A loyalty program is a rewards scheme offering free merchandise, discounts, or exclusive events for your most frequent visitors and high-value customers, your VIPs.
How do loyalty programs differ between industries?
For travel brands, an effective loyalty program may take the form of air miles or business class upgrades. For retail brands, loyalty membership often operates on a points or tier-based system that offers loyal customers free or next-day deliveries, exclusive discounts, early access to new line drops/new season items.
How can personalization tactics leverage loyalty programs to retain customers?
Loyalty programs are a great way to encourage customers to return time and time again to your website. They play a key role in ensuring that your high-value and frequent shoppers are given that extra bit of attention as a reward for their brand loyalty.
Furthermore, loyalty programs are a great way to make your VIP customers feel valued; this sense of value goes a long way to create the kinds of long-lasting relationships with brands that really make a difference to order frequency, order value, and retention.