchases.

Minuses:

  • the implementation of such a program is very expensive, since you need your own card and partnership at the technical level with many companies;
  • complex implementation system;
  • constant monitoring of the work of partners.

Result:

This loyalty program is attractive due to the huge number of partners involved in it. With the right combination, the buyer will make more purchases, picking up related and sometimes unnecessary goods. With such a system, it is important to take into account the campaign margin, price threshold and partner recommendations.

6. VIP service fee

Where it works: in stores that justify additional costs with high customer service; in B2B enterprises.

In order for a client to buy goods in one store, the company must make shopping as comfortable as possible. If you analyze customer behavior, you can identify factors that prevent you from making a purchase.

For example, when purchasing through an online store, a customer may be confused by additional taxes or expensive delivery, limited product selection, or high prices. To eliminate this, the company can introduce a paid loyalty program. It consists in the fact that for a certain fee the client receives VIP service. Shopping is more enjoyable if the customer feels that he is being taken care of.

How it works?

The client makes an advance payment and receives privileges in choosing a product, additional services and bonuses upon purchase.

Amazon VIP treatment

For $99 per year, a customer can sign up for Amazon Prime. The subscription provides a bonus in the form of free two-day shipping with no minimum purchase amount, access to premium products and additional discounts. It is more convenient to make purchases with a subscription; the client has additional opportunities on the website. Benefits help customers feel valued.

Pros:

  • the client pays and receives good service;
  • a paid subscription motivates you to make purchases more often and more;
  • direct interaction with the client, the ability to select individual offers.

Minuses:

  • complex implementation system;
  • the program may not pay off, high risk.

Result:

A loyalty program with a paid subscription can work if the difference in benefits is tangible, useful and relevant to the customer. Suitable for companies that build long-term relationships with customers based on repeat purchases. And also for B2B enterprises that regularly supply products for business.

7. Non-profit loyalty program

Where it works: in cosmetics and household chemicals stores, and from packaging manufacturers.

The main task of the loyalty program is to create a pool of regular customers. If the company is trusted, the client will come again. Trust is based not only on the quality of the product and its price. To form long-term relationships, you need to know your client and share their values. In order to constantly sell and expand the network, the company can interest the client in its policies. This creates a positive image of the company and unites the buyer and the manufacturer.

How it works?

When choosing and purchasing a product, the client learns more about the company’s non-profit programs. For example, transferring funds from a purchase to WWF or environmentally friendly production of goods.

Lush Eco Campaign

One of the most famous British manufacturers of eco-cosmetics attracts its customers with the company's policies. The products use natural ingredients, cosmetics are not tested on animals, and production does not harm the environment. To motivate people to buy more and more often, the brand introduced packaging that can be recycled and reused. The client collects the jars and brings them to the store, for which he receives a bonus in the form of a fresh mask or facial scrub.

pros:

  • pool of regular customers;
  • positive image of the company.

Minuses:

  • does not stimulate buying more often;
  • It is possible to increase the cost of goods by transferring part of the funds to funds.

Result:

A loyalty program can work if the values ​​are not far-fetched and the benefits from purchases are real. The program is suitable for industries, for example, cosmetic brands, manufacturers of household appliances or households. The more transparent and understandable the production is to the client, the more trust there is in the company.

8. Brand as a leader of loyalty

Where it works: from a manufacturer with a high reputation.

The loyalty program is suitable for unique and high-quality products. The product may not be budget-friendly, not of the best quality and not the most marketable, but it will be in demand thanks to the brand. This is due to the fact that the company is creating a new niche, and the product is creating a new category.

Apple Corporation

The company does not provide discounts on its products even to its most loyal customers. Because they don't exist. The only exception is products for education.

The company has developed discount programs for schoolchildren, students, teachers, tutors and educational institutions. This policy is due to the fact that the corporation does not use advertising in the usual sense. The company does not use TV, mailings, or advertising banners. Apple is educating a new generation of product users through its educational system.

The user gets used to the interface, build quality, and external design and will not refuse in favor of a cheap, but less comfortable replacement.

Professional cosmetics MAC

Another example of a brand that does without discounts and loyalty programs and is a market leader in its segment. The brand offers high quality cosmetics, sells only in branded boutiques and does not provide a franchise. The prices for the goods are high, as is the quality of service. Among the staff in the brand's boutiques, only professional makeup artists work. Consultants talk about the products and can apply makeup at the client’s request.

People without experience will not be hired to work at MAC. But there are special prices for products for staff. Therefore, makeup artists choose high-quality cosmetics that they are used to working with, and even at a discount.

Pros:

  • formation of a pool of regular customers;
  • brand recognition;
  • there is no need to carry out additional promotions and discounts;
  • The product on the market is unique because it forms its own category.

Minuses:

  • the program must be developed in detail at the time the brand is launched.

Bottom line:

This loyalty program is one of the most difficult to implement, but also successful. The program will work if the concept of the entire brand is thought out before the company enters the market. The absence of discount programs will be compensated by the high quality of unique products and service. With such a program, the company forms several generations of users. And this eliminates the need for advertising campaigns, sales and bonus programs.

Let's summarize:

Bonuses for each purchase are suitable for stores with quick and short-term purchases. If the program is not clogged with unnecessary information, it can give good results;

The discount card program for each client is easy to implement, but does not provide more profit;

A promotion with free goods is suitable for retail stores: the client will buy more than needed;

A multi-level bonus program is used by airlines, hotels, and large retail chains. Motivates to buy more when the product is liquid and the prices are reasonable;

It is difficult to implement an affiliate program, but due to it you can significantly expand your customer base and increase brand awareness;

A loyalty program with paid participation is suitable for online stores, banks and companies that provide VIP services or VIP services. A risky step, but you begin to appreciate what you pay for more;

A non-profit loyalty program is suitable for brands that produce unique products. The client will more often pay attention to the history of the company and its values ​​when choosing a product.

In order for the product itself to be desirable and necessary, you need to create a new category for it. Such a campaign will be long-term and ongoing. Resources will be spent on maintaining product quality, and not on creating a new bonus program.

Did you like the article? Share with your friends!