Beyond Points: Companies Are Using Innovative Rewards Programs To Draw In Customers

Shutterstock

Before the heady days of smart phones and online advertising algorithms, rewards programs meant a 3.5″ x 2″ punch card that either found a home within your wallet or the cup holder in your car. When one was in receipt of said punch card, one remembers the promise and possibility of that fabled 10th and final punch. That “free” item – whatever it may have been. Instead, that card remained in its misbegotten home until its bearer simply gave up on that promise.

These days, rewards programs are far more sophisticated than the punch cards of days past. Thanks to technology, loyalty and rewards systems are more relevant and engaging than ever before. Moreover, thanks to smart phones, rewards programs can inspire real-time action.

Now, many of our loyalty cards live on our smart phones, and we’re inundated with offers and e-mails to entice us to earn more points.

But as a result of widespread adoption of loyalty programs by brands, customers have come to expect benefits for return business. And thanks in part to an influx of similar programs that have leveled the playing field, the effectiveness of rewards programs is highly variable and dependent upon the type of program and its implementation.

 

So, as a retailer, how can your program break through the white noise?

It’s About More Than Points

Despite the apparent saturation, a report released by Forrester Research last year indicates consumers still view loyalty programs favorably and are on the lookout for new and innovative programs from which they can benefit.

YOU MAY ALSO LIKE

According to the report, 72 percent of adults online belong to at least one loyalty program and those enrolled in loyalty programs report that they belong to nine, on average. Only 24 percent of respondents said they belong to too many loyalty programs. Seventy-eight percent of respondents said loyalty programs save them money, and nearly half of respondents said loyalty programs influence what they buy.

So while consumer engagement in customer loyalty programs doesn’t seem to be waning, companies are reaping the rewards. According to the report, loyalty program members on average spend $42.33 more with traditional retailers than shoppers not in a loyalty program.

Today’s companies realize that loyalty programs aren’t just about earning points. For example, beauty retailer Sephora, who has seen much success with their Beauty Insider program, offers free makeup classes and access to exclusive beauty events to keep their customer base engaged. Benefits like these are putting a new spin on customer loyalty.

Influencer Marketing Programs Are Essentially Elevated Rewards Programs

Due to the rise of social media, a number of companies have implemented influencer marketing programs where social media users with large followings advertise a company’s products or services in exchange for perks and free gear. Influencers can also receive a percentage of sales in exchange for promoting products.

These kinds of programs represent a new kind of rewards program, reserved for a select group of trusted consumers. And they’re leading to results for companies. In 2016, companies that implemented an influencer marketing program received $11.69 in earned media value for every $1.00 of spend, on average. That’s a 4.4 percent year-over-year increase.

After a few years running a cash back loyalty program, luxury retailer Nordstrom eliminated its program from Ebates and has turned to influencer marketing. SimilarWeb estimates that 74 percent of Nordstrom’s August 2017 mobile traffic came from referrals. Influencer platform RewardStyle is estimated to have brought in 79 percent of that total. And SimilarWeb estimates 38 percent of Nordstrom’s desktop traffic comes from RewardStyle and its 20,000 influencers.

The takeaway? Rewarding influencers, who in turn get to reward their audiences, is an effective strategy in supplementing a traditional customer rewards system.

Mobile Is Essential To Loyalty Programs

Consumers are constantly using their phones and other smart devices, so customer loyalty programs that don’t have a mobile component are not likely to succeed. According to a 2016 report, 57 percent of consumers want to engage with their loyalty programs via mobile devices.

It’s no secret that Amazon has been leading the way in e-commerce. But the company’s Prime Day event is a great example of the importance of mobile capabilities to a company’s loyalty program. Prime Day deals were only available to those customers enrolled in Amazon Prime. Throughout the Prime Day event, users enrolled in this loyalty program received regular notifications on their mobile devices about members-only deals and they could shop these deals directly on these devices.

