Examples of Successful Customer Loyalty Programs for Brands
More than 90% of companies have some type of customer loyalty program. The program is one of the most effective tactics in increasing revenue, and retaining consumers. As many as 84% of consumers say that they are more loyal to brands that offer customer loyalty programs.
Not only for old consumers, this program can also attract new consumers. Without offering products and services, consumers need a reason to continue shopping exclusively with your brand.
What is a customer loyalty program, and how is it used?
Customer loyalty programs are brand strategies that encourage consumers to continue buying. Brands can provide benefits to active consumers. That way, the more consumers who buy or interact with the brand, the more rewards they will get.
Brands can offer points or vouchers to consumers which can later be exchanged for discounts, discounts, free products or gifts. This is done to motivate consumers to make repeat purchases, and build trust between consumers and brands.
Examples of the best customer loyalty programs
Below are seven examples of the most innovative customer loyalty programs. You can study each program. That way you might find some program ideas that your brand can use.
1. DSW
In running the customer loyalty program, Designer Shoe Warehouse (DSW) gives consumers points for every purchase, and provides levels of rewards that consumers will get when they shop more.
To increase consumer involvement in the customer loyalty program, DSW conducted an email campaign aimed at reminding consumers about their program. This campaign consists of emails containing:
- the number of points required to get the discount.
- a snapshot of the consumer's interaction with the brand which contains: information on how long the consumer has been a member, the number of points they have, and how much nominal value they have saved in the last two years.
2. Sephora Beauty Insider
One of the obstacles of the Sephora cosmetics retail store is that the products are expensive. However, by becoming a Beauty Insider member, consumers will get prizes for every purchase based on a points system. The unique part is that consumers can choose how to use the points, both gift cards and discounts.
This is done to offset the purchase price without needing to cut product prices. Members can also exchange points for more exclusive things, such as limited edition products or getting in-store beauty tutorials.
3. Starbucks Rewards
Currently, many brands are using applications for customer loyalty programs. However, the first time Starbucks launched Starbucks Rewards through the application, it was a truly genius new idea. Because consumers don't need to worry about the card being lost, or filling out several sheets of paperwork for administration.
To earn points (or stars as Strabucks calls them) consumers must order or pay with the Starbucks app. All transactions are centered on application usage. This is also very useful for knowing locations, favorite menus and consumer habits. This way you can collect consumer data even more easily.
4. Amazon Prime
For the retail industry, many products and prices are similar, so customer loyalty programs are carried out to be a differentiator and an advantage. Amazon competes fiercely with Walmart and Costco. The way Amazon differentiates itself from others is by convincing consumers to become Prime members.
For an annual fee, Prime members will enjoy two days of unlimited shipping service that can be used on millions of products, Amazon streaming, and Prime Day sales. This method works because, compared to other consumers, Prime members spend an average of four times more.
5. The North Face
Consumers who are registered members of The North Face will get points in the XPLR Pass program. Points are not only earned when shopping, but also when attending exclusive The North Face events, checking in at certain locations, and downloading The North Face application.
When points have been collected, consumers can exchange them for access to limited edition collections or collaborations, the opportunity to use products before they are released, and the opportunity to enjoy exciting trips, such as climbing a gunner in Nepal.
6. REI Co-op
It is important to remember that consumers are not always interested in customer loyalty programs, because they know the end goal is about buying more and spending more money. Therefore, customer loyalty programs must be able to shift focus and make consumers feel profitable.
For $20 REI Co-op invites consumers to become lifetime members. After joining, consumers will get a 10% discount on every purchase, access to garage sales with huge discounts, and discounts to enjoy the adventures provided by REI Co-op.
7. Apple
Sometimes the most innovative customer loyalty program is no loyalty program at all. Without offering rewards and incentives, brands can still sell products at high rates. This can be seen through the Apple brand. By providing good product quality, creating advanced features, and offering product benefits with every purchase, Apple can attract consumers, without using a customer loyalty program.
If you are not sure which program is appropriate or which consumers will like. You can ask your consumers about the customer loyalty program they want. To find out, take advantage of surveys or polls with your consumer base, then create a program that customers want.
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Customer segment or segmentation is one of the best ways to get information about customer characteristics in a timely manner.
By segmenting customers, it will be easier for you to understand customers, including their needs which are beneficial for business.
Understanding customers or customers in business is one of the crucial things.
