It’s difficult to convert casual consumers into devoted customers. especially now, when many are finding it difficult to make commitments. However, since loyal customers spend an average of 30% more than new ones, focusing on loyalty will result in fewer expensive client acquisition initiatives and greater overall revenue.

But retaining customers is a two-way street. You must provide something of value in return if you want to keep clients for a longer period of time. You must create a detailed strategy with client loyalty as your guiding principal if you want to achieve it. Customer loyalty programmes can help in this situation. If you handle things properly, you will not only attract satisfied, devoted clients but also develop a much improved brand perception.

Which customer loyalty programme kinds are most prevalent?

Loyalty schemes with points

the most popular programme type where users accumulate points (or other currency) that can be exchanged for incentives (discounts, perks, and more). Best for encouraging quick, inexpensive purchases.

Tier-based loyalty schemes

the ideal kind of loyalty programme for sustained member rewards and engagement. As clients advance to higher levels, the value of the benefits in this form of reward scheme increases. These schemes perform best when combined with more expensive expenditures, like airfare or designer goods.

Pay-to-win loyalty scheme

paid programmes may sound contradictory, but as the Amazon Prime service has shown, consumers are willing to pay a small charge for a better shopping experience, faster delivery, or a set discount on every transaction. For products that are often purchased, this kind of programme works well.

initiatives that reward loyalty

these initiatives forego financial rewards in favour of values dear to the target population. These could consist of behaviours like giving to charities, growing trees, and other value-centered interactions. They are most effective for companies having a distinct social or environmental mission and sustainability objectives integrated in their branding and business strategy.

Clubcard for Tesco

It’s not necessary for loyalty programmes to exude an air of exclusivity. A good illustration of that is the Tesco Clubcard. Tesco markets itself as an everyday affordable retailer of everything. Tesco should place more of an emphasis on the financial benefits of joining the programme than on brand-specific experiences given the context of their brand.

Tesco Clubcard once provided a 1-3 percent discount on each purchase. Since points may now be used to pay for meals, movies, and other activities, it can be considered a hybrid programme that combines a point-based structure with partner support. In addition to Tesco stores, points can also be accumulated through participating partners.

Why is Tesco Clubcard considered to be one of the top retail loyalty programmes? The audience is primarily cost-conscious, therefore offering them quick advantages is the greatest approach to keep them interested for longer. By introducing “boost” tokens, Tesco took their loyalty programme to a new level. These tokens encourage customers to keep coming back to the brand rather than using up all of their rewards on their next purchase.

A Body Shop

It’s time to investigate more original methods of encouraging consumer loyalty. With their Love Your Body Club, which functions more as a community than a typical point-based programme, The Body Shop took a CSR-focused approach. The basic guidelines are rather straightforward: members receive 15% off their initial purchase, accumulate 10 points for every £1 spent, and receive a £5 reward after reaching 500 points. Other benefits include a warm birthday present, special discounts, and early access to limited editions.

So what is the twist? The Body Shop, which is renowned for its dedication to sustainability, allows members to give their reward certificates to one of their affiliated charities