[Webinar Recap] Turn Your Satisfied Customers Into Delighted Brand Advocates

By LitExtension

[Webinar Recap] Turn Your Satisfied Customers Into Delighted Brand Advocates

Why is customer loyalty important?

Financial aspect

Customer loyalty is the willingness to interact with or buy from companies on a regular basis. Maintaining customer loyalty should help businesses increase their revenue and at the same time cut down on expenses.

How can customer loyalty help?

Customer loyalty helps you learn much more about your customers. Based on what you learn from their behavior, you can design offers and incentives that correspond to each customer’s requirements.

What do loyal customers expect?

First, they expect you to care about them. A study by Wunderland suggests that 79% of customers will only consider shopping with brands that show they understand and care about them.

What programs encourage your customers to return and conduct more business with you?

A simple point-based system

This is arguably the most common loyalty program methodology in existence. Frequent customers earn points which translates into some types of reward such as redemption in the next purchases or other special offers in the future.

A tier system to reward initial loyalty and encourage more purchases

This program presents small rewards as a base offering for being a part of the program. It encourages repetition by increasing the value of the rewards as customers move up the loyalty ladder. A tiered loyalty program is a type of membership program where customers enjoy different benefits depending on their rank. Unlike traditional earn-&-redeem loyalty programs, tiered loyalty programs rank members into certain groups based on a certain metric. Each rank — or tier — is defined by a set of rewards, services or benefits, which increases in value as customers progress.

Charge an upfront fee for VIP benefits

Loyalty programs are meant to break down barriers between customers and your business … So are we seriously telling you to charge them a fee?

Structure non-monetary programs around your customers’ values

In today’s highly competitive marketplace, brands often end up engaging in a “discount race” to try and offer the most competitive prices to their consumers.

Reward points for referring friends and relatives

Here’s something you may not want to hear: Your customers trust their peers more than they trust your business.

refer-a-freind bonus

Cooperate with partners/vendors for loyalty program

Strategic partnerships for customer loyalty (also known as coalition programs) can be an effective way to retain customers and grow your company.

Build a useful community for your customers

As I said earlier, customers will always trust their peers more than they trust your business. On social media, customer review sites, forums and more, the slightest slip can be recorded and uploaded for the world to see. But you can turn this into a positive by managing a community that encourages customer-to-customer interactions.

Best practices

Amazon Prime

The first example is Amazon Prime. For a little over $100 a year, Amazon Prime users get free, two-day shipping on millions of products with no minimum purchase among other benefits. For example, because of their acquisition of Whole Foods, Amazon offers Prime users a number of savings on groceries.

Upfront fee for VIP benefits
Amazon Prime membership

Starbucks rewards

Starbucks Rewards is a star-based loyalty program in which customers download the Starbucks app or sign up online, add any amount of money they’d like to their digital card, and scan it upon checkout, whether that’s in-store or via mobile order.

Starbucks loyalty program
Starbucks loyalty program
Starbucks loyalty program
Starbucks offer a lot of extra benefits
  • Fun freebies: Not only can you earn free coffee, look forward to a birthday treat plus coffee and tea refills.
  • Enjoy the convenience of in-store, curbside or drive-thru pickup at select stores.
  • Get to free faster: Earn Stars even quicker with Bonus Star challenges, Double Star Days and exciting games.

Mr. Pet’s

Mr. Pets’ cooperates with their vendors to run a few different promotional programs. Specifically, if you buy 5 items from one supplier, you can enjoy an extra item free. Plus, the system will allow you to buy 5 items not necessarily in one order but they are limited to a specific period of time — let’s say 5 months. All free products are charged by vendors’ fee and Mr. Pet’s only needs to send the report to the vendors to get discounted for the purchase order.

Mr. Pet's loyalty program
Mr. Pet’s loyalty program


Q: If I create a loyalty program, does it mean that I have to cut down on my profit margin? How can I measure loyalty program’s results?

Final Words

We’re just shown you several ways you can turn your customers into delighted brand advocates. If you have any questions, don’t hesitate to contact us!



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