You will learn:

• The essence of the loyalty program on the example of a dialogue with the buyer.
• Popular types of customer loyalty programs.
• Development and implementation of a loyalty program in stages.
• What to look for when creating the conditions for a loyalty program.
• 6 ways to evaluate the effectiveness of a company's loyalty program.
• Examples of unusual loyalty programs from around the world.

Marketers are well aware that it is much more profitable to retain an existing customer than to attract a new one. The difference in costs for these activities can be up to 10 times! In addition, statistics confirm that a regular customer spends 67% more than a new one. Therefore, all efforts should be aimed specifically at retaining customers and stimulating repeat sales. To this end, the vast majority of companies implement loyalty programs in their activities, but few people know what is really important for consumers.

Expert opinion

The essence of the loyalty program on the example of a dialogue with the buyer

Egor Chemyakin,

Both executives and employees of marketing departments are constantly thinking about how to prevent their client from becoming a buyer of another company. The most common solution that comes to their mind is the use of discounts. Moreover, according to many, their regularity and significant size is the only way to retain a client. At the same time, the losses that accompany an incompletely thought-out discount policy are often not taken into account. As a result, such a system can hardly be considered effective and, most importantly, beneficial for the company.

For example, let's analyze the model of interaction between the seller and the buyer, when the client expects to receive a discount and unambiguously makes it clear that otherwise he will turn to another supplier of goods or services.

Bad option:

What discount will I get?
- There are no discounts for this product.
- In this case, I will order from your competitors!
- Okay, I can arrange a 5% discount for you personally, but this is between us.

A good option:

Can I get a discount?
- Of course, if the purchase amount exceeds 10 thousand rubles, your discount will be 5%.
- Well, such conditions suit me.

The best option:

Will there be a discount?
- Yes, sure. Moreover, your personal discount will grow along with the number of your purchases. If you purchase goods for 10 thousand rubles, you will receive a 5% discount, and if the purchase amount exceeds 20 thousand rubles, the discount will be 10%.
- That is, if the price of this coat is 22 thousand rubles, I will pay 19,800?
- Yes, that's right.

These dialogues fully reflect the essence of the loyalty program for customers, which is widely used by small businesses throughout Russia. If you want to radically differ from your competitors, it's time to think about how to do it.

The loyalty program includes a whole range of activities, each of which is aimed at retaining existing customers and creating long-term mutually beneficial relationships between customers and the company.

The goal that the seller seeks to achieve using loyalty programs is repeat sales. Such programs are invariably included in the marketing strategy of organizations and are aimed at increasing profits, increasing sales, retaining old and attracting new customers. The effectiveness of a set of measures is measured using indicators such as:

• acquisition of new customers;
• increase in revenue from repeat sales;
• increase in the frequency of purchases (increase in the number of receipts);
• expansion of the list of goods purchased by one consumer (diversification of purchases);
• decrease in the level of customer churn;
• a shift in the interests of buyers towards more expensive goods.

So if you have not yet thought about implementing a loyalty program for customers, now is the time to start using this powerful tool to take your business to a new stage of its development.

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8 Popular Types of Loyalty Programs for Customers

Discount Loyalty Program

By far, the most common way to retain and attract customers, not only in Russia but throughout the world, is to provide discounts. They can be both one-time and cumulative. The client receives a discount card, the presentation of which, with each subsequent purchase, entitles him to a certain discount - either a fixed amount or increasing over time.

The essence of a cumulative discount is that by crossing a certain threshold set by the company, the consumer has the opportunity to save even more, that is, the size of his discount grows along with his loyalty. Some firms even "punish" customers who visit the store irregularly, lowering the percentage of the discount and returning it only at the next purchase.

The advantages of such a system:

1. Everyone loves discounts, especially Russians in the context of a protracted economic crisis and a decrease in purchasing power.
2. This type of loyalty program is simple in terms of organization and control of its implementation.

Cons of the system:

1. Discount cards of two or three competing companies are in the wallet of each buyer, and the amount of discount that he can count on, as a rule, does not differ. Therefore, it is a stretch to assume that this tool really works.
2. The client is interested in constant purchases only as long as his discount has not reached its maximum value.
3. Any discount is a reduction in the company's net profit.

This is easy to verify with a simple example. Imagine that the price of one of your products is 9,000 rubles. The markup you made is 30%. By implementing it under the loyalty program with a 5% discount, you lose 450 rubles. At first glance, compared to the amount of the sale, this is a small part of it. But not everything is so simple.

Each product or service has a cost that you cannot change. The discount you give to the customer is subtracted from the profit you could have made. Let's say in this example it is 2700 rubles. Minus the discount, you will be left with only 2250 rubles.

Thus, giving the buyer 5% of the retail price, you yourself lose 17.5%. As you can see, not so little. Well, if you can afford a markup of 100-200%. What if we increase the discount?

Remember this point, we will return to it a little later. In the meantime, let's look at what loyalty programs exist for customers, in addition to the discount one.

Loyalty bonus program

Discounts in this option of customer retention are not provided, they are replaced by bonuses. The fundamental difference is that, by leaving a certain amount indicated by the company at the checkout of the store, the consumer receives a certain amount of bonuses that can either be used as a partial payment for the next purchase (for example, up to 20% of the cost), or be exchanged for goods valued in the number of bonuses. Different companies use bonuses in the form of points, stickers, rubles or local currency that circulates within the same trading network.

The advantages of such a system:

1. The loyalty bonus program is effective where it is possible to make regular purchases.
2. A client can become the owner of a decent amount of bonuses if he constantly purchases and for impressive amounts.
3. As a mandatory condition, the company may put forward a requirement for a certain period of validity of bonuses, after which they expire, which will encourage consumers to make an unplanned purchase.
4. Having received bonuses, not all customers will use them, therefore, the company does not lose anything, and the product is eventually sold at full price.

Cons of such a system:

1. When it comes to a very expensive, and therefore rare or one-time purchase, there is no point in introducing a loyalty bonus program. The client is unlikely to return to you again, despite the benefits offered to him.
2. If the rules for accumulating and using bonuses are too complicated, consumers simply will not understand them, and as a result, the loyalty program will not perform its function.
3. Bonuses are a more complex option than discounts. To control the correctness of their accrual and use, as well as compliance with the validity period, a special program will be required.

There are two ways to quickly increase the profits of any company - to raise prices for goods or services, or to replace the discount loyalty system with a bonus one.

Let's return to our example about a 5% discount for a product worth 9,000 rubles. Let's see how it works for bonuses. The client made a purchase, for which he was awarded bonus points in the amount of 5% of the value of the goods. He can spend them when he completes the next one.

• 1st purchase - 9000 rubles.
• 2nd purchase - 9000 rubles.

Bonus from the first purchase (located on his card) - 5%, or 450 rubles.

So 2700 (your net profit on the first sale) + 2700 (second sale) - 450 (first purchase credits written off) = 4950 (your net profit minus the discount).

Thus, with the loyalty bonus program, the profit discount was 8.5% versus 17.5% in the first case.

