Loyalty programs are no longer an accessory! They are indeed anentire ensemble and a key facet in driving customer retention. With 64% ofretailers saying that loyalty rewards programs are the best way to connect with consumers,it re-enforces the significance of loyalty programs in the retail industry. Aloyalty program increases the customers’ lifetime value and boosts revenues. Awhopping 75% of customers reported they are more likely to make anotherpurchase after receiving a loyalty reward. Comprehensive, multi-dimensionalloyalty programs for retail companies are the key to creating fiercely loyalcustomers, building 360-degree engagement, and converting customers into brandambassadors. In this blog, we will cover the 5 best retail rewards programs.
Sephora
Category: Retail personal care and beautyproducts
A leader in prestige Omni-retail, Sephora’s purpose is to create awelcoming beauty shopping experience and inspire fearlessness in the community.Sephora has been recognized by Forbes as one of America’s Best Employers threeyears in a row, in 2018, 2019, and 2020.
In 2007 Sephora launched a client loyalty program, ‘BeautyInsider’ to offer clients exclusive benefits and rewards. The Beauty Insiderprogram is available in Sephora stores nationwide and at sephora.com. Sephora’sloyalty program is a wonderful example of a tiered loyalty program. As members move up the tiers,they get incremental benefits – monetary, non-monetary and aspirational –leading to a genuine sense of belonging.
Sephora’s Beauty Insiders earn one point for every $1 spent, andthe tier names offer a sense of exclusivity:
- Insider (Free to join)
- VIP (Spend $350)
- Rouge (Spend $1000)
The Insider level is free tojoin while the other 2 levels are unlocked after the users spend a certainvalue. The rewards offered by Sephora are a mix of transactional and emotionalbenefits. Depending upon the tier, members get exclusive gifts, free shipping,end of the year discounts etc. The Rouge tier is truly aspirational in natureas one can exchange 2500 points for $100 off their purchase along with otherexciting perks like access to exclusive events hosted by Sephora, featuringspecial services, elite swag, new product launches, restock, and more.Depending on the points accumulated, Beauty Insiders can exchange points forimmersive experiences like a one-on-one with a brand founder, a chance to seehow their favorite products are made, etc.
Gap
Category: Retail apparel
Gap Inc., a collection of purpose-led lifestyle brands, is thelargest American specialty apparel company offering clothing, accessories, andpersonal care products for men, women, and children under the Old Navy, Gap,Banana Republic, and Athleta brands. The company uses omni-channel capabilitiesto bridge the digital world and physical stores to further enhance its shoppingexperience.
Gap’s Good Rewards Program membershipencompasses of four brands – Gap, Banana Republic, Old Navy and Athleta.Members earn 1 point for every $1 spent and cardmembers earn 5 points for every$1 spent.
The program – one membership. four brands., makes it easier for cardmembers andrewards members to earn points, redeem their rewards and creates opportunitiesto give back by donating to charitable funds. There are different perks,bonuses, and exclusive brand benefits for members and cardmembers and therewards get sweeter and truly luxurious in nature for cardmembers as they climbup the tiers. Customers can redeem 100 points for $1 reward across Gap’s familyof brands. Exciting and opulent Gap Good Rewards Program offers its customerswith fascinating tiers – Core, Enthusiast and Icon and the membership tierlevels are based on annual spend.
- Core, is free to join with zero to $500 spend per year. It offers bonus points for quarterly cross-brand purchases, a birthday surprise, and free three- to five-day shipping on orders of more than $50 etc.
- Enthusiast, all cardmembers start at the Enthusiast level for a $500-$999 annual brand spend. Enthusiast level includes all the Core benefits plus added benefits.
- Icon includes cardmembers with 5000 points or $1000+ annual brand spend. Apart from all benefits in Core and Enthusiast tier, Core customers can double the value of their rewards on double reward days and create their own sale day.
A key feature of the program isthe Do-Good component, which gives customers the ability to give back bydonating their points to one of five funds that support the brand and company’score values. Gap’s Good Rewards Program offers incremental benefits to itsmembers which are both monetary and non-monetary in nature, leading to agenuine belonging and exclusivity.
Designer Shoe Warehouse
Category: Retail store chains
Designer Brands Inc. is one of North America’s largest designers,producers and retailers of footwear and accessories. The company operates aportfolio of retail concepts in nearly 1,000 locations in the US and Canadaunder the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse brandsand operates leased locations in the U.S through its affiliated business group.
DSW has designed a truly customized, engaging, and comprehensiveloyalty program based on customer feedback and is one of the best customerloyalty programs in retail industry. The DSWVIP loyalty program offers a more personalized experience formembers, with relevant and compelling rewards. Features include the ability toreceive free shipping on all purchases, earn rewards, and donate shoes forpoints. Members get 1 point for every $1 spent and $5 reward for every $100spent. DSW VIP introduces three interesting tiers and ties in the rewards,perks, benefits with each tier making the program truly aspirational in nature.The three tiers are VIP Club (free to join); VIP Gold ($200 annual spend) andVIP Elite ($500 annual spend). All tiers receive an accelerated reward of $5for every 100 points earned; Club and Gold members earn 1 point for every $1spent, while Elite members earn 2 points for every $1 spent.
