The subject of consumer loyalty has long interested me. Has the popularity of loyalty programmes declined recently? Or have consumers’ demands altered more than their desire to connect with a brand? A Yotpo study found that about 61% of consumers only have loyalty for one to five brands. This suggests that the key question about loyalty programmes is not whether people like them or not, but rather whether the one you have is good enough to rank among their top 5. To be successful, you must lay the groundwork correctly and choose a loyalty programme type that precisely matches your target market and business style.
Testing Your Fit with Different Loyalty Program Types
Loyalty programmes occur in a wide variety of forms and sizes, but after examining recurrent patterns and essential characteristics, we’ve pinpointed 8 distinct kinds. We’ve put together a guided list with related statements that are tied to each programme to assist you in identifying the kind of programme that would be most suitable for your company and strategy. Which types of loyalty programmes might be the most advantageous for you will be indicated by the bracket with the majority of the statements you agree with.
Based on actual client experiences with Antavo’s Loyalty Lab, the list was created. Even though the test only suggests one possible programme type, I’ll explain how to receive a professional, thorough evaluation at the end of the post.
Build long-term engagement via tiered loyalty programmes.
When it comes to client purchases, our brand must contend with a longer deliberation period.
We provide items that appeal to the heart.
We value a high-quality buying experience.
Top-spending members should be protected from the competition.
Our goal is to create enduring engagement.
If you identify with this part, a tier-based loyalty programme would be your best option. Tiers are preferred by wealthy and higher-spending clients since they equate status and offer exclusive privileges (particularly at the top). Tiered loyalty programmes can assist you in more effectively segmenting your audience through customised communications and incentives. Last but not least, advancing to a higher tier requires dedication, and elite members are less likely to forfeit their rights by joining a rival organisation.
Gamified Loyalty Programs: Going Beyond Transactions for Engagement
We’re looking for a customer-challenging loyalty programme.
Our top priority is emphasising shared values with our clients.
We want to provide a consumer experience that is gamified.
Our objective is to encourage repeat customer behaviour.
We want to promote involvement that is unrelated to purchases.
This bracket demonstrates how a Gamified loyalty programme, which is built around interacting with customers through a series of badges or challenges, could be advantageous for you. A gamified program’s overarching objective is to motivate participants to repeatedly engage in actions that benefit your company. This includes leaving reviews or making repeated monthly visits to the website. The intriguing thing about this category is that gamified programmes function best in conjunction with other kinds of client loyalty programmes, such Earn & Burn or Tier-based programmes.
Programs for Influencers and Referrals That Leverage Word-of-Mouth
The number of our customers needs to grow.
Our goal is to boost word-of-mouth.
We want to know who our most loyal clients are.
We are looking for clients who share our values and are like-minded.
Our goal is to increase our credibility.
Compared to paid marketing, people are more likely to trust recommendations from their friends and relatives. Because of this, your consumers are your product’s finest marketers and advocates. By rewarding your customers for promoting your business, you may increase credibility and customer relationships at the same time.
Hybrid Type Loyalty Programs: Succeeding by Being Flexible
If you noticed relevant components in multiple brackets, it may be ideal for you to choose a loyalty solution with a variety of components. This is not a disadvantage; on the contrary, it allows you to develop a very original concept that is consistent with your brand image and generate a larger variety of KPIs. It’s important to keep in mind that many loyalty programmes start out as one type and then, as customer input is gathered and new features are introduced, they develop into a hybrid programme over time.
How to Get a Comprehensive Evaluation
As was stated earlier, the purpose of this post is just to provide you with a broad recommendation for the kind of loyalty programme that will work best for your company. However, Antavo provides a comprehensive requirements assessment tool that uses a tried-and-true methodology to gauge and evaluate factors like urgency, exclusivity, and maturity in order to suggest a highly specific and efficient programme structure. It also includes a sophisticated questionnaire to help you identify your most urgent KPIs.
Fill out the official contact form or invite us to your loyalty RFP to learn more about Antavo’s needs assessment tool and how we can assist you in creating a profitable customer loyalty programme.
Don’t forget to download Antavo’s Customer Loyalty Report 2022, a comprehensive report that offers a wealth of data and upcoming market trends to assist you in navigating the world of next-generation loyalty programmes.