Customer loyalty is changing the retail game faster than ever before. According to Bond’s Loyalty Report 2018, 70% of consumers are more likely to recommend brands with good loyalty programmes and 77% of consumers indicated that they are more likely to stay with brands that offer loyalty programmes. The same report also found that consumers spend 37% more with brands when they are a loyalty programme member.
Given these statistics, it’s clear that loyalty programmes are no longer by-products or added perks but an absolute necessity in driving sales and creating repeat customers. With rising customer expectations, new technologies and players entering the market, brands must find innovative ways to improve customer experience or risk getting left behind.
With that, here are our top five picks of the best loyalty programmes and what you can learn from each.
1. Sephora Beauty Insider
Anyone who has shopped at Sephora has definitely heard of its wildly popular Beauty Insider rewards programme. It is estimated that there are 25 million Beauty Insider members globally as of end 2018.
Much of Beauty Insider’s popularity stems from the flexibility members enjoy in redeeming their reward points. Besides birthday gifts, gift cards and discounts, they can also use their points for more exclusive options such as limited-edition products and free makeovers.
By letting members select their preferred rewards, Sephora creates a more personalised shopping experience for its customers.
2. Amazon Prime
Another brand that’s well known for its loyalty programme is Amazon. For a flat annual fee, Amazon Prime members not only enjoy free two-day shipping on millions of items but also other perks including free downloadable digital content and special Prime Day sales.
By diversifying the rewards, Amazon Prime offers something for every customer to keep them coming back.
3. Watsons Membership
A customer loyalty programme that most Singaporeans are familiar with is the Watsons Membership. Besides offering its members lifetime membership, a host of extra discounts and app-exclusive deals, Watsons also invites them to member-only events and offers free doorstep delivery with a minimum spend on its eStore.
Members can earn points by shopping at Watsons outlets or online and use their points to enjoy full or partial cash rebates.
Watsons’ dollar-to-point loyalty programme has been a great hit with customers, offering them cost savings as they shop for daily necessities.
4. Changi Rewards
Designed to reward travellers and visitors to Changi Airport, the Changi Rewards programme lets its members earn points by shopping and dining at Changi Airport or shopping on iShopChangi.com.
Membership is free and members can move up the membership tiers to enjoy bigger and better rewards by increasing their annual spending. Besides sure-win games and shopping rebates, members can also enjoy perks such as complimentary parking and lounge access. Best of all, Changi Rewards points can be converted to KrisFlyer miles.
With Changi Rewards, Changi Airport captures not just travellers but also the many locals who visit it to just shop and dine.
To maintain its position as Singapore’s leading ride-share company, Grab realised it needed an extensive customer loyalty programme to win over riders. Today, GrabRewards offers a suite of benefits ranging from preferential discounts, exclusive events, surprise vouchers and travel deals.
Partnering with major airlines, F&B brands and booking platforms, GrabRewards provides its members with a host of lifestyle perks. Members can earn points by using GrabPay on the Grab app and ordering on GrabFood.
By introducing rewards across various services and implementing a convenient payment platform, Grab has amassed a pool of loyal users not just for rides but in every aspect of their lives.
Customer loyalty programmes have been proven to drive customer retention, boost customer lifetime value and inspire loyalty. Points, miles and punch cards are just the start. Investing in a truly innovative rewards programme creates confidence, increases interaction and, in turn, exponentially grows loyalty.
Starting your own customer loyalty programme need not be complicated or a hassle. With Shoptiq, you can introduce free gifts, purchase with purchase, a credit system, and other perks for your customers easily. Experience Shoptiq’s 14-day free trial today.