Similar to autos, there aren’t many differences between one loyalty programme and another from the outside. Loyalty programmes help you keep consumers while cars get you from point A to point B, right? The truth is that the experience is different because of the little things. While some people want a quick sports automobile, others require a dependable family vehicle to transport their children to school. In a similar spirit, brand-focused incentive programmes and retail loyalty programmes have quite different objectives.
Moreover, the epidemic has significantly altered store culture and customer behaviour. Retailers now need to establish a firm footing in the new customer reality. Implementing a rewards programme specifically designed for the retail business model is one way they’ve done that. Unquestionably, a solid loyalty programme may help retailers grow stronger than ever by acting as a major differentiation. According to Gartner’s analysis, 71% of retail companies use membership programmes, which suggests that brands are aware of this.
A Retail Loyalty Program: What Is It?
A reward programme created specifically to address the industry-specific issues that most merchants confront is a retail loyalty programme. Customers have access to a big catalogue of products from numerous companies, which suggests that this market could see high buy frequency. Retailers need to understand that in the post-Covid era, having an online presence is now necessary in addition to brick-and-mortar locations in order to remain competitive. especially given that Forrester predicts that by 2023, online retail sales will account for 27% of all retail sales. Retail loyalty programmes are unique in that they require simultaneous management of their technology, strategy, and corresponding hardware in order to obtain a comprehensive picture of their customers.
How Differ From Brand Loyalty Programs Are Retail Reward Programs?
Retailers confront more intense competition and increasing buying frequency. This is so because shoppers in retail settings typically have bigger basket values. Transaction-focused loyalty schemes are also common in retail. These programmes’ benefits, such free delivery or longer return policies, typically facilitate the purchasing process.
While brands want to engage customers and promote word-of-mouth. By nature, they set themselves apart, but they still need to promote themselves. As a result, they frequently concentrate more on fostering advocacy. Brand loyalty initiatives foster sustained engagement. To create buzz and good word-of-mouth, brands want their consumers to interact with them on social media and consume their material.
How Retail Loyalty Programs Help Businesses Survive in a Market with High Stakes
Consider a consumer in an electronics shop. They had originally planned to get a new laptop, but along the way they also decided to buy a new mouse and headset. They have three items in their basket, each from a different brand. What if the consumer had picked a different merchant, though? In that case, the shop would have lost out on a chance with a high basket value.
The basic truth is that retail membership programmes benefit businesses in a highly competitive industry. After all, shops offer the same goods that their rivals do. A loyalty programme is one tool that can help merchants stand out, and doing so promises a considerable rise in income. Retailers with existing reward programmes should think about upgrading to a digitalized, more advanced loyalty programme that can offer customers an omnichannel experience across all channels, including mobile, offline, and online.
Eight prime examples of retail loyalty and rewards programmes
It’s time to examine some of the top store loyalty programmes so that you can learn from each one.
Sephora’s Beauty Insider is one.
A well-known French multinational chain of cosmetics and personal care stores, Sephora is renowned for its rewards programme. By encouraging its more than 5 million users to contribute images and exchange beauty tips and ideas, the brand has developed a community among them.
Depending on their level, clients earn discounts on their orders through seasonal sales. Members can use their points to exchange for particular services.
When Rouge tier members redeem a Rouge Reward at the Rewards Bazaar, they can trade 2,500 points for $100 off.
Boulevard de Luxe and Voyage at Lagardère Travel Retail
The fifth-largest travel retail company in the world, Lagardère Travel Retail, operates in the travel essentials, duty-free & fashion, and foodservice industries. Their reward scheme, which consists of two distinct loyalty systems and promotes social buying, is geared toward frequent travellers.
The interconnectedness of Boulevard de Luxe and Voyage, the two incentive systems offered by Lagardère, is one of its key features.
Earn and burn and tiers are used in conjunction in both of their loyalty programmes.
Additionally, they encourage non-transactional actions like taking quizzes and finishing the user profile.
High-tier advantages include entrance to the VIP Lounge, garment alteration services, fast passes, birthday rewards, and welcome cocktails for new members. Points can be used for a variety of vouchers.
UO Rewards at Urban Outfitters
The corporate headquarters of the international lifestyle retailer Urban Outfitters are in Philadelphia, Pennsylvania. Customers can earn points in a variety of ways through the brand’s loyalty programme, which features points and tiers.
Once a customer earns 100 points for a purchase, they are eligible for a $5 prize.
By leaving reviews, installing the app, or going to the website, users can accrue points.
Additionally, there are prizes, anniversary discounts, and advance notice of impending sales.
Members of the Gold Tier enjoy unexpected rewards and expedited shipping offers.
Ulta’s Ultamate Reward Program
An American chain of cosmetic shops is called Ulta. The store environment was designed by the company to reflect how beauty enthusiasts actually shop. Customers are drawn to their unique world of “all things lovely, all in one location.” When customers join Ulta’s three-tiered loyalty programme and reach the Platinum and Diamond levels, they receive even more perks.
There are two spend-based tiers and a free membership tier in the loyalty programme.
Members earn points for every dollar they spend on products and beauty services
Members can opt into the company’s emails and app notifications to receive exclusive bonus point offers
Platinum and Diamond tier members’ points never expire
The REI Co-op
An American retailer and outdoor outfitter called REI sells apparel, sporting goods, and camping supplies. Even for people who don’t consider themselves to be passionate outdoor enthusiasts, the company’s subscription loyalty programme offers enticing benefits for a one-time flat cost.
The membership has no term limit and is perpetual.
Customers have access to a carefully chosen assortment of accessories and apparel, brand partnerships, limited editions, and promotions.
Members receive free cycling flat tyre repair and machine waxing in addition to 20% off bike and ski shop services.
Every lifetime membership purchase results in a $5 donation to the REI Cooperative Action Fund from the business.
A Whole New Layer of Customer Loyalty Can Be Found
A retailer’s standing in the market will always be bolstered by a well-designed loyalty programme. Customer retention in retail is one of Antavo’s specialties. So, if you require assistance, we would be more than pleased to provide it. Please feel free to schedule a demo or invite us to your RFP so we can demonstrate how our reward platform might benefit your company.
Don’t forget to download Antavo’s Global Customer Loyalty Report 2022, a comprehensive report that provides you with guidance as you traverse the world of next-generation loyalty programmes by showcasing a number of statistics as well as upcoming market trends.