What Are Loyalty Programs?
A loyalty program is a marketing tactic created to motivate customers to keep using the products or services of a company. It is the concept of rewarding one's customers for repeat business, therefore encouraging more of it. It lowers sales costs (as new customers are more costly than repeat customers), allows companies to profile customers more effectively, provides lots of data, nurtures companies' relationships with their customers, creates brand advocates and so much more.
What Are The 4 Types Of Loyalty Programs?
1. Point-Based Loyalty Programs
Point-based programs have very simple logic. They allow customers to accumulate points (usually with purchases) which they can redeem for discounts, cashbacks, free gifts, etc. With point-based programs, customers may also collect points by leaving reviews, posting on social media, gamified engagements, and they may even be gifted points for special days.
2. Tiered Loyalty Programs
Tiered customer loyalty programs are a kind of membership where clients receive various advantages based on their rank, with more rewards being offered to customers in higher program tiers. One of the most common forms we might come across with this type of program is when tiers are named after precious metals, such as gold tier, platinum tier, etc. Businesses often assign membership levels to groups based on certain parameters, such as sales or engagement, in an effort to encourage customers to spend more and advance to higher tiers for better benefits.
3. Paid Loyalty Programs
Paid loyalty programs, often known as fee-based loyalty programs, offer clients continuing benefits in exchange for a participation fee. These costs could be one-time or ongoing. When opted for, subscriptions can benefit organizations looking to retain customers for longer periods of time. In fact, according to a recent McKinsey analysis, consumers who participate in paid loyalty programs are 62% more likely to spend more money.
4. Value-Based Loyalty Programs
Through value-based programs, a business promises to provide a portion of its earnings to one or more charities, letting customers select the group that most closely matches their personal values. Unlike the other types of loyalty programs, value-based loyalty programs do not directly benefit customers but rather hold emotional value for them. These programs are often used with others to create more personal connections with customers.
Take Your Loyalty Programs To The Next Level
Loyalty programs are a great way of rewarding your customers and showing them how much you truly appreciate their business. Why wouldn't you want to take it even further and provide them with a personalized experience, making them feel as special as they are to you.
Our platform allows you to create personalized videos at scale by spending the time and effort it takes to create just one. With BHuman.ai, you can send personalized video updates, inform them individually, and offer discounts and promos, all while addressing each and everyone of your customers by name. In fact, you can personalize all types of interactions and communication, from reach-out mails to welcome videos, even personalized recommendation videos with our built-in recommendation engine. The use cases are only limited by your imagination!
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To learn more about the other ways you can utilize BHuman.ai for your business, visit our site at BHuman.ai. You can also contact us at email@example.com and we will be happy to inspire you with all the ways you can use BHuman.ai to improve your customer retention efforts.