Get to Know What a Loyalty Program Is and Its Types!

Get to Know What a Loyalty Program Is and Its Types!

GLOBAL DIGITAL TIMES | What is the Loyalty program? The Loyalty Program is a program specifically designed to increase consumer loyalty by providing attractive offers. This program is very useful for businesses and companies in terms of achieving sales targets. Not only that, even Loyalty programs can aim for long-term advertising to help the company's business survival.

The Loyalty Program is considered one of the best ways to grow a business to increase the profits that the company wants. In addition, it can be used as a branding strategy at a relatively low cost. The Loyalty Program is able to retain existing customers while increasing the number of new customers. The types of Loyalty programs are as follows:

1. Point-Based Loyalty Program

This program uses a point system such as point rewards that will be given for each transaction with a certain nominal value. Each point can be exchanged for various attractive prizes or shopping vouchers.

2. Paid Loyalty program

The purpose of this paid customer loyalty program is to treat loyal customers specifically in obtaining privileges in terms of price and service. Customers will become paid members by registering themselves which allows them to have more access to attractive offers, such as direct rewards, discounts, cashback, free shipping, to lucky draws.

3. Limited Event Loyalty program

This program allows customers to be specially invited to attend special events with a limited audience. Or customers can get a variety of attractive offers that they rarely encounter on normal days. At this event, the company sometimes also holds quizzes, question and answer sessions, and product exhibitions.

4. Partnership-Based Loyalty Program

This Loyalty program provides opportunities for customers to partner with businesses as a form of cooperation. In this partnership, you will get attractive discounts or commissions. This partnership program is better known as Affiliate. Where customers also actively offer products to their closest community environment through social media, blogs, and word of mouth.

5. Gamification System Loyalty program

This type of loyalty program applies the principles of fun digital games in sharpening the customer's brain, and can provide benefits to customers. This program is a form of corporate game application development that is currently developing in society. Customers can get points if they have won the game in one step. Points collected can be exchanged for prizes in the form of cash, goods and vouchers.

After you get to know and know the types of customer loyalty programs, you will understand more about the importance of this program in your business. It is also important to pay attention to developing a customer loyalty program so that it doesn't seem monotonous and boring. There's nothing wrong with implementing this program as a way to increase product sales as well as being a low-cost form of advertising for your business.