Loyalty programs for corporate clients. Loyalty management of corporate clients as a way to increase B2B sales. Free products by promotion

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“Changes in the marketing environment have an immediate impact on prices and technology, but they don't have strong relationships.” - Regis McKenna

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 highlight the topics of customer loyalty management and the formation of customer loyalty - how to win and retain customer loyalty by offering them the optimal combination of tangible and intangible privileges. The main goals of the loyalty program, how to assess the success of loyalty programs, pricing in loyalty programs. As well as customer loyalty programs, examples of the world's most successful companies, 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 judged accordingly. You should measure the indicators of profitability or loss, as well as factors that can be assessed automatically: the speed of response to program shares, loyalty to the brand.

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

Loyalty program goals hierarchy

What to offer to build customer loyalty

Instead of simply offering discounts to your customers, make them earn them as loyalty rewards. This will create a favorable situation for both the company and the clients. Preliminary analysis and calculations are necessary for the competent organization of the strategy, but the 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 a successful loyalty program implementation, it is necessary to take into account a number of factors:

Offer what is truly valuable to the client.
Monitor alternative offers.
Make your customers feel unique.
Investments in a loyalty program and the profit earned from its implementation must be balanced.
Build a close relationship between the company and the customer that benefits everyone involved.
The loyalty program should be part of the company's existing marketing plans.
The most effective loyalty program for interacting with customers is omnichannel (for example, a customer loyalty program).
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 that results in:

- building strong relationships with customers

- customer interest

- encouragement of regular customers

- efficient use of the budget

- loyal customers

A loyalty program for clients is not a way to achieve an instant result, it is a long-term meticulous 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's take an example of airlines for organizing loyalty programs for frequent flyers. British Airways' Executive Program assigns the status of a Blue Class Passenger, then Silver and Gold. US Airways slightly refined this concept by launching the Dividend Miles program, in which customers are also assigned three statuses, plus Chairman's Preferred status for passengers whose annual flights exceed 100 thousand miles (this theme is also beautifully played in the film sky"). The German airline Lufthansa gives Hon Cards exclusively 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 bottom line.

Conversion of the loyalty program into a low price program as a result of the provision of discounts

Offering discounts means giving away donations that you can compensate for by increasing your sales. For example, a retailer provides a 10% discount to all members of its loyalty program. Customer John Doe, one of the loyalty program participants, has chosen a £ 100 item in the store, and the company's mark-up is 45% of the product price, that is, £ 45. 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 has been granted, John's purchases must increase by 26.6%. Even if the additional purchases of this customer grow, the company will only recoup 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 purchase volume. For example, a manufacturer of industrial lighting lamps that sell for £ 10 a box offers a discount scheme for annual purchases: the first 100 sets of lamps are sold at full price; all subsequent purchases - from 101 to 200 packs - 5% cheaper, from 201 to 300 packs - 10% cheaper. For more than 300 packs, pay 20% less from the original price. That is, with an increase in the number of purchases, the discount also grows. 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, down payment and subsequent discounts for a specific 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 cost of a ticket was 24 pfenings per kilometer. The new strategy was that buyers of the BahnCard paid a fixed fee of 220 marks for it, which gave them the right to receive a 50% discount on any train tickets for one year. The more often the card is used, the cheaper the journey becomes, since the advance payment (220 marks) is spread over more kilometers.

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

Time and loyalty based pricing

Time-based and loyalty-based pricing provides discounts based on how long a consumer is participating in the program. For example, the Bell South's President's loyalty program, developed by one of the mobile operators - Bell South, invites 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), as well as 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 based pricing is ideal for building long-term relationships between customers and the company when they are based on a contract, the duration of the relationship can be measured and the appropriate discounts are offered. Regular payments from consumers help pay off the discounts provided.

Discounts for several people

Discounts for several people are provided not for the main buyer, but for an additional attracted one, if their purchases are related to each other. Southwest Airlines' Complimentary Flights and Travel Program and the Friends and Family Programs offered by MCI to its customers are excellent examples. The goal of these programs is not only to retain loyal 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 organizing events use these schemes in their work.

Price guarantees

A not very commonly used mechanism in some retail stores, when the company guarantees the customer compensation if he made a purchase, and then found a similar product cheaper elsewhere.

Examples of successful loyalty programs

Loyalty program of the company Kawasaki Motors

Kawasaki Motors has been successfully operating in the UK market since 1974. She managed to gain success and a stable position in the industry, offering a variety of models of motorcycles, as well as other goods. To differentiate the business, the company executives decided to invest in the Kawasaki Riders Club loyalty program to gain customer confidence and as a powerful promotion tool in the company's tiered distribution system. In March 1993, the loyalty program was officially launched.

As a result:

- increased desire of participants to use their motorcycles as often as possible

- 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 were a guy, I would buy him a glass of beer!"

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

club card Porsche Card

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

- services for travelers 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 on the status of accounts

- telephone service 24/7

Club Volkswagen Club

In an increasingly competitive environment, direct customer contact becomes a necessity. Volkswagen is the first company that has managed to satisfy customers. Customer Club GmbG was created exclusively to manage 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 travel services, a modern system of accumulating points was developed, and partners were selected. Over the five years of its existence, 1.5 million customers have become members of the club, among dealers of Volkswagen and Audi 95% are active partners of the Volkswagen Club and Audi A plus.

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

Everyone views marketing as customer acquisition. Something like advertising. Marketing = advertising. They attracted customers, they bought it.

