Types of Customer Loyalty Programs

 Source: (Types of loyalty Programs, n.d.)

In this post we are going to discuss about some of the loyalty programs which the companies use:

Offer Discounts: Offering discounts to customers when they achieve determined spending focuses for instance, 10% off their next buy on the off chance that they spend through $100.

Source: (Ragonasisters.com, n.d.)

Limited time offers can encourage brief buys, yet companies make sure to publicise that scheme.

Loyalty card: On the off chance that companies offer a high-volume, low-esteem things, give clients a card to be stamped with each purchase. When they achieve the target number, they meet all requirements for a free one.

Loyalty card of Walmart
Source: (Walmart, n.d.)

Trial technique: Companies invite the customers to trial creating items and administrations for free. Company asks its trusted customers to give their views on certain products. Companies tend to focus on the criticisms and improve the product on those basis before launching it.

Previews: Companies tend to hold a preview evening before launching the product. They invite their regular customers to that evening and offer them to be the first person to buy the product. Companies try to make that event special to give the customers feel of special recognition.    

Some other programmes include:

• Giving away free things with numerous buys. Purchase one, get one free is an attempted and tried technique for encouraging short term sales. This strategy is usually for short periods because if overused people start questioning the quality of the goods.

    Source: (123rf.com, n.d.)

• Sometimes companies offers another product at low cost with a related product. For example: The companies so sell machinery they will also offer the customer to buy safety equipment with it at low cost.

            Source: (personalthrows.com, n.d.)

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Ten ways to reward loyal customers, n.d.)

References

(n.d.). Retrieved from Ragonasisters.com: http://www.ragonasisters.ca/userfiles/images/Ragona%20Sisters%20Team%20discounts.jpg

(n.d.). Retrieved from 123rf.com: http://previews.123rf.com/images/marinini/marinini1406/marinini140600061/29468498-buy-one-get-one-free-text-in-white-and-red-flat-design-label-business-shopping-concept-Stock-Photo.jpg

(n.d.). Retrieved from personalthrows.com: http://www.personalthrows.com/assets/images/screen-shot-2011-04-29-at-121634-am.png

Ten ways to reward loyal customers. (n.d.). Retrieved from marketingdonut.co.uk: http://www.marketingdonut.co.uk/marketing/customer-care/customer-loyalty/ten-ways-to-reward-loyal-customers

Types of loyalty Programs. (n.d.). Retrieved from https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhxS-Q-ufWVHxnB_p6nQ8h5bHtBlpEt7mOwmbcCHm-LEemnNp61_MfwZ6yow5WNr_Iu0YVexKJHFXfYU7uBZyvKF6Uv7OHn5zJFP0wN3hTFKMmOY5Z_YwSHEflKon-v7mSk1kYFawRHugGp/s1600/types+of+loyalty+programs.png

Walmart. (n.d.). Retrieved from https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhM9HCJBXWrZ3NkOym83ts_71DOquJzRbmJTjpyi8wpLgtCmXiH6ghwP2Vu7A8m9TBOvant_U2aydjB8eddLs2RiNchWE_mlGnwMyf2h6S4fr_JzoLKcECTwC4nngbBTrda4f8lSrjWZJ11/s1600/walmart.jpg

What are customer Loyalty Programs?

                   Source: (newbrandanalytics.com, 2013)

A loyalty program is a program usually offered by the companies to give rewards to their regular customers. A loyalty program can be of many type varying from a special sale to coupon program. Some companies issue their cards to the customers where a person has to give his personal information so that he can be uniquely identified.

Break Down of Loyalty Programs

Loyalty programs have two primary functions:

· They give the customer a reward for showing loyalty to the brand

· They also provide the company with useful customer related information

Source: (slideshare.net, n.d.)

These schemes are very good way to retain the customers. It is very high for a business to bring in new customers. A business spends on advertisement, different marketing campaigns to get the new customers. That is a lengthy and costly process. So, to avoid the wastage of time and money business tries to retain its current crop of customers. The business earn a lot of profit by opting for the customer loyalty and this program is being used by more and more organisations, companies.

Here is video showing an example of a loyalty programme by Starbucks.




Customer loyalty programs also help a company to get competitive advantage over its competitor. In today’s market, there is abundance of choice for the customer. It is very easy for a customer to find substitute for a product if they don’t like. These programs helps in building up of loyalty and offers much more than just keeping them satisfied.

Customer loyalty programs not only recognises your best customers but also rewards them. This is a big pro of using these programs. These schemes are used to delight your customers and in return the company gets huge chunks of profits.

I hope you all enjoyed reading the post. Share and comment down for more questions and to give feedbacks

Source: (Loyalty Programs, n.d.)

References

(n.d.). Retrieved from slideshare.net: http://image.slidesharecdn.com/customerloyaltyprogrammeril-131216114929-phpapp01/95/customer-loyalty-programme-reliance-retail-limited-4-638.jpg?cb=1387194692

(2013, August). Retrieved from newbrandanalytics.com: https://www.newbrandanalytics.com/blog/wp-content/uploads/2013/08/iStock_000017005101Medium.jpg

Loyalty Programs. (n.d.). Retrieved from Investopedia.com: http://www.investopedia.com/terms/l/loyalty-program.asp