Loyalty programs: the ultimate guide
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Loyalty programs: the ultimate guide

Reward your loyal customers and keep them coming back for more! Loyalty programs have become essential for any company that wants to last. Some loyalty programs are extremely effective in engaging customers and boosting sales: discover the best ones with our examples and all the advice you need to create your own!

 

What is a loyalty program?

 

loyalty program example

    

[.is--yellow-highlight]On average, it costs 6 times more to retain a customer than to bring in a new one![.is--yellow-highlight]

A loyalty program can take many different forms. The aim is always the same: to create incentives to [.is--yellow-highlight]deepen the relationship with a company[.is--yellow-highlight], so that each customer projects himself, visits you much more often and uses your products much more. 

Don't make the mistake of reducing it, as some brands do, to material incentives for consumers (such as cashback, kitty or discount vouchers). A good loyalty scheme will first and foremost [.is--yellow-highlight]create a bond[.is--yellow-highlight] between you and your customers. As in the examples below, it's also a way of capturing customer data, as a basis for your marketing strategy (ok ok those are big words - but it's super easy to set up with Hey Pongo).

Simply put, a loyalty program is a must! To boost your sales, you need to offer one that's both accessible (to entice as many customers as possible to join) and highly effective (to keep them coming back for more!). The examples of loyalty programs below are highly profitable: with little effort, this strategy will enable you to generate much more business from the same customer base, both online and in-store.

[.is--yellow-highlight]Example of a successful loyalty program: Mamé Kitchen[.is--yellow-highlight]

  • Mamé Kitchen has enrolled over 2,000 customers in its Hey Pongo loyalty program.
  • Its rewards are engaging in both the short and long term - from cookies to Nike sneakers.
  • 120 of its customers are VIPs: they come more than twice a month on average.

 

How do you [.is--yellow-highlight]design[.is--yellow-highlight] the ideal loyalty program?

 

The best loyalty program is the one that's right for you! Depending on your sector of activity, your objectives and your customers' expectations, these steps will help you design a unique and effective loyalty program for your business.

 

loyalty program

1 - Set [.is--yellow-highlight]objectives[.is--yellow-highlight] for your loyalty program

The first step, as is often the case, is to define the objectives of your loyalty program.

The first objective is almost always the following:

  • Encourage your customers to return more often.

 

But it's far from the only one! In fact, a loyalty program can help you achieve many other objectives, including :

  • Increase each customer's Lifetime Value,
  • Communicate with your customers when they're away,
  • Understand your customers through stats,
  • Create a customer database,
  • Broadcast your events to as many people as possible,
  • Increase your Google reviews,
  • Increase your average Google rating,
  • Develop your audience on Instagram or another social network,
  • Increase brand awareness.

To get the most out of your loyalty program, choose your objectives from those listed above, then go on to the next step.

 

  

2 - Define the [.is--yellow-highlight]outline[.is--yellow-highlight] of the loyalty program 

Based on your objectives, it's easier to decide what type of loyalty program you're going to set up. 

Among the broad outlines to be defined are these 3 options:

  • Physical, virtual or both?
  • Points program or stamp card?
  • Tiered loyalty program, subscription program, VIP club?

 

For a flexible loyalty program that serves a large number of objectives, the points-based loyalty program is the best choice. It allows you to awardpoints for different customer engagement levers: leaving a Google review, coming back several times a week, attending an event...  

With a virtual loyalty card, you can build up a highly profitable customer database. You can use it to re-engage all customers who have consented to receive communications. This makes it very easy to communicate with them, even automatically, to activate powerful automatic marketing levers.

 

 

3 - Choose a [.is--yellow-highlight]provider[.is--yellow-highlight]

Once you know what attributes your loyalty program should have, you can shop around for the best provider. There are a number of operators who can help you deploy a virtual card, but only Hey Pongo offers all the a la carte services mentioned above!

We're not saying it's us (well, it is a little), but Hey Pongo is the most complete customer engagement platform for building customer loyalty and boosting sales.

