Amidst an increasingly competitive environment loyalty programs have become vital to retaining and engaging customers They not only incentivise repeat purchases but also personalise the customer experience, building lasting relationships and enhancing brand loyalty. With that being said, here are 5 types of loyalty rewards all retailers should consider in 2024.
1. Exclusive VIP Events
Offer loyal customers the chance to attend special events such as product launches, fashion shows, or private shopping nights. This will make them feel valued and appreciated for their continued support.
The American luxury department store chain, Nordstrom is a prime example of a retailer offering access to invitation-only events. Through its loyalty program, Nordy Club, it offers customers the chance attend exclusive in-store beauty events, private shopping nights, trunk shows and more.
2. Personalised Discounts
Tailor discounts and promotions to each customer based on their purchase history and preferences. This will show customers that you understand their needs and are willing to reward them for their loyalty.
One example of this is Carrefour’s loyalty program, MyCLUB, which provides personalised discounts and promotions based on customers’ purchase history and preferences. By analysing shopping patterns, Carrefour tailors offers that are relevant to each customer, demonstrating an understanding of their needs and rewarding them for their continued loyalty.
3. Birthday Gifts
Surprise customers with a special gift on their birthday as a way to show appreciation for their loyalty. This small gesture can go a long way in building a strong relationship with your customers.
For example, Alshaya’s H&M in the Middle East offers a loyalty program that includes a special birthday reward for its members. As part of the H&M Member program, loyal customers receive a personalised birthday gift, which typically includes a discount voucher or a special promotional code that can be used during their birthday month.
4. Early Access to Sales
Give loyal customers early access to sales and promotions before they are available to the general public. This will make them feel like VIPs and encourage them to continue shopping with your brand.
In April, Sephora gave members of its Beauty Insider loyalty program early access to its Spring Savings Event. Starting on April 1, Rouge members, the highest tier of the program, were able to shop the sale five days before it was opened to the general public. This early access allowed them to enjoy significant discounts on a wide range of beauty products, reinforcing their loyalty to Sephora by making them feel valued and appreciated.
5. Points Redemption for Charity
Allow customers to redeem their loyalty points for donations to charity. This will not only make customers feel good about supporting a cause, but also show that your brand is socially responsible and cares about making a positive impact in the world.
For example, Tesco in the UK allows customers to convert their Clubcard points into charitable donations for partnering causes such as the British Heart Foundation, Cancer Research UK, Diabetes UK, Alzheimer’s Society or British Red Cross. This initiative not only encourages customers to support meaningful causes but also demonstrates a commitment by the retailer to social responsibility and community support through their loyalty program.
