Loyalty programs can be defined as the strategies you apply in your brand to ensure the loyalty of your customers. That is by offering them rewards that include discounts or free services as a result of their loyalty to your brand. Implementing these programs helps you increase customer satisfaction as well as your profits because regular customers spend 67% more than new customers. There are many types of loyalty programs that are implemented by major brands, but the most common of them is the loyalty points program, which we’ll talk about in this article. Furthermore, we’ll talk about how to apply it in your brand to ensure the return of your customers and increase their satisfaction and loyalty to your brand.
What is the Loyalty Points Program?
It is the easiest loyalty program, based on an easy principle. The more the customer spends the more, the more rewards he’ll get. In this program, the customer gets a certain number of points whenever he buys from your brand, and the number of points earned changes with the price of the product. These points can be redeemed later for rewards or discounts for the customer.
Why should you apply it?
The points system is considered one of the easiest loyalty systems adopted by major brands for several reasons, the most important of which is that it is easy to apply and use. This means that you will not have difficulty designing a loyalty point program that suits you. In addition, your customers will not feel that it is difficult to register in it and get their rewards.
In addition, this program guarantees that you will increase your average customers’ spending and your Customer Lifetime Value. Not only that but also the points programs will encourage them to come back again and stay loyal to your brand and not run away to your competitors.
This program has become popular among famous brands, especially in online stores, so we see that 73% of used loyalty programs are points programs. Among the most popular brands that use these points are Starbucks or The North Face. They offer their customers a number of points for every sale in their stores.
How to apply the rewards points program effectively?
1. Make your program easy:
Make your points program easy to use. Don’t make things difficult for your customers. Whether in subscription or in the process of redeeming their points for rewards. Because this will reduce their participation in your loyalty programs and create a bad experience for them in general.
2. Use the referral system:
Use referral strategies with the loyalty points program. Reward your customers whenever they recommend your brand to an acquaintance or bring them on. This will help your brand to grow and increase profits and customer loyalty.
3. Make your points program dynamic:
Always make sure to change and develop your points program. Make it flexible with any occasions or holidays, or with the multiple subscriptions of your clients. For example, doubling the points obtained on a national holiday, a client’s birthday, or at a specific hour of the day (happy hours). Or double your customers’ points as they move up in subscription plans.
4. Make points with an expiration date:
Create urgency for your customers by making their points with an expiration date. This will make them rush to return to your store to buy and earn more points or to exchange them for one of the rewards before they expire. This strategy will help you to significantly increase the return rate of customers in a shorter time.
5. Use a platform to run your own loyalty programs:
Employ the services of a loyalty program solution such as Boonus to help you design, organize, and market better loyalty programs to your customers to ensure their success and increase your sales.
Here at Boonus, we are always keen to provide the best loyalty solutions (including the loyalty points program) for your brand with your own identity to ensure the success of your marketing campaigns and increase the loyalty and retention rate of your customers. We also provide you with excellent support at all times. Apply immediately, relax, and take advantage of the best benefits with us.
In conclusion, we can say that easier is always better. Therefore, the Loyalty Points Program has always proven successful due to its ease in application and use. Not only that, it is like all other loyalty programs, helps you increase the loyalty of your customers and increase their purchase rate, which means increasing your profit rate.