The big advantage of our loyalty program is customer enrolment: hyper-fast, gamified, it can attract 30% of your customer flow to your program, much more than other loyalty providers.

 

 

4 - Fine-tune all [.is--yellow-highlight]details[.is--yellow-highlight] of your loyalty program

Once you've selected your service provider, you can configure your loyalty program down to the last detail. For example, you'll be able to define the wording and graphics of your loyalty card and enrolment interface, for a program that reflects your image.

You can also set up rewards so that they make your customers want to commit, right from the start. To do this, we recommend mixing rewards that can be accessed immediately (free coffee, -10% discount...) with long-term gifts (to be unlocked after 5, 10 or 100 visits).

 

loyalty program levers

 

5 - Set up the [.is--yellow-highlight]marketing levers[.is--yellow-highlight] associated with your loyalty program

If you've chosen Hey Pongo (bravo!!!), you can combine several marketing levers (or leave them out for now).

For example, the automated marketing option allows you to send an SMS to a customer when he validates a step: when he's one visit away from unlocking a big reward, when he's come 3 times in 1 month, when he's been missing for 3 months...

 

Thanks to these automated marketing scenarios, you can boost the engagement generated by your loyalty program and maximize your return on investment.

Other possible levers: customer surveys, competitions, campaigns to boost your Google reviews, etc. All are available as options, once you've generated your customer base with your Hey Pongo loyalty program.

 

 

[.is--yellow-highlight]6 - Bonus: Expert guidance [.is--yellow-highlight]

Hey Pongo's loyalty experts can support you every step of the way. With no obligation, they'll advise you right from your very first contact, during the demo. Already present in more than 2,500 stores in France, Hey Pongo has extensive experience in customer loyalty, which our specialists will be delighted to put to work for you.   

Throughout your journey with Hey Pongo, a dedicated expert will be at your side to maximize the ROI of your loyalty program. This support is Hey Pongo's trademark, earning us nearly 200 Google reviews and an average rating of 4.9 stars!

 

I'd like to know more:
Schedule my demo with a Hey Pongo consultant

[.is--yellow-highlight]The main types of loyalty programs[.is--yellow-highlight]

 

One thing's for sure: the best loyalty programs are dematerialized! Much better than a card, it allows you to parameterize exactly the advantages and rewards that the company is going to offer its customers. This includes the loyalty rewards system, but also all the other incentive-type mechanisms: sponsorship, discounts, privileges for the best customers, etc...

 

1/ Loyalty [.is--yellow-highlight]points program[.is--yellow-highlight]

Don't hesitate, it's the best way to build long-term customer loyalty! That's right: with points, you offer rewards that motivate more and more customers, from the first visit to the hundredth... So you build loyalty over time (especially if you offer fun enrolment and rewards that go up and up).

A real boost to the customer experience, the points system offers a wide range of rewards. There's something for every customer, from easy-to-obtain perks and gifts (free coffee, anyone?) to the coolest rewards... And even, if you like, Premium rewards such as weekends for two, electric scooters, etc...

 

It's enough to make you want to take a trip to the moon! What's more, with points-based programs, there are plenty of twists you can do to make your loyalty system unique: give your points a name (like Starbucks and its "stars"), put your own colors on the interface, double up on points to push certain products or encourage certain behaviors, etc.

 

2/ Tiered loyalty program[.is--yellow-highlight][.is--yellow-highlight]. 

This is another twist on the points-based loyalty program... tiers, which unlock a whole series of privileges. In general, we agree on 3 tiers, like Séphora (and its White, Black or Gold members).

 

At each level, purchases earn an increasingly generous ratio of points, depending on the level of commitment. Above all, this unlocks higher categories of rewards or privileges for the most loyal (free delivery, premium customer service, private sales, invitations to events, anniversary gifts, etc.).