Everyone is happy: the head of the company, the clients themselves. The only thing is that it has long been proven that selling to a regular customer is 5 times cheaper than to a new one. And this is the problem with most leaders.

They don't think about how to retain a customer, although there are simple and unobtrusive marketing tools for this. For example, a customer loyalty program.

Marketing and discounts

Although no, I'm wrong. Executives and marketers think like. But usually, the maximum they think of is discounts.

Those very banal discounts and, moreover, the greater the discount in their opinion, the higher the likelihood of retaining the client.

This is definitely true. Only now they forget what discounts mean in business and how much it affects their markup. And all this as a result is very far from a working system of customer retention.

And how can you keep ...

As an example, let's imagine a classic situation in any business, when a client asks you for a discount and at the same time subtly hints that if you do not give, then the consequences may be irreversible.

Bad option:

- Will you give me a discount?
- We have no discounts.
- Then I'll go buy from competitors!
- Okay, I'll give you my personal 5% discount, but just about it to anyone.

A good option :

- Will you give me a discount?
- Yes, for purchases over 10,000 rubles, you get a 5% discount.
- Okay, then I'll buy it.

The best way :

- Will you give me a discount?
- Of course. Moreover, the more you buy from us, the more discount you get. When buying for 10,000 rubles you will get a 5% discount, and when buying for 20,000 rubles you get a 10% discount.

- Nuuuu, okay, then let's get this coat for 22,000, then it will cost me 19800.
- Yes that's right.

I think you have now learned the model of the customer loyalty program, which is used by more than half of small businesses in Russia. And now is the time to change your business and stop looking like 99% of your competitors.

If you don't have a customer loyalty program, it's time to break the system and start it immediately after reading the article, especially since you will learn the tricks and life hacks that work in modern realities in Russia.

And even more so, if you have exactly as I described in the examples, urgently fix it!

And if you are lucky, and you are not, I congratulate you, but still strongly recommend reading the article to understand what to add / improve to your loyalty system.

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Three tasks - one road

So. What is a customer loyalty program? In short, this is a way to motivate your customers with three main tasks that most executives forget about when developing it:

To retain customers (will you go to organization B to buy if you have the maximum discount in organization A ?!);
To increase sales (will you buy another 2,000 rubles to get an 8% discount?);
So that (Remember before everyone went to Letual or Il De Beaute with other people's cards in order to buy with the maximum discount?).

And in fact, all customer loyalty programs revolve around two simple actions (I would even say arithmetic operations) - write off or accrue, that is, plus or minus, that is, a discount or accumulative program.

It is them that we will now consider and get to the thought “What is better - a discount or bonuses?”. If you don't want to read the article further, watch the video:

In general, there are more than 4 loyalty programs, but today we will study only these 4. And yet, get ready that in the course of reading the article you will have thoughts to change the old good / bad working for a new one, which you will learn literally within 3 minutes.

Loyalty discount program

As I wrote earlier, this is the most common loyalty program, and not only in Russia, but in the world in general.

Expressed in either a one-time or cumulative discount. As a rule, this is a discount card that gives a certain percentage discount upon purchase. Why certain?

Because discount cards come in either a fixed or a cumulative discount.

The cumulative discount is due to the following function - when buying at certain price thresholds, the client receives an increase in percentage as a reward for loyalty to the company.

Some are sophisticated and come up with conditions that if a client does not appear with them, for example, once a month, then she drops one step lower and so on until he comes to his senses and comes again.

Pros :

Customers love discounts a lot. Especially in Russia. In the conditions of this time, it is very special.
Such a program is simple and straightforward, so it is easy to organize and control.

Minuses :

Nowadays, any person usually has at least 2-3 discount cards of companies in one sphere.
And usually the discount amount is the same everywhere. Therefore, in competitive areas, one might say “loyalty” is more like a word than a really working tool;
As soon as the client stops growing in the process of winning the maximum discount, his interest in making purchases also begins to fade;
The main disadvantage of discounts is that they are given from net profit (example below).

Let's give an example about the loss of money from net profit due to discounts. Let's say you sell a product for 9,000 rubles. Your margin is - 30% Discount - 5% or 450 rubles. It seems to be a little, BUT!

You have the cost of goods / services, which you will not go anywhere, and accordingly you give a discount from your net profit.

Thus, you actually lose 450 rubles not from turnover, but from your net profit, which, for example, is 2,700. It turns out that at the exit, taking into account the discount, you earn 2,250.

The total amount of the discount (if calculated in terms of pure money) turns out to be not 5% at all, but as much as 17.5%. And this is already, you see, essential. Of course, this will not be so noticeable if your markup is 100-200 percent, but what if the discount is greater?

Loyalty bonus program

In this program, the client no longer receives a discount. They magically turn into bonuses. But the principle is the same.

When making a purchase for a certain amount, you receive a certain percentage of bonuses from the transaction amount to your account / card, which you can spend when making the next purchase (even exchange it for a free product).

The bonuses themselves can be in any form: points, stickers, rubles. Yes, even the fictitious currency of the store (not the worst option, by the way).

Pros :

If you imply repeat purchases, then the system can work for a long time and successfully without unnecessary problems;
To accumulate a decent number of bonuses, the buyer must buy constantly or for large amounts, which is extremely beneficial for the business owner;
Bonuses may tend to burn out, which means this will be an additional incentive to come to you as soon as possible and spend them;
Not all customers come to spend bonuses, so you can say that you leave this money in your company and end up selling without a discount at all.

