7 Customer Loyalty Program Ideas for Business Owners and Entrepreneurs to use in 2023
Are you looking for ways to create customer loyalty programs that will keep your customers coming back? If so, you're in luck. In this blog post, we will share seven customer loyalty program ideas for business owners and entrepreneurs. So, whether you're just starting out or you've been in business for a while, these ideas will help you boost customer retention and increase profits. Read on to learn more!
But first, why should you have a Customer Loyalty Program?
It’s actually harder and more expensive to find a new customer. If you want to gain new customers, you have to rely on providing excellent customer service to the customers you already have so that they can spread the word about your business.
So what does a customer loyalty program look like when you don’t have a massive team (i.e. smaller budget)?
Well here are the most common ways to create a customer loyalty program when you are an entrepreneur or own a business.
1) Rewards Point Programs
Ah the rewards point programs, this is one of the oldest and most common loyalty programs. This could look like a punch card or a mobile app that tells you when you have received your rewards.
Let’s say you own the local cafe, when Jim, the town’s fire chief, orders his coffee every day before work (extra cream, no sugar), he would get his 10th cup of coffee for free (but hopefully not on the same day).
Now, Jim already loves that you play his favorite music (Grateful Dead) and that you always remember your coffee order, but now you’re rewarding him! With free coffee!!!
Now, you’ve made Jim, one happy guy and you bet he’s going to tell the guys at the fire station to come on down for a cup of coffee.
Okay, okay, maybe 3 cups. Working for the fire department is hard, but someone’s gotta do it…
Works best for: Cafes, restaurants, or bookstores.
2) VIP Privilege
Everyone wants to be a VIP, so treat your fans with some special privileges that no one else can get. As the owner of Fitness Universe gym, you want to create an exclusive customer experience that builds brand awareness.
So you introduce VIP memberships for your customers. Samantha decides that she wants to be a VIP to maximize her workout time and to get away from her kids (just kidding, she loves her kids).
She can choose to sign up for a monthly or annual membership and in turn, receive exclusive opportunities. Like early registration to that yoga class that always seems to fill up or a discount on the upcoming child nutrition class so that her son will start to eat other food besides mac-n-cheese (wish her luck).
Works best for: Gyms, Community Clubs, Networking Organizations
3) Tiered Programs
This is similar to a points program and VIP offer, but the only difference is that the more products or services that people buy, the more benefits they get.
So bulk food shipment owner, Fred, can offer grocery stores the chance to become classic members. The more purchases they make, the higher the tier they graduate too. And the more benefits they get access to.
Works best for B2B businesses
4) Cashback
One of the most well-known programs, cashback, is popular because it instantly offers money back which can allow them to save for future purchases.
Mindy notices that the same few people tend to shop at her clothing stores, so she decides to reward them with cashback to use for their next purchase.
Works best for: Cafes, Clothing Stores
5) Omnichannel Programs
This increasingly popular program focuses on engagement rather than transactions. By gamifying immersive experiences, it allows the brand base to engage and be involved in the brand.
This might look like a tattoo shop that allows its customers to participate in a Haunted Halloween challenge. Those same customers can choose a reward (like a new tattoo).
Works best for: Service Providers, Venues, Party Vendors
Bonus: Referral Incentives
It can be tough to be a business owner to compete with big box brands, so why not partner with one another to bring each other business?
This might not really be a loyalty program, but it does make sense if you are parallel industries and have the same audience.
Stephanie, a wedding photographer, often pairs up with Sydney, a florist, by referring her business when couples ask for floral recommendations. In return, Sydney gives her a 10% percent kickback from sending business over to her.
Works best for: Anyone!
Bonus: Hybrid Loyalty
Hybrid Programs take the benefits from a mix of programs to create their own rewards program.
Say you are a web designer like Mark, who wants to encourage partnerships with service providers. He would add a referral program for partnering copywriter, Terry, as well as a discount when Terry needs a new website.
Works best for: Anyone!
If you’re looking to increase customer loyalty in the new year, try out one of these 7 customer loyalty program ideas. With a little planning and creativity, you can create a loyalty program that meets the needs of your business and helps you retain more customers in 2023. Not sure where to start? Ranalli Marketing specializes in helping businesses develop creative marketing campaigns that drive results. Contact us today for help developing your own customer loyalty program.