Of course, you can argue that the customer is entitled to another 5% on the next purchase, which again adds up to 17.5%. However, practice shows that not everyone will return for the next product, but someone will come when the validity period of the accrued bonuses has already expired. And only after the completion of the next transaction, the buyer will receive bonuses for the next purchase.

It is quite possible that you will have a question, will you lose all your customers by replacing discounts with bonuses? You shouldn't be afraid of it. Probably, some share will refuse your services, but in return you will receive an increase in profits.

So you have nothing to fear. The small number of customers who leave due to a change in the loyalty program would never become your loyal customers. There are always people who are constantly looking for the best deals and therefore do not fall into the group of main consumers for any company.

Nevertheless, we will make a reservation that, of course, the choice of a loyalty program must be approached, taking into account many different factors. There is no one universal recipe that suits absolutely all types of businesses.

And one more piece of advice. Do not ask customers what suits them more - bonuses or discounts. The answer is so clear - a discount. The benefit that can be obtained here and now is always better than the one that will be in the distant future. Therefore, choose a loyalty program based on the interests of your company.

Tiered loyalty programs

This customer retention system is simple in essence, but rather difficult to implement. It is based on a direct relationship between how much a client spends on paying for goods and services in your company, and the privileges that he receives as a result. These include additional services such as delivery or a longer warranty. By demonstrating loyalty to your firm, the consumer secures a higher status for himself. Such a system works effectively in the banking and insurance sectors, and it is also a favorite airline loyalty program.

System advantages:

1. The engine of this loyalty program is ambition, the desire to take a more advantageous position compared to ordinary customers, so a person is ready to spend more and more.
2. It is in demand in areas where there are clients of the VIP and Double-VIP segment.

Cons of such a system:

1. It makes sense to implement this program only for goods and services of a high level of value.
2. Bonuses must be very significant.
3. Since the system requires an individual approach, it may be difficult to implement it. Naturally, one cannot do without a computer program specially written for these purposes.

Paid loyalty program

In this case, the client simply buys the right to receive any bonuses and privileges. Usually it looks like a fixed subscription fee, for which access to additional features, limited resources, special terms of service is provided.

The advantages of such a system:

1. Easy to organize.
2. Ideal for regularly purchased goods and services.
3. Customers willingly pay for access to such a loyalty program, but do not always actively use it (that is, the company receives money, but does not give anything in return).
4. You can calculate the cost of bonuses in order to fully comply with your interests.

Cons of the system:

1. If, from the point of view of customers, the benefit of a paid subscription is below the price they have to pay, such a model is doomed to failure.

It should be recognized that this is the most effective loyalty program for individuals, since it allows customers to receive tangible benefits compared to buyers who do not participate in it. But in order to bring it to life, you must reach a certain level of development in your segment. As an example, let's cite large retail chains - "Okay" and "Lenta". The cards they offer to their customers are inexpensive, but the difference in price between some items for cardholders and non-cardholders can be very significant.

Loyalty programs with intangible rewards

When you understand what is truly valuable to your customers, building a long-term motivational model will not be difficult.

It is possible for almost any company to launch a loyalty program based on discounts or prizes, but one that can offer its consumers privileges that cannot be measured in money will move to the next level of customer relations.

The coup was conceived by the marketers of Patagonia, an outdoor clothing brand. Outdoor equipment is often in need of repair. It was this service that was offered to customers instead of points and discounts. The concept is called "The Stories We Wear" and connects extreme sports enthusiasts with clothing from this brand on an emotional level.

Affiliate Loyalty Program

As in the previous case, we are talking about the need to find out the needs of your customers that are not among those satisfied by your company, but no less important to them. Your task is to find partners for whom your consumers are also customers.

Loyalty programs based on strategic partnerships can provide the conditions for rapid business development and growth in the customer base. For buyers, they serve as an indicator that you understand their needs well and are doing everything possible to help them.

An example of advanced affiliate marketing is American Express. The company cooperates with Macy's, AT&T, Rite Aid, Enterprise Rent-A-Car and Hulu. By participating in the loyalty program, customers receive points that can later be used to pay for the services of a partner company. By renting a car at Enterprise and earning a certain amount of bonuses, the buyer can use them to pay for communication services at AT&T.

Loyalty programs with elements of gamification

The use of gaming mechanisms in the loyalty program allows you to interest customers and achieve significant results.

The first thing that comes to mind in this case is the holding of various competitions. This technique, of course, has the right to exist, but the programs must be very carefully designed so that customers treat them with the proper level of seriousness and enjoy taking part in a show that brings variety to the daily shopping procedure.

To achieve this, it is important to offer consumers benefits that are really in demand and at the same time realistically achievable. The conditions of the competitions must be worked out to the smallest detail - this will minimize the interest of prize hunters. The launch of a new gaming program must be preceded by detailed information of all departments, so as not to create a situation where customers know more about the ongoing promotion than store employees.

An example of a company that successfully uses the element of the game as a loyalty program is GrubHub. Since 2011, this food delivery brand has been giving customers the opportunity to win a dessert or drink during the order, and every fourth customer has a real chance to do so.

Natural Loyalty Programs

Since loyalty programs are so widespread today, coming up with a new method of customer retention is not an easy task. However, the lack of a system for attracting and retaining customers can also be considered an innovative approach.

It can be afforded by those companies whose product or service is distinguished by its uniqueness. And the point is not in the high price category or undeniable quality, but rather in the direction of the industry as a whole. In this case, there is no need to encourage customers with loyalty programs, because they receive a product that has no equal.

Let's take Apple. With millions of devoted fans of her products, she does not consider it necessary to give prizes or discounts to anyone. The main priority of this brand is a unique product that meets the expectations of customers as much as possible. It is this loyalty program that is considered natural.

Examples of loyalty programs

Family Team (Rosneft)

Anyone who purchases a bonus card can become a member of the loyalty program for gas stations that are part of the Rosneft concern. Its cost may vary slightly in different regions, but the maximum figure is 250 rubles.

Bonuses are credited as follows:

• for the purchase of petroleum products - 1 bonus for every 10 rubles;
• for the purchase of related goods and services - 3 bonuses for every 10 rubles.

After accumulating a certain number of bonuses, you can exchange them for products with company symbols (t-shirts, baseball caps, bags, and similar items). You can also purchase fuel for bonuses.

The biggest prize of this loyalty program is Formula 20 - 20 liters of any fuel. It can be obtained by those clients whose bonus account accumulates 3999 points. This can be achieved:

1. When buying fuel: you need to spend 39,990 rubles. As a result, the loyalty program card will return to the member 1.7% of the total cost of his purchases.
2. When purchasing related products and services in the company's mini-markets: you need to spend 13,330 rubles to get 20 liters of bonus fuel. In this case, the refund will be 5.1% of the purchase price.

Thus, by participating in the Rosneft filling station loyalty program, customers have the opportunity to return from 1.7 to 5.1% of the purchase amount in the form of bonuses.

