The concept of loyalty marketing has been around for hundreds of years. As early as 1793, merchants gave out copper tokens to customers, which could be redeemed for items in the store. While customer loyalty strategies have certainly come a long way since then, the objective remains the same – establish a competitive differentiator that influences consumers to choose you when faced with a relatively interchangeable product or service. Loyalty marketing is one of the most effective means for accomplishing this, and there are some companies that have displayed impressive creativity. Here are five loyalty marketing programs that are succeeding at driving customer loyalty.
I often find myself spending a ridiculous amount of time comparing things like “price per ounce” on competing products at the grocery store, and I get unnecessarily upset if I realize I didn’t get the best deal. That being said, there’s no way I’m taking the time to flip through coupon books and clip out deals that are relevant to me. Taking that much time to save a few dollars just isn’t worth it to me; I tried it once, and it drove me insane, but when I came across the just for U program last year, I was intrigued, so I tried it out, and I’m in love. This mobile app delivers “Personalized Deals” based on your shopping habits and offers additional “Coupons” that are generic to all program members, which are all on top of the normal discounts that come with having a club card. You simply add these coupons and deals to “My Card” and they are automatically applied when you use your club card at check out. The app also has a “My List” function that allows you to create a grocery shopping list, which syncs up with your “My Card” deals/coupons. I have three grocery stores within a mile radius of my house. Strictly due to this app, I almost always go to Vons even though the other two are closer.
My obsession with Jersey Mike’s has become a running joke at TrendSource. I eat there at least twice a week, purchasing a giant sub (which is truly a massive sandwich) and either finishing it in one sitting if I’m feeling particularly ambitious or splitting it into two meals. Their customer loyalty rewards program, dubbed Shore Points Rewards, isn’t much different than your standard loyalty rewards program, but it’s a great place to start for a company that doesn’t currently have anything in place. Simply put, you get points for every purchase you make and are awarded a free sub once you’ve accumulated enough points. However, Jersey Mike’s has taken their loyalty marketing strategy a step further with their mobile app, which allows you to track your points, access special deals/promotions, and receive bonus points for things like updating your profile and subscribing to their email list. While I don’t discriminate when it comes to subs/sandwiches, I almost exclusively go to Jersey Mike’s because of this customer loyalty program. Even though I could go for the occasional sub from somewhere else, I rarely do as Jersey Mike’s is the only major sub shop I know of with a rewards program.
Last May, Victoria’s Secret launched a four-week Instagram contest with the purpose of engaging their current Pink Nation customer loyalty program members and simultaneously attracting new ones. As a male and a fairly typical “guy’s guy”, I’m not a regular Victoria’s Secret patron. Regardless, I appreciate an innovative marketing tactic, and this is one of the better customer loyalty campaigns I’ve come across. Participants were encouraged to upload a creative picture of a letter from PINK each week and use the hashtag #GimmeP, for example. Sixteen total winners were selected (four each week) and were awarded $500 shopping sprees. In addition to attracting new Pink Nation members, Victoria Secret integrated the promotion with their own mobile app, which further grew their customer loyalty program member base. Using Instagram has become a very popular loyalty strategy and an incredibly effective resource for increasing engagement in general, especially among Millenials who are particularly active on social media channels like Instagram. Check out this article for examples of how brands have “mastered the use of Instagram”.
This is one of the niftier customer loyalty marketing campaigns I’ve come across, and I’m a big fan. Perhaps I’m a little biased because I’m a serious basketball aficionado, but I think you’ll appreciate it as well. During March Madness this year, the franchise partnered with the NCAA to create pop-a-shot virtual basketball game mobile app which allowed customers to earn points based on their shooting performance and share results with other participants. Players with the top 50 weekly scores each received a $25 gift card for Buffalo Wild Wings for their performance. Pretty cool, right? I thought so too.
This customer loyalty strategy is one of the best I’ve seen. Restaurant.com has masterfully utilized the gamification approach, implementing a loyalty program that engages members by tapping into “people’s natural desire for competition, achievement, status and rewards”.
“In just the first month, we saw more than 100,000 active members each week. Of those, 71 percent earned more than two badges, while 60 percent earned three or more.” President and CMO, Christopher Krohn, shares how Restaurant.com has implemented gamification into their customer loyalty strategy and the tremendous success the company has experienced as a result. Their loyalty rewards program involves a combination of points, badges and rewards for completing specific tasks and “missions”. This just might be the best customer loyalty program I’ve seen to date in terms of overall engagement.
These examples all demonstrate unique and effective loyalty marketing programs. The use of mobile apps, social media and gamification are particularly popular and have proven to be more successful than your standard points-for-purchase customer loyalty rewards programs. Unfortunately, like most marketing initiatives, there’s no one-size-fits-all approach that I can impart upon you, but this should give you a good mix to pull from for your own customer loyalty strategy. At TrendSource, we’ve developed a systematic approach to driving customer loyalty called CLIMB (Customer Loyalty Insights Model & Benefits).
Know of any other effective loyalty rewards programs out there? Please share in the comments section below! For questions about this blog post and/or how TrendSource helps organizations drive customer loyalty, contact TrustedInsight@trendsource.com.
