Before talking about the types of loyalty programs offered, let’s understand what a loyalty program is. A loyalty program, in easy words, is a program offered by a brand or a company to a customer which includes certain benefits only for members, order to make customer loyal to the brand. These programs offer the customer rewards based on the purchases made. These rewards can either be discounts, coupons, or a specific number of points that the customer can to accumulate with which he or she can later redeem in exchange for a gift, a discount, and more. Let’s have a look at some of the different kinds of loyalty programs.
This is one of the most popular loyalty programs offered by several companies, from airlines and retail stores to banks, with an intention to retain the existing customers. As discussed earlier, this program gives their customers points on every purchase made. Once the customer collects a certain number of points, he or she can redeem them for a gift.
Early product trial
Companies frequently launch new products, and one of the best ways to get early feedback on the same is to offer free early product trials to existing customers. As a result, the customer can try out a product for free well before its release in the market. The feedback received helps the company to find areas for improvement in the existing product.
Cash back programs
Most of the cash back programs are based on point systems. On every purchase made, customers earn a set number of points, which can be redeemed for a discount the next time a purchase is made. In some cases, you may also receive a cash-back on the purchase made.
Free VIP membership
If you have already bought a membership for a certain service, the company may offer you a free VIP membership plan for a particular period. This extended membership will include additional features that are more likely to provide you with a better experience. In most cases, this technique turns out to be highly effective for the companies as it compels the users into upgrading to a VIP membership. As a result, both, the company and the customers largely benefit from this program.
Partnership loyalty program
At times, a company may partner with another company to offer loyalty programs. For instance, several airline companies have partnered with some brands in various sectors. So, when a customer of these carriers shops at any of these stores, he/she is entitled to a specific discount.
Some believe that loyalty programs do too little, or nothing at all, to make one happy. But, that’s not the case. Of course, a rewards program may not help you earn a fortune, but can significantly add up to your savings by offering discounts on most of your future purchases. These programs are not merely meant to entice customers into making future purchases but instead help them get a satisfactory experience. So, missing out on such loyalty programs is not a good idea. To make the most out of these programs, make sure you adhere to the terms and conditions set by the company properly.