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Loyalty Programs

by Ellen Fruchtman, President

Interested in a customer loyalty program? Recent research conducted by a company called Yotpo concluded that 68% of their respondents said they would join a loyalty program for brands they like. Yes, running a loyalty program means you will have to give away something, be it discounts, early access to events, sales, and the like. But retailers who run these programs believe the payoff far outweighs the incentives.

Interested? There are several types of programs you can implement. And more importantly, adapt to your eCommerce as well.

Point-based loyalty

This is the most typical program you will see. Customers will accumulate points, which can be redeemed for free items, perks, and sometimes, actual cash back. Customers can earn points from sharing on social media, leaving reviews, or having a birthday, for example.

Tiered loyalty

This program is based on membership, and customers receive different benefits depending on their rank. You can rank membership into groups based on sales as an example. Very often this program provides customers with a goal. The more they buy, the higher their tier, and the more exclusive and better rewards they will receive.

Paid loyalty

A paid loyalty program is exactly as it sounds. Customers pay a fee but it provides them ongoing benefits for participation. The fees can be recurring or paid one time. A recent report by McKinsey shows that consumers are 62% more likely to spend more on a brand after joining a paid loyalty program. The most common example of a paid loyalty program is Amazon Prime. While it seems like a hard model to mimic, paid loyalty can suit many different business models.

Value loyalty

A value-based program like this one is based on connecting with your customers on a deeper level through donating a percentage of their purchases to charity. You can offer options for different charities to choose from or consider one that you feel will touch all of your customers. There are no rewards given back to the individual. You can couple this with another program and provide an option to your customer. 

Deciding Which is Right for You

Prior to starting a program, consider not only what’s right for your company, but what will resonate with your customers. Speak to other jewelers and see what programs are working for them. Check out their loyalty management platforms and some jewelry industry programs they list (which they obviously manage). Go to individual websites and check them out! Start by going here:

https://antavo.com/blog/jewelry-loyalty-programs

 

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