It could be said that by understanding customer needs, your business growth will be more precise and targeted.
So, for this reason it is necessary to understand customer segments better. Come on, see in full below!
What is Customer Segment?
Quoted from Shopify, customer segment or customer segmentation is the process of grouping customers into groups based on their general characteristics.
The grouping aims to optimize marketing efforts in each group.
HubSpot also added that this grouping is based on several general characteristics such as age, industry, gender, and others.
Customer segments are the right step to personalize marketing, including service and sales that can reach certain groups.
In the business-to-business marketing or B2B area, customer segmentation is carried out based on several factors including:
- industry;
- number of workers or employees;
- products the company has recently purchased; And
- location.
Meanwhile, for business-to-consumer marketing, companies usually group customers according to their demographics as previously explained, namely:
- age;
- gender;
- marital status; And
- location.
More targeted and accurate campaigns for each customer group will increase brand loyalty and customer satisfaction.
Customer Segment Objectives
The main goal of customer segments is to create a more accurate marketing strategy for each customer's characteristics.
However, it should be noted that customer segmentation is not just about grouping customers.
Through customer segments, you can create appropriate content and find unique challenges for each customer group.
Efforts can be made in the form of communication with customers and product development.
More specifically, the customer segment objectives are as follows:
- Create and communicate marketing that is relevant to customer needs based on customer segmentation results.
- Choose good communication media for each customer segment, for example via email, social media such as Instagram, radio advertisements, and other media according to customer group preferences.
- Identify how to improve products and services to customer groups.
- Build good relationships with customers.
- Forming a more focused business strategy to increase customer satisfaction.
- Helps increase sales of other products and services owned by the company.
- Improving customer service in the company.
Benefits of Customer Segments
According to Forbes, the two main benefits of customer segments are improving good relationships with customers and brand loyalty, as well as improving customer experience.
Both boil down to the level of customer satisfaction with the products or services offered by the company.
According to HubSpot, here are some of the benefits that customer segments can provide for your company:
1. Excel in a Competitive Market
In marketing or building good relationships with customers, the approach is often one-size-fits-all or all customers are considered the same.
This will make you the same as other brands so it doesn't make your business stand out or excel.
Customer segments are more profitable because the targets are in accordance with the grouping.
2. Targeted Paid Campaigns
Customer segments will make it easier for companies to determine in which areas and what kind of paid campaigns should be carried out.
Through effective paid campaigns, the budget used will also be efficient and not wasted because it is on target.
3. Improve the way you communicate
The easiest example is email. Of course, the Gen Z customer segment and other generations must be differentiated to make it more attractive.
Grouping customers will certainly make it easier to communicate your brand with customers.
Types of Customer Segments
Reported by Forbes, here are several types of customer segments that are usually carried out by companies:
1. Demographic Segmentation (Demographic Segmentation)
Segmentation based on demographics is a customer segment that is grouped based on the same and common characteristics. For example, gender, age, marital status, education level, occupation, income and location.
A simple example is if you have a bookstore, then segment it for people who are older. Or you can make groupings based on age.
2. Geographic Segmentation (Geographic Segmentation)
For geographic segmentation, you need to group customers based on language and location.
This location can be a neighborhood, city, province, or country. You can also add transportation mode preferences for geographic segmentation.
This geographic segmentation can be applied if you have at least two business locations in the same area.
Apart from that, you can also apply this segmentation if your business requires delivery of goods in different regions.
3. Psychographic Segmentation
Psychographic segmentation includes grouping customers based on attitudes, values they believe in, lifestyle, personality, and interest in something.
Usually for this type of customer segment, the company will consider previously purchased products, survey responses, and shopping habits.
Usually this segmentation is used by companies that offer several types of services and products at once.
4. Habit Segmentation (Behavioral Segmentation)
For behavioral segmentation or segmentation based on customer habits, several things that can be taken into consideration are:
- customer product purchase history;
- response to marketing campaigns or brand campaigns;
- website activity;
- purchasing activities in e-commerce; And
- customer engagement or frequent customer interactions.
From these habits, customer characteristics are formed and segmentation can be determined.
The basis is the frequency and tendency of habits carried out by customers.
So, that's some important information about customer segments that you need to know to develop your business.
Customers or consumers are an important asset for the development of a business.
It is important for companies and brands to understand customer needs amidst increasingly tight competition in the market.
