Loyalty programs are a crucial aspect of modern-day marketing. They help retain customers, increase customer satisfaction, and foster brand loyalty. A well-designed loyalty program can significantly impact the success of a brand. In this blog post, we will take a closer look at 5 successful loyalty programs.
1. Amazon Prime
Amazon Prime is a subscription-based loyalty program by Amazon.
Number of members: Over 200 million active members.
Program benefits: Free delivery including same-day, one-day or two-day shipping, access to exclusive deals and discounts, free delivers on fresh groceries with Amazon Fresh orders over $150, Prime Video with unlimited streaming of movies and TV shows. Prime Gaming with free games and gaming content. Prime Reading with free books and magazines each month.
Program cost: US$139 per year or US$14.99 per month. Student pricing US$69 per year or US$7.49 per month. Amazon Prime is available in Australia AUD$59 per year or AUD$6.99 per month.
2. Starbucks Rewards
Starbucks Rewards is a loyalty program offered by Starbucks.
Program members earn Starbuck Stars when they make purchases. Earn 2 Stars per $1 spent when you load funds and pay with your digital Starbucks Card in the app. You also earn 2 Stars per $1 spent with each purchase when you pay in person at a store with your registered physical Starbucks Card. Earn 1 Star per $1 spent when you scan your member barcode in the app, then pay with cash, credit/debit card or mobile wallet.
Number of members: 28.7 million active members said interim CEO Howard Schultz during a November 2022 analyst call, up 16% year over year.
Program benefits: The program offers members exclusive discounts, free drinks, and personalized offers. Members need 100 Starbucks Stars to receive one cup of hot or iced coffee or tea, a baked good, a packaged snack or a to-go cup. Members need 200 stars to receive a latte or Frappuccino or a hot breakfast item, and 300 for a salad, lunch sandwich, protein box or a bag of beans.
Program cost: Free to join.
3. Target Circle
Target Circle is a loyalty program offered by Target. The program offers members exclusive discounts, early access to sales, and personalized offers. Members can earn rewards by using the Target app or website.
Number of members: over 100 million active members.
Program benefits: Earn 1% (Target Circle earnings reward) when you shop at Target, in store or online, or save 5% instantly when using RedCard. Access to special deals and offers and a birthday gift. Target community vote every time you shop with Target Circle you earn a vote towards a Target community cause.
Program cost: Free to join.
4. Sephora Beauty Insider
Sephora is a leading beauty retailer that offers a rewards program called Beauty Insider only available in US and Canada. Sephora Beauty Pass rewards program is available in many other countries. Members exclusive access to product launches, personalized beauty recommendations, and special offers.
Number of members: over 25 million active members.
Key program benefits: There are 3 different loyalty tiers ‘Insider’ free to join, ‘VIB’ spend $350/per year and ‘ROUGE’ spend $1,000/per year. Program benefits include free shipping, Beauty Insider Cash gives members $10 off for every 500 points they earn, seasonal savings events with 10% to 20% off, Points multiplier events with 2x, 3x or even 4x, end of year discounts levels, birthday gift. Experiences for program members including app exclusives, first access to products, exclusive events. There are also some non-transactional benefits with more emotional appeal to members including beauty classes, community events and exclusive collections.
Program cost: Free to join.
5. CVS ExtraCare
CVS ExtraCare is a loyalty program offered by the pharmacy chain CVS in the US market. The program offers members exclusive discounts, personalized offers, and discounts for purchases.
Number of members: over 74 million active members.
Key program benefits: Personalized offers and savings on most purchases at CVS Pharmacies. 2% back on most purchases. The CVS App allows users to track and use their rewards via mobile devices. ExtraCare members can access their 2% rewards right after each shopping trip. CVS also offers a birthday reward for all members.
Program cost: Free to join.
Customer loyalty programs are an excellent way to retain customers, increase customer satisfaction, develop relationships, grow revenue and build brand loyalty.
Different types of loyalty programs may appeal to different target markets or customer segments. When developing a loyalty program consider the many options from a transactional based program with tiers, points, cashback offers, spend-based rewards. To a Partnership program using strategic partners to add value as a collective, a Paid Subscription model, or a Member / VIP Club. Emotional based loyalty such as supporting a cause or charity can align a business with customer values which can create stronger more meaningful connections beyond price. A loyalty program should deliver genuine value to the customer and be financially beneficial to the business.
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