In general, Amazon Prime members receive perks like free two-day shipping along with free movies, music, books, and photo storage. As a result of these offers and the annual Prime Day event, 91 percent of Prime members renew for a second year and 96 percent of those subscribers pay for a third year.

Rewards Program Members Are Marketers

Similar to influencers, members in rewards programs have proven to serve as some of the best marketers. Those loyalty programs that are most attractive to members can lead to an increase in sales because members spread the word about them and inspire others to join. According to a 2016 report on brand loyalty, 73 percent of loyalty program members are more likely to recommend brands with good loyalty programs.

The home entertainment industry is innovating in the rewards game in a way that retailers can adopt. Today there are over 200 subscription video-on-demand platforms in the U.S. and in order to set themselves apart, these companies are turning to unique loyalty rewards programs. Take new video-on-demand company TaTaTu as an example, they are providing rewards to viewers and launching an e-commerce store where viewers can redeem rewards for products. Founded by Hollywood producer, Andrea Iervolino, the company is one of the first video-on-demand businesses to offer a rewards program.

Video streaming services make a lot of their money from advertisers. And instead of reaping all the rewards, the company is passing that revenue onto those viewers who watch advertisements. The company’s rewards program “connects users and content providers in a way that not only rewards people for consuming entertainment, but also for producing it,” says Iervolino.

For retailers, it means looking more holistically at the customer to translate desired behaviors, such as viewing advertisements or browsing in store, into tangible rewards.

Rewards programs are ubiquitous, and because of that, they risk becoming stale. By understanding the full scope of benefits loyalty programs can provide consumers, looking at influencers with a fresh perspective, and doubling down on mobile, brands can keep their rewards cards out of the cup holder of obsolescence. 

Source: Beyond Points: Companies Are Using Innovative Rewards Programs To Draw In Customers

The post Beyond Points: Companies Are Using Innovative Rewards Programs To Draw In Customers appeared first on Mibo.

.fl-post-header

.fl-post-content

Source: Eight Industries Where Loyalty Programs Are Extremely Effective

The post Eight Industries Where Loyalty Programs Are Extremely Effective appeared first on Mibo.

The holidays represent as much as 30% of retailers’ annual sales.

Leveraging the data your business generates is a critical step in optimizing your inventory, employees, and sales—and it’s never been easier to access and interpret that information.

In this free downloadable report, written in collaboration with Bob Phibbs The Retail Doctor, you’ll learn how to use data to make impactful inventory, employee and sales decisions, and discover the answers to the following questions:

• How can I forecast sales and what products I should stock?
• What’s the best way to measure my employee training program’s ROI?
• How can I set realistic sales targets for my staff?
• What’s the perfect balance between sales and service?

Produced in collaboration with:

Source: Retail report: 3 ways to increase your store’s holiday profits | Lightspeed POS

The post Retail report: 3 ways to increase your store’s holiday profits | Lightspeed POS appeared first on Mibo.

Note: This is article #6 in the The Ultimate Guide to Creating Repeat Customers

Loyalty programs come in all different shapes and sizes. Some programs send offers in the mail every now and then, while others go as far as having their own credit card!

It’s clear that some types of loyalty programs don’t fit your company’s needs. For example, if your company is a small town candy store, your customers don’t need to have a credit card with you because they aren’t making big enough purchases to warrant one.

Because there’s not a one-size-fits-all loyalty program, here are some ideas for loyalty programs based on these common industries:

Entertainment & Leisure

Statistics: 156.5 million loyalty program members as of 2015–specific to gaming (source)

Types of rewards: Early access, exclusive content, and discounts

Sample loyalty program: Offer your loyalty program members previews to new content (songs, movies, etc.), personalized recommendations to existing songs, movies, leisure activities. For example, if your members select a genre of music that they like, you can send them emails targeted at that genre. You can also offer your members exclusive movie trailers, behind-the-scenes footage, and blooper reels.

Real-world example: For $12 a year, AMC Stubs members can get free upgrades on movie theater snacks such as popcorn, drinks, and candy. Every dollar spent using the AMC Stub card goes toward future discounts on movie tickets. Because this loyalty program charges a membership fee, customers might feel more inclined to use the program to its fullest extent in order to get their money’s worth.