 

The tiers are a bit like a subscription. You have to spend a certain amount to avoid dropping down a tier and losing your privileges. This mechanically increases the average basket and lifetime value, if you're generous enough with the associated privileges. A little complex to manage, but a real machine for boosting customer commitment if you find the right formula.

 

 

3/ [.is--yellow-highlight]sponsorship program[.is--yellow-highlight]

If you haven't already set up a sponsorship program, do it now! It's the kind of win-win mechanism that boosts your customer base. If you already have the beginnings of a customer base, it has only advantages for you. In the best cases, it rewards the sponsor, the referral and you!

 

For you, it's a win-win situation: sponsorship turns your customers into ambassadors for your brand. It creates a bond with them, bringing together friends and family. It generates word-of-mouth, and wins you lots of new customers without doing a thing! If you already have a points-based loyalty program, you can easily set up a sponsorship system by awarding points to both the sponsor AND the sponsored customer, thus adding them directly to your base of loyal customers. 

 

  

4/ [.is--yellow-highlight]Privileges[.is--yellow-highlight] reserved for loyal customers 

To treat your loyal customers, you can also make them special! How can you do this? With benefits in kind for customers who join your loyalty system, whether card-based or paperless...

 

Whether the program is free or paid, the principle is the same: you can offer free delivery, access to private sales, in-store or out-of-store events, prize draws, early launches, information on upcoming releases, pop-up stores, double points for purchases, discounts, etc... 

 

 

5/ Gifts for [.is--yellow-highlight]birthdays[.is--yellow-highlight].

Here's a loyalty marketing lever that's even easier to deploy than the previous one! In addition to points rewards, you can turn your loyalty program into a caring space... With little attentions, gifts and other surprises for your members! For example, you can offer a gift for each customer's birthday (easy if you have their date of birth). The Hey Pongo loyalty program collects both the date of birth and the telephone number to send the reward.

 

Gift, goodie, free product, discount coupon, voucher... With this kind of surprise, you create a bond on the occasion of everyone's birthday. And with rewards that can be collected at the point of sale, you can generate traffic in stores, restaurants, on your e-commerce site - wherever you like. And the best part? It's super-easy to set up, thanks to automated SMS.

 

 

6/ Rewards for purchases over a certain [.is--yellow-highlight]amount[.is--yellow-highlight]. 

In e-commerce marketing, this is the miracle method for increasing the average basket. You can offer gifts above a certain purchase amount. Classic, but so effective! The subtlety lies in the art of calibrating the amount that unlocks each gift. Ideally, it should be sufficiently above the average shopping basket to make it jump! You can easily find out this ideal amount by collecting customer data, whether for a physical store or an e-commerce site.

 

Read the article:

How do you collect customer data?

 

7/ Premium services for [.is--yellow-highlight]subscribers[.is--yellow-highlight] customers

Finally, the ultimate loyalty program is subscription. That's right: it means your customers pay to join. To deserve this, it has to unlock incredible benefits, or truly premium services!

 

The most absurd example is Amazon. The Prime subscription gives you access to an incredible offer that sets it apart from other e-commerce brands on every level: free delivery, Prime Video, Music Prime, Prime Gaming, flash sales, etc...

 

Without going that far, you can offer your own membership, combined with exclusive services. For an e-commerce store, this could of course be free delivery and triple loyalty points for members.

 

A subscription can also give access to a very advantageous price (like the Body Minute subscription), to an unlimited product (the Pizza del Arte subscription), or to a product delivered every month (this is the principle behind subscription Boxes, like 900.care).

 

Whatever your sector, there's a subscription to suit you! Find out by talking to a Hey Pongo consultant:

    

[.is--yellow-highlight]Offer a unique and innovative loyalty program! [.is--yellow-highlight]

With Hey Pongo, it's easier than ever! You don't need a big budget to overtake Nike and Amazon: find out how to set up a points-based, tiered loyalty program, online or in physical point(s) of sale(s). Book your free demo to find out all about it!