Minuses :

If the purchase is one-time or very expensive / rare, then such a loyalty program will not work. The client simply has no interest in participating in it, since he will not come to you again;
If you make tricky / complex rules for a loyalty program, buyers may get confused or not understand it at all, which will completely destroy the whole idea of its creation;
More difficult to control than discounts, so you might even need special software.

What's the second fastest way to increase profits at any company? Thinking about the first one? Do not think - this is a rise in prices. The second is to switch from discounts to bonuses.

Remember our example about a product worth 9,000 rubles and a 5% discount? Let's apply it to bonuses. All the same.

You have credited the customer with 5% on his bonus card upon the first purchase, which he will be able to use on the next purchase. We count.

1st purchase - 9,000 rubles
2nd purchase (also) - 9,000 rubles
The bonus from the first purchase (lies on his card) is 5% or 450 rubles.

Thus, 2700 (first purchase) + 2700 (second purchase) - 450 (bonuses written off from the first purchase) = 4,950 (your net profit minus the bonus discount). The total discount on your profit was 8.5% versus 17.5% in the first case.

Those who were especially attentive should have noticed that from the second purchase, the guest will still receive another 450 rubles to the account and it turns out, as a result, we will give out the same 17.5 percent. And they will be right.

Only if we return to the advantages of this system, we must remember that half of the people will not come, half of the bonuses will burn out and these bonuses will stimulate the client to come again.

And also answering right away your question: “What will happen if we cancel discounts and introduce bonuses, will all the clients run away?”. There will be nothing! Yes, some part will leave, but its departure is compensated by an increase in your profit.

Oh, calm, only calm

In general, it is not dangerous. We checked it many times. And by the way, the part that will go away is the most unreliable and small number of customers who are ready to go to the other end of the city if they find a product / service 10 rubles cheaper. You don't need to be guided by such.

Although, of course, in order not to be guilty later that your company has ceased to be profitable, I will still make an amendment.

And I have a request for you. There is no need to ask clients: “What would you choose: discounts or bonuses?”. The client will always reply with a discount.

This is how our psychology works - “Good now, bad later”. Therefore, you take yourself ... willpower, cancel discounts (if any) and introduce bonuses.

Life hack. If you want to get a ready-made loyalty program, then I advise ““. Very cool functionality and flexible settings. And with the promo code "INSCALE" - a 10% discount.

Multi-tiered loyalty programs

This is a fairly simple and at the same time complex system. The more a person spends money in your company, the more interesting a group of clients he gets and the more interesting bonuses he gets.

For example, it can be some additional free services (free shipping, extended warranty, etc.).

That is, by spending more money, the client raises himself in status. Often such loyalty programs are used in banking, insurance or airlines.

Pros :

Such a program is built on self-esteem, since the more a person spends, the more interesting the group he will get into, which has a positive effect on the client's desire to spend more;
Ideal for the VIP and Double-VIP segment of people.

Minuses :

He is both a minus and a plus. Such a system is ideal only for expensive goods and services;
You need very strong bonuses when you reach a certain level;
Quite difficult to implement and track. Again, you need special software.

Paid loyalty program

Or getting some kind of bonuses / privileges / buns for a subscription. That is, the client pays money (usually a fixed monthly fee) and, as a result, receives privileges.

It can be an enhanced service, additional services, access to some closed resources, and the like.

Pros :

Very easy to organize;
Ideal for products that buy frequently;
The client buys access to such a loyalty program, but often does not use it (that is, "free money");
You can work out the cost of bonuses so that they are the most profitable for you in terms of money.

Minuses :

If the value (perception) of a paid subscription is lower than the price, then the entire program could fail.

Let's just say it's the coolest and strongest loyalty program. The one you get paid for, but let's be realistic.

For this to happen, you need to be a very popular company in your sales territory.

How to choose a customer loyalty program?

This is a very important point. Since a manager or a marketer always perceives their business in a special way, so to speak, “wearing pink glasses” (this is a fact that is also relevant about us), it is very difficult for them to understand what his client wants.

Yes, to realize everything as in the popular proverb - "And eat a fish, and not wash the frying pan after yourself." So what to do?

It's corny, but you have to put yourself in the shoes of the buyer. Let's say you have a wholesale organization.
What do you think your favorite (for you) customer wants? Accumulate bonuses to exchange them for something free? Or does he want (and is used to) getting discounts here and now?
Therefore, you take the side of buyers, analyze your range of goods / services and find the answer to these questions.
Ask buyers who are already buying something from you, what they want (but remember the stop question: discounts or bonuses?). You can post a survey on the website, in social networks, or in your office.
As a rule, the answers will be from the series “prices are lower, discounts are higher”. But sometimes you will come across adequate people who can suggest interesting ideas, this is the essence of this action.
Do a competitor analysis and identify one of two strategies:
3.1 Go the other way. If a client gives a progressive discount, up to the maximum, then it may be better to refuse discounts altogether and switch to a bonus program, just with very interesting prizes.
3.2 Simulate and improve it. Just remember that things can be ambiguous.
After all, maybe a competitor miscalculated, introduced a discount loyalty program, now he earns nothing at all and grieves from it at night, but you haven't analyzed it and decided to copy it.
And the last step, when you have thought about everything except yourself, ask the same question as in the first paragraph, only to yourself: "What do I want?" or "What is beneficial to me?"
Sometimes it is better to make a system with discounts, and sometimes with bonuses. As I wrote above, there is always a factor in the market that can change everything.
Therefore, consider under which scheme your company will grow in profit (or, in your case, it may make sense to grow in turnover to capture market share now).