Other examples of loyalty programs see the article in the magazine "CEO".

Development of a loyalty program in stages

Stage 1. Analysis and division into segments of the client base (for wholesale companies) or target audience (in retail). This stage involves making adjustments to the standard loyalty ladder depending on the specifics of your company's business processes. It is necessary to check the client base for relevance. Among those consumers with whom there is no interaction for more than two purchase cycles, it is necessary to single out lost ones (passed over to competitors) and closed ones.

Stage 2. Distribution of customers by loyalty levels, clarification of their needs and expectations from interaction with your company at each stage. Identifying consumer concerns at each rung of the loyalty ladder.

Stage 3. Monitoring the actions of competitors. What are the offers coming to customers from other companies at each stage of interaction? Identify the strengths of your organization and competitors. The purpose of this stage is to find out how stable your position in the market is, due to what advantages competitors will be able to lure away your customers, and, conversely, what will allow you to get other people's buyers.

Stage 4. Development of an interaction plan with each customer segment. At this stage, the formation of loyalty programs for a particular group of consumers is carried out, taking into account the forms of encouragement that work in your market and are typical for your type of product or service. A separate action plan is being developed to return lost customers identified during the database audit. For the most attractive customers, special forms of incentives are introduced.

What to look for when creating the conditions for a loyalty program

To launch a truly successful loyalty program, company management must have a good idea of ​​what customers really need, what conditions will make them stay loyal to your brand, and not look for profit from competitors.

What does that require?

Put yourself in the shoes of your client. Let's say you run a wholesale company. What is more important for your client - to accumulate bonuses in order to receive some special conditions in return in the future, or is it more important for him to buy at a discount in order to be able to retail at a higher profit? Put yourself in the place of your customers and the answer will come by itself.

Analyze competitors and act completely differently. For example, competitors apply a progressive discount. So, in contrast to them, you should choose a bonus program, and prepare very good prizes that will attract customers.

Take as a basis the loyalty program of competitors, but make your own improvements to it. However, you should first make sure of its effectiveness by analyzing the state of affairs of rivals. It is quite possible that it does not bring the desired result, so copying it is pointless.

• 3 Examples of Unusual Loyalty Programs for Loyal Customers

Tip #1: Offer something really useful.

A loyalty program will only work if you offer customers what they really need. A useless gift will simply be thrown away, and your goal of motivating customers will not be achieved.

Let's take the Raspberry bonus program as an example. Its participants were offered to accumulate points by making purchases at various outlets. Subsequently, bonuses could be exchanged for some cheap trinket. Of course, this loyalty program could not be called effective, and it was on the verge of extinction. But after some time, the organizing company managed to understand the needs of customers, and buyers had the opportunity to exchange their accumulated points for useful goods and services.

Tip #2: Gently Remind Your Loyalty Program

To be successful in reaching your goal, keep your customers informed by keeping them informed about marketing promotions. Today, there are many convenient ways to do this - from email to instant messengers such as Telegram, Viber and WhatsApp.

True, marketers disagree on what frequency of sending informational messages is considered optimal. Someone thinks that twice a month is the limit, while others are sure that it is permissible to send three messages daily.

Following two conditions will help to establish the most acceptable touch frequency:

1. The point of view of the subscribers themselves: how often would they like to receive information?
2. The frequency with which customers use your product.

If we are talking about beauty salon services or consumer goods, mailing lists can be quite frequent. When offering a non-standard product or b2b service, you should not be too insistent.

Tip #3: Keep terms simple and clear.

The key to the success of the loyalty program is its availability for understanding by all customers. Formulate its terms, using no more than 50 words, and ask the driver or security guard working in your company to read them. If he did not understand the essence of the program or interpreted it in his own way, your work is no good. This does not mean that complex calculations should not be used in the calculation, but the mechanism of action should be completely transparent and understandable.

Carefully follow the wording that you use when describing the rules of the loyalty program. Some marketers, unwittingly, mislead customers by saying: “Collect 10 beer caps - get the 11th for free!”. A thoughtful consumer rightly decides that he does not need another cover, and will not take part in the loyalty program.

Other attempts to deceive customers, such as using microscopic illegible font to indicate important prize conditions, will only result in you permanently losing customers by pushing them into the arms of competitors with your own hands. Believe me, the buyer will forever remember how you did not live up to his expectations, which means that you missed the only chance. To avoid such problems, make sure that the rules of the loyalty program are extremely simple and do not require additional explanations.

Tip #4: Never cheat on customers.

Remember that all promises you make to your customers must be kept. If you doubt that you will be able to do this, do not promise. Thus, the air carrier Aeroflot once launched a loyalty program, under which they issued co-branded cards together with many banks. It was very easy for customers to accumulate points, they only needed to use their cards and buy plane tickets. That is, in order to gain access to award flights, no special loyalty had to be shown.

As a result, people were given away so many points that entitle them to free flights that the company had to urgently revise the terms of the program, namely, to reduce the number of seats for its participants and increase the amount of points. Aeroflot began to suffer losses as it became difficult for new customers to purchase tickets, and after all, sales growth is the main goal of any loyalty program. As a result, those passengers who were entitled to a free flight, but could not make it, considered themselves deceived, and this negatively affects the company's reputation.

Council number 5. Don't offend regular customers.

The company's attempts to attract new customers often result in offering them special gifts for participating in a loyalty program. At the same time, those buyers who have long been devoted to the brand are out of work.

Imagine that a firm you use all the time announces very attractive conditions for newcomers, while not rewarding their loyal customers in any way. It is clear that the company is interested in expanding its customer base, but this is no reason to offend those who bring it regular profits. A better option can be considered the "Bring a friend" program, which is successfully used by many sellers. At the same time, the number of buyers increases, and the bonus is received by a regular customer who has already proven his loyalty to the brand.

• The director turned a boring pass to work into a loyalty program

6 Ways to Evaluate the Effectiveness of a Company's Loyalty Program

Launch of the pilot program

When starting to implement a loyalty program, no company can be completely sure of its effectiveness. It is quite possible that the reality will be very far from the plans. To assess how correctly the main provisions of the program are defined and what its approximate results will be, a pilot project will help - testing the system on a small business segment.

This approach is very convenient for retailers with an extensive network located in several regions of the country. The pilot launch of the loyalty program for stores is carried out in a single subject of the Russian Federation, in the process, identified shortcomings are corrected, and only after a successful check, the system begins to work in the entire network. Although the fact that different regions may have their own nuances should not be overlooked.

Analysis of program results before and after launch

To have an accurate idea of ​​how effective a loyalty program is, it is necessary to regularly monitor its main indicators, as well as compare them at the time the program starts and at the end of it. The most important parameters include the size of the average check, the frequency of purchases and the churn rate. All of them should be observed in dynamics and in parallel comparison with similar indicators of buyers who do not participate in the program.

Cohort analysis

Cohort analysis is used to measure the impact of a loyalty program on different groups of its participants, taking into account the duration in time and a specific stage of the life cycle.

