Customer Loyalty Programs

Customer loyalty programs are a marketing approach cafes, offices, and restaurants use. 

It involves recognizing and rewarding loyal customers who engage and purchase your products or hire your services frequently.

Most businesses give out points to their customers or upgrade them to higher levels as long as they keep patronizing them.

Customer loyalty programs take tons of different forms; some business owners may choose to use one pattern, while some may choose to combine more. The main objective of customer loyalty programs is to increase advocacy and retention.

There are formats all customer loyalty programs use, and they consist of hardware, communication, software, marketing tactics,  gamification, commercial incentives, event planning, and more. This is done to help all brands build lasting relationships with their customers.

This article will be valuable in helping you choose a customer loyalty program that will suit your customers and your business needs.

Types Of Customer Loyalty Programs

Different customer loyalty programs have great features that will drive sales to your business and value to your customers.

1) Tier Programs: This loyalty program is where a consistent customer gets various benefits that depend on their rank; the higher a customer’s rank, the greater and better the rewards get. 

For your customers to earn exclusive rewards and get to higher tiers, they need to engage and purchase more of your products. This helps businesses to rank their customers based on engagement and sales metrics.

2) Points Programs: This loyalty program is the most common. It qualifies customers to accumulate all their points with their purchases which they can redeem for free products and services. 

There are other ways loyalty programs allow their customers to earn points, it includes birthday celebrations, referrals, positive reviews, sharing your post on their social media handles, and more.

3) Value Loyalty Programs: This customer loyalty program is when a brand donates a certain percentage of all its sales profit to a charity organisation instead of its customers. 

This program is an innovative and inspiring way for businesses to embrace advocacy for economic issues, environmental issues, etc. 

The significant reward for their customers is knowing that their contribution to purchasing from your brand benefits their community and society.

4) Paid Loyalty Programs: This program involves a customer paying a one-time or recurring fee to receive continuous and immediate benefits from a brand. 

If your brand can successfully convince its customers of the value of this loyalty program, it will build a higher customer value. 

Studies show that customers are 60% likely to overspend on a brand once they have subscribed to this customer loyalty program.

Note: If a customer chooses to pay for a loyalty program, they hope to get as much out of it as possible.

On A Final Note;

At Cafe Furniture Melbourne, we have an exclusive Vip program. Fun fact: All our customers are VIPs. Visit our website to know more and hopefully sign up for our VIP customer loyalty scheme. Know that our loyalty schemes come with a reward.