Financial Services

Statistics: 577.9 loyalty program memberships as of 2015 (source)

Types of rewards: Cash-back offers and discounts

Sample loyalty program: It’s a good idea to give your loyalty program members cash back for grocery shopping because this targets a wide audience, and people go grocery shopping on a regular basis. Pair up with popular companies to offer cash-back options. It’s a win-win situation: these companies advertise through you and you encourage your customers to stick with you.

Real-world example: Discover Card has teamed up with many companies to offer their customers discounts via paying with a Discover Card. For example, at amusement parks like Six Flags, employees are encouraged to offer guests a 5% discount on their purchase if they use Discover. In addition to this, Discover also offers a 5% cashback bonus with home improvement stores, department stores, and Amazon.com.

Food Services

Statistics: 54.8 million loyalty program members as of 2015 (source)

Types of rewards: Free food (appetizers, desserts, drinks, etc.)

Sample loyalty program: Offer your loyalty program members free appetizers and desserts after coming to your food establishment every x number of times. Let your customers to track their rewards and purchases using a website or a plastic card (or both!). Get to actually know your customers so you can send them offers based on their location. For example, if you know your members are going to be traveling soon, locate the nearest branch of your restaurant to their vacation spot and share it with them.

Real-world example: Starbucks Rewards has its own smartphone application, which gives coffee addicts easy access to their favorite drinks at their fingertips. Rewards members get free drinks and food. You can even pay with the smartphone app itself!

Retail & Wholesale

Statistics: 229.6 million department store loyalty program members as of 2015 (source), 267.6 million drug store memberships as of 2015 (source) 169.7 million grocery memberships as of 2015 (source), and 24.5 million fuel/convenience memberships as of 2015 (source)

Types of rewards: Discounts, special offers, and rebates

Sample loyalty program: Give your customers a plastic card, either the size of a credit card for easy storing in wallets or the size of a keychain for convenient safekeeping. When customers check out in store or online, they can swipe this card, which will keep track of how many points they accumulate per purchase. Offer your customers discounts and free gifts based on their points. You can also reward your customers for more than just shopping: give them points for filling out surveys and tweeting about your brand!

Real-world example: Barnes and Noble gives their members 10% discount on every purchase and free express shipping for a fee of $25 a year. Though this costs money, many customers testify that it pays for itself in the end.

Travel

Statistics: 355.9 million loyalty program members as of 2015–specific to airlines (source), 355.9 million loyalty program members as of 2015–specific to hotels (source), and 44.9 million loyalty program members as of 2015–specific to car rentals (source)

Types of rewards: Free or discounted flights, car rentals, hotels, and merchandise

Sample loyalty program: Frequent flyer programs are the most common type of airline loyalty program. Stick to the traditional model by keep tracking of how many miles your customers travel with your airline, then letting them redeem those miles for offers such as free flights, discounted flights, hotels, etc. If you’re not a believer of the frequent flyer strategy, another approach to airline loyalty programs is to stray away from calculating mileage-related rewards and focus instead on customer experience and brand loyalty. For example, nowadays many airplanes are equipped with TV screens on every passenger’s seat. You could target in-flight movies as part of your loyalty program. One thing you could try is have an exclusive “movie club” where customers pay an annual fee to have unlimited movies every time they fly with you.

Real-world example: Check out the American Airlines AAdvantage Program, where you earn points for every mile you fly with them. You can use these points to redeem free flights, hotels, car rentals, and much more. A new approach that American Airlines took is teaming up with popular retail companies such as Converse, Nike, Bose, and Apple, to offer miles for each dollar spent at these companies. This involves both the traditional and the modern approach.

Pro tip: No matter what industry you’re in, you should use a CRM to track and manage your loyalty program.

Source: Loyalty programs based on industry

The post Loyalty programs based on industry appeared first on Mibo.