In this case, a cohort means a group of clients who are united by a common feature and a period of action. The value of the result of the analysis directly depends on the degree of homogeneity of the group members. So, if you include young people from 20 to 30 years old in the cohort, the results of the study will be too general. It is better to unite young people with the same age range, but with higher education and living in Volgograd.

Cohort analysis allows you to track the dynamics of consumption, namely its growth that occurs after the start of customer participation in the loyalty program. Ideally, every month the expenses of buyers should increase, but in reality the result may not be so straightforward and stable. This type of analysis is aimed at identifying patterns of consumer behavior depending on the duration of participation in the program. The results of the study allow us to find points that require adjustment and improvement for different types of customers and stages of the life cycle.

Cohort analyzes are performed on programs that are longer than one year and have not undergone major changes. For companies that have recently launched new loyalty programs, this type of research will be useless.

Look-alike analysis

An equally effective strategy is to compare participants in the program with those who do not participate in it, within the same socio-demographic segment. This type of research is called look-alike analysis.

Many marketers believe that those who have expressed a desire to participate in the program are already loyal customers, and by joining it they do not change their consumption pattern. Look-alike analysis allows you to test the truth of this statement and quantify the value of the system. Another positive point is the ability to attract new customers to participate in the loyalty program, relying on those mechanisms that have already proven their effectiveness.

Control groups

An effective method that allows you to measure the results that have been achieved during the implementation of individual stages of the loyalty program is considered to be work with control groups.

A control group is a randomly selected group of customers who will not be the subject of marketing influence. The main requirement for the composition of its members is representativeness. The group should include all segments of consumers in the proportion in which they are included in the customer base.

The control group tests individual marketing techniques and mechanisms of the loyalty program. It is practically impossible for the program as a whole to create such a group: its members should not have access to information about the current program, and this is absolutely impossible, because its promotion is carried out publicly.

NPS - customer loyalty index

The most reliable way to measure customer loyalty is a direct survey. Net Promoter Score (NPS) allows you to assess, with the greatest possible accuracy, the likelihood of a repeat sale to a given consumer and his recommendations to his friends. The NPS method is based on a single question, the answer to which can predict the possibility of both a repeat purchase and a recommendation. The question is formulated very simply: “On a scale from 0 to 10, what is the probability that you would recommend us to a friend or relative?”.

Customer responses are categorized as follows:

• 0 - 6 = "Critics".
• 7 - 8 = "Neutrals".
• 9 - 10 = "Promoters".

The NPS index is calculated by subtracting the percentage of respondents classified as "Detractors" from the percentage of respondents classified as "Promoters": % Promoters - % Detractors = NPS.

It makes it possible to evaluate the results of the loyalty program for customers from various angles:

1. The loyalty of program participants and those who do not participate in it is compared.
2. The dynamics of changes in the index among program participants is tracked over a certain period of time.
3. NPS indicators are compared among various segments of loyalty program participants.

The main advantage of the NPS index is its simplicity. However, he is not able to answer the question about the reasons for customer loyalty or its absence. A complete picture of the effectiveness of the loyalty program can be obtained by applying NPS in conjunction with other methods of analysis.

Corporate programs of companies operating in the service sector are designed, as a rule, for large enterprises. Ekaterina Dmitruk, Deputy General Director for Sales of S7 Group, told the website in an interview about why, by launching the new S7 Profi loyalty program, the airline relied on small and medium-sized businesses.

How is the corporate air transportation segment developing? Has the intensity of business travel decreased due to the economic situation in the country?

At the moment, the corporate transportation segment remains the most stable, despite the fact that recently the business has been actively striving to optimize the cost of business travel. The intensity of flights at the same time remains the same as before, and organizations are looking for ways to reduce "travel" costs. For example, some companies refuse to buy business class tickets, choosing more economical flight options.

What is the share of corporate clients in the total volume of passenger traffic?

According to our data, more than 25% of air passengers in the Russian domestic transportation market, excluding "charter" flights, travel for business purposes. It is difficult to estimate the share of such flights more precisely, because less than a third of them fly under corporate agreements. Many passengers simply buy a ticket on their own, as individuals, and then report to work for the cost of purchasing it and are reimbursed for their expenses. According to the results of 2015, when the domestic passenger traffic of our country amounted to about 100 million people, there were almost 16 million such passengers - S7 Profi is suitable for them.

Did you take into account the experience of your colleagues in the aviation market during the development of S7 Profi?

Of course, when preparing a new product, we analyzed the experience of other carriers. In addition, at the time of the launch of S7 Profi, we were already working with corporate clients under the S7 Corporate program, and we already had our own expertise in this area. All this made it possible to offer a really interesting product in the field of business transportation to companies with any volume of flights.

What is the difference between S7 Profi and corporate programs that previously existed in S7?

The long-standing S7 Corporate program is focused mainly on large organizations with a large volume of flights. Under the terms of this program, the conclusion of an agreement is required, it has a mandatory minimum of flights - 1 million rubles per quarter, but in return the airline expects greater flexibility. S7 Profi, on the contrary, was created for those companies whose employees fly not so actively, but there is a need for organizing flights. For such clients, we have simplified the registration process as much as possible, made the rules simple and understandable.

For which companies did you create a new program?

When creating this program, we primarily focused on organizations whose employees regularly fly on business trips. At the same time, we considered companies with any volume of flights, because we believe that every business trip is an opportunity for business development. And it doesn't matter if you represent a large corporation or are an individual entrepreneur. Also, when developing this product, we took into account the fact that the process of organizing a business flight in large and medium-sized enterprises most often differs. A large company, as a rule, has established cooperation with an agent or concluded a corporate agreement with an airline. In small firms, this only complicates the situation, so employees buy plane tickets themselves, and the employer then compensates for its cost. Our new product is designed just for such customers. At the same time, there is an additional benefit for a particular employee: if he is registered in our S7 Priority frequent flyer program, then on corporate flights, both bonuses are credited to his personal account in the form of miles, and points to the company's account in S7 Profi.

Are there many people who already want to participate in the program?

Now we see that the number of participants is growing quite actively: from 50 to 200 new companies register in the S7 Profi program a week. It is worth noting that often the initiative to register in the program is not the company's management, but the employees themselves, because in this way they can accumulate miles to their personal account.

How easy is it to save up for an award ticket in the program?

All participating companies registered in the program receive a fixed bonus of 5% of the air ticket fare - points are accrued after each completed flight on the S7 Airlines route network. The percentage of “reward” itself increases when the thresholds for ticket expenses are overcome: up to 3 million rubles, the bonus is 5%, from 3 million to 5 million rubles - 6%, over 5 million rubles - 7%. At the same time, if the status increase, as well as the recalculation of bonus points, occurs monthly, then its decrease is annual, which is an additional advantage. Points can be spent in the online account for any tickets that are on sale on the site.

