Repeat purchases and customer loyalty are two pillars of a sustainable business. These two factors are
essential in ensuring a business’ cash flow. Repeat customers mean recurrent purchases, which gives
businesses a continuous income stream without spending for customer acquisition. On the other hand,
loyal customers not only bring repeat purchases but tend to spend more and are likelier to recommend
the brand to their peers.

The challenge for most businesses today is the declining repeat purchase rate and loyalty rate of
consumers. That’s because many new brands are coming in with better offers, services, and marketing.
As a result of this new competitive landscape, many brands struggle to stay afloat, let alone grow their
business.

One of the best solutions to combat the changing market conditions is to have an effective customer
loyalty program. This strategy helps businesses keep their customers engaged and satisfied, so they
won’t switch to a different brand. Loyalty programs also increase lifetime value and referral rates of
customers.

In this article, we’ll share 8 creative loyalty program ideas for you to try.

Weekly specials
One of your loyalty program’s goals is to increase your customers’ lifetime value. An effective way to do
that is by increasing the frequency of their purchases. If most of your customers buy from you once a
month, you can double your revenue by enticing them to come twice every month.

You can accomplish this by having unique perks every week for your customers. By offering them
different rewards every week, you’re tapping into the part of their brain that seeks novelty. This would
entice them to keep shopping for the week’s prizes.

Scratch & Win cards
Another way to encourage frequent purchases is by tapping into the part of your customer’s brain that
loves randomness. If you noticed, people love to win things, especially if there’s a risk of not getting
anything. This is why games and gambling are very addictive.

Use this to encourage more purchases from your customers by randomizing the prizes they get with each
purchase. One way to do this is by scratch & win cards for members of your loyalty program. Each time
they make a purchase, they’re given a random scratch card where they can win prizes or get nothing.
This would be exciting for customers, especially if you hook them with a thrilling win on their first attempt.

Discount on your next purchase
Next-purchase discounts are a smart way to encourage customers to come back. Delaying the
discount/reward will incentivize your customers to purchase again from you. And if the offer is enticing –
for instance, a new product line dropping in a couple of weeks – you can ensure that they’ll be redeeming
that reward immediately.

Exclusive access

Customers love exclusive access. That’s because gaining access to limited-edition items makes them feel
special and unique. This customer desire makes luxury brands like Hermes, Rolex, and Louis Vuitton
immensely popular.

Replicate their winning strategy by offering your loyal customers exclusive access to limited edition
products. Make it so they can only gain access to it after attaining a certain level of status in your brand.
For example, spending P20,000.00 a month gives them access to an exclusive event.
Just make sure what you’re offering is appealing to your customers, relevant to your brand, and
reasonable for what you’re selling.

Partnered rewards

Your customers have a lot of interests, hobbies, and desires. That’s why they shop in different brands,
join groups, and go to various places. Maximize your customer’s personalities by partnering with brands
that they like. By collaborating with other brands they find appealing, you can encourage them to
purchase more frequently with you just to gain access to additional perks.

Switching rewards

Right now, brands are offering rewards to people who switch from their competitors to theirs. For
instance, the Bank of the Philippine Islands (BPI) gives people with credit cards and loans with other
banks to transfer their debt to the bank in exchange for cashback or reward points.
This is an excellent strategy to encourage loyal customers to leave their other options. Moreover, it’s also
an effective strategy to win over your customers’ peers who are loyal to other brands.

Just because rewards.

Creating customer delight is one of the most important aspects of building customer loyalty. These are
moments where customers experience an above-and-beyond moment with a brand, therefore increasing
their satisfaction and affinity to the brand.

Giving your loyalty program members random rewards just because is one of the ways to create
customer delight. A surprise bonus point is something they’ll enjoy (and would probably spend
immediately). Making it a win-win situation for you.

Priority ordering

Have you noticed that some brands offer priority checkout for their highest-tiered customers? For
example, SM Prestige Card gives its members access to priority checkouts, so they won’t have to wait in
long lines. This makes the upgrade from the SM Advantage Card worth it for regular shoppers.

Give the same perks to your loyal customers by making ordering and checkouts easier and more
convenient. This would make them feel valued by your brand and make them likelier to return more often.

These 8 tactics are what we gathered from observing some of the most successful loyalty rewards
programs around the world. We hope you picked up a couple of insights and ideas on how to elevate your
loyalty program.