Customer loyalty programs come in all shapes and sizes. Some use points to encourage more frequent visits, others use prizes or experiences to incentivize higher spending. Creating a successful customer loyalty program requires understanding your customers’ motivations, finding a meaningful reward, and creating a sense of community that fosters true loyalty.
Here are some examples of customer loyalty programs that hit all the right notes, providing value for customers and businesses alike.
Rapha Cycling Club offers exclusive events to members
Rapha is a cycling brand known for its high-quality apparel and accessories. Its loyalty program is called the Rapha Cycling Club (RCC), with 22 clubhouses worldwide and chapters in most major cities. Interestingly, the RCC is a paid membership: For $95 per year, members gain access to exclusive weekly local rides, RCC products, 24 hours of early access to new launches, special members' events, and much more.
“Rapha pitches RCC more like a community than a loyalty program. When members sign up, they’re not just entering a relationship with Rapha, they’re entering a global community of cyclists,” wrote Queue-it, a virtual waiting room service for online events. “[What’s] unique about RCC is that the benefits are about 50% product-focused (discounts, exclusive access, etc.), and 50% connection and community focused (the RCC app, group rides, clubhouses, etc.).”
Rapha’s program is unique in that it doesn’t incentivize a product purchase to enter the loyalty program. Cycling fans can simply join the club and be introduced to Rapha products organically. This approach also filters out the casual shoppers from the superfans, allowing Rapha to pay attention to its highest-value customers.
[Read more: B2C Customer Loyalty Program Ideas]
Starbucks Rewards personalizes perks
Starbucks Rewards is often cited by experts as one of the best-run loyalty programs. Personalization is a big reason why the program is so successful.
Members can earn “stars” (points) that can be traded in for free food, drinks, and perks from partners like Bank of America and Marriott Bonvoy. For example, when a member reaches the first tier of points, they get a free drink customization — an extra shot of espresso or a dash of their favorite syrup.
“Most loyalty programs are transactional, so small businesses have a huge opportunity to offer something truly impactful simply because they know their customers. If you offer perks, ensure they’re customized to their interests,” David Metz, CEO of Prizeout, wrote in Forbes. “Getting personal and using data for good goes a long way in retention and engagement.”
Dropbox encourages existing fans to refer new customers
Referrals are a great way to use your loyalty program to bring in new business inexpensively. Referral loyalty programs allow customers to earn points by sharing a personalized referral code with their friends and family. When someone uses this code with their first-time purchase, both the person who referred them and the new customer are rewarded.
The Dropbox Get More Space program shows just how well this mechanism can work. Dropbox offers existing users 500MB for new Basic user sign-ups and 1GB for new Plus user sign-ups. This program grew Dropbox’s user base by 3,900% in 15 months. It remains a cost-effective way for Dropbox to reach warm leads and reward its existing customers simultaneously.
Referrals are a great way to use your loyalty program to bring in new business inexpensively.
Girlfriend Collective links rewards to social impact
Yoga brand Girlfriend Collective infuses environmentally and socially responsible practices across its business, and its loyalty program is no different. Members of The Collective earn points every time they shop, share, or take an action that benefits the Earth.
“Customers can earn points by planting a tree, cleaning up a local natural area, or volunteering at a charity, among other things. After that, the client needs to upload a photo of herself carrying out the good act, wear a GF item, with the hashtag #goodjobgf, and tag the business,” wrote GroWave, a Shopify loyalty program integration.
Many customers appreciate the option to convert their points into donations, for instance. Creating a loyalty program that rewards both activism and shopping can foster a longer-term relationship.
“Turn your customers into social justice champions. Find a cause that resonates, involve customers and be sure to show them their impact,” said Sean Shea, Founder and Chief Strategy Officer at ViB, in Forbes.
Turn loyalty into a game like the Nike Run Club
The Nike Run Club (NRC) is an app that is free to download and use to track your runs, find a training plan, and celebrate wins with the NRC community. Similar companion apps like the Nike Training Club and the Nike App for e-commerce create a space for superfans to learn about the latest drops while competing with themselves and others.
“The app rewards users with badges and trophies for hitting milestones, such as running a certain distance or achieving a personal best. Nike uses gamification elements to keep runners motivated, offering not only virtual rewards but also real-world incentives like exclusive product offers,” wrote Zinrelo, a loyalty platform.
Gamification is a proven way to keep loyalty program members engaged. Use social media challenges, badges, and live events to spark a little friendly competition and boost sales.
[Read more: Loyalty Programs From Jet Blue, Sweetgreen and Others Evolve to Deliver Experiential Rewards]
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