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“Changes in the marketing environment have an immediate impact on prices and technology, but strong relationships are not subject to them.” - Regis McKena

Regardless of the size of the company, its most reliable weapon in the competition is long-term customer loyalty. In this article, we decided to cover the topics of customer loyalty management and the formation of customer loyalty - how to win and retain customer loyalty by offering them the best combination of tangible and intangible privileges. The main goals of the loyalty program, how to evaluate the success of loyalty programs, pricing in loyalty programs. As well as customer loyalty programs, examples of the most successful companies in the world, including Volkswagen Club, Kawasaki Riders Club, Swatch the Club, Porsche and others.

How to evaluate the success of a loyalty program to build customer loyalty

The success of a loyalty program, like any other marketing tool, must be measured accordingly. Profitability or loss should be measured, as well as factors that can be assessed automatically: the speed of response to program promotions, brand loyalty.

Practical experience shows that the introduction of a loyalty program brings a tangible effect: sales growth can range from 6 to 80%!

Hierarchy of goals for loyalty programs

What do you offer to build customer loyalty?

Instead of just offering discounts to your customers, have them earn them themselves as a loyalty reward. This will create a favorable situation both for the company and for the customers. Preliminary analysis and calculations are necessary for the competent organization of the strategy, but efforts will certainly be rewarded.

Key Points of Customer Loyalty Programs

Not all loyalty programs on the market are really effective. In order to increase the likelihood of success of the loyalty program implementation, it is necessary to take into account a number of factors:

1. Offer something that is truly valuable to the client.
2. Monitor alternative offers.
3. Make your customers feel unique.
4. The investment in a loyalty program and the profit generated by its implementation must be balanced.
5. Build a close relationship between the company and the client, beneficial to all involved.
6. The loyalty program should be part of the company's existing marketing plans.
7. The most effective loyalty program for interacting with customers is omnichannel (for example, a customer loyalty program).
8. The loyalty program should be integrated into the corporate culture of the company, be clearly planned and easily managed.

A well-designed loyalty program is an effective tool, the results of which are:

- Building strong relationships with customers

- customer interest

- encouragement of regular customers

— efficient use of the budget

- loyal customers

A customer loyalty program is not a way to achieve instant results, it is a long-term scrupulous work. A loyalty program can add value to a product, but not create it.

Already attracted or potential customers?

According to the 80:20 rule, 20% of a company's customers account for 80% of its sales. Based on our own experience, we also believe that the main target group of the loyalty program is the company's regular customers.

Let us give an example of airlines to organize loyalty programs for frequent flyers. The British Airways Executive program ranks as a Blue Class Passenger, then Silver and Gold. US Airways took this concept a little further with the launch of the Dividend Miles program, which also gives customers three statuses, plus Chairman's Preferred status for passengers whose annual flights exceed 100,000 miles (this theme is also beautifully played up in the movie “I Would Like to sky"). The German airline Lufthansa only awards Hon Cards to celebrities.

Pricing in customer loyalty programs

It is important to remember that giving discounts is the most significant factor in reducing a company's profits.

Turning a loyalty program into a low price program as a result of discounts

Giving discounts means giving away donations that you can recoup by increasing sales. For example, a retail company provides a 10% discount to all members of its loyalty program. Buyer John Doe, one of the participants in the loyalty program, chose a product for 100 pounds in the store, and the company's markup is 45% of the price of the product, that is, 45 pounds. However, John took advantage of the 10% discount and paid only £90 to the cashier. The company's profit from this purchase will be 35 pounds instead of 45. In order for the company's profit after the discount to not decrease, John's purchases must increase by 26.6%. Even if that customer's additional purchases increase, the company will only make up for what it lost by providing a discount. That is, this approach does not bring profit to the company.

Multi-stage discounts

A multi-stage or incremental discount strategy involves increasing discounts depending on the volume of the purchase. For example, a manufacturer of industrial lighting lamps, which sell for £10 a pack, offers the following rebate scheme on annual purchases: The first 100 sets of lamps are sold at full price; all the following purchases - from 101 to 200 packs - 5% cheaper, from 201 to 300 packs - 10% cheaper. Purchase more than 300 packs and pay 20% off the original price. That is, with an increase in the number of purchases, the discount also increases. The effect of such a pricing strategy is that it encourages increasing purchases, the new level is more and more achievable.

Multidimensional pricing scheme

A multidimensional pricing scheme uses two or more pricing approaches (for example, an upfront payment and subsequent discounts for a certain period of time). The most famous example of such a scheme is the BahnCard of Deutsche Barm AG (the German national railway company), which became a huge success for the company for many years. At the time of the introduction of the new price system, the ticket price was 24 pfenig per 1 kilometer. The new strategy was for buyers of the BahnCard to pay a flat fee of DM 220 for the card, which entitles them to a 50% discount on any train ticket for one year. The more often the card is used, the cheaper the fare becomes, as the advance payment (220 marks) is spread over more kilometers.

This strategy has significantly increased the company's profits and greatly expanded the customer base. Such multidimensional tariffs are offered by mobile operators and telecommunications companies.

Pricing based on time and loyalty

Time-Based and Loyalty Pricing provides discounts based on the length of time a consumer is in the program. For example, the Bell South's President's loyalty program, developed by one of the mobile operators, Bell South, offers its members to accumulate points, the number of which depends on the state of the consumer's accounts, the services he uses (voice mail, for example), and also on how how long he remains her client. The accumulated points are returned to the consumer in the form of various goods and services. Time and loyalty pricing is ideal for building a long-term relationship between customers and a company when it is based on a contract, the duration of the relationship can be measured and appropriate discounts offered. Regular payments by consumers help to pay off the discounts provided.

Discounts for multiple people

Discounts for several people are provided not for the main buyer, but for an additional attracted, if their purchases are connected. Southwest Airlines' Free Partner Flights and Trips program and MCI's Friends and Family Programs are excellent examples. The purpose of these programs is not only to retain regular customers, but also to attract new members. This scheme is often used to maximize profits and is ideal for companies and industries where variable costs are very low and fixed costs are very high. Many companies involved in the organization of events use these schemes in their work.

Price Guarantees

A not-so-common mechanism in some retail stores where a company guarantees a customer a refund if they make a purchase and then find a similar item cheaper elsewhere.

Examples of successful loyalty programs

Company loyalty program Kawasaki Motors

Kawasaki Motors has been successfully operating in the UK market since 1974. She managed to win success and a stable position in the industry by offering a variety of motorcycle models, as well as other products. To differentiate the business, the company's leaders decided to invest in the creation of the Kawasaki Riders Club loyalty program to win the trust of customers and as a powerful tool for promoting products in the company's multi-level distribution system. In March 1993, the loyalty program was officially launched.

As a result:

– the desire of the participants to use their motorcycles as often as possible has increased

— 54% of customers are considered regular (before the launch of the loyalty program, this figure was only 30%)

- the opinion of the program participants is formulated as follows: "If Kawasaki was a guy, I would buy him a beer!"