That's why it's important to learn how to build positive relationships with your customers so that customer satisfaction is also met.
So, to learn more, you can take part in the Customer Satisfaction & Relationship Program from the prasmul-eli!
Through this program, you will be given knowledge and understanding of customer satisfaction and loyalty as well as concepts related to both.
What are you waiting for? Increase your business development and join the program now!
Product branding is now increasingly important in the era of ever-growing globalization and digitalization. Technological advances and the development of social media have created a more dynamic and competitive market.
Branding is not only about how your product looks, but also about how your product is perceived and remembered by consumers. In essence, branding is the art and science of creating a strong and consistent image for your product or service.
Effective branding can create emotional connections with consumers, build loyalty, and differentiate your product from competitors. Find out the definition, types, benefits and exact steps to do it in the following article.
Definition of Product Branding
Product branding is a strategic process of creating a unique identity for a product or service through various elements. Branding is not only related to visual aspects, but also includes perceptions, values and emotions associated with the product.
With effective branding, a product can create a strong and memorable image in the minds of consumers. Ultimately this will contribute to the success and sustainability of the business.
Types of Product Branding
Product branding includes various types of strategies that can be used to create a unique and strong identity for a product or service. Here are some common types of product branding:
Corporate Branding
Focus on the company as a whole rather than individual products. Example: Apple, which is known not only for its iPhone or MacBook products, but also for innovation and overall quality.
Product Branding
Create a unique identity for individual products that differentiates them from other products on the market. Example: Coca-Cola with its signature soft drink products.
Personal Branding
Focuses on specific individuals, often used by celebrities, influencers and professionals to promote themselves and their work. Example: Oprah Winfrey or Elon Musk.
Co-Branding
Several brands collaborate to produce new products or services. This can help expand market reach and increase credibility. Example: Collaboration between Nike and Apple for Nike+iPod products.
Geographic Branding
Promoting products or services based on a specific geographic location, often using origin as a competitive advantage. Example: Parmigiano-Reggiano Cheese from Italy.
Retail Branding
A strategy used by retailers to create a unique identity for their stores. Example: IKEA with its unique store concept and furniture products.
Benefits of Product Branding
The importance of product branding lies in its ability to change the way consumers view and interact with your product. Here are some reasons why product branding is important:
Differentiate from Competitors
In a market filled with similar products, strong branding helps your product stand out. A unique and different identity attracts consumers' attention and gives them a reason to choose your product over competitors' products.
Building Consumer Trust
Consumers tend to have more trust in products that have consistent and professional branding. Good branding creates a perception of quality and reliability which ultimately builds consumer loyalty.
Facilitate product introduction
Effective branding makes it easier for consumers to recognize your product among many other products. Visual elements such as logos, colors, and packaging, as well as auditory elements such as slogans and jingles, all contribute to building product recognition.
Facilitate product introduction
Products with strong branding can often be sold at higher prices than products without clear branding. Consumers are willing to pay more for products they know and trust.
Steps in Building Effective Branding
Building effective branding is key to ensuring your product is not only known, but also remembered and loved by consumers. The following are some important steps that need to be followed in building effective branding:
Determining the Target Market
The first step in building branding is understanding who your target market is. Knowing your consumer demographics, psychographics and behavior will help create the right message and identity.
Building Brand Identity
Brand identity includes the brand name, logo, colors, typography and other visual elements. Make sure these elements reflect your brand's character and values. Consistency in the use of visual elements is critical to building recognition and trust.
Creating a Brand Message
Brand messaging is how you communicate with consumers. It includes taglines, slogans, and narratives that tell your brand story. Messages must be clear, consistent, and relevant to your target market.
Implementing Marketing Strategy
In the digital era, a strong online presence is essential. A professional website, active social media profiles, and a good content strategy will help you reach and interact with consumers more effectively.
Supporting Innovation
A good understanding of user needs and expectations can drive innovation and better product development in the future.
Product branding is a crucial element in modern business strategy. By building a strong identity and creating consumer trust, effective branding can bring long-term success to your product.
By following these principles, you can ensure your products are not only known, but also loved by consumers.
Product branding is only one of many management strategies that companies can carry out. Understand more about the various elements of management strategy through the Strategic Brand Management program from prasmul-eli.