Something seemed rushed about Lyft’s loyalty program launch early last week. In a blog post sharing the news and in subsequent media outreach, the ridesharing service had few details about its program, like how rewards would be earned or which markets would launch first.

Now we know why. Later in the week, Uber launched a loyalty program of its own, flush (at least relative to its competitor) with information about how and when the system would work.

This isn’t to say that either program is a particularly screaming deal. Uber Rewards effectively boils down to a $5 return on $250 of spend, Lyft has revealed nothing and both programs claim vehicle upgrades as one of their prime selling points. Big deal.

If anything, last week’s activity shows how ferocious the battle is for dominance in the ridesharing space and how a two-day lead can be perceived as a competitive advantage. Now, we just need Airbnb to feel the same sense of urgency.

Separately, as the three-month milestone for Starwood and Marriott’s loyalty merger passed this weekend, we wanted to check in with legacy Starwood Preferred Guest members to see how consumer sentiment was stacking up. This week’s story on the plight of those members is well worth the read.

— Grant Martin, Business of Loyalty Editor

Skift Stories and More Expert Insight

Capital One Adds Frequent Flyer Mile Transfer Option to Its Credit Cards: One of the more popular features among point-earning credit cards is the ability to transfer balances to a host of airline frequent flyer programs — creating, ostensibly, a virtual bank for points that can be disbursed at any measure. So far, American Express and Chase have been leaders in offering this option through a variety of credit cards. Now, Capital One is getting into the game with 12 airlines.

H​ow’s Marriott’s Massive Loyalty Merger Going? We Asked 5 Starwood Members​ to Weigh In: Most Marriott Rewards and Starwood Preferred Guest members enjoyed a seamless integration earlier this year when the two programs merged. For some, however, latent issues are still hampering the experience. We asked five Starwood members about their journeys.

What Lola’s Big Deal Means for Business Travel: Big news this week for keen watchers of the corporate travel sector as Paul English’s Lola has signed a partnership with American Express Global Business Travel to bring the service to more users.

Lyft Will Launch a New Loyalty Program Ahead of Sharing Rivals: On-demand transportation company Lyft is expanding its loyalty program to include all consumers.

When Airlines Auction Premium Seats, Some Passengers Win: Airlines are trying to monetize their best products. Imagine that. More and more, airlines look like a sustainable business. We’ll see if it lasts.

JetBlue CEO Defends Bag Fee Hike as Cost of Doing Business: Higher bag fees might just be the price passengers need to pay for free Wi-Fi and generous legroom.

China Southern Quits SkyTeam Airline Alliance: Asia’s biggest carrier is abandoning the SkyTeam airline alliance. China Southern Airlines Co. will exit the partnership in 2019, nearly two years after selling a minority stake to American Airlines Inc., which is a member of the rival Oneworld group.

Uber Launches Rewards Program for Most Loyal Customers: Uber Technologies Inc. is rolling out a new rewards program starting Wednesday, offering its most loyal users cash back on rides, priority airport pickups, and free phone support.

Regional Airline Flybe Puts Itself Up for Sale: Flybe Group Plc has begun takeover discussions with several parties as the rising cost of oil crimps earnings at Britain’s biggest provider of domestic flights and the company faces increasing financial stress.

Qatar Airways CEO Repeats Threat to Leave Oneworld Airline Alliance: Qatar Airways CEO Akbar Al Baker renewed his threat to abandon the Oneworld global alliance, citing a letter he said Australian partner Qantas Airways Ltd. had sent to staff attacking his carrier’s expansion there.

Subscribe to Skift’s Free Business of Loyalty Newsletter

Skift Business of Loyalty Editor Grant Martin [gm@skift.com] curates the Skift Business of Loyalty newsletter. Skift emails the newsletter every Monday.

See full article

Photo Credit: Uber vs. Lyft, photo by Stock Catalog on April 18, 2018,

Source: Game On: Lyft and Uber Launch Loyalty Programs – Skift

The post Game On: Lyft and Uber Launch Loyalty Programs – Skift appeared first on Mibo.