Many companies are trying to replicate the success of Kawasaki Motors and its loyalty program. For example, Triumph built its Triumph Owners Club program around the principles of the Kawasaki Riders Club. And Honda has launched its Honda UK Riders Club loyalty program with benefits already tested by Kawasaki Motors.

club card Porsche card

Porsche stands not only for prestige and exclusivity, but above all for quality, technical innovation and design. In 1995, Porsche created the Porsche Card, which is restricted to Porsche owners only. Now only in Germany it is 120 thousand people. The club card is subject to the standards of the No Compromises company and guarantees an exclusive relationship with each owner, and also provides:

- Porsche Traveler Service

- Miles&More award miles

– emergency support service

- business service

- tickets for visiting cultural events

- gift service

- gourmet service

- car rental

- parking and car wash service

– insurance services

— financial benefits, information about the status of accounts

– telephone service 24/7

Club Volkswagen Club

In an ever-increasing competition, direct contact with the customer is becoming a necessity. Volkswagen is the first company that has managed to satisfy customers. Customer Club GmbG was created solely to manage the customer loyalty programs: the Volkswagen Club and the Audi A plus program.

In an effort to emphasize the VIP status of the participants, a complex package of privileges was created, including automobile and tourist services, a modern points accumulation system was developed, and partners were selected. Over the five years of its existence, 1.5 million customers have become members of the club, among the dealers of Volkswagen and Audi 95% are active partners of the Volkswagen Club and Audi A plus clubs.

All activities are focused on the main task - to satisfy the client. It is the devotion to customers that makes the concern constantly grow and develop.

How to make buying coffee in Casboutique even more profitable? Loyalty program

All promo codes with discounts on your next purchases you can find in coffee card, - a leaflet with a list of your current order, which will be in your order along with the coffee that you purchased.

For all our customers who have made at least one purchase with us, the following applies:

permanent discount 15% for the entire range of coffee beans and coffee capsules for Nespresso coffee machines;

additional discount of 500 rubles. on all offers with coffee machines, including promotions, where there are already discounts on sets with coffee machines.

Every 2 weeks, in the middle and at the end of the month, for all our customers who make purchases with us, we update promotional codes for a 30% discount in your coffee cards, which are valid for the next 2.5 months. These promo codes are in the sheet with the order(A4 paper in your order). Therefore, in order to retain discounts, you must make one purchase every 2 months (30% discount) without limiting the minimum purchase amount, i.e. generally for any amount.

Or you can always take advantage of 30% discount for the whole and by promo code SKIDKA30 if the total amount of your order is 10 thousand rubles or more. This discount is not valid for the offer only. Please do not try to use the promotional code in the basket with this promotional offer for 1 ruble. Such an incorrect order will be canceled by the operator upon confirmation of your order.

Promo codes are reusable and can be used multiple times during their validity period by you or your friends. Feel free to share discounts with your friends, and they can then reciprocate by sending you their promo code if suddenly you decide not to buy coffee in the next two months.

Following is an example of usage:
Vasily and Peter are friends. Vasily bought a large supply of coffee and received promotional codes with discounts for subsequent purchases, but because Vasily took coffee in reserve, then he no longer plans to buy coffee in the next 3 or more months. Vasily liked the coffee and advised his friend Peter to also buy coffee at Capsboutique, and told what promotional code Peter would need to enter in the basket on the website so that he would receive a 30% discount, despite the fact that Peter would make a purchase for the first time. Petr heeded his friend's advice and bought coffee at a 30% discount. Vasily is now a client of our online store. Peter promised Vasily that he would tell what promotional codes he would receive for subsequent purchases. Therefore, Vasily, despite the fact that he will not buy coffee in the next 3 or more months, will be able to use Peter's promo code and get a 30% discount when he needs coffee again.

All entries

Loyalty programs are a reward system for regular customers. They help manufacturers cope with competition, attract and form a pool of loyal customers.

Recently, the effectiveness of such programs has been declining. This was confirmed by the COLLOQUY center, which conducted a study in 2015. The client does not see real benefits, perceives bonus programs as an attempt to sell unnecessary goods and ceases to trust brands.

This doesn't mean they don't work. For each task, it is necessary to select a special loyalty program. In this article, we will analyze 8 programs and help you choose the one that is right for your business.

1. Bonus for every purchase

Where does it work: grocery, perfume and hardware stores, gas stations, catering points, airlines.

The more often a customer buys, the more discount they earn. The accumulated points can be used to take a free product or get a discount. The program works in the areas of quick and short-term purchases. A good example on the Russian market is Podruzhka, a network of cosmetics and household chemicals stores.

How it works?

At the first purchase, the client draws up a card on which bonuses are accrued. The more you buy, the more bonuses come to the card. They can be spent on the following purchases: receive a discount or pay for goods in full.

Chain of stores "Podruzhka"

In Podruzhka cosmetics stores, the assortment differs from the usual Rive Gauche or Letual. The chain's stores are located outside the Garden Ring and in the Moscow region. The main location is residential areas, where a pool of regular customers is formed. Therefore, the range of products is wide, for example, Japanese cosmetics can only be bought here. Prices are affordable, customer service is impeccable.

The company has developed a flexible discount program for customers. The discount depends on the amount for which the client made purchases in the previous month:

Up to 1,000 rubles - 3%

1,000 - 1,500 rubles - 10%

From 1,500 rubles - 15%

With such a system, it is profitable to buy hygiene products, cosmetics and household chemicals in one place. If last month the amount of purchases was 5,000 rubles, then next month the client will receive a discount of 750 rubles. The discount is accumulated regardless of whether you accumulated this amount in one visit, or came to the store several times. But if the client did not have time to use bonuses within the next month, they automatically burn out. This motivates you to buy constantly and receive monthly bonuses.

Pros:

• flexible discount system that motivates you to buy more and keep a high discount;
• accumulated bonus system;
• personal communication with clients. Creates a trusting relationship;
• additional bonuses for purchases.

Minuses:

• the program may not work if there is no communication with clients;
• to participate in the program, you need to make a purchase and receive a bonus card;
• feedback from the client is required;
• to receive a discount, you need to present a bonus card;
• complex implementation system.

Outcome:

Long-term relationships are formed with the client. For a bonus program, you need a system to reward the client at every stage in order to constantly maintain his interest. The program will work in online stores, offline points of sale, in airlines and hotels. When implementing, you need to know not only the frequency of purchases, but also the average bill. The bonus must be equivalent to the cost.

2. Percentage of all purchases

Where does it work: clothing boutiques, car services, flower shops in a residential area.

A fixed and permanent discount on the next purchase is a simple and inefficient type of loyalty program. The client does not know how much money he has accumulated on the card, so he is not motivated to buy. In addition, to get to a good discount, you need to buy often and a lot. Usually such a frequency is not needed, as a result, the program is forgotten.

A card with a fixed discount percentage is common in stores where purchases are made every 3-6 months. For example, flower shops, clothing boutiques or car service. The discount does not provide additional motivation. Most often, they simply forget about it due to the widespread use of this loyalty program.

How it works?