And finally, a few life hacks that will make your customer loyalty program even more interesting:

If you decide to switch to a discount loyalty program, then make it progressive.
Buying for 10,000 rubles - 5% discount, for 20,000 rubles - 7% discount, for 50,000 rubles - 10% discount).
The more a customer buys, the more discount he gets. The only thing is that discounts should not be just crazy on an ongoing basis (from 20%), it can play a cruel joke and scare away buyers.
If you have a catering or a store, and you are calculating bonuses manually, then rather switch to ready-made solutions that do not cost a lot of money.
For example, such as Plazius (for catering) or Bazaronline (for retail stores). They already have everything you need. You only need to connect them, calculate the amount of bonuses based on your marginality, and put them into action.

Briefly about the main thing

Video at last, how silly the picture as a whole can look when you complicate it too much and you stop understanding yourself 🙂

And a small summary of the article: if you just want to start a customer loyalty program because you need to quickly increase your profits, then ... No, it will not help you and you do not need it.

A customer loyalty program is just one of the marketing tools that can get your customer (sorry for the tautology) more and more, but in the long run.

And one more parting word - don't complicate it. I remember at one customer in a public catering, we decided to introduce a bonus loyalty program.

We've been counting on it for about a month. Well, straight for a very long time. He called me all the time and offered me new mechanics. Confusing me, myself, and future guests of my establishment.

In the end, I spat and entered the following conditions: 20 percent of each check accrued for the next visit. As soon as the guests got used to the new system, we began to gradually complicate it.

The concept of “loyalty programs” or “frequent guest programs” has been known in the hotel business since the early 80s of the last century, when the first of them, InterContinental Hotel Group’s Priority Club Rewards, was created. Now there are several dozen international “loyalty programs” covering the activities of chain hotels, and if you count the programs that independent hotels and hotel chains of individual countries have introduced into their practice, there are hundreds of them.

The popularity of loyalty programs is due to their exceptional "usefulness" to both stakeholders. Hotel guests get the opportunity to travel more often or with more comfort, while paying less, and for the hotels themselves this is a great opportunity not only to retain the consumer of the service without much effort, but also to regularly increase the number of regular customers. This was also facilitated by joining the loyalty programs of many airlines. The first to come up with this idea was in the United States, where it is absolutely normal for a businessman to visit two or three cities in one day for negotiations (using the services of airlines); other countries soon took up the initiative.

So what is a loyalty program? Its essence is as follows: a hotel client is offered to become a member of the discount system. Previously, such a service was available for a certain amount, but now more and more often the connection to the system is free of charge. Sometimes there is a purely symbolic "contribution" - guests receive "Frequent Guest Cards" of the entry level if they stay at the hotel for a certain period (say, a week), get caught during the period of their stay, one or another PR-action, or just like the hotel management.
After joining the club, points are added to the card every time a guest visits any of the chain's hotels that support this program. Sometimes points are also awarded for dining in a restaurant, use of the business center, etc. Their number is directly proportional to how often the guest stays in hotels and uses certain services. Well, in exchange for the acquired points, a member of such a club system can receive certain bonuses, i.e. services. The range of them is very wide: from the possibility of early check-in / late check-out or a free cocktail to returning to the hotel after a working day to providing a chic penthouse for the weekend, and absolutely free.
As we have already said, airlines also willingly participate in loyalty programs: very often at the reception of a hotel you can see an announcement about the crediting of bonus miles for flights by this or that airline for each night spent at the hotel. Sometimes the traveler has the opportunity to choose whether to use the accumulated points as payment for hotel services or get a discount on the air ticket. But that's not all, some chain hotels, for example Hilton, offer the so-called. double discounts, when both accommodation and air tickets are cheaper for the guest: this program is very popular.
However, not only her: Marriott Rewards of the Marriott hotel chain is rightfully recognized as one of the best loyalty programs in the hotel business today. Thanks to partnerships with 31 airlines, as well as a variety of bonuses offered to customers, more than 25 million people are now participating in it.
Over 200 hotels and nine airlines are connected to the Hyatt Gold Passport program.
It would be unfair not to mention Priority Club Rewards, the leading loyalty program in the travel and hospitality industry, reaching a range of brands: InterContinental, Crowne Plaza, Hotel Indigo, Holiday Inn, Holiday Inn Express, Staybridge Suites and Candlewood Suites and many other chains. and non-chain hotels. Due to the variety of brands included in the program, the cardholder can choose any of 3,700 hotels of various levels and around the world, as well as take advantage of discounts when ordering services from more than 40 airlines, exchanging bonus points for flight miles. In addition, more than 10,000 restaurants and a range of partner credit cards participate in Priority Club Rewards.

Even one listing of loyalty programs can take a long time; therefore, let's move on to the already mentioned and essential aspect. Not everyone knows that loyalty programs are offered to their customers not only by international chains, but also by Russian hotels, both chain and independent. Many of them have developed a very attractive system of discounts, bonuses and "compliments" for regular guests, especially for the corporate segment of the clientele, a significant part of which are business travelers.