Key perks of VIP Elite tier are as below-
- VIP Elite members receive 3X points on every purchase for an entire day once a year. What’s truly exciting here? Members can choose the day for this 3X points earning!
- Exclusive access on special promotions, events, announcement, and free stuff
- A birthday gift of $10, redeemable online or in-store
DSW unveiled a survey on howclosely members’ feelings about shoe shopping align with the new DSW VIPrewards, and this influenced the development of this program. More than a thirdof women buy new shoes at least once a month and 25% of women have a pair ofshoes in their closet that is more than 12 years old. This influenced the perkof donating shoes to earn points and tied in with the overall DSW VIP program.
Jelly Belly
Category: Retail candy and confectionery
Jelly Belly manufacturers high quality confections including theflagship Jelly Belly jellybean brand, candy corn, chocolates, licorice andgummies, Sunkist Fruit Gems, Sport Beans. Today, candy corn is the most populartype of jellybean in the world. People eat enough of the beans in a year tocircle the globe more than five times!
Apart from its exceptional candy and die-hard candy lovers acrossthe globe, Jelly Belly presents one of the most sought-after loyalty programs – Jelly Belly Sweet Rewards thatoffers discounts to its customers. Engaging customers at various touch-points,Jelly Belly rewards customers points for purchases, referrals, accountcreation, writing reviews, subscribing to email etc. Jelly Belly’s SweetProgram has truly converted its customers into brand ambassadors which is atestimony to the massive number of reviews on their website. Gamifying the experience further, Jelly Bellyoffers interesting tiers to its customers, that embody a sense of exclusivity.
- Fan – Default tier
- Rookie – 1000 lifetime qualified points
- MVP – 2500 lifetime qualified points
- All-Star– 5000 lifetime qualified points
Free shipping, bonus points onpurchases, free gift box on purchases, discounts etc. are some of the perkscustomers are eligible for as they move up the tiers. As customers earn 10points for every $1 spent; they can redeem these points seamlessly on candycoupons. The redemption is 500 points for a $5, 950 points for a $10 and 1800points for a $20 candy coupon. Jelly Belly’s Sweet Rewards program provides aholistic customer engagement and provides a powerful hook for repeat purchases,increased retention, and enhanced customer lifetime value.
Kohl’s
Category: Retail department stores
Kohl’s is a leading omnichannel retailer with more than 1,100stores in 49 states. With a commitment to inspiring and empowering families tolead fulfilled lives, Kohl’s offers amazing national and exclusive brands,incredible savings, and an easy shopping experience in-stores, online atKohls.com and on the Kohl’s mobile app.
Customers who enroll in Kohl’s Rewards, a free loyalty program, will earn 5%Kohl’s cash every day no matter when or how they choose to shop, personalizeddeals and perks throughout the year, and a special birthday gift. Customers’Kohl’s Rewards balances are converted and issued in $5 increments of Kohl’sCash coupons on the first day of the following month. Each Kohl’s cash couponshall expire 30 days after issuance and needs to be redeemed prior to itsexpiration. The adage that loyalty programs need to be carefully designed tomeet brand objectives couldn’t be truer for Kohl’s, for, these cash earningswork like a charm and customers feel closely knitted to the program. Gamifyingthe experience further, customers get $10 Kohl’s Cash for every $50 spentduring all Kohl’s promotional periods. Furthermore, new elements such asprinting out a customer’s Kohl’s Rewards balance on the shopping receipt,digital reminders of available Kohl’s cash coupons, and syncing Kohl’s Rewardsbalances across channels makes the Kohl’s Rewards experience easier and moreenjoyable for everyone. Kohl’s omni-channel rewards program is a combination ofKohl’s longstanding cash program with rewards. Kohl’s has ensured theircustomers can redeem their Kohl’s cash easily and in a seamless manner.
Conclusion:
Customer rewards programs evoke a sense of emotion and forms astrong bond between the brand and the customer. As we cover the loyaltyprograms for retail industry in this blog, we conclude that the programs thatgo beyond transactional loyalty form a long-lasting relationship and 360-degreeengagement. Engaging with customers at various touch-points of theirjourney not only keep them engaged in the rewards program but also provides apowerful hook for repeat purchases, improved customer retention and high profitmargins. The brands listed above have carefully crafted their customer rewardsprogram to ensure that it blends with their overall brand objective andresonates with their customers’ journey. These factors have truly contributedto a compelling and award-winning loyalty rewards programs.
This article was originally published on Zinrelo.com