Source: 15 Ways to Get Your First Engaged Program Member Thank You

The post 15 Ways to Get Your First Engaged Program Member Thank You appeared first on Mibo.

Source: 15 Ways to Get Your First Engaged Program Member

The post 15 Ways to Get Your First Engaged Program Member appeared first on Mibo.

With over 3.5 billion members, the internet is the largest community in existence. It’s also one of the fastest growing communities, and as a result is often undergoing changes — sometimes without us even realizing it. For example, did you know that we’re in the middle of the evolution of the internet from Web 2.0, to Web 3.0?

more

If you didn’t know this was happening (or aren’t even sure what those terms mean!), that’s ok. This isn’t the first change the internet has gone through and most definitely won’t be the last, but it does have the power to impact your own brand community. That’s why I’m going to break it all down for you to help you understand how your community is going to function as part of the new and improved world wide web.

How the web has supported community

Anyone born before the mid 90’s knows that in the beginning, the internet were far less user friendly than it is today. I can still hear the pings and whistles of the dial-up tone and feel the annoyance of getting kicked offline when someone tried to use the phone while I was logged on.

This first phase was what we could now call Web 1.0. As a user, you had limited tools to contribute to the conversations happening online, and as a result got more of a “read only” experience.

As you can imagine, this type of experience wasn’t very effective at building community. For one thing, ecommerce wasn’t really a “thing” yet and even if it was, it would have been extremely difficult. However, the transition from Web 1.0 to Web 2.0 ushered in an era of improved communication that made the concept of online communities a whole lot easier.

With the emergence of social networks like Myspace, Facebook, and Twitter, we found ourselves in the community centric age of the internet. The ability to easily connect with strangers and friends all over the world has created a true web of interconnected users, while technology like video streaming has allowed for shared experiences online.

Perhaps the most notable thing about Web 2.0 is how easy it’s been for businesses to adopt. As new forms of social engagement like Instagram and Snapchat continue to emerge, it’s easier than ever to generate organic conversations that strengthen emotional connections customers have with each other and the brands they choose.

That’s what makes Web 3.0 so intimidating. While Web 2.0 is firmly rooted in organic conversations and engagement, Web 3.0 is focused on making every component of the online experience “smart.” With tools like AI and virtual/augmented reality paving the way, Web 3.0 has the power to dramatically change every part of the internet and, more importantly, how we interact with it.

So how will this impact your brand community? If Web 3.0 is all about data analysis and automating everything with AI, what does that mean for communities that thrive on emotional connections and social interaction?

Why brands need Web 2.0 community in a Web 3.0 world

When you look at how the web has changed, there was clearly a shift from simply being a tool for accessing information to being a powerful communication channel. This is what allowed us to build and engage with communities online, making communication software a key component of what makes Web 2.0 what it is today.

That’s what makes Web 3.0 feel so problematic. While Web 2.0 focused on personal interactions, the driving force of Web 3.0 is computer intelligence and data analysis. Even though these technologies all have their place, they are no replacement for personal, emotionally backed relationships with your customers and brand community.

If you look at any thriving community, a lot of their success comes from social interactions and collaboration, and social media is largely responsible for this connection. You’d be hard pressed to find a brand that doesn’t have either a Twitter, Facebook, or Instagram account that they use to interact with their brand community. That’s because social interactions form emotional connections. It’s difficult to have multiple conversations with someone and be apathetic towards their existence.

In the same way, by engaging with their communities on social media, brands aren’t just as a business, but actual people that customers can form relationships with.

Customer relationships aren’t just for fun either – they are immensely influential in the buying process. As one of the primary conduits of social proof, social media provides a steady flow of user-generated content (UGC) which builds significant trust in your brand. More importantly, social proof allows customers to communicate with each other and a brand, which then encourages others to join, engage, and share the the value of a brand community.

Clearly there are aspects of Web 2.0 that businesses need to keep alive in order for brand communities to thrive. No matter how much automation you set up, it’s never going to replace the value of human, emotional connections, or the benefits of social proof that engaged community members provide.