Interestingly, it is corporate clients that hotels in some cases can be considered an ideal target audience. Why? Private clients, tourists and similar categories of citizens are mostly interested in living in a comfortable room at a reasonable price: other services offered to them by the hotel usually do not seduce them. Why, tell me, for a guest who has come on a tour from the region to rent a hall in a business center or five possible options for organizing an international conference call directly from the room? At best, he will be interested in the restaurant and spa services, and even then if they are offered at a discount.
While business people, especially top managers of large companies, staying at a hotel even for just a couple of days, are able to mobilize all the resources provided by the hotel. They can rent a conference room, request special equipment for a seminar, hire a waiter to serve in the lobby exclusively for their business negotiations; "Put on ears" the reception, if in some corner where he wanted to sit in silence with a laptop, a "dead" wi-fi zone is found ... the counter at the same time orders air tickets and transfers ... And, believe me, the client, to whom all of the above was provided in the shortest possible time in the best possible way, is inclined to "stick" forever to such a caring hotel. He will come to the hotel of this chain more and more often, and thanks to the discounts of the loyalty program, he will buy more and more services. Because he really needs all of them, and the chance to get some kind of service quickly, efficiently and at half price, or even free (especially for a person who earns a lot, which means he is accustomed to counting his money) is the best "bait".
Hoteliers have adopted this fact, in almost every self-respecting hotel, in addition to the standard discounts for members of the loyalty program that operates in this hotel, special offers have been developed for corporate clients and business travelers.

