WHAT LOYALTY PROGRAM IS BEST FOR YOU?
Choosing The Right Fit
With so many different types of loyalty programs available, it can be overwhelming for businesses to determine which one is right for them. Pivotal Zen will help take you there.
W hen it comes to loyalty programs, there is no one-size- fits-all solution. The choice of loyalty program depends on various factors such as the nature of your business, the desired target audience, and goals. To make it easier, we’ve outlined top loyalty programs for you to choose from:
Points-based Loyalty Program
Points-based loyalty programs are one of the most common types of loyalty programs in the market. In this type of program, customers earn points for every purchase they make or actions they take, such as referring friends, writing reviews, or engaging with the brand on social media. These points can then be redeemed for rewards, discounts, or exclusive products or services.
The points-based loyalty program is straightforward and easy to understand for both businesses and customers. It allows customers to accumulate points over time, creating a sense of progress and achievement. This can drive continued engagement and loyalty as customers strive to accumulate more points to unlock higher tier rewards.
Tiered loyalty program
This program offers customers the opportunity to earn different levels, or tiers of rewards, based on their engagement with the brand.
With tiered programs, customers start at a basic level and can progress to higher tiers by meeting specific criteria, such as making more purchases or reaching a certain spending threshold. As customers climb the tiers, they unlock exclusive benefits and rewards, creating a sense of exclusivity and status.
For businesses, tiered loyalty programs can be highly effective in incentivizing customers to increase their spending. By offering attractive rewards that are exclusive to higher tiers, businesses encourage customers to strive for the next level, leading to increased loyalty and lifetime value.
Paid loyalty program
Paid loyalty programs are a relatively new trend in the loyalty program landscape. Unlike traditional loyalty programs, where customers earn rewards based on their purchases or engagement, paid loyalty programs require customers to pay a membership fee to join.
From a business perspective, paid loyalty programs can be a lucrative source of revenue. The membership fees provide a steady stream of income, helping to offset the costs of administering the program and providing the exclusive benefits. These programs also tend to foster a deeper connection between the customer and the brand.
Coalition Loyalty Program
Coalition loyalty programs, also known as multi-brand, are a type of loyalty program that bring together multiple businesses from different industries under one loyalty umbrella. This allows customers to earn and redeem rewards across a wide range of participating businesses.
By partnering with other businesses, a company can tap into the customer base of its partners and attract new customers who may have been unaware of their brand before.
Gamified loyalty program
Gamified loyalty programs add an extra element of fun to the traditional loyalty program model. By incorporating game mechanics, such as point systems, challenges, and leaderboards, these programs entice customers to participate more actively and create a sense of competition among them.
One of the primary benefits of gamified loyalty programs is the increased customer engagement they generate. By turning the process of earning and redeeming rewards into a game, customers feel a greater sense of accomplishment and satisfaction when they reach milestones or achieve higher status levels. This emotional connection strengthens their loyalty to the brand and encourages continued participation.
A Hybrid Approach
With a hybrid approach, customers are still rewarded for their purchases and loyalty, but they are also given the opportunity to earn additional rewards through gamified activities. This could include completing challenges, referring friends, or sharing their experiences on social media. By offering these additional incentives, brands are able to boost customer engagement, raise awareness among their peers, and motivate them to continue participation in the program.
Whichever Loyalty Program resonates, Pivotal Zen will walk you through steps for activation.
Startups & Continuity
The Promise & Pitfalls
Your Own Cashback Program
A Recurring Business Juggernaut
Schedule a Complimentary
Consultation