Loyalty programme
What is a loyalty programme?
A loyalty programme is a marketing strategy designed to reward customers for repeat purchases, subscriptions, or other interactions with a brand. These schemes come in many forms, including free points-based rewards and paid memberships. By encouraging customers to shop more often or spend more per order, loyalty programmes help businesses build lasting relationships and increase customer lifetime value. Loyal customers tend to spend more over time, recommend the brand to others, and leave positive reviews making them invaluable to a business.
What are the benefits of loyalty programmes?
Loyalty programmes help businesses grow by encouraging repeat business and deeper engagement. Customers appreciate perks like exclusive discounts, early access to sales, free delivery, points they can use toward future purchases, or even surprise rewards. In return, businesses benefit from higher retention, larger average order values, and increased word-of-mouth marketing.
What’s the difference between a free loyalty programme and a paid membership?
Loyalty programmes typically come in two forms:
- Free programmes allow customers to earn points every time they shop. Points can then be redeemed for discounts, vouchers, or free products.
- Paid memberships require customers to pay a recurring fee in exchange for premium perks. This could mean perks like unlimited free shipping, members-only discounts, exclusive product drops, or other perks that make it feel like a VIP club.
Both can drive loyalty, but they suit different goals. Free schemes are great for broad retention, while paid memberships suit customers who want a more premium, ongoing relationship with the brand.
