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Customer loyalty programs are very effective when it comes to keeping existing customers happy. However, some of them get better results than others and what works for one company won’t necessarily work for yours.

If you’re trying to decide which type of loyalty program would be right for your business, below are 5 different types of systems to give you some ideas.

1. The Points System

A points-based loyalty program is by far the most common and can work for practically any business. If you own a restaurant for example, you can award points every time a customer buys a meal and drinks. Those points can then be redeemed for either a free meal or discounts off future meals.

This type of system would be better suited to businesses which want to encourage short-term, frequent purchases. 

2. The Coupon System

If you want a really simple system, coupons are a great idea. These work by rewarding customers with money off coupons when they spend a certain amount. For example, if they spend $20 they receive 10% off their next order. Your customers would need to sign up for this scheme to encourage loyalty.

3. The Tier-Based System

If you’re looking to increase customer spending, a tier system is a fantastic idea. Customers start on the lowest tier, receiving small rewards and they work their way up the loyalty ladder to earn bigger and better rewards. The more they shop with you, the more they are rewarded.

4. The Elite System

Making your loyalty scheme available to only the most loyal customers can encourage a much higher spend. You could even charge an upfront fee that a customer needs to pay to get in. This makes the scheme appear more special and customers will feel like a VIP when they are a part of it. However, with this system you will need to provide exemplary rewards.

5. The Charity System

Customers don’t just care about themselves, they also love helping others. A program which helps out local charities is an excellent incentive for customers. They will feel good that they have helped make a small difference and it really helps to build up your reputation too. The points the customer earns over time can contribute towards money, clothing and even food being sent to a local shelter for example.

So there you go – 5 great customer loyalty program ideas. They each have the power to be extremely effective so compare the pros and cons of each to determine which is best for your business.

To learn more about our customer loyalty services and management, contact eMobileLeads at 866-591-1825.

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