Loyalty programs are more than just rewards and redemption– loyalty is a strategy. Brands can effectively drive revenue and reduce churn by developing authentic relationships with their customers. And it’s a dependable strategy– marketers say loyalty will help brands weather the potential recession– but the best results are seen from brands who use their program to engender emotional loyalty, instead of simply relying on a points-for-purchase program to drive spend.
Not all loyalty programs are built the same– transactional loyalty programs often fail to drive the same results as advanced loyalty strategies. However, advanced loyalty can incentivize and motivate desired customer behaviors. When done right– like the programs highlighted below– the success of loyalty programs are measurable.
Increase Average Spend Per Member
When loyalty programs go beyond the transaction to foster real connections, retention and engagement both increase. Average spend per member also increases, meaning loyalty programs drive customer lifetime value for increased sales and revenue.
50%
Vans sees significantly higher spend from loyalty members– with nearly 50% of U.S. DTC revenue coming from loyalty members.
126%
Kansas Lottery saw individual player spend increase by 126% after they joined the PlayOn Players program.
Captivate Your Customers
How can brands earn that increased spend? One way is by rewarding customers for non-monetary engagement. When brands offer real value to customers for participating in referrals and reviews, engaging with content, or posting on social media, they begin to build community and foster emotional loyalty, effectively driving customer lifetime value.
Earn Points Dynamically
Kansas Lottery allows customers to earn “PlayOn” points by submitting tickets into their app– both winning and non-winning tickets qualify. They can also earn points by participating in games or surveys, and by successfully referring friends to join the program.
- Saw 28% increase in new members
- Engagement increased by 80%
- Sales growth of 44% from targeted campaign
Think Outside Spend
Fleet Feet’s rewards members can earn points from product reviews, surveys, and attending Fleet Feet hosted clinics, events, and more. Fleet Feet has also created a nationwide leaderboard for high school track and field athletes, enabling them to track summer training miles within the app.
- Grew to 3M Loyalty Program Members
- 10K new app downloads
- Net Promoter Score of 93%
Start Driving Results Now
Advanced loyalty strategies allow brands to engage customers beyond the transaction, fostering emotional connections and driving customer lifetime value. Loyalty members should truly be engaged and rewarded by your program– and when they are, the results speak for themselves.
If you want to learn more about the elements of a successful advanced loyalty strategy, download The Buyer’s Guide To Omnichannel Loyalty!