Communities are more than the sum of their parts

At the end of the day, the success of your brand community will rely on finding a balance between Web 2.0 and Web 3.0. Since social collaboration aren’t part of the vision for a Web 3.0 world, your brand needs to actively make them a priority. Otherwise, you run the risk of distancing yourself from your customers instead of growing an emotionally connected, valuable brand community.

Ultimately, the long term success of your brand is closely tied to the relationships that you create with your customers and, just as importantly, the bonds you encourage them to build with each other.

Source: Why the Community Values of Web 2.0 Still Matter

The post Why the Community Values of Web 2.0 Still Matter appeared first on Mibo.

If you or anyone you know has a pet, you’ve probably noticed that pet owners have very close relationships with their furry friends. They view their pets as members of the family, which means they only want to be giving give them the highest quality toys, food, and treats they can find.

This dedication to quality, combined with the strong bonds pet owners share with other pet owners, makes them extremely loyal to their favorite pet supply brands. As a result, pet suppliers need to take extra care when designing their brand experience to make sure customers choose (and stick with!) them first.

more

A rewards program plays a huge part in providing the exceptional experience dedicated pet lovers are looking for. Reward programs are retention rocket fuel, helping form bonds between customers and brands to keep pet owners coming back again and again.

Here are 3 ways you can use a rewards program to build a brand community that satisfies your customers’ needs just like a good scratch behind the ears.

Reward customers for social sharing

If you look at any one of your social media feeds, you are certain to see a disproportionate number of pictures of cats, dogs, and every other cute animal in between. Pet owners can’t seem to help themselves from sharing them, so if they’re going to be sharing anyways why not use that opportunity to reward them for it?

This tendency for social sharing is exactly what prompted Best Bully Sticks to reward their program members for sharing their brand on social media. On top of that, they also re-share their loyal customers’ great pictures with their over 100,000 followers. After all, they’re not going to let that valuable user-generated content go to waste!

Giving points for mentioning or tagging your brand in posts and showing off how your customers (or their pets), are enjoying your products are great ways to use their social sharing to your advantage. You can the give your customers the joy of being publicly recognized by your brand on social media and give yourself incredible social proof of the value of your brand.

Use VIP tiers to inspire achievement

Everyone thinks their pet is the best. Take me, for example. My cat is the best cat. She’s fluffy, weird, and cuddly, but I know that my friend thinks his cat is the best.

While there’s no clear test to prove once and for all that my cat is the best in the world, VIP tiers are an effective way to separate your proudest pet parents from the rest. Instead of just letting every pet owner think they are at the top you can use a tiered rewards program to let them earn their way to actually being top dog (or top cat in my case).Honest Paws knew the drive to be the best would work with their health and vitality minded customers, so they made tiers the highlight of their rewards program. With names like Bronze, Silver, Gold, and Platinum, their tier names make it easy for their customers to understand the increasing value of moving up through their program.

As their customers spend more, accumulate more points, and move up the ranks, each new tier comes with a points earning multiplier to allow them to reach new rewards faster. This accelerated earning, combined with the valuable status of knowing they’re the best, gives their customers something to brag about on every pet-focused Instagram post. Now that’s what I call two birds with one stone — or one treat!

Encourage referrals from loyal customers

As more pet supply brands that started with a focus on one type of product branch out into other segments of the pet industry, competition is starting to heat up in ways it never has before. Competition is getting tough, and that’s not even considering the big box and international pet supply chains that you’re already trying to win customers from.

That’s why customer referrals are one of the strongest tools in a pet brand’s marketing arsenal. As members of pet loving communities, your customers have more power to bring prospective customers to your brand and convert them into repeat purchasers than you could ever have on your own.

Rewarding loyal customers for making referrals is an extremely valuable tool for growth  for brands like Kitty Poo Club. With a brand new spin on an old pet product, their referral rewards show customers how much they appreciate them and their part in sharing the Kitty Poo Club community with others.

