Loyalty programs are designed by brands to deepen customer relationships, increase retention, and ultimately drive higher customer lifetime value by rewarding members with currency for completing incremental brand-valued actions in exchange for a guaranteed reward or chance-to-win prize.
There is no one-size fits all approach to loyalty. Loyalty program structures can vary widely based on core objectives, budget, and reward preferences, and include:
– Engagement Loyalty
– Gift with Purchase
– Punch Card Loyalty
– Points-Based Loyalty
Each loyalty program is custom built after a collaborative scoping engagement with the sponsoring brand. Programs typically employ a combination of engagement and transactional tactics to drive loyalty beyond the transaction.
Driving sales is often a primary objective for loyalty programs, and there are many available purchase validation methods for brands based on packaging restrictions, liability/risk tolerance, and planned reward strategy that include:
– Receipt upload
– On-pack codes
– Codes on receipt
– Direct shopper card integration
– Direct app integration
What Marketing Objectives Does Loyalty Address?
Content Creation & Sharing
Mobile App Download
Mobile App/Cross-Channel Trial & Adoption
Sales & Traffic Drivers
Customer Advocacy & Referrals
Brand Ambassador Identification
Reviews & Testimonials
Lapsed Customer Engagement
Surprise & Delight
Media Spend Optimization & Amplification