At the first purchase, the client draws up a store card with a fixed discount. Bonuses do not expire, replenish or cash out. You can use the discount only upon presentation of the card. The loyalty program ceases to influence the repeat purchase.

Loyalty program in GAP stores

When buying from 1500 rubles, the client issues a bonus card with a 5% discount. There is no accumulative system, and an additional discount is given only on the birthday. A client can buy for 5,000 rubles and get his 5%, or for 50,000 rubles and get the same 5% - the discount percentage will not change. During sales periods, the bonus card is not valid. The discount does not change, and it cannot be activated during the sale.

Such a discount program is ineffective, but will be useful for stores that rent their own premises in residential areas. Convenient location and an additional discount will play against a trip to the shopping mall. A card with a fixed discount will not motivate you to buy in the same place: similar discounts are waiting for the client in the opposite boutique with a similar assortment and prices. Therefore, with the same discounts, the client will choose the store that had better service.

Pros:

• the system is not expensive and easy to implement;
• the customer always knows his discount.

Minuses:

• unrecognizability of the loyalty program. Similar programs for everyone;
• limited action. If bonus points can be given, credited or taken away, then this will not work with a discount. She is unchanging and constant.

Outcome:

The discount program is easy to implement, but does not motivate to make purchases more or more often. The company's margins will decrease, but customers will not be interested. It is better not to use the program, but to bet on customer service or product quality.

3. Free Promotion Items

Where does it work: grocery stores, gas stations.

Reward when buying N quantity of goods is suitable for retail stores and service providers. The effect of the program is short-term. Competitors will also use this model, so bonuses are depreciated. Especially if competitors have similar products on sale.

How it works?

The client buys two products for the promotion and receives the third one for free.

Loyalty program in the network of gas stations Gazpromneft

There is a promotion in the Gazprom Neft gas station network: when you buy two products, the second one gets a 50% discount. The client saves ¼ or 25% of the total cost. The system increases the average check due to the obvious benefits that can be obtained here and now. If the client has a Gazprom Neft card, then bonuses for the purchase are additionally credited to the club card.

Motivation: bonuses and discounts for purchases. In the future, the client can count on free refueling.

The program works until the client finds out the real price of the goods. Prices in stores at gas stations are overpriced by 15-25% than in supermarkets. At the gas station, the client will buy 3 packs of gum at a price of 2 for 99 rubles per piece. and spend 198 rubles. In the store, such chewing gum costs from 57 rubles per pack. For three packages, the client will pay 171 rubles.

Loss when buying at Gazprom - 27 rubles

Network of optics stores Lensmaster

In the network of optics salons "Lensmaster" there is a reverse example. Here, bonuses are not awarded immediately, but at a certain stage. When buying contact lenses, the client receives a card that indicates the number of similar purchases. With the accumulation of 10 seals, he receives a gift: the 11th pair of lenses as a gift.

Motivation for purchases at Lensmaster works productively only at first, until the client finds a similar product at a low price in another optics.

In Lensmaster you can buy 1-Day Acuvue Moist for Astigmatism lenses for 1,780 rubles.

The same lenses in Ochkarika cost 990 rubles.

When buying 10 lenses, the difference between buying the same lenses in Lensmaster and Ochkarik will be 7,900 rubles. With such a difference, a gift in Lensmaster no longer seems like a gift. The client will not return to the store, where they are trying to make money on him by deceit.

Pros:

• the program is easy to implement and not expensive;
• transparent customer reward system;
• it is not necessary to have a loyalty card to participate in the promotion;
• clear and immediate benefit for the client;
• motivation to buy more;
• additional bonuses that can be exchanged for another product.

Minuses:

• inflated prices for goods scare away customers;
• the client feels cheated. The impression of the company is spoiled and a negative perception is created;
• there is no direct interaction with the client;
• the strategy should be thought out at least six months before the launch of the program. The company coordinates the product and price with a supplier who is ready to provide his product at a low price. Otherwise, the price of the goods for the promotion will be overstated;
• high competition due to the prevalence of the program.

Outcome:

The program is easy to implement, but if the pricing is not thought through, the client will be scared off by inflated prices and will no longer trust the company. The product itself must be interesting and liquid, so that there is no doubt about the need to purchase. The program is suitable for retail and e-commerce, where purchases are instant, and the client makes a decision here and now.

4. Multilevel bonus program

Where does it work: supermarkets, car services, hotels.

The client makes the first purchase and receives a bonus, learns about the loyalty program, and can become a member of it. The benefit is clear: rewards for everyday purchases. Bonuses can be accumulated and exchanged for discounts or free goods or services. Next, you need to keep the client, encouraging new bonuses and gifts.

How it works?

The client makes the first purchase in the store, draws up a loyalty card. Points are earned on the card with every purchase. The accumulated points can be used to pay for purchases or exchange them for gifts.

Airline Virgin Atlantic Flying Club

Virgin Atlantic has expanded the usual system of accumulating miles for flights and introduced a system of statuses. When registering in the program, the participant becomes a member of the Red Club. The status gives the right to exchange miles for discounts when renting a car, paying for parking or a hotel, when buying tickets for flights on holidays.

The next level is silver. When switching to it, the member is credited with 50% more miles. The status gives the right to check-in for a flight out of turn and priority boarding.

The highest level of a client is gold. In addition to the benefits of the previous levels, the client can use the services of exclusive VIP areas at airports.

Pros:

• flexible points accumulation system;
• accumulated points do not expire;
• motivation to shop in one place;
• additional discount for program participants;
• clear scoring system;

Minuses:

• complex and expensive implementation system;

Outcome:

The program will work in the field of reusable purchases and essential goods. Loyalty programs for airlines, hotels, and beauty salons have been built according to a multi-level incentive system.

5. Partnership of companies for exclusive offers

Where does it work: in large chains of grocery stores, communication stores, clothing stores.

The loyalty program can also be developed through offers from partners. For the program to work, the product must meet the needs of the customer, and the buying process must be convenient. Such a loyalty program with several partners can be effective with a growing audience in a new company or with an expanding customer base. Interaction with customers and control over the quality of purchases is monitored using CRM systems.

How it works?

The client draws up a bonus card, which already has offers from program partners. For each purchase, the client receives points on the card, which can be used as a discount on purchases or gifts.

Loyalty program "Svyaznoy-Club"

This is one of the largest loyalty programs in Russia. In 2014, it had 19 million members, 13 times more than Aeroflot. The number of partner companies has exceeded 50.

Customers receive bonuses for purchases. The club card is charged from 1% to 14% of the purchase amount. Points can be spent on a purchase or used as a discount.

The CRM system separates all participants by the nature of joining the loyalty program. You can participate in the program through purchases at offline points of Svyaznoy and partners or through the Svyaznoy online store. Holders of the Svyaznoy Bank bank card become members of the club automatically.

When making purchases, the CRM system takes into account the following data:

• use of a mobile application;
• the nature and frequency of purchases; participation in bonus programs;
• average check;
• bonus management. The client can spend all the bonuses at once or use them as a discount when buying;
• response to emails and calls.

