Today, more and more companies include loyalty schemes in their marketing strategy since it’s one of the most effective ways to get to know their customer and get him in the store again and again. The question is what kind of loyalty program should your company choose?
Honestly, there is no perfect loyalty program. It depends on the organization that it is applied. The choice is related to the company’s goals, industry’s characteristics and clientele’s needs.
Loyalty programs could be classified in three basic categories, which are differentiated during the implementation; Rebate loyalty program, Discount loyalty program, Points loyalty program.
Rebate/Cash Back programs are basically discount programs with the difference that they require to reach a limited amount before the discount is given. The limited amount can be based on value (ex. Total revenue) or on time (ex. Number of visits) or other criteria (ex. Number of orders). The rebate is often given in the form of a coupon, which can be either a discount (ex. 10% off in the next order) or a value (10€ off in the next order).
Discount programs offer a discount at the members in specific products or in the total purchase amount. The difference, between this program and the Rebate one, is that the Discount program gives the discount instantly and does not require the attainment of any other limit or any other condition.
Check now the success story of ‘Points of Happiness’’Accessorize points loyalty program.
Points programs aim not only to avoid the negative perception of “discounts”, but also to help the members choose their rewards and redeem the points in the store or in affiliate companies.
Keep up with us for more ideas on successful loyalty programs or just email us and one of our experts will gladly answer all your enquiries.