How to set up point programs
There are a few different ways to reward your customers for becoming members of your loyalty program. The good news is, some of these strategies don’t cost much.
Offer redeemable points based on purchases
A very common type of loyalty program is based on a points system.
Customers earn points with every dollar they spend. When they reach a certain threshold, they can redeem their points for something of value (usually a free item or service).
This graphic from Pizza Hut’s website displays the typical setup for a points-based program.
Southwest’s loyalty program is also points-based, but they go a step further by teaming up with other businesses.
Rapid Rewards members can earn points not only by flying Southwest, but also by shopping at certain restaurants and online stores.
This is a very effective way to design a loyalty program, since the prospect of having more places to earn or spend points is intuitively appealing. Loyalty programs that involve partnerships are often highly successful — and they don’t have to be high-tech.
Loyalty reward ideas that don’t break the bank
If your budget doesn’t have room for a points-based program at the moment, consider other ways to give your repeat customers some extra attention.
1. Exclusive access
For example, some customers value exclusive access to products or experiences.
Businesses like REI cater to this appreciation for eliteness and VIP status. They release limited-edition versions of products that are available only to loyalty program members.
2. Members-only events and activities
Other strategies include inviting rewards members to participate in experiences that fit with your brand.
This could mean anything from discounts for events and activities, to specialized tutorials and insider information. Sephora offers numerous perks, including exclusive classes, to their VIB Rouge members.
Encouraging signups can be as simple as teasing content that intrigues your customers.
Some businesses go out of their way to separate their material from spam by assuring the customer that their emails contain useful content that’s actually worth receiving.
Massachusetts-based bakery Treat Cupcake Bar also offers engaging material in the form of “fun recipes” and “eye candy” to members of their mailing list.
3. “Be the first to know”
Another special perk is early notifications — what’s on the horizon that customers might be interested in?
After all, it’s always nice to be in the know. Preparing a new product launch or planning an upcoming sale? Looping in select customers before non-members is a simple gesture that feels both convenient and exclusive from the customer’s end.
4. Save time and skip the queue
Speaking of convenience, sometimes saving time is just as good as saving money. This is why some restaurants and coffee shops offer perks that remove daily hassles from the customer’s schedule.
Starbucks offers one such perk in their loyalty program. Members can order from their phone and swing by for pickup — no need to stand in line in a crowded shop during the morning rush.
Wendy’s took things a step further in December 2017 by partnering with DoorDash to offer free delivery to their rewards members.
5. Make the world a better place
Appealing to your customers’ generosity is another compelling way to inspire loyalty. Chick-Fil-A does this by allowing Silver members to donate a meal on another’s behalf.
And, of course, relating to ethically-conscious consumers is always a good idea. BareMinerals bolsters their rewards program and their status as a clean beauty brand by incorporating a makeup recycling program called “Give Back Get Back” into their points system.
