Competition amongst ecommerce stores is increasing as customers have an overwhelming amount of choice online. This means merchants have to be much more creative about how they set themselves apart from competitors. A beautifully customisable loyalty program that engages customers can go a really long way in boosting loyalty. It also encourages customers to return more often to your store to redeem their rewards against a purchase.
We have taken a look at some stunning examples of the top loyalty programs and pinpointed exactly how they have become so successful. These are:
The premium scarves company prides itself on building an engaged community of fashion conscious women who are rewarded for their loyalty to the brand. Their Community Rewards works on a tiered system where anything over a certain amount of points will earn customers exclusive rewards like style consultations, special gifts and event invites.
Fantastic features: Haute Hijab has made it really simple for customers to redeem the points they’ve collected at checkout. Customers simply use the Checkout Slider function to choose how much of their points they’d like to spend against a purchase. then, the discount will automatically be applied.
Winning results: We have seen how building a socially engaged community has worked in Haute Hijab’s favour as more than 30k points have been rewarded for Instagram follows since the program launched in March 2017. Most significantly, after implementing the loyalty program, Haute Hijab saw 49% of their revenue come from their most loyal customers.
What we can learn: The power of building a socially proactive community can’t be underestimated. Engaged customers are often more invested in a brand and are much more likely to remain loyal particularly when given rewards for doing so.
With the cosmetics industry being such a competitive and fast moving one, merchants have to work much harder to ensure customers return to make that crucial second purchase. 100% Pure sets themselves apart from other natural beauty brands with their Purist Perks program that has so far generated over 5% of their annual revenue via LoyaltyLion.
Fantastic features: With the Purist Perks program, customers enter different tiers depending on their purchases and engagement with the brand. Naturally the higher the engagement, the more exclusive the rewards. Wanting to reward customers for much more than just purchases, 100% Pure offer rewards for everything from account creation, newsletter signups and website visits.
Winning results: 100% Pure have seen fantastic results since launching their bespoke loyalty program online and in-store with LoyaltyLion in late 2015. They have made more than $1m from reward driven purchases and over 130k members have spent 6.52m points. These are outstanding results for the beauty brand and is proof that a fully customised loyalty program can and will increase revenue.
What we can learn: Cosmetics brands can benefit massively from a branded loyalty program, and although the sector already experiences high rates of repeat purchases, a program can typically boost repeat purchase rates by up to 15%.
Perhaps one of the world’s best-known coffee loyalty programs, Starbucks Rewards is almost always hailed as the holy grail of a well-executed program. With 20 million global members as of 2016, it comes as little surprise that it’s earned a place in one of the top loyalty programs.
Fantastic features: So why is the program such a huge success? The quick and easy answer is the ability for customers to make payments via the mobile app. After signing up to the rewards card online, customers can enjoy benefits such as free drinks, special promotions and easy purchases via the app.
Winning results: Over 25% of North Americans used the mobile app to make a purchase, which has helped boost revenues for Starbucks to over $5bn in 2016. Last year saw over $1bn loaded onto the cards, which is coincidentally more than some US banks hold in their deposits.
What we can learn: Building loyalty into your business from the outset can not only keep customers engaged but have a significant impact on revenue. In China, Starbucks has seen 40% of transactions come from the rewards card, an indication of how lucrative loyalty programs can be. Starbucks CEO Howard Schultz says the loyalty program “continues to be our most important business driver as new members contribute not only short-term increases in revenue and profit, but also to long-term loyalty for years to come.”
Capitalising on the ever-growing Instagram influencer trend, Velour Lashes invites aspiring beauty mavericks to become a Velour VIP to show valued customers how much their relationship with the brand is appreciated.
Fantastic features: Members of the Velour VIP program can get first access to sales, exclusive event invites and free products. In the customised loyalty panel, customers can see clearly how they can earn points as well as redeem them for rewards.
Winning results: Having only launched their fully customised loyalty program with LoyaltyLion earlier this month, Velour Lashes have already seen over 500 members earn almost 60k points whilst more than 15k points have been spent in the same time period.
What we can learn: The importance of customising a program for consistent branding that breeds familiarity and loyalty.
With a social media community of more than 7 million, Urban Outfitters chose to mobilise their customers with a multi-faceted omnichannel UO Rewards program that manages points in-store, online and via the app, certainly making it one of the top loyalty programs.
Fantastic features: When making a purchase via any of Urban Outfitter’s channels, customers can quickly and easily collect points then earn rewards by sharing content on social media or browsing the website and blog. To help make their program even more enticing, customers can also earn rewards by RSVPing to an event as well as using the UO app to enter contests, listen to UO Music and checking their newsfeed.
Winning results: Going beyond freebies and sale access, Urban Outfitters customers can redeem rewards to get some one-of-a-kind treats such as artist meet and greets at music events and personalised bonus gifts. This, of course, has resulted in a small army of loyal program members who act as brand ambassadors for Urban Outfitters, particularly when sharing content on social media.
What we can learn: The mobile app is a fantastic feature that enables customers to track their progress and learn about upcoming rewards. It is this omnichannel aspect of the loyalty program that provides the practicality and convenience that appeals to customers. So, merchants should consider how a mobile app can be integrated with their program.
See a loyalty program you like the look of? Why not book a free demo to find out how our merchants are increasing engagement, retention, and acquisition with LoyaltyLion.
Connect with a Loyalty Analyst
Connect with a Loyalty Analyst