RENAISSANCE SAINT PETERSBURG BALTIC; COURTYARD MARRIOTT SAINT PETERSBURG VASILIEVSKY
The Marriott Hotel Group in St. Petersburg supports the global bonus programs of Marriott Int. One of them is Marriott Rewards. Guests participating in the program receive bonus points for staying or holding events at the chain's hotels, which they can later exchange for airline tickets or a certificate for staying at a Marriott hotel. The guest himself chooses whether to accumulate points for accommodation or air miles. Specifically, every dollar spent is one mile.
Hotels "Renaissance St. Petersburg Baltic" and "Courtyard by Marriott St. Petersburg Vasilievsky" offer guests participation in the bonus program Preference Plus. All its members who book events or their colleagues' accommodation in the indicated hotels accumulate bonus points, which can subsequently be exchanged for prizes and gifts. For every $ 100 spent, 1 point is awarded. For example, for 15 points you can get a cake from a pastry chef, and for 300 points you can get a stay at a chain hotel in continental Europe.
HOTEL "MILAN" (Moscow)
Corporate clients can take advantage of the following discounts or bonuses.
For business travelers, there is a special reduced price for accommodation (from 3800 rubles / person).
There are discounts for holding an event depending on the number of people, if there are less than 50 participants - discounts will be up to 50%, if more than 50 - up to 70%. Equipment for conference rooms for corporate clients is provided free of charge; members of the group are also given a 50 to 70% discount on accommodation in Milan, and up to 50% on meals in the hotel restaurant. Event organizers can stay at the hotel for free.
Also, corporate clients have the opportunity to conclude a contract for a year at a fixed price, not to mention the fact that they enjoy the pre-emptive right to book even in high seasons. In particular, it was this proposal that contributed to the conclusion of an interesting long-term agreement with Cathay Pacific. The flagship airline of Hong Kong, it operates scheduled passenger and cargo services to 114 cities around the world and is one of six international airlines with a five-star Skytrax rating. For the employees of this company, Milan provides a fixed price for accommodation and meals for the entire period of cooperation, regardless of inflation, seasonality, hotel occupancy, price spikes, etc.
THE IRIS CONGRESS HOTEL (Moscow), which was previously part of various chains, is currently developing new types of programs. They will be designed for the main segments - corporate, tourist and conference segment, with a certain gradation of the discount system for each segment. Iris Congress Hotel traditionally pays great attention to gifts for the loyalty of partners and their guests. These are, as a rule, hotel services in the form of various vouchers (for accommodation on holidays, for festive events held at the hotel, dinners, visits to the fitness center, etc.). Guests are particularly pleased to receive gifts of culinary delights from the hotel's pastry chef, according to staff.
In addition, each partner company of the hotel receives gifts from the sales department, sometimes small, but pleasant: various souvenirs, which the hotel tries to make as diverse as possible. The sales and marketing department strives to constantly be at the center of events, regularly polls guests about the quality of souvenir products in particular, and the level of services provided in general. At the end of the year, the hotel hosts corporate evenings for the main business partners from the corporate and travel segments, where employees of the companies are rewarded for the largest number of nights booked.
As for partner programs, negotiations are currently underway with several airlines and banks for the accrual of miles and bonus points, if you have a bonus card in the first case and pay for services with a bank card in the second.
HOTEL AND RESTAURANT COMPLEX "RING PREMIER HOTEL" (Yaroslavl) made a special gift to its customers for its fifth anniversary, when guests could receive Gold and Silver club cards (Golden Guest, Silver Guest) with a lot of related bonuses just for being among the first guests of the hotel. Although other types of cards also provide many advantages. By the way, in addition to the Standard card (Regular Guest), there is also a "Corporate" (Corporate Guest).
The cards differ in the size of the discount and the number of bonuses and work according to the accumulative system, over time the "level" of the card rises.
The hotel loyalty program assumes the opportunity to enjoy discounts even for those corporate clients who do not live in the hotel, but use the services of a restaurant, banquet halls, etc. provide yourself with hotel accommodation with substantial discounts.
Regular Guest Members receive one free massage per 3 days' stay and a 5% discount on beauty treatments per stay.
Silver Guest card gives 8% discount for the entire stay; two free massages for 3 days of stay; late check-out (within 2 hours after checkout time - free of charge); 5% discount on a la carte in the Sobinov restaurant.
The Golden Guest card allows you to stay at the hotel with a 10% discount, receive free massage every day; gives privileges when ordering a room and priority on the waiting list for reservations. Its owner can also use a free transfer from the station (to the hotel and back); late check-out service (within 4 hours after checkout time); get the latest press in your room and a free number for newlyweds.
Among other things, the hotel's loyalty program includes discounts at hotel stores, birthday gifts for birthday people, free equipment for conference rooms, discounts on events, etc.
In the MAXIMA HOTELS hotel chain, the guest is given an information letter, which contains the contacts of his personal manager and the offer of special rates. Thus, a personalized relationship with each corporate client is laid from the very beginning of cooperation.
Guests of any hotel of the chain can take advantage of various opportunities to receive an additional discount or bonus. As a rule, corporate clients most often order a transfer and meals at a discount. This spring, during the eruption of the Eyjafjallajokull volcano, corporate clients were provided with a free transfer to Moscow airports and an additional 10% discount on accommodation for the period of forced waiting.
The special “Guest of Honor” loyalty program was developed exclusively for the guests of “Maxima Hotels”. Within its framework, the client receives a discount card and begins to enjoy all the privileges from the second check-in at any hotel of the chain.
The first level - the Classic card - 5% discount on accommodation, restaurants, lobby bars and wellness centers. Next comes the Premium category card - issued upon the tenth check-in at any hotel of the chain or after 15 nights of total stay. With this card you can get a 10% discount on accommodation, 5% on the services of restaurants and lobby bars, 10% on the services of wellness centers. Further, the Exclusive card, received upon the twentieth check-in at any of the hotels of the chain or after 30 nights of total stay. This card gives a 20% discount on accommodation, 10% on the services of restaurants and lobby bars, 20% in wellness centers.
Members of the Honored Guest program are provided with additional bonuses, including the possibility of free early check-in or late check-out until 4 pm. For Premium or Exclusive cardholders - free upgrade.
Another opportunity for obtaining privileges has appeared thanks to the partner programs of Maxima Hotels. When booking, the guest can choose a program of cooperation with a bank or an airline. For example, discounts for holders of some bank cards reach 15%
Airline partnership programs allow you to get both a discount and extra miles on your frequent flyer card.
Loyalty programs for corporate clients apply not only to accommodation, but also to conference services. In particular, there are a number of special offers:
- "One in the mind" allows you to get a conference room with equipment for 1 day as a gift when holding a multi-day event.
- The "Maxima-BONUS" offer includes 3 days of accommodation in a standard double room on weekdays at special prices and one-time use of the conference room during the stay free of charge. If a group is simultaneously accommodated in 10 rooms, the 11th is provided free of charge. " In the near future, the network plans to develop a discount card in cooperation with well-known sports and entertainment establishments in Moscow and the region. The network has already established strong partnerships with Europe's largest water park Kva-Kva Park. From time to time, corporate clients of the network receive exclusive bonuses in the form of certificates for visiting it. Now more than 30% of guests are holders of the "Honored Guest" cards, which is a clear confirmation of the effectiveness of the loyalty program.
The “AZIMUT CHAIN HOTELS” is not lagging behind, where the “Your Comfortable Companion” loyalty program, introduced in December 2009, and providing an opportunity to stay and eat at “Azimut Hotels” in different cities of Russia at special prices, is in effect. It is extremely simple to become a member of the program - it is enough to fill out a questionnaire upon check-in at the hotel and receive a loyalty program member's card, which begins to operate from the next arrival. There are four statuses in the program: Companion (basic), Silver Companion, Gold Companion and Platinum Companion. A wide range of services is presented for the business traveler segment: conference rooms, free Wi-Fi Internet, direct dial telephone and cable TV in all rooms, 24-hour reception, laundry and the possibility of ordering a transfer.
For six months, more than 500 people have become program participants. It involves 32 hotels in Russia and the European Union: in St. Petersburg, Samara, Ufa, Kostroma, Astrakhan, Murmansk, Vladivostok, Stavropol, Moscow region, a project in Moscow, with a total number of 5400 rooms. The chain also interacts with AZIMUT Hotels Company Europe, which includes 22 hotels of 3-4 stars level, located in 17 cities in three countries of the European Union (Austria, Germany and the Czech Republic) - thus, members of the loyalty program can receive "earned" discounts and bonuses also in the process of business trips to Europe.
CHAIN HOTEL SWISSOTEL (Berlin), in addition to the standard bonuses offered by the chain in all hotels in the world, presents its own - exclusive - loyalty program Club Swiss Gold, updated in 2010. In addition to special prices, special privileges for regular guests and cumulative discounts, the loyalty program offers a new service: Exceptional Rates for Weekend Breaks. What it is? Every weekend, three Swissftel hotels around the world offer incredible discounts on their rooms. These hotels can be booked strictly one week prior to arrival. Yes, the rules are quite strict, but the price is also very attractive. So, according to this proposal, in August 2010 it was possible to book a hotel in the center of Berlin at a price of 95 euros per day, and in Chicago (USA) - $ 99 per day. And the famous Swissftel Sydney offers a 15% discount for every next day of stay at the hotel to anyone who has stayed there for at least two nights.
For business clients there is a studio-restaurant at a hotel in Berlin, where you can "connect" both the studio and the chef to your business events.
But, of course, it is difficult to compete with the number of members of the industry's largest loyalty program Priority Club Rewards - 48 million.
INTERCONTINENTAL HOTELS GROUP (IHG) is a global hotel company, the largest in the world in terms of room stock - 650,000 rooms in more than 4,450 hotels in nearly a hundred countries. More than 180 million people stay in the company's hotels every year, and, of course, very, very many constantly use the bonuses provided by the membership in the "loyalty program".
All points earned can be converted into bonus miles, which are accepted by over 40 airlines. More than 10,000 restaurants and a range of partner credit cards participate in the program.
Points have no statute of limitations; they can be exchanged for a hotel room even during peak seasons. Conversion of spent dollars into points depends on the hotel system and the level of the loyalty club membership. So, to get a gift number, it is enough to collect 15 thousand points. Cardholders get the opportunity to check out of the rooms later, receive pre-prepared keys and documents for the room, various discounts, and so on.
There are three levels of cards, which differ in the services and discounts provided. A significant role in this is played by the fact that InterContinental Hotels & Resorts and Crowne Plaza are purposefully positioning themselves as a “brand for business travelers”. What is the evidence for the validity of such a claim? The basic concept of the brand is that you pay for what you really need.
We will also mention such useful (and extremely inexpensive for businessmen and corporate clients who are participants in loyalty programs) services, such as:
- round-the-clock access to the Business Centers at the hotels;
- Visiting the Club Lounge, where, in addition to food and drinks, guests are offered free internet access, international press, and a separate meeting room (in most hotels).
The loyalty program of InterContinental - Ambassador hotels - gives guests: international press, room upgrades, free week-end, the possibility of faster accumulation of points (points never expire)
Special Business Sense program, which includes breakfast and additional services (for example, unlimited Internet access and a 25% discount on Business Center services) The Staybridge Suites brand for business clients is as follows: The hotel concept is focused on the needs of business travelers who have often fly on business trips for a long time, for which guests are provided:
Free wireless Internet (WiFi) throughout the hotel.
Convenience store with everything you need right at the hotel.
Complimentary breakfast at the Hub Kitchen.
Free evening cocktail after a hard day.
The more you live, the less you pay for each night starting from the 3rd. Holiday Inn and Holiday Inn Express also offer their own special loyalty programs, in particular - the corporate segment - to list the benefits of loyalty programs "networks within the network" Intercontinental Hotels Group and a whole magazine are not enough.