 

7 [.is--yellow-highlight]examples of innovative loyalty programs[.is--yellow-highlight].

This is a condensed version of the article: 7 innovative loyalty programs (and how to get inspired)

1 - Poke Moon, rewards that carry your DNA 

The Poké Moon restaurant loyalty program stands out for the quality of its rewards. Simple yet innovative, it conveys emotion and lifestyle! You don't need to be a big network to put it into practice.

Loyalty points can be used to win a poké, a dessert, a fruit basket... But also a big buoy, a fixie bike, a longboard... And for VIP rewards: a day on a jet boat, and even a round trip to Hawaii!

2 - Sephora: the emotional loyalty program 

Sephora's tiered loyalty program is often cited as one of the most innovative. What makes it so? Because of its depth, and the emotions it generates! Where all perfume brands look alike, this is undoubtedly the biggest loyalty driver. 

In this tiered loyalty program, each purchase brings you closer to the next tier. Gold status (1,500 points accumulated over 12 months) gives access to real privileges: free delivery, dedicated after-sales service, access to Gold days, exclusive competitions... But the most important thing is the element of surprise, with progressively larger birthday gifts according to status (White, Black and Gold).

   

3 - L'Occitane, building loyalty in eco-responsible mode

L'Occitane +Moi is a comprehensive and original loyalty program. As you accumulate points, you unlock increasingly interesting tiers and rewards.  

But there's a second loyalty program: the Occitane #MEGA Program, accessible only in its Hong Kong store. It rewards eco-friendly practices with loyalty points. For example: recycling used L'Occitane containers, buying green packaging, buying only in bulk, returning plastic or glass bottles to the store...

4 - Starbucks, stars in the app 

The Starbucks France app lets you order, pay and earn loyalty points: stars. 1 euro earns you 3 stars. You can then earn free drinks and extras depending on the level reached, as well as a birthday present! What we don't know is whether Gold status entitles you to have your name spelt correctly on your cup... 

 

5 - Adidas, the loyalty program for connected athletes

More than a clothing brand, Adidas is a lifestyle brand. Its loyalty program, adiClub (yes, well, they could have come up with a better name) also rewards your running sessions with the Adidas Running app, at the rate of 10 points per 5 km. Participating in Adidas Runners events also earns points.

 

6 - The North Face XPLR Pass, extreme loyalty

The North Face offers an innovative and adventurous loyalty program, in the spirit of the brand. The "XPLR Pass" is an invitation to explore new horizons, accompanied by its The North Face products.‍

Points can be earned through purchases, but also by participating in events or downloading the app. Like The North Face, the rewards are definitely off the beaten track. Experiences with athletes, mountain outings and exclusive access to collections. You can even win climbing holidays in Nepal, ski touring in the Swiss Alps, tickets for the Freeride World Tour... Sensations guaranteed.

 

7 - Body Shop, feeling good in body and mind

The Body Shop offers a loyalty club, "Love your body", which reflects the brand's values, connected with the concerns of the younger generation. Rather than buying new packaging, it encourages refilling, with free refills for members. In addition to its original rewards, it offers the possibility of donating benefits to a number of charities (including the World Land Trust and the Fondation des Femmes, which works for women's rights and against gender violence).

How to create your loyalty program in 3 easy steps? 

1 - Defining objectives

A loyalty program can take many forms. Defining the objectives will enable you to calibrate it as closely as possible to your needs. At first glance, the main objective is to keep customers coming back, but there may be others:

  • Increase the value generated by each customer (average basket or lifetime value)
  • Talk to your customers when they're away,
  • Understand your customers through statistics,
  • Create a customer database,
  • Broadcast your events to as many people as possible,
  • Publicize a new product or service by placing it in the awards,
  • Get a lot more Google reviews,
  • Increase the average rating of your Google reviews,
  • Develop your audience on Instagram (or another social network),
  • Increase brand awareness,
  • Transfer your customers from one sales channel to another (web-to-store).