Shoppers who have positive experiences with your brand are primed to share your message, but often need a gentle nudge in the right direction to actually make the referral. A rewards program with referrals is the purr-fect way to turn your happy customers into empowered brand advocates.

Using a rewards program is paw-sitively easy and impactful

Whether you’re a brand new pet supply brand or simply looking for ways to improve your brand experience a rewards program is just what you need to turn casual shoppers into dedicated community members.

Your customers care about deeply their pets, and a rewards program will help you show them that you not only care about them but their fur-babies, too. Your brand might not replace man’s best friend, but your community can become their next favorite thing.

Source: How to Build a Rewards Program in the Pet Supplies Industry

The post How to Build a Rewards Program in the Pet Supplies Industry appeared first on Mibo.

Editor’s Note: This post was originally published in March 2016 and was updated for accuracy and comprehensiveness on November 15, 2018.

more

When you decide to start a loyalty program, you want to get everything right.  From the types of rewards you offer to when you actually launch, you take the time to research everything you can, and why shouldn’t you? You want to get it right the first time, and looking at what others are doing will help you do that.

However, over the years I’ve noticed an interesting trend in how most brands do research.  No matter how prepared they try to be, many of them seem to ignore one of the most important rewards experience elements: their program’s name.

Ultimately, your program’s name is responsible for setting the tone for your shoppers and members. It can be the difference between a customer choosing to join your brand community or shop somewhere else. That means a generic name like “My Points Program” just won’t cut it if you want your program to perform its best.  Instead, you want to make it sound exclusive and exciting so that your customers actually want to take part in it.

So how do you do that? To help get your creative juices flowing, I’m going to start with a few quick tips on naming your loyalty program and then tell you about 5 of my all-time favorite program names.

Let’s take your naming game to the next level!

How to properly name a loyalty program

When it comes to naming your rewards program, there are 2 big ideas you need to keep in mind.

1. Establish an emotion

Above everything else, you want your program’s name to evoke an emotion in your shoppers. There are two reasons for that. For starters, loyalty is an emotion your customers feel for your brand.  The emotion your program’s name creates will influence your members’ perception of your program and help establish that long-lasting commitment to your store.

Secondly, emotions are one of the best ways to encourage customers to join your brand community. In a world where customers are looking to connect with brands on a deeper level, what you name your program can go a long way to making them feel like your community is exactly where they want to be.

The trick is to inspire an emotion that aligns with your brand and the products you sell. If your brand targets male shoppers, perhaps you want to inspire confidence with your program’s name. On the other hand, if you are a cosmetics company you might want your customers to think of elegance and beauty.  No matter what type of products you sell, emotion is key to building a relationship with your shoppers.

2. Incorporate your loyalty program currency

Customers will only want to join your rewards program if they believe it can deliver value. This is why an amazing rewards currency can be instrumental in delivering on that promise.

For example, a cosmetics company who offers customers “Beauty Bucks” as part of their “Beauty Bucks Boutique” program sounds a lot more appealing than a competitor that rewards shoppers with “Beauty Points” for joining their “Rewards Program”. By putting value at the forefront of their program, the first brand is guaranteeing its members an exceptional experience that is satisfying and on-brand.

When you incorporate your currency into your program name, you build a clear connection between the value you’re promising and the value you’re going to deliver. This correlation will strengthen your program as a whole and help emphasize the value customers can expect to receive after joining your brand community.

The best loyalty program names

Now that you know how to effectively name your loyalty program, it’s time to show you what that looks like out in the wild. Every great rewards program is able to create the desire to join, engage, and share, and the following 5 examples do a great job of not only creating community but maintaining it, too.

D’addario’s Players Circle

For those of you who aren’t familiar with D’Addario, they’re a world-renowned instrument and music accessories brand. Most popular for their guitar strings, D’Addario chose to name their loyalty program after their ideal customer: players.

