Best Loyalty Features To Stand Out As A Retailer And Retain Customers.

Best Loyalty Features To Stand Out As A Retailer And Retain Customers.


Retain customer  


We've watched the evolution of shopping over the years, and we've seen how consumers are spoilt for choice as a result of increased competition. The need to differentiate service offerings and customer experience is driving retailers’ performance. Some retailers have been improving the shopping experience with loyalty programs that entail different benefits.

We know how everyone loves a bargain, and primarily free stuff, so we decided to take a look at what make the best loyalty program.


Points Loyalty Programs

This loyalty program is probably the most commonly used around the world. It helps the customer earn points when making a purchase. These points are redeemable as freebies, actual money, discounts on products or as bonuses. Since this feature has become quite popular, retailers are making sure they stand out by coming up with innovative point features tailor-made for their clients.

A unique way of doing this is by offering the customers an opportunity to donate to charity. With the covid pandemic wreaking havoc across the world, their loyalty points can help put food on someone’s table. This brings about that emotional connection between the retailer and customer as they are both doing something good for different communities. The Food Lion weekly ad is a perfect example of where clients can get value for money, earn points and donate to charity while at it too. At Food Lion, you can donate your points’ equivalent of $5 or a $5 note you’d have saved from other discounts. Food Lion has partnered with various suppliers to match the amount donated up to the tune of $1000 000. This is in support of Feed America and its affiliated local food bank partners within all the states Food Lion is located. Brilliant strategy we think.


Tiered Loyalty Programs

This is more of a categorized program where clients are placed in different tiers of membership depending on how much they spend. The more you splurge, the better rewards and status you get as a customer. This is very attractive because the customer gets to feel more valued for shopping in your store, making it easier for them to keep coming back. This is the primary goal of this loyalty feature - repeat business.

The tier loyalty feature, however, has a few drawbacks. If a customer reduces their spending, they are downgraded into a lower tier. Getting less benefits can fracture the relationship that was built before. The whole process needs to be carefully managed and customers made aware of all the highs and lows of being in each tier so that they can keep striving to climb higher up and not recede.


Referral Programs

Word of mouth plays a huge role in marketing because everyone wants to tell their mom, sister, friend, or even colleague about the specials available at the local supermarket. Years ago, word of mouth was probably the most popular way shops got advertised, and fast forward to today, it is still quite popular and is now being used in the digital space. Take for instance, if I find a special at Walmart, I am going to be so excited, and I will want to tell everyone I know to go and buy the same product. Even my Facebook friends will get to know too.

Since referrals are a good way of advertising, some shops decided to incorporate this into their loyalty programs. How does this work, you may ask? Also very simple; when you refer someone, both you and the person you referred get discounts. How cool and easy. What you are doing is representing that brand and helping them make money.


Paid Loyalty Programs.

Lastly, we have the “Premium” program also known as the paid loyalty program. Some would say it’s the best of them all. Here you get some extra perks, rewards, discounts, or exclusive services for paying a membership fee or subscription before it is due. This is for the people that are willing to pay to get more than the average consumer, and get the best of what the brand offers. Memberships are a smart way for retailers to maintain a relationship with customers on a long-term basis and many case studies have proven this.


In conclusion, we see that the impact on customer retention from these programs is huge. Brand association and customer relations all come into play, and every retailer needs to find a good program best suited for their brand and, above all, their consumers. That is the whole idea of loyalty.



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