Join The Fun And Claim Huge Rewards At Dafabet, India’s Most Popular Site

Join The Fun And Claim Huge Rewards At Dafabet, India’s Most Popular Site

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Join The Fun And Claim Huge Rewards At Dafabet, India’s Most Popular Site

Join The Fun And Claim Huge Rewards At Dafabet, India's Most Popular Site

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Loyalty programs have proven to be one of the most effective tactics for increasing revenue and inspiring customer loyalty. As many as 84% ​​of consumers say they are more likely to stick with a brand that offers a loyalty program. And 66% of consumers say the ability to earn rewards actually changes their spending behavior.

We know that it costs much less to sell to repeat customers than to acquire new customers – that’s why brands invest in loyalty and rewards programs.

Although they can be effective, customer loyalty programs are nothing new. Most fall into one of four categories: points, tiers, social media and paid programs. That’s why some retailers want to shake things up and find innovative new ways to build rewards programs and inspire customer loyalty.

Customer loyalty programs reward customers who repeatedly interact with a brand. It is a customer retention strategy that encourages customers to continue buying from your brand rather than competitors. The more a customer buys or engages with the brand, the more rewards they receive.

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With a loyalty program, companies can offer points or benefits to customers. And in return, they redeem points for discounts, free products, rewards or insider benefits. The goal is to motivate repeat purchases and build trust between customer and company.

A recent survey by Yotpo revealed that people will go to great lengths for brands they love. Almost 68% of respondents said they would join a loyalty program for brands they like, while 56% are willing to spend more with a brand even if there are cheaper alternatives.

The study also found that people want more than free shipping and discounts. They also want early access to sales and new products.

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Running a customer loyalty program means you have to give something away. Whether it’s discounts, sales, early access, etc. But the payoff for rewards programs is huge:

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But not all loyalty programs are the same. There are different types of rewards programs you can use to build customer loyalty and earn repeat purchases.

Now that you know how rewards programs work, let’s look at some common types that you can customize for your eCommerce store.

Points programs are the most common type of rewards program. They allow customers to collect reward points that they can redeem for free offers, cashback, benefits, etc. Customers don’t just earn points from purchases. They can also earn points by sharing on social media, leaving reviews, having a birthday or through gamification.

Body care retailer Blume uses a points system called Blume Bucks in its loyalty program, called Blumetopia. Customers can earn Blume Bucks by following the brand on Instagram, placing an order or telling friends about Blume.

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Shared customer loyalty programs are a type of membership where customers receive different benefits depending on their tier. Companies often rank membership in groups based on certain metrics such as sales or engagement.

These customer reward programs give customers a purpose. The higher their level, the more exclusive and better rewards they get.

Bra and underwear brand ThirdLove uses a tier system for its program, Hooked Rewards. Customers simply sign up for the program and start earning rewards immediately. The more they spend with ThirdLove, the more benefits they get.

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When a customer spends $250 with the brand, they become an enthusiast. This level gets more perks, like free underwear with purchase and exclusive seasonal offers. If a customer spends more than $450 with the brand, they get access to giveaways and limited edition products.

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Paid loyalty, or fee-based loyalty programs, provide customers with immediate and ongoing benefits for a participation fee. These fees can be recurring or one-time fees.

Paid programs may require proof of value to get sign-ups, but the company can get higher customer value from members. A recent McKinsey report shows that consumers are 62% more likely to spend more on a brand after joining a paid loyalty program.

The most common example of a paid loyalty program is Amazon Prime. Although it seems like a difficult model to emulate, paid loyalty can fit many different business models.

The idea behind a value-based loyalty program is to connect with customers on a deeper level. It involves donating a percentage of purchases to charity or welfare programs. You can offer multiple options for different charities to choose from or have one that really aligns with your clients’ values.

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This program does not actually reward customers. But it has a special place for them, as the rewards are used to benefit society. Brands often create a hybrid loyalty program using this model.

So, for example, if you have 500 points, you can donate $10 to the organization. 1000 points get a $20 donation and so on.

Not sure where to start? Ask customers what they want from a rewards program. You can easily conduct a survey or survey with your customer base to find out. Then create a rewards program accordingly.

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Here are our 7 picks for the most innovative customer loyalty programs and what you can learn from each. This will give you some customer loyalty program ideas to start your own today.

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Designer Shoe Warehouse (or DSW) has long operated a traditional VIP loyalty program that rewards customers with points for every purchase and includes tiers of rewards that customers can unlock as they spend more.

Its programs run seamlessly. There is no membership ID or credit card that customers have to remember – rather, DSW’s online system recognizes customers by their name, phone number or payment information.

The danger when rewards become automatic is that customers forget about the program. Customers who forget about the loyalty program are not tempted to spend more to earn more. DSW needed a way to keep customers engaged in its program and remind them where they stood and what they could earn by spending more at DSW stores.

In early 2017, DSW launched an email campaign aimed at reminding customers about their program. The campaign consisted of a personal email with information about:

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What made the campaign so successful was the degree of personalization. A loyalty program like DSW’s gives the brand access to a lot of customer data. DSW used this to their advantage (along with some reliable email automation) to create emails that are hyper-personalized and relevant—a far cry from other generic marketing messages that sit in customers’ inboxes.

Sephora’s Beauty Insider rewards program is very popular. It has more than 25 million loyal members and members make up to 80% of Sephora’s annual sales. Customers earn rewards for each purchase based on a traditional points system. The innovative part is that members can choose how to use their reward points.

One of the biggest obstacles for a large number of Sephora customers is the price – Sephora products are not cheap. Beauty Insider members can redeem their rewards points for things like gift cards and discounts, helping to offset purchase prices without devaluing the products. Loyalty members can also redeem points for more exclusive items, such as limited edition products or in-store beauty tutorials.

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Giving loyalty members the flexibility to choose allows Sephora to offer customers the deals and products they really want without detracting from the perceived value of their products.

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It’s common now for retailers to create a mobile app to run loyalty programs, but when Starbucks first launched Starbucks Rewards through the Starbucks app, it was a novel idea. Running the program through the app makes it radically easy for customers – no punch card to forget or lose, no login required.

To earn loyalty points (or stars, in Starbucks’ case), customers must order or pay using the Starbucks app. Centralizing customer transactions in this way creates a goldmine of data about customer preferences and behavior.

Beverage orders, customer lifetime value, frequented locations, seasonal favorites – by directing customers to its app, Starbucks can gather information about all these habits and more, giving the brand the opportunity to offer more relevant benefits and communications to its customers.

If a loyalty app is feasible for your online store, it can be a great way to collect and centralize customer data. Otherwise, a capable POS system can help you gather most of the same information.

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Amazon’s Prime membership program is a well-known paid loyalty program. For a flat annual fee, Prime members get access to unlimited free two-day shipping on millions of items, as well as other perks, like Amazon’s streaming service and Prime Day sales.

Amazon faces stiff competition from other retailers such as Walmart. You can also find most of these products on Amazon elsewhere. Prime is how it differentiates itself and convinces customers to buy products exclusively through Amazon. And it works: Prime members spend an average of four times more than other Amazon customers.

For retailers in similar industries where products and price points are very similar among competitors, your customer loyalty program can be a differentiator and competitive advantage.

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Consider wholesale clubs like Costco. Give customers a reason to shop exclusively

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