A complete picture of the client's behavior helps to form the right offer for the client. The CRM system analyzes the data and makes an offer to the client based on previous purchases, taking into account the price segment.

For example, a client purchased a laptop in an online store. When placing an order, the system will prompt you to immediately buy related products. For the purchase, the client will receive a smart card as a gift and 1000 bonuses for the card, which they can spend on their next purchase or exchange for a gift.

If a client buys a mouse for 190 rubles, he will not receive a gift, and the number of bonuses will be significantly less.

The system encourages the client to make a larger purchase at a time in order to save on points in the future.

Pros:

• participation is free. There is no initial purchase required to enroll in the program;
• wide geography of the program. Partners work throughout Russia;
• smart co-branding. Program partners represent food, entertainment, medical and other service industries;
• multi-level reward system. The more the client spends, the more and more valuable bonuses he receives;
• individual offers. Each customer receives an offer based on previous purchases.

Minuses:

• the implementation of such a program is very expensive, since you need your own card and partnership at a technical level with many companies;
• complex implementation system;
• constant monitoring of the work of partners.

Outcome:

Such a loyalty program is attractive due to the huge number of partners involved in it. With a competent combination, the buyer will make more purchases, gaining related and sometimes unnecessary goods. With such a system, it is important to take into account the margin of the campaign, the price threshold and the recommendations of partners.

6. VIP Service Fee

Where does it work: in stores that justify the additional costs with high service; in B2B enterprises.

In order for a customer to buy goods in one store, the company must make shopping as comfortable as possible. If you analyze customer behavior, you can identify factors that prevent you from making a purchase.

For example, when buying through an online store, a customer may be confused by an additional tax or expensive shipping, a limited selection of goods, or a high price. To eliminate this, the company may introduce a paid loyalty program. It lies in the fact that for a fee, the client receives VIP service. Shopping is more enjoyable when the customer feels that they are being taken care of.

How it works?

The client makes an advance payment and receives privileges in the choice of goods, additional service and bonuses upon purchase.

Amazon VIP Service

For $99 per year, a customer can subscribe to Amazon Prime. A subscription provides the bonus of free 2-day shipping with no minimum purchase, access to premium products and additional discounts. It is more convenient to make purchases with a subscription, the client has additional opportunities on the site. Benefits help customers feel valued.

Pros:

• the customer pays and gets good service;
• a paid subscription motivates you to make purchases more often and more;
• direct interaction with the client, the ability to select individual offers.

Minuses:

• complex implementation system;
• the program may not pay off, high risk.

Outcome:

A loyalty program with a paid subscription can work if the difference in benefits is tangible, useful, and relevant to the customer. Suitable for companies that build long-term relationships with customers based on repeat purchases. And also for B2B-enterprises that regularly supply products for business.

7. Non-profit loyalty program

Where does it work: in cosmetics and household chemicals stores, from packaging manufacturers.

The main task of the loyalty program is to form a pool of regular customers. If the companies are trusted, then the client will come again. Behind the trust there is not only the quality of the goods and its price. To form long-term relationships, you need to know your customer and share their values. In order to constantly sell and expand the network, the company can interest the client with its policy. This creates a positive image of the company and unites the buyer and the manufacturer.

How it works?

When choosing and purchasing a product, the client learns more about the non-profit programs of the company. For example, the transfer of funds from a purchase to WWF or the ecological production of goods.

Lush Eco Campaign

One of the most famous British manufacturers of eco-cosmetics attracts its customers with the company's policy. The composition of the products uses natural ingredients, cosmetics are not tested on animals, production does not harm the environment. To motivate to buy more and more often, the brand has introduced packaging that can be recycled and reused. The client collects jars and brings them to the store, for which he receives a bonus in the form of a fresh mask or facial scrub.

pros:

• a pool of regular customers;
• positive image of the company.

Minuses:

• does not encourage buying more often;
• it is possible to increase the cost of goods by transferring part of the funds to the funds.

Outcome:

A loyalty program can work if the values ​​are not far-fetched, and the benefits from purchases are real. The program is suitable for industries, for example, cosmetic brands, manufacturers of household appliances or households. The more transparent and understandable to the client the production, the more confidence in the company.

8. Brand as a legislator of loyalty

Where does it work: from a reputable manufacturer.

The loyalty program is suitable for unique and quality products. The product may not be budget, not the best quality and not the most liquid, but it will be in demand thanks to the brand. This is due to the fact that the company forms a new niche, and the product - a new category.

Apple Corporation

The company does not provide discounts for its products even to the most devoted customers. Because they don't exist. The only exception is products for education.

The company has developed discount programs for schoolchildren, students, teachers, tutors and educational institutions. This policy is connected with the fact that the corporation does not use advertising in the usual sense. The company does not use TV, mailing lists, advertising banners. Apple is nurturing a new generation of product users through the educational system.

The user gets used to the interface, build quality, external design and will not refuse in favor of a cheap but less comfortable replacement.

MAC professional cosmetics

Another example of a brand that does without discounts and loyalty programs and is a market leader in its segment. The brand offers high quality cosmetics, sells only in branded boutiques and does not provide a franchise. The prices are high, as is the quality of the service. Only professional make-up artists work among the staff in the brand's boutiques. Consultants talk about the products and can apply makeup at the request of the client.

Without experience, they do not take a job at MAC. But for the staff there are special prices for products. Therefore, make-up artists choose high-quality cosmetics, which they are used to working with, and even at a discount.

Pros:

• formation of a pool of regular customers;
• brand recognition;
• no need to carry out additional promotions and discounts;
• The product on the market is unique, as it forms its own category.

Minuses:

• the program should be developed in detail at the time of brand launch.

Outcome:

This loyalty program is one of the most difficult to implement, but also successful. The program will work if the concept of the entire brand is thought out before the company enters the market. The absence of discount programs will be compensated by the high quality of unique products and services. With such a program, the company has several generations of users. And this eliminates the need for advertising campaigns, sales and bonus programs.

Let's summarize:

Bonuses for each purchase are suitable for stores with quick and short-term purchases. If the program is not littered with unnecessary information, then it can give a good result;

The discount card program for each client is easy to implement, but does not provide more profit;

A promotion with a free product is suitable for retail stores: the client will buy more than necessary;

A multi-level bonus program is used by airlines, hotels, large retail chains. Motivates to buy more when the product is liquid and the prices are reasonable;

It is difficult to implement an affiliate program, but it can significantly expand the client base and increase brand awareness;

The loyalty program with paid participation is suitable for online stores, banks and companies that provide VIP services or VIP services. A risky step, but what you pay for, you begin to appreciate more;

A non-commercial loyalty program is suitable for brands producing unique products. The client will pay more attention to the history of the company and its values ​​when choosing a product.

In order for the product itself to be desirable and necessary, you need to create a new category for it. Such a campaign will be long-term and permanent. Resources will be spent on maintaining the quality of products, and not on the formation of a new bonus program.