Find a structure that works for your business
The first step is to decide on a loyalty scheme that’s right for your brand. There are several types of loyalty programme, each with its pros and cons. Like any marketing tactic, the best option will be the one that gets you closest to your end goal.
Reward points
Points programmes are all about acquisition – getting lots of people to sign up. The more consumers spend, the more points they collect. These points can then be redeemed for vouchers or used to access special discount codes.
Cash-back
Cash-back loyalty programmes reward consumers for spending a certain amount. For example, a member might spend $250 in one transaction, and receive a $25 reward to use on the next purchase.
Spend-and-save discounts
Unlike cash-back, spend-and-save promotions often happen periodically, encouraging customers to spend more to save more, e.g. save $100 when they spend over $300.
Threshold or tiered programmes
This type of reward programme is based on members hitting defined milestones or crossing a threshold of spend – and helps to increase engagement by adding a layer of exclusivity. With each new tier comes more and better benefits.
Max Shop uses a tiered reward programme based on total spend in the last 12 months. If customers spend $500 in a year, they earn $1 per $20 spent. More than $500 and it’s $2 per $20 spent.