Loyalty Programmes (LPs) are everywhere. You’ve probably got at least 5 loyalty cards on you this very second…
LPs benefit the customer and the brand
LPs are mutually beneficial; they offer customers a good deal whilst also making them feel valued and allowing companies to gather useful data to tailor their marketing and ultimately giving the customer a more personalised experience. By segmenting their customer base based on behaviour, brands can track consumption trends and create a more custom approach.
Why reward customers for engaging with your brand?
Engagement is a something that is focused on a lot, and for good reason! Customer engagement is about creating intimate, long-term relationships with your customers, whether it’s through social media, website or email marketing. Effective customer engagement with a brand has many advantages like User Generated Content (UGC) such as content co-creation (e.g. photos of products on Instagram) and customers sharing their own skills which promote products (e.g. make-up tutorials on YouTube).
Happy and engaged customers will talk about your brand and their experience, acting as a fantastic source of organic word of mouth marketing online by using hashtags and social media handles to share positive customer service experiences, as well as recommending products or services to their online communities.
“Research shows that 73% of customers said they were more likely to recommend and talk about brands with good LP’s”
Examples of Loyalty Programmes that reward engagement
So with the importance of customer engagement only increasing, is rewarding customers for their purchases alone still effective? Whilst there is no shortage of LP’s, they aren’t all effective. Successful LP campaigns are built on a strategy that has been well researched according to the customer base and are long-standing and enticing. These brands show how to implement LP’s which reward customers on their purchases and engagement, resulting in loyal customers, user generation content and e-word of mouth marketing.
ASOS have mastered their content co-creation strategy with their LP.
The ASOS A-list allows customers to earn points on their orders; the amount of points a customer collects determines what level they are on and the higher the level, the better the perks, including birthday treats, exclusive invites and previews of collections and sales. Yes that is a classic purchase reward structure, but ASOS support this with their strong UGC strategy.
Their #ASSEENONME campaign encourages customers to post photos of themselves wearing their ASOS outfits. The hashtag has been used over half a million times and accounting, with customers and well-known fashion bloggers tagging their styling skills and creating high quality content for ASOS, who in turn reward their customers with points.
CEO Nick Beighton said that ASOS strive to “create content so useful it feels like a recommendation from a friend” by making their website and marketing strategies more personalised, for example, giving shoppers product recommendations based on previous purchases and saved items.
When it comes to rewarding customer engagement, KIKO have gone over and above with their LP. KIKO currently has an established LP called Kiko Rewards, based on a points system.
The programme works by giving customers 10 points for each £1 they spend at Kiko, however, unlike other loyalty schemes Kiko also rewards its customers with points for leaving reviews of products, sharing their purchases on social media and following KIKO’s social media accounts.
Once a customer has collected 800 points they receive £5 off their next purchase, £10 off after 1500 points and so on.Customers can sign up for a physical loyalty card, or download the app and scan the barcode in store, so no rummaging around for the card in your purse is required!
… So, how are you rewarding your customers?
We know that loyal customers are invaluable, but how do you keep your customers happy and win their loyalty in the first place? Read more here