Top Loyalty Reward Programs to Inspire Yours

A well-planned loyalty program might be the thing your business needs for 2016. If you encourage and reward your shoppers, they will be more likely to remember and choose to come back in the future. The stats are pretty impressive:

  • It’s 6–7 times more expensive to acquire a new customer than it is to keep a current customer? The probability of a sale from a brand new customer is only 5–20 percent whereas the probability of a sale from an existing customer is between 60–70 percent. In fact, 80 percent of your future profits will most likely come from 20 percent of your existing customers.
  • The cost of of acquiring new customers vs. retaining the customers you already have is pretty major. According to a study by SweetToothRewards.com, their clients gain an average year-over year sales lift of 27 percent, increase the lifetime value of a customer by 40 percent, and see an average increase in repeat purchases of 20% — all because of a loyalty program. See their video below for more.

1. Tiered — Sephora

Sephora has one of the best ecommerce loyalty programs out there, in fact it is one of the best loyalty programs period. The program success comes from exclusivity and status-based rewards. The highest tier in their program is the VIB Rouge ($1,000 spent in a calendar year) and comes with some amazing benefits. All the upper-tier benefits play on status, like invites to parties and events and exclusive access to the Beauty Studio.)

2. Points — Nordstrom

Nordstrom’s famous Points system rewards shoppers for purchases made, and the rewards are outstanding. At every tier shoppers get access to more and more rewards. Sephora has one of the best ecommerce loyalty programs out there, in fact it is one of the best loyalty programs period. The program success comes from exclusivity and status-based rewards. The highest tier in their program is the VIB Rouge ($1,000 spent in a calendar year) and comes with some amazing benefits. All the upper-tier benefits play on status, like invites to parties and events and exclusive access to the Beauty Studio.)

3. Upfront Fee for Benefits — Amazon Prime

An Amazon Prime subscription currently costs $99. This may seem steep, but if you’re shopping online often, buying books, or watching videos, the benefits outweigh the costs according to the 40 million users in the U.S.

4. Gamification — Starbucks

The My Starbucks Rewards program is a fun, interactive way to engage customers and to keep them coming back for more.

A recent article by Neil Davey, Editor for My Customer.com, explained that the secret behind the glitz of the ‘My Starbuck’s Rewards’ program is not only increased customer convenience through the integration of payment methods and mobile technology, but the golden touch of gamification. Essentially, what gamification does in a marketing context, is add that element of fun to your strategy to capture the attention of the customers; making them want to be engaged with the brand.


Originally published at www.shopial.com on January 14, 2016.

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