2 - Choosing the loyalty program medium

3 supports are available:

  • The printed loyalty card offers a reward for the tenth visit. It's a loyalty medium that has fallen out of favor with customers. 
  • Plastic loyalty cards are widely used in department stores. It requires complex logistics for small retailers, and has many drawbacks (complex enrolment, your customers forget it...).
  • The dematerialized loyalty account is by far the most efficient of all. All you have to do is log in with your telephone number to collect points and benefit from loyalty advantages.

3 - Add the marketing levers of your choice

The options below allow you to design the loyalty program that exactly matches your objectives. 

  • Competitions,
  • SMS campaigns,
  • Polls,
  • Events,
  • Sponsorships,
  • Subscriptions,
  • Solicit Google or Trustpilot reviews,
  • Automated SMS reminders,
  • Subscription,
  • Etc...

Create my own loyalty program with Hey Pongo

All these business levers are very easy to implement with a loyalty and marketing platform like Hey Pongo. 100% à la carte, our solutions are adapted to all businesses, from independent retailers to major chains. Don't wait any longer to create a highly profitable loyalty program for your customers!

Make an appointment with a Hey Pongo marketing expert:

FAQ : loyalty programs

What's the best type of loyalty program?

Paradoxically, the most widespread type of loyalty program is also the least effective... These are stamped loyalty cards, found on every street corner, with zero effectiveness. 

The most effective are, of course, points-based loyalty programs. Each reward has the function of encouraging both enrolment and revisits. With a dematerialized system, you can collect customer data, and send special offers by SMS (or email for e-commerce).

Another type of loyalty program to consider for companies is the subscription model. This model makes it possible to develop a unique customer experience. If the privilege offer justifies the subscription price, it can generate a guaranteed monthly income for merchants.

 

How do you choose your points rewards?

The ideal is to set up rewards in tiers. Each level is designed to reward a certain frequency of visits... The 1st types of offer, from the1st or2nd visit, allow consumers to win a small gift or goodie (for a restaurant, you can offer a coffee or a cookie...).

Then there are the "cruising speed" offers: achievable from 5 to 10 visits, they can earn, for example, the equivalent of half an average basket.

Finally, there's the "wow" or "nah " level of rewards: its function is to encourage consumers to use your products over the long term, to consider an incredible gift (weekend for two, return flight, electric scooter...).

How can you improve your loyalty program?

Understand your customers' needs: Use surveys, data analysis or customer feedback to understand what they value and what they'd like to see in your loyalty program.

Simplify the program: Make sure the rules and benefits of your program are easy to understand. An overly complex program can discourage customers and slow down enrolment. 

Offer attractive rewards: Rewards are the key to a good loyalty program. Offer multiple levels of rewards to engage your customers at every stage of their journey. 

Personalize rewards: If possible, personalize rewards according to each customer's preferences. This can make the program more attractive to them.

Communicate regularly: Keep your customers informed of their points, rewards and special offers. Use SMS as a personalized and instantaneous exchange channel. 

Make it easy to join: Make joining simple, quick and fun. Avoid long-winded questions. The easier it is to join the program, the more likely customers will be to do so.

Offer rewards for things other than purchases: Reward customers for other actions, such as referrals, Google reviews, shares on social networks and so on. This is the key to generating more engagement. 

Evaluate and adjust regularly: Regularly evaluate the effectiveness of your program by observing key indicators such as enrolment rates, percentage of tickets retained and average basket. Make any necessary adjustments based on customer feedback and market trends.

What are the 3 types of loyalty? 

The 3 types of loyalty are as follows:

  • loyalty, whether voluntary or involuntary ;
  • desired and attitudinal loyalty ;
  • behavioral loyalty.

What's the difference between loyalty and retention? 

Loyalty and retention are two different concepts. Loyalty depends exclusively on the customer, who chooses to become attached to your brand and make repeat purchases. Loyalty is a set of actions put in place by the company to encourage the customer to return. 

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