Interestingly, at the recent press breakfast of the Hospitality Ideas & Trends Club (HIT Club), the speakers raised the issues of loyalty programs, even though they were not on the agenda. It was about the extreme desirability of interaction between airlines, restaurants, various service enterprises, as well as hotels. And not only chain hotels in key cities of Russia and the world, but also small independent hotels in the regions. After all, even if several private hotels of a particular city unite and come up with their own loyalty program, which provides for interchangeability in the event of a guest contacting a hotel with a full load, minimum discounts and a small amount of bonuses - all the same, with the active announcement of the program and competent delivery of information to customers These small, in fact, measures can significantly stabilize the position of each of the participating hotels in the market, increase the influx of new customers and replenish the number of regulars.

Prepared by Kristina GOLUBEVA

All entries

Loyalty programs are a reward system for regular customers. They help manufacturers to 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 does not mean that they do not 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, perfumery and hardware stores, gas stations, catering, airlines.

The more often the customer buys, the more discount he earns. On the accumulated points, you can take a free product or get a discount. The program works in the areas of quick and short-term purchases. A good example in the Russian market is the Podruzhka chain of cosmetics and household chemicals.

How it works?

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

Chain of stores "Podruzhka"

The assortment in Podruzhka cosmetics stores differs from the usual Rive Gauche or Letual. The chain 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 be bought only here. Affordable prices, customer service flawlessly.

The company has developed a flexible discount program for clients. The discount depends on the amount the customer 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 have accumulated this amount in one visit, or have come to the store several times. But if the client did not manage to use the bonuses within the next month, they will automatically expire. This motivates you to buy constantly and receive monthly bonuses.

Pros:

a flexible system of discounts that motivates you to buy more and maintain 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 get a discount, you need to show a bonus card;
complex implementation system.

Outcome:

A long-term relationship with the client is formed. For the bonus program, a client reward system is needed at every stage in order to constantly maintain his interest. The program will work in online stores, offline points of sale, airlines and hotels. When implementing, you need to know not only the frequency of purchases, but also the average check. 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 ineffective type of loyalty program. The client does not know how much he has accumulated on the card, so he is not motivated to buy. Plus, 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 services. The discount does not provide additional motivation. Most often, it is simply forgotten due to the widespread use of this loyalty program.

How it works?

At the first purchase, the client issues 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 affect repeat purchases.

Loyalty program in GAP stores

When buying from 1,500 rubles, the client issues a bonus card with a 5% discount. There is no accumulation system, and an additional discount is given only on the birthday. The client can buy for 5,000 rubles and get his own 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 it will be useful for stores that rent their own space in residential areas. Convenient location and additional discount will play against a trip to the shopping mall. A card with a fixed discount will not motivate people to buy in the same place: similar discounts are waiting for the client in a boutique opposite 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 client always knows his discount.

Minuses:

unrecognizability of the loyalty program. Similar programs for all;
limited actions. If bonus points can be given, accrued or withdrawn, then this will not work with a discount. It is unchanging and constant.

Outcome:

The discount program is easy to implement, but does not motivate you 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 rely on customer service or product quality.

3. Free stock items

Where does it work: grocery stores, gas stations.

Reward when buying N number of products 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 devalued. Especially if competitors have similar products for the promotion.

How it works?