This name works on two levels. For one, it explains the type of people that will benefit the most from participating in the program (players of instruments). It then pushes this categorization even further by adding an element of exclusivity with the word “Circle”. By using a circle, D’Addario is implying that the rewards program is only open to like-minded instrumentalists who take their craft and the instruments they use seriously. Who wouldn’t want to be a part of that exclusive group of people?

As a name, Players Circle does an amazing job of both explaining who benefits from the loyalty program and creating the desire to join.

Workout Empire’s Sassy Army

From the moment you land on Workout Empire’s explainer page, you can immediately tell that their brand community is made up of bold, sassy women who want to look good and work hard. This is echoed in their program name. With the word “army,” the athletic wear brand prompts visions of powerful women banding together as one strong, close-knit group that can tackle anything together. This is extremely appealing for their target customer and immediately motivates women everywhere to want to be a part of it.

They’ve also done a phenomenal job of incorporating their brand currency into their program name. As you can see in that screenshot, theirs is a “loyalty program that runs on Sass Cash.” Not only is that a clever currency name, but it also perfectly ties the two elements together and creates a cohesive, branded rewards experience.

With value and a strong sense of community at the forefront of their program, Workout Empire’s loyalty program is one that every fitness enthusiast will want to be a part of.

GONGSHOW’s Gonger Nation Rewards Club

As a Canadian who loves hockey (I know, stereotypical), this is one of my all-time favorite loyalty program examples — and not just because of what they sell!

From a loyalty strategy perspective this program is extremely well set up, and a lot of it has to do with the name. In hockey culture, it is customary to take someone’s last name and add an “er” or a “y” to the end. For example, if your last name is Shultz you would be called Shultzy, and if your last name is Daum you would be Daumer.

As a brand that targets hockey players, this loyalty program’s name is 100% tailored to the type of person they want in their brand community. With their own hockey stories and experiences to share, GONGSHOW’s customers can’t wait to join a loyalty program that reflects their own interests and understands them on a more personal level. As an extension of the brand’s culture, the Gonger Nation Rewards Club is a great example of how to name a loyalty program for a specific, passionate audience.

Sephora’s VIB Rouge

Whether you’re a makeup artist or not, you’ve probably heard about Sephora’s loyalty program. That’s because their VIB Rouge program is arguably the best loyalty program in the world, making it the perfect example to learn from.

The acronym VIB is what makes this name so outstanding. VIB stands for “Very Important Beauty,” playing on the concept of VIPs. This fits perfectly with Sephora’s three-tiered program structure which requires customers to spend over $1,000 per year to unlock the coveted VIB title.  While this might seem like a steep “membership fee,” it also makes the program feel extremely elite which is hugely motivating for their target customer.

This, combined with the VIB pun, is why so many people brag about becoming members.  If you don’t believe me, just do a quick search on Instagram, Twitter, or Facebook for #VIBRouge and you’ll see what I mean. Who’d have thought people would brag so much about buying makeup?

Obviously the success of this program isn’t based purely only on its name, but I definitely think it’s a significant factor.

Teddy the Dog’s Top Dog Rewards

There are few things I love as much as a good pun, which is why Teddy the Dog’s fun and furry rewards program makes it onto the list of best program names. With three prestigious VIP tiers (appropriately named House Broken, Divine Canine, and Pack Leader), Teddy the Dog’s program name lets customers know that by joining their community, they’ll be counted among the best of the best pet owners. In other words, they’ll be one of the top dogs!

By making their program name clever and fun, Teddy the Dog has made their program easy to remember and even easier to recognize. With adorable pups and the opportunity to “earn bones, get treats” on their explainer page, customers can easily see the value of joining their community and appreciate the close connection between what they sell and how they’ve branded their program.

The key to a great loyalty program name

All in all, I think it’s clear that an amazing loyalty program name is one that’s related to both what you do and the brand community you are trying to build. When you establish the right emotion and relate your program to your brand, the rest will follow (specifically more loyal, engaged customers).

Source: How to Name Your Loyalty Program (and 5 Examples of Names Done Right)

The post How to Name Your Loyalty Program (and 5 Examples of Names Done Right) appeared first on Mibo.