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An In-Depth Look at Some Successful Customer Loyalty Strategies and Programmes

submitted on 21 August 2021 by theloyaltyworks.co.uk

The loyalty of your customers may be foremost on your mind, and it’s something that you can slowly gain through time – and consistency. We’re talking about the consistency of your customer service, the consistent quality of your products or services, and your consistency when it comes to building on your relationship with your customers. But whilst coming up with a good strategy and implementing it to retain your customer's loyalty isn't an easy matter, it's perfectly doable - and if others can reap the rewards of their efforts, so can you. But some companies have perfected their customer loyalty strategies and programmes, and if you would like to perfect yours, you could gain insight from what they have done and how they did it. Here, then, is an in-depth look at some successful customer loyalty strategies and programmes that can help you with your own.

Why it’s important to focus on loyalty
But first: why is it important to focus on loyalty? Loyalty comes in the form of someone’s commitment to your business and brand, and loyal customers will always select you over your competitors. This could be due to various reasons - excellent customer service, an unbeatable and brilliant product, or how you differentiate your business from others.

It's essential to focus on the loyalty of your customers for the simple reason that your loyal customers can be your most important asset. Regular customers often spend more, and they often have bigger transactions. Research has proven this to be true, as the average regular customer can spend as much as 67% in the first 31 to 36 months of their relationship with you compared to the first month to the sixth month. But here's the other side of the coin: if you try to bring in a new customer, you can spend more than 25 times the money you are likely to spend on an existing customer.

Your list of great examples of loyalty strategies and programmes:

Amazon Prime
Amazon Prime has come up with one of the most brilliant loyalty programmes with its membership. The membership is subscription-based, and it comes with an annual fee. However, with it, customers can avail themselves of free shipping and video streaming through Prime Video. The programme has been successful for the brand because members have been known to spend about $1300 annually on the site compared to $700 annually from non-members.

The North Face
The North Face has found a way to strengthen its relationship with customers by making them feel appreciated – and its exclusive loyalty programme has been a complete success. It offers a ‘VIPeak’ programme where customers are categorised by tier, and each level has specific rewards depending on what people spend. As a result, members spend up to 20% more compared to other shoppers!

The company has one of the most successful apps on mobile ever introduced, and almost 24 million people use the app to purchase something at least once every six months. The app is easy to use, and it allows customers to load a particular amount through their mobile devices, which they can then use to pay for various items. Customers also use the app to order and pick it up at the nearest store. Every time they make a purchase, they get those famous Starbucks stars, and they can redeem this for free treats and drinks.


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