Bonus, paid and affiliate loyalty programmes

You know why we need loyalty programmes but cannot deal with all the types of them? Do not just buy randomly most popular or the cheapest loyalty programme — it can happen that it would not work for your target audience or business. We will talk about loyalty programmes types, for you could make an objective decision, that will really benefit your business.

Bonus loyalty programme

Bonus loyalty programmes you can face in any second shop. Buyer receives the discount card with unique number. Bonuses are added with each purchase on this card. They should be accumulated and exchanged on rubles, meaning the discount. More bonuses are accumulated, bigger is the gift. For example, free product item.

Many marketers want to confuse buyers so much that the company itself would not understand how and to whom gives its bonuses. Complicated scheme of bonuses issue discourages the customers, that is why it is important to find the balance between interesting accumulation game and benefit. Accumulative loyalty programme would be beneficial for the company with many deals, even on small amount of money. Bonus card of electronics shop is used less frequent than grocery store card. Logic here is simple: not many people would but new gadget or home appliances few times per month, meanwhile foodstuff is always needed.

Why are bonus loyalty programmes so popular?

Bonus accumulation is the base of long term relations between seller and buyer. Bonuses, left on balance, stimulate to make a purchase again and get them off with discount. Regular promotions for bonus loyalty programme members and valuable prizes for the certain amount of bonuses on card stimulate the buyer to spend money in particular shop.

You can accumulate the purchases instead of points

Accumulative programme scheme without points is simple as well: but five business lunches and take the sixth one for free. Still, the realization of this scheme is poor. Usually the buyer gets the paper token with amount of purchases noticed. Disadvantage is that token can easily be torn, lost — it gets on customers' mind. We offer the modern approach to bonus loyalty programme launch: mobile application VDcards, downloadable for free on iPhone or Android. No more tokens and stamps. The purchase history can anytime be seen in account, as well as bonuses, points amount, cashback, fire sales.

Bonus loyalty programme advantages:

  • long term relations with clients
  • gamification that turns bonus accumulation process into game
  • client rating made with card statuses: diamond one, newcomer one etc. — it stimulates buyers to earn higher status. It is easier for marketers to collect the data about clients

Bonus loyalty programme disadvantages:

  • issue and re-issue of plastic cards, coupons (to avoid waste of budget money — launch the accumulative loyalty system on VDcards platform)
  • complicated scheme of bonus accumulation (this can be avoided as well. Simpler does not mean bad)
  • the constant communication channel is a must

Paid loyalty programme

Paid loyalty programme goal is to recoup corporate expenses and offer to clients the special status that is not that easy to get, that is to say to give them the opportunity to experience their uniqueness. Paid loyalty programme entrance will stimulate to buy and use the privileges. It can be annual or monthly payment, or with progressive calculation to stimulate the buyer for yearly subscription. Upon paid club membership, person receives special offers and purchase conditions: free delivery, double bonus accumulation, cheap pre order, small-scale wholesale etc.

Paid loyalty programme is attractive not only for individuals, it can be launched for B2B as well. For example, delivery company can offer paid loyalty programme with various bonuses for business: each fifth delivery within city limits for free, special delivery admission on Sundays, corporate courier. But big is the paid loyalty programme value, for your clients high quality goods/services are most wanted. Poor quality service would never make the company popular, even with interesting and convenient loyalty programme.

Some companies are afraid to even name it "paid" as the client can be discouraged by that. It is reasonable only in case of your loyalty programme being low value for your client. If the prejudice is really strong, you can name your paid loyalty programme "VIP-club", stressing the new status of members.

Paid loyalty programme advantages:

  • simple realization scheme
  • many clients forget about payment or buy not frequently, that is profitable for business

Paid loyalty programme disadvantages:

  • value is not justified enough for client, while marketing strategy is not effective. If person is not sure that one will discover the world of new privileges, you can expect no payment for loyalty programme membership
  • there is a risk of 0 pay off in case the paid loyalty programme was forecast invalidly or economists made a mistake while calculation

Partner loyalty programme

It is difficult to fulfill but very profitable. Why partner programme launch is difficult? You have to know your target audience and their interest very well. There is no sense to offer bio market discounts in male fitness club. Find the strategical partner(s) who is interesting for your clients in various life situations: holiday with children, work, on their way to office, or even before going to bed!

Partner loyalty programmes increase the client base and customer loyalty, because you take care about their benefit outside your store/parlor/shopping mall. Client buy at your store, points are accumulated on bonus card balance, and can be spent in partner shop. How monitor bonus accumulation in multiple stores? Frankly speaking, it is inconvenient to visit the shop web-page, enter unique card number and check the balance. Mobile application VDcards solves this problem. Points are visible in smartphone at any time, in account of free VDcards application. Our loyalty service allows loyalty programme launching with cashback, personal offers, promotions and discounts. Feedback functions via push-notification.

Partner loyalty programme advantage:

  • ability to attract the clients from all over the country to your on-line shop thanks to partners in particular region
  • personal offers for each target audience groups and individual discounts for each customer
  • multilevel reward system

Partner loyalty programme disadvantage:

  • implementation cost, starting with new marketing plan up to system technical support
  • control of partners work according the contract conditions
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photoFollow your client's mood
photoLoyalty programmes for guest houses, hotels and hostels. Part 1Read more>>>