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

Loyalty program in the Gazpromneft filling station network

There is a special offer in the Gazpromneft gas station network: when buying two products for the second, a 50% discount. The client saves ¼ or 25% of the total cost. The system increases the average bill due to the obvious benefits that can be obtained here and now. If the client has a Gazpromneft 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 a free refueling.

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

Loss when buying from Gazprom - 27 rubles

Optics chain Lensmaster

The Lensmaster network of optics salons has a reverse example. Here, bonuses are not credited immediately, but at a certain stage. When buying contact lenses, the customer receives a card, which indicates the number of similar purchases. When he accumulates 10 seals, he receives a gift: the 11th pair of lenses as a gift.

Motivation to buy at Lensmaster works productively only at first, until the client finds a similar product at a low price in other optics.

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

The same lenses cost 990 rubles in bespectacled eyes.

When buying 10 lenses, the difference between purchases of 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 deception.

Pros:

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

Minuses:

overpriced goods scare customers away;
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 the price with the supplier, who is ready to provide his product at a low price. In the opposite case, the price of the product for the promotion will be overstated;
high competition due to the prevalence of the program.

Outcome:

The program is easy to implement, but if you do not think over the pricing, the client will be scared off by the inflated prices and he 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 ecommerce, 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 its member. 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 added to the card for each purchase. The accumulated points can be used to pay for purchases or exchange them for gifts.

Virgin Atlantic Flying Club

Virgin Atlantic has expanded the accustomed flight mileage system and introduced a status system. Upon registration 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 when boarding.

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

Pros:

flexible system of accumulation of points;
the accumulated points do not expire;
motivation to make purchases in one place;
additional discount for program participants;
clear system for writing off points;

Minuses:

complex and expensive implementation system;

Outcome:

The program will work in the field of reusable purchases and essential goods. According to the multilevel incentive system, loyalty programs have been built for airlines, hotels, and beauty salons.

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 client, and the purchase process must be convenient. Such a loyalty program with multiple 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 tracked 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. Bonuses can be spent on a purchase or used as a discount.

The CRM system divides all participants by the nature of their entry into 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 automatically become members of the club.

When making purchases by the CRM system, the following data is taken into account:

using a mobile application;
nature and frequency of purchases; participation in bonus programs;
average check;
disposal of bonuses. The client can spend all bonuses at once or use them as a discount when purchasing;
reaction 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 customer purchased a laptop from an online store. When placing an order, the system will prompt you to buy related products. For the purchase, the client will receive a smart card as a gift and 1000 bonuses on the card, which he can spend on the 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 customer to make a larger purchase at a time in order to save on points in the future.

Pros:

participation is free. You do not need to make an initial purchase to register in the program;
wide geography of the program. Partners work throughout Russia;
competent co-branding. Program partners represent food, entertainment, medical and other service industries;
multilevel incentive 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 control over the work of partners.

Outcome:

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

6. Payment for VIP service

Where does it work: in stores that justify additional costs with high service levels; 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 the 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 consists in the fact that for a certain fee the client receives a VIP service. Shopping is more enjoyable when the customer feels that they are being cared for.

How it works?

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

Amazon VIP Service

For $ 99 per year, a customer can apply for Amazon Prime. The subscription provides a bonus in the form of free two-day shipping with no minimum purchase amount, 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 client pays and receives good service;
a paid subscription motivates 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 privileges is tangible, useful and relevant to the customer. Suitable for companies that build long-term customer relationships based on repeat purchases. And also for B2B businesses that regularly supply business products.

7. Non-profit loyalty program

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

The main task of the loyalty program is to form a pool of regular customers. If the company is trusted, then the client will come again. Trust is not only about the quality of the product and its price. To form a long-term relationship, you need to know your client and share his 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 brings together the buyer and the manufacturer.

How it works?

When choosing and purchasing a product, the client will learn more about the company's non-commercial programs. For example, transferring funds from purchases in WWF or ecological production of goods.

Eco Campaign Lush

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

pros:

pool of regular customers;
positive image of the company.

Minuses:

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

Outcome:

A loyalty program can work if the values are not far-fetched, but 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 the production is for the client, the more trust in the company.

8. Brand as a loyalty legislator

Where does it work: from a manufacturer with a high reputation.

The loyalty program is suitable for unique and quality products. The product may not be budgetary, not of 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 offer discounts on its products even to the most loyal customers. Because they are not. The only exception is education products.

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, mailings, advertising banners. Apple educates the next 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.

Professional cosmetics MAC

Another example of a brand that dispenses with discounts and loyalty programs and leads the market in its segment. The brand offers high quality cosmetics, sells only in branded boutiques and does not provide a franchise. The prices of the goods are high, as is the quality of service. Only professional makeup 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, work at MAC is not accepted. But for the staff there are special prices for products. Therefore, make-up artists choose high quality cosmetics, with which they are used to working, and even at a discount.

Pros:

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

Minuses:

the program should be developed in detail at the time of the 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 lack of discount programs will be compensated by the high quality of unique products and services. With such a program, the company forms 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 cluttered with unnecessary information, it can give a good result;

The program of discount cards 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 buys more than needed;

The multilevel bonus program is used by airlines, hotels, large retail chains. Motivates to buy more when the product is liquid and 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;

The non-profit loyalty program is suitable for brands producing unique goods. The client will pay more attention to the history of the company and its value when choosing a product.

To make the product itself desirable and necessary, you need to create a new category for it. Such a campaign will be long-term and ongoing. Resources will be spent on maintaining product quality, and not on creating a new bonus program.