According to Capgemini Consulting, 77% of loyalty programs fail within two years of launch. They explain the reason for this is the transactional nature of the programs, meaning that customers can only earn points with purchases. However, in our experience, the failure of every program can’t be explained away this simply.
Yes, a good loyalty program should reward a wide range of customer activities beyond purchases, but even if you launch a brilliant loyalty program (like Marvel’s Insider Program), where fans are rewarded for following the company’s social channels, inviting their friends, and watching the latest product videos, something will still be missing from the picture.
What is it, you ask? The answer: consistent communication that ensures a personalized experience across all channels. Here are three tips for, and examples of, loyalty programs based on customer data.
3 Examples of Successful Customer Loyalty Programs
Here are three examples of programs that provide immense value for customer loyalty. Below, we explore each one in depth and provide tips to replicate their successes.
1. Encourage First-Time Buyers to Review Products
BrightLocal reported that 88% of customers trust online reviews as much as personal recommendations. Additionally, reviews have a significant influence on SEO. Now, let me share the strategy one of my favorite stores implemented to encourage its customers to write those reviews.
Tokyo Otaku Mode is a store, headquartered in Japan that distributes products globally. The company was founded in 2012 and has a great presence, with 19 million followers on Facebook.
First, an important note: in their product packages, Tokyo Otaku Mode includes a nicely designed thank you letter, a branded badge, a shopping bag, and a paper holder with a unique illustration. As you can imagine, with this much swag, when a customer receives their first order it’s a wow-worthy experience; one to which the brand wants to draw attention.
Tokyo Otaku Mode launched an email campaign announcing that they would reward 50 loyalty points to those who wrote a product review or created and posted an unboxing video. It’s a smart tactic to get user-generated content for their brand.
2. Run Double Point Events During Holidays
Another great tactic from this shop was their Thanksgiving email campaign. The store sent out emails and mobile app notifications exclusively to loyalty program members via their iOS and Android app. In the message, they proposed that if the customer made a purchase during Thanksgiving, they would receive 20% cash back in the form of loyalty points. The twist was that this opportunity was only applicable to 2016’s bestsellers.
This was a good strategy for:
- Promoting last year’s bestsellers again.
- Rewarding their currently active loyalty members with a special event.
- Offering loyalty members a chance to earn more points (literally more future discounts).
- Winning back the attention of loyalty members who hadn’t made any purchases in recent months.
It’s a great tactic to run special customer loyalty campaigns for those members who haven’t been active for a certain time period. For example, those who didn’t make a purchase in the last three months. The Bergdorf Goodman department store just announced a triple point event for exactly that.
3. Reactivate Sleeping Customer Segment with a Survey
There is a certain group of customers who made a few purchases in your store at one point. They could have been loyal customers, but for some reason they stopped purchasing your products months ago.
According to Accenture, 80% of customers who left a store felt that the company could have done something to retain them. See how Lancome, entices these customers back by offering them 100 loyalty points (equal to $10) and a chance to express their reasons for leaving and thoughts on what would make them stay.
Bonus Customer Loyalty Program Ideas
Members of your customer loyalty programs should be encouraged to revisit or interact further with your brand in many different ways. The key to improving interactions with customers is to set up loyalty offers based on data, and then communicate these offers effectively.
We have compiled a collection of additional loyalty campaign ideas for you to keep in mind:
- Double-point events for brand advocates who post product reviews.
- Introduction of new experiential rewards.
- Reminders to customers who have unspent loyalty points. Hint: Listing some alluring rewards on which they could spend their points will further encourage them to act.
- Point bonuses on the anniversary of their loyalty membership registration.
- Notifications to members as they approach a new customer loyalty tier.
If you would like to see how a loyalty program will help you take your customer retention strategy further, request a VIP demo from Antavo Loyalty Management Platform. Antavo is a loyalty management platform for B2C retailers and FMCG brands to run gamified loyalty programs, and a trusted third-party partner of Emarsys.