6 Examples of Good Loyalty Programs for Your Business

Examples of good loyalty programs show us how essential customer loyalty is to guaranteeing the growth of your business. Having a good loyalty program is a great strategy for keeping your customers engaged and encouraging them to make new purchases at your store.

To inspire you to create a successful and relevant loyalty program for your customers, here are 6 examples of good loyalty programs:

• the SAQ and its Inspire loyalty program;
• Starbucks Rewards;
• Microsoft and Xbox Live Gold;
• Sephora and social causes;
• Fizz and its Rewards Zone;
• Marriott International and Bonvoy.

First, let’s establish what a good loyalty program is!

What is a Good Loyalty Program?

A good loyalty program should be simple from start to finish. Your customers need to be able to sign up easily and quickly understand how to earn and redeem rewards. The easier it is, the more customers will adhere to your loyalty program!

Here are the essential components of a good retail loyalty program:

• The simplicity of the program.
• Appropriate rewards.
• Ease of access for customers.
• Customer retention.
• Flexibility to customer needs.
• Multi-channel efficiency.
• Availability of the program online.
• Quality customer service.

Learn more about the components of a good loyalty program in our article on this topic.

A good loyalty program will increase your income while encouraging your customers to come back. Here are some benefits that a good loyalty program can create.

The Benefits of a Good Loyalty Program

A loyalty program tailored to the needs of your business gives relevant rewards to your customers. The benefits of a good loyalty program are numerous and can have a significant impact on the growth and profitability of your business.

Here are some of the most important benefits:

Reduced Attrition Rate

A good loyalty program is likely to lower your customer attrition rate by offering them exclusive benefits and rewards to keep them invested in your company.

More Sales

Loyal customers are more likely to buy more often and spend more when rewarded or when they relate with a company (the values). If your customers feel respected by you, they will necessarily be more confident to buy from you.

New Customers

To acquire new customers, what better than a good loyalty program to encourage them to be part of your big family! Referral programs can help attract new customers. We can think of GoodFood and its free food basket that can be gifted to a friend (if they create an account).

Customer Data

Loyalty programs can help collect data on customer preferences and buying behavior, which can be used to improve the customer experience and optimize the knowledge you have of your customers.

More Brand Awareness

Good loyalty programs provide customers with a personalized and rewarding experience. Build brand awareness and get people talking about you by offering notorious rewards to your customers.

Stay Competitive

Loyalty programs make you stand out from your competitors. Find the right loyalty program for you and your business. Differentiate yourself by offering a unique experience or rewards!

Now, here are examples of good loyalty programs to help you in your search.

Example 1: SAQ and its Inspire Loyalty Program

A good example of a loyalty program is the program Inspire of the SAQ. This initiative allows SAQ customers to accumulate points with each purchase of wine and spirits. With these points, they can access discounts, rewards, freebies, etc.

A Points Program

To build customer loyalty, using a points program like the SAQ’s Inspire program can be beneficial for you and your customers. For each purchase made in your business, your customers receive a discount in points that they can accumulate to eventually access exclusive products. This encourages your customers to spend more in your business through these points.

Source.

Example 2: Starbucks Rewards

The Starbucks Loyalty Program offers recurring rewards to members based on the number of points earned. Members earn points by making purchases at Starbucks stores, and the more points they accumulate, the more rewards they can redeem such as free drinks, free ingredient choices, free products, and more.

A Recurring Rewards Program

A recurring rewards program like Starbucks is a good example of a loyalty program because it provides regular incentives to keep buying from your store, instead of special incentives on specific products. It can also offer personalized rewards based on your customer’s buying behaviors.

Source.

Example 3: Microsoft and Xbox Live Gold Membership

Microsoft provides access to Xbox Live Gold for a monthly fee. This subscription gives unique access to retro games or recent games which are available alternately. This access allows console enthusiasts to experiment with multiple video game licenses at once for only a fraction of the price.

A Subscription Program

A fairly common type of loyalty program is the subscription program, such as Xbox Live Gold. Indeed, this type of program allows you to get recurring revenue in exchange of rewards that you give to your customers.

Source.

Example 4: Sephora and its Involvement in Social Causes

Sephora has sections on its website and collections that focus on social impact and corporate responsibility. Thanks to this initiative, Sephora supports communities in need and strengthens inclusion and diversity. The program focuses on two main areas: health and wellness.

A Charity Program

Companies build customer loyalty by promoting a brand ​​that appeals to their target audience, such as respect for the environment, respect for human rights, social causes, etc. 

Give back a certain amount of money to social causes for each member of your loyalty program. This way, you will encourage your customers to use your loyalty program while giving back to your community.

With this type of loyalty program, you can help others while also getting the benefits of a loyalty program for your business. It’s a win-win for everyone!

Example 5: Fizz and the Reward Zone

A good example of a loyalty program is Fizz’s. This telecommunications company offers its customers the opportunity to climb the ladder and improve their customer account through the achievement of specific goals. Each level adds rewards to thank the customers for their loyalty. These perks can be bonus gigabytes of cellular data or monthly reductions ($)  for their subscriptions.

A Loyalty Program With Progress

This type of loyalty program, also called the gamification loyalty program, is a new method of customer retention that creates a game out of your loyalty program. Make it fun and simple so that your customers enjoy using your program.

Source.

Example 6: Marriott International and Bonvoy

The loyalty program of Marriott International, called Bonvoy, offers six levels of membership: Member, Silver Elite, Gold Elite, Platinum Elite, Titanium Elite and Ambassador Elite. Members earn points by booking stays at chain hotels and using partner services. 

The more points they have, the higher they are as a member. Marriott members enjoy benefits such as room upgrades, free breakfasts, access to hotel lounges, welcome gifts, and more.

A Loyalty Program With a Level System

Marriott’s Bonvoy is a great example for this type of loyalty program. It has a fairly standard formula that we mostly know: Bronze, Silver, Gold, Platinum, etc. The higher your level in this type of program, the higher the benefits (as well as the price).

Source.

A Point of sale Software to Manage a Loyalty Program

You know what type of loyalty program you want to set up, but you don’t know how? A point of sale software that natively integrates the management of a loyalty program is an interesting solution for businesses.

Avoid dealing with a third-party app to manage loyalty programs and integrate this solution in one place: your point of sale software!

Looking for a point of sale software that allows you to manage a loyalty program? Request a free demo of Alice POS!

Smart Management

A good point of sale software can automate loyalty program management, record purchases, accumulate points, and deliver rewards.

Personalization

In a good point of sale software, you can customize your loyalty program. This allows you to offer a program tailored to your needs.

Data Collection

Data collection can be done from a point of sale software. You can see customers’ shopping habits, what they like, their payment preferences and overall popular products.

Multichannel Communication

With a point of sale software, you can work with several communication channels such as an email list, website, mobile apps, and texting communication. Access to these means of communication allows customers to join the loyalty program and benefit from rewards through different communication channels.

In conclusion, loyalty programs maximize the effectiveness of your marketing strategies when it comes to retaining your customers. There are many loyalty program examples, ranging from Microsoft’s program to Sephora’s, all are quality solutions that you can adapt for your business.

To maximize the benefits of a loyalty program, it’s important to choose the right program for your business. The 6 loyalty program examples shown in this article have proven to be successful, but every business is different and should choose a program that fits their goals, customer base, and budget.