5 Loyalty Programs that are a hit in 2021

5 Loyalty Programs that are a hit in 2021

Loyalty programs are very popular these days, do you know why?

Statistics states that 84% of consumers would stick with a brand that offers a loyalty program, and 66% of customers say that they like the ability to earn rewards.

A loyalty program is an amazing tactic for businesses to increase customer retention and stand out among the competitors in these uncertain times. Customers would love to join the loyalty programs offering better experiences and rewards. Wondering, if you can have a loyalty program for your business? Why not.

Discover types of loyalty programs and trending ones in 2021:

What are Loyalty programs?

The basic idea of a loyalty program is to retain loyal customers who spend more money, keep coming back, and trust the brand. These customers are already there buying from a brand, so why not target them instead of acquiring new customers?

Customers will love to join the loyalty program if a business has better perks to offer, such as discounts, freebies, rewards, etc. 81% of customers say that loyalty programs make them likely to purchase more and stay committed to the brand. 66% modify their spending to maximize loyalty benefits. Hence, having a loyalty program for your business is the right choice.

Points Loyalty program

Points loyalty programs are famous among the retailers and the easiest to enroll using an app or website. It includes points that customers earn on every purchase and redeem them on various activities. Such programs are usually a hit for retail industries as it rewards customers for every purchase, and encourages them to redeem points whenever they want. Amazing customer experience.

Tier Based System

The tier Based System is the second version of the points-based loyalty program. Companies can create several tiers to lure new customers and keep the old ones using an innovative tier loyalty program. Retail industries can immensely benefit from this loyalty program by offering special rewards to their high-spending customers as they level up the tier. There are two benefits to this program; first, there are better rewards for valuable customers, and the second is saving time as customers don’t have to wait for a long period to receive rewards. Many big brands like Myntra, Marriott, Starbucks have tiered loyalty programs, and they are a hit among their customers.

Partner Loyalty programs

Running a loyalty program with a strategic partner is a good option for retailers. A good way to gain new customers and make them spend more within the group of business involved. However, a business may face legal problems that need to be sorted out before planning the program. Hence, such a program is popular among large retailers.

Premium Loyalty programs

Premium loyalty programs are a hit in 2021. Swiggy has a premium loyalty program. In this type of loyalty program, customers have to pay a certain amount to join the program. Premium loyalty programs are famous among retailers. It is based on the concept of removing a common barrier in the purchase. Which could be anything. It is a responsibility of a brand to identify such barriers and offer them as a perk in the program.

Referral-based loyalty programs

Referral programs are amazing to retain customers. These tactics increase sales through referrals by the existing customers. If you have more loyal customers, there are more chances of referrals. Think about it, if someone is recommending your brand to friends and family, they are playing the role of mediator in this case. Hence, bringing more customers to you. If you are planning for a referral program, make sure you have a systematic approach to bringing in referrals rather than expecting results via the program.

Top Loyalty programs trends in 2021

Now you know the types of loyalty programs that are a hit in 2021. Let’s talk real. These have successful loyalty programs and proved the importance of a loyalty program to retain customers.

Let’s dive in:

1 .Sukoshi Rewards – E-commerce Brand

A delightful experience is the best way to describe this loyalty program. Sukoshi Rewards offer a unique reward experience to its customers with a different type of reward program – Rotating rewards. It is a perfect example of a long-term loyalty program. Instead of the typical spend money to get points and redeem models, they have offered their customers a program that provides value without building a discount-based loyalty program. Customers receive new product grabs each month. More points the customers earn, the better the points, the bigger the rewards.

2. Caraa Insiders – Luxury Sports bags & Accessories Brand

Caraa Insider is a loyalty program by Caraa Sports. The program motivates customers to achieve goals that are valuable to them as to the brand. It is a tier program where customers earn points on every purchase. A customer needs to have 200 points to join the program. Once a customer earns 200 points, they become a part of the Caraa Insider. The program has four tiers; Blush, Rose, Mauve, & Oxblood. Customers can earn many points under the program. There is a point for entering each tier and bonus points for birthdays. The list is long.

For their loyal members, the brand rolls out the red or Oxblood carpet providing benefits like showroom excess, mystery gift, early sale access, free standard shipping, and Vip experiences.

3. Walmart + – Retailer

Launched in Sep 2020, the Walmart + loyalty program became famous in a short time. This is a premium loyalty program where customers pay a certain amount to join the program. Offers include discounts on fuel, unlimited free deliveries with purchases over $35, and a Scan & Go facility where customers scan their items in a physical store without having to wait in line. 35% of Walmart customers want to join the program due to free delivery options. Further, 24% said they like the same day and one-hour delivery windows. The loyalty program is based on the concept of identifying a common pain barrier and motivating customers to pay for it. In this case, it is fast and unlimited free delivery.

4. Gem – Plant-based, Vegan Vitamin Brand

Referral loyalty programs ideas are amazing tactics to earn more customers through existing customers. A huge win-win situation for businesses and customers. The key to having a referral program is based on how much brands value their existing customers and the new ones.
Members earn points on orders, social engagement, leaving reviews, and more. They can cash these points for free branded GEM merch. If they earn 100 GEM rewards they will get the title of GEM powered and early access to new products and the bonus for earning the title.

5. GapGood Rewards – Clothing and Accessories retailer

The Gap Good reward program is a combination of a point-based loyalty program and a premium program, and the points get converted into discounts in $5 increments.

It has two memberships – Gap Good Rewards members and Gap Inc. credit card members. A customer who is a part of a credit card membership earns 5% back, whereas regular members get only a 2% discount. The points will never expire as long as a customer makes another purchase within two years. Members who earn 5 dollars get a $5 coupon. If they save and earn $10, the extra points get converted and become $5 coupons. It’s a great CX for customers, with no expiry policy.

Wrapping up

Loyalty programs are not a new concept. It has been there for a long time. Every business, whether a small business or a big one needs to have a loyalty program. Not only does it offer an incredible experience to the existing customers, but it is also an effective way to earn new customers and build customer loyalty over time. The pandemic has certainly impacted businesses, but that didn’t stop any of these brands to offer an incredible experience to their customers.

Start your Loyalty program Journey with Froogal
We understand that creating and managing a loyalty program is a complex task, and its success depends on many factors. We study all factors that may impact a loyalty program and offer the best solutions to businesses. Allowing you to build a winning loyalty program to wow your customers.

Talk to our expert.