What Kind of Customer Loyalty Program is Right for Your Brand?
In this clip from Resilience: An eLearning Series For Ecommerce Brands In 2021, Allison outlines the difference between retention programs and loyalty programs. You'll learn about different customer loyalty programs and why high value customers should have different loyalty programs than all other customers.
What are the basic types of loyalty programs?
The first thing that usually comes to mind when people think of loyalty are things like coupons or points. But those are just two types of mechanisms used for for customer loyalty. What loyalty incentives like those fail to capture are the unique differences between high-value customers and all other customers. A basic type of loyalty program that's suitable for non high-value customers is something like, "buy 5 of x product and get one free". It's used to foster repeat purchases but ultimately won't be viable long term.
At the long term level, where you are trying to turn customer retention into customer loyalty you need to start thinking of loyalty programs different.
Inspired & premium programs
Inspired and premium programs generally have an emotional hook. They indicate to your high-value customers that the particular program offered to them is exclusive. They offer much more than just the average "buy this, get that" customer loyalty program.
The problem is that most companies don't separate customer loyalty programs. They usually just have one program that they use for all their customers. Check out the helpful chart below to learn about the 4 different customer loyalty programs that you can offer for different tiers of customers.
