3 Trending Loyalty Program Types for Businesses

frankkristopoulos

Dec 15, 2020

If you are into e-commerce marketing, the chances are that you are thinking about the different types of loyalty programs. For a long time now, retailers have been using points schemes, tiered programs and even paid membership to retain loyal customers. But it is now time to look out for various other ways.

  1. Cash Back Programs  

These programs are like points programs. The main advantages involve:

  1. Redemption of store-exclusive rewards can drive additional sales when redeeming "cash."
  2. Easy-to-understand value proposition

By the end of 2018, almost 55% of the consumers had used this feature. The main aspect of this program is that it rewards everyone equally.

  1. Coalition Programs

These programs are interesting as they are operated by more than one business. It can be extremely effective as far as customer retention is concerned, as you offer them more opportunities. Plenti was the most well-known program in the USA.

The main benefits are:

  1. Customers can earn rewards quickly.
  2. The brands share the operational costs to run the programs.
  3. Each brand gets more exposure.

Interestingly, the rewards redemption liability is managed by the coalition itself rather than individual brands.

  1. Hybrid Programs

Hybrid programs provide elements from different loyalty strategies. In this system, you can merge two or more programs such as the tier or the game program, whereby customers reach a new level of loyalty with new levels in the game.

For example, you can consider DSW VIP Elite. It compromises of three tiers - VIP Club, VIP Gold and VIP Elite. The more the members spend money, the higher the tier they move to.

In addition to this, you can also look into Premium Loyalty, Value-Based Program or Paid Program. This will come in handy when you write your marketing assignments. And if you face any issue, seek professional marketing management assignment help from the experts.

 

Author Bio: Neve Kilmuir is a professional marketer, having been associated with top-rated companies over the years. At present, she is a part of the MyAssignmenthelp.com team, where she supervises programming assignment help provided by the experts

 

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frankkristopoulos

Author Bio: Neve Kilmuir is a professional marketer, having been associated with top-rated companies over the years. At present, she is a part of the MyAssignmenthelp.com team, where she supervises programming assignment help provided by the experts