With a study duration of 2 days, this ISO 9001:2015 certified program has the following five discussions:
- Product and Brand Management
- Brand Elements
- Brand Identity
- Brand Loyalty
- Brand Extensions
Contact prasmul-eli for more complete information via this link!
User Experience (UX) is a crucial element in the success of products and services in the digital era. In various applications, UX plays an important role in determining how users interact when using a product.
Creating a positive experience is not just about providing an attractive appearance, but also involves a deep understanding of user needs and behavior. Good UX can increase user loyalty, reduce churn rates, and even accelerate product adoption in competitive markets.
This article will thoroughly examine various aspects of UX, from understanding to its practical application in the business world.
Definition of User Experience (UX)
User Experience (UX) is a concept that covers all aspects of a user's interaction with a company, service, and product. The goal is to create a satisfying and enjoyable experience for users, and meet their needs and expectations.
UX focuses not only on visual design, but also on the entire process that users experience. This process starts from searching for information to using the product or service.
User Experience (UX) Function
The function of user experience in product development is vital to achieving success in a competitive market. By understanding the various key functions of UX, companies can create optimal experiences and in turn increase retention and loyalty.
Here are some of the main functions of UX:
Increase User Satisfaction
The main function of user experience is to increase user satisfaction by making their interaction with the product easier, efficient and enjoyable. Good UX ensures that users can quickly find what they are looking for and complete tasks without difficulty.
Increase User Retention and Loyalty
Positive user experience drives loyalty. When users feel comfortable and satisfied with a product, they tend to continue using it and even recommend it to others.
Increase Efficiency and Productivity
Good UX can increase user efficiency and productivity by providing an intuitive and functional interface. Users can complete tasks faster with fewer errors, which means they can focus on more important things.
Reduce Customer Support Costs
Products with poor user experience tend to cause frustration and confusion for users, which ultimately increases the need for customer support. By investing in improving UX, companies can reduce the number of support calls and requests, which in turn can lower operational costs.
Increase Conversion Rates
In the context of e-commerce or sales-oriented applications, good UX can increase conversion rates. By designing a clear and simple user path from start to finish, users can make purchases more quickly.
User Experience (UX) Components
Each UX component plays an important role in creating a holistic and satisfying experience for users. The following are the main components of user experience, including:
- Usability: Provides easy navigation, an intuitive interface, and ease in achieving user goals.
- Interaction Design: Ensure interactions between users and products are smooth, responsive, and efficient.
- Visual Design: Attract users' attention through aesthetic and functional visual elements.
- Information Structure: Organizing content and information so that it is easy for users to find and understand.
- Accessibility: Ensure that the product can be used by everyone, including those with disabilities.
- User Satisfaction: Measures the extent to which users are satisfied with the experience they get.
The Importance of User Experience (UX) for Business
Implementing the right UX can build stronger relationships with customers, increase loyalty and ultimately drive business growth.
The importance of user experience in business can be seen from the various benefits it offers, some of which are:
Increase User Satisfaction
The first benefit of user experience is that it can increase customer satisfaction. A good experience makes users feel satisfied and happy using the product or service. This can increase user loyalty and retention.
Reducing Costs
Products designed with good UX can reduce customer support costs because users experience problems or confusion less frequently. This reduces the number of calls and assistance, which in turn reduces the workload of customer support teams and lowers operational costs.
Increase Conversions
Websites or apps that have good UX tend to have higher conversion rates. This is because users feel comfortable and easy in achieving their goals, such as making purchases.
Building Brand Reputation
Positive experiences can improve brand image and reputation. Users who are satisfied will usually recommend the product or service to others.
Supporting Innovation
A good understanding of user needs and expectations can drive innovation and better product development in the future.
User experience is a very important aspect in product and service development. By focusing on UX, companies can increase user satisfaction, reduce costs, increase conversions, and build a strong brand reputation.
UX is just one aspect that you need to master in the world of Digital Marketing. Optimization still needs to be done in the realm of search engines, websites and social media.
Understand more about the application of digital marketing to companies through the Digital Marketing Fundamentals program from prasmul-eli.
With a study duration of 2 days, this ISO 9001:2015 certified program has the following seven discussions:
- Introduction to Digital Marketing Strategy
- Customer Personas
- Social Media Marketing
- Digital Paid Advertising
- Digital Free Advertising
- Customer Journey & Online Sales Funnel
- Digital Marketing Strategy & Workshop
Contact prasmul-eli for more complete information via this link!
