Acquiring new customers is far more expensive than keeping them. To make up for the loss of one customer, businesses have to acquire three new ones. With retail margins currently stretched to the limit, retaining customers has become more important than ever.
To foster deep relationships and encourage customers to buy again, brands are investing heavily in customer loyalty programmes. So much so that the global loyalty programme market is set to skyrocket from $6.3 billion in 2023, to $23.65 billion in 2030.
In this post, we’ll look at some companies that are running highly successful loyalty programmes - with some key takeaways you can apply to your own.
We’ll also examine the importance of keeping your programmes as secure, and exclusive, as possible - and how a Promotion Experience Platform is the best tool to help you do this.
Suggested reading: Our free eBook Do You Need a Promotion Engine demonstrates the importance of investing in dedicated promotion software for campaign success.
Why invest in a customer loyalty programme?
Here are some of the clear benefits of running customer loyalty programmes.
- Proven way to boost revenue: Loyalty programme members are 59% more likely to spend more money with a brand, and spend more.
- Customers like them: 81% of UK consumers use loyalty programmes, with another 7% saying they haven’t used one, but were interested.
- They bring back churned customers: Based on the data collected via loyalty programmes, businesses get a better idea of customer preferences and behaviours so they can send relevant, highly personalised messages, to encourage customers to come back and shop again.
- They bring traffic to your site: Loyalty programmes make customers feel like they’re getting a good deal, making it more likely that they’ll visit your site more frequently.
- Customers will refer others: Happy customers are more likely to recommend your goods and services to friends and family - and talk about their good experiences to connections on social media.
Types of loyalty programmes
The most common incentives included in customer loyalty programmes involve:
- Member-only discounts or products/services.
- Special/free services e.g. free shipping.
- Early access to new releases.
5 Examples of brands who have built next-level customer loyalty programmes
1. AVIS: Preferred customers loyalty programme
Avis is now considered one of the top rental car rewards programmes. Avis Preferred offers members rewards they can use to receive discounts, upgrades and free rental days.
Previously, Avis had struggled with engagement in loyalty. They were especially hampered by competition from price comparison sites and needed to find a way to ensure customers engaged with their loyalty programme right from the start.
By working with Promotions Experience Platform Uniqodo, Avis developed personalised email welcome messages for their new Preferred customers. The emails included unique codes which were auto-applied when customers went to check out.
Takeaway: Using unique codes, that only selected loyalty programme members can use, ensures you’re targeting the right customers with personalised offers, and rewarding them appropriately for staying loyal to your brand.
2. Tesco Clubcard
Rated most consumer-friendly supermarket loyalty programme in the UK in 2022, the loyalty scheme has been going since 1994 and now has 16.5 million active users.
Via its rewards programme, Tesco can gather comprehensive sales data on two-thirds of the baskets it sells, and acquires a constantly expanding pool of information about the buying behaviours of its shoppers.
For example, Tesco can understand how a shopper’s behaviour changes seasonally, and even according to the weather. They can then adapt promotions accordingly and provide members with added value incentives, and member perks.
Takeaway: By putting customers first, leveraging customer data, and personalising the shopping experience, Tesco has managed to create a community of loyal supporters.
3. Starbucks Rewards
A classic example of a loyalty programme, this simple, yet effective points-based system allows customers to sign up for free, and earn stars for purchases that are redeemed via the Starbucks Loyalty app. Starbucks also rewards customers for engagements, as well as purchases, for example leaving reviews or making an order via their app.
The Starbucks app is downloadable on any device and members can use it to check their star balance, track how far they are from their next reward, place orders and preload the card with credit.
The Starbucks app has 31 million active users while the programme generates an incredible 40% of the brand’s UK revenue due to repeat visits.
Takeaway: By engaging with customers via an app, Starbucks fosters consistent engagement and ensures that users stay connected to their loyalty programme.
Uniqodo’s flexible promotional engine works seamlessly with mobile apps, to enable push notifications, along with the ability to deliver digital coupons and gift cards within the mobile app, reducing clutter and increasing convenience.
4. Amazon Prime: Paving the way for premium customer loyalty programmes
The jury’s still out on whether Amazon Prime is “technically” a loyalty programme however, it gives us key insights that could be applied to all types of customer loyalty programmes.
Amazon Prime has a staggering 200 million members worldwide. The paid-for subscription service offers members a wide array of benefits from free shipping and streaming services, to exclusive deals, all of which encourage customers to stay loyal.
Takeaway: Exclusivity, and the opportunity, for example, to be first to take advantage of Prime Day offers, creates a sense of belonging amongst members. The monthly subscription fee creates a psychological incentive to make the most of the programme - making customers more likely to shop on Amazon again.
5. SimplyBe
N Brown Group fashion subsidiary SimplyBe runs a successful rewards programme called Simply Be Perks. Once signed up, customers are shown personalised product selections, and they’re eligible for free gifts with purchases and member discounts.
The more frequently customers shop with SimplyBe, the greater the value of the discounts they receive, reflecting SimplyBe’s commitment to putting their loyal customers first.
When they were launching their customer loyalty programme, SimplyBe worked with Promotion Experience platform Uniqodo. Uniqodo were instrumental in helping them build personalised customer journeys that allowed SimplyBe to show customers exclusive, individual offers.
Takeaway: Partnering with a powerful Promotion Experience platform can help you create seamless, unique, experiences for your loyalty club members.
Uniqodo: Helping you maximise the success of your customer loyalty programmes
Whether you’re starting a loyalty programme, or looking for ways to improve things, Uniqodo can support you. We can help you deliver seamless promotional journeys that drive customer retention, and encourage shoppers to purchase from you over and over again.
Our software is easy to integrate with your current promo engine or loyalty programme software, so there’s no need to disrupt or switch, but simply upgrade.
Importantly, Uniqodo helps you to avoid promo abuse, so you can maintain your profit margins, as well as keep on top of your campaign effectiveness. By enabling single-use,
1. Focusing on existing customers to unlock growth
2. Loyalty Management Market Share & Growth Analysis (2030)
3. Loyalty Programs: What Works and What Doesn’t
4. Loyalty Programs Penetration Rate UK November 2022
5. Emarketer UK Loyalty Programs 2023
6. The Power of Customer Loyalty
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