Multi-tiered, discount and intangible loyalty programmes

We continue talking about various types of loyalty programmes. In this article we will talk about other three programmes which allow attracting new customers and holding the loyal ones. Correctly implemented, loyalty programme will transmit your corporate values and stimulate buyers to make more purchases due to gamification. Our article is to help you with selection of truly appropriate loyalty programme.

Multi-tier loyalty programme

More stages (tiers) to promised goal, more interesting must be the adventure and more valuable must be the prize. Multi-tier loyalty systems are based on ardor: accumulate points or bonuses, climb the loyalty stairs and receive more valuable prizes. Why is it about ardor? You can reward the clients for various actions and interaction with your company:

  • for purchase (works on entire assortment or particular product groups)
  • for re-posts in social nets
  • for participation in contests
  • for genuine feedback

Multi-tier loyalty programme is complex one — but it must be clear and interesting for client. Such algorithm allows holding the regular customers by giving them special offers: free delivery, extended warranty, products from limited collections, up to free make-up and style consultation. Multi-tier loyalty programmes are popular with airlines and bank institutions.

Multi-tier loyalty programme advantages:

  • reward for any interaction with company
  • loyal customers stay due to constant status growth, that being widespread psychological tool
  • gamification — game mechanics implementation

Multi-tier loyalty programme disadvantages:

  • multi-tier loyalty programmes do not work for low cost product
  • each bonus (you must offer a lot of it) should be reasonable from economy point of view
  • technical support powers are needed to launch and monitor multi-tier loyalty programme
  • personal approach to all groups of your target audience clients

Discount loyalty programmes

Discount loyalty programmes provide the discount on purchase from certain sum or product amount. You take 10 pieces of yougurt from promo list and you have loyalty card of this shop? Enjoy 20% discount. Discount cards can be accumulative, that is used often by perfume and make-up stores. But you would have to buy plenty of goods to accumulate the bonuses and update your status. That is why discount loyalty proramme is based on discount "here and now", and bonus accumulation is not that important. Another discount loyalty programme feature is customer behavior management and shop personnel stress decrease. For example, shop offers the discount with card on goods for children since 12 to 15 hours — there will be fewer buyers with children in the evening. People visiting store after work can shop quickly without standing in line. The same with discount for elderly people or discounts on alcohol. For example, price on wine decreased on Wednesdays and Thursdays will release the shop from long queue on Friday and Saturday. Discount card allows buying goods with discount without dependence on purchase frequency. The discount depends on events of shopping day: day of fixed discounts, celebration, holiday, payment with credit card, last hour before close etc.

Discount loyalty programmes advantages:

  • easy realization and programme algorithm management
  • possibility to have some flow of loyal, regular customers who live or work near your store (in case you have no on-line one)

Discount loyalty programmes disadvantages:

  • high competition, it is difficult to surprise customers with discount card now
  • it does not provide that effectively the high customer loyalty increase as bonus loyalty programme

Intangible values loyalty programmes

Intangible reward loyalty programmes are not less appreciated by clients than paid or partner one. Intangible values stay material anyway, but they are not gifts in fancy boxes. Intangible loyalty programme algorithm includes accumulation of bonuses, which the programme member can exchange on services from partners. For example, auto body shop can offer free car wash. Clothe stores give as a gift the laundry services, beauty shops — holiday tours. The conditions of intangible loyalty programme must be simple: 100 points were accumulated by movie tickets purchase — free massage is available. And vice versa: 100 bonuses were earned in massage parlor — 3 movie tickets on any convenient time and day. Brands-members should form the list of services that are to be involved in for free. It is important to make companies of various spheres of business meet. Massage parlor clients are interested not only in fashion trends. They support family, health, they love tasty dinner and interesting book.

Intangible values loyalty programmes advantages:

  • client base increase
  • unique offer for clients who are used to discount and bonus loyalty cards
  • client can easily understand how the programme works

Intangible values loyalty programmes disadvantages:

  • organization of company pool can take long time
  • difficult legal issues
  • control of partners work

Totality of loyalty programmes created by marketers have one thing in common: search for technical solution. It does not matter if the loyalty programme is the discount one of multi-tier one. Not only client data processing and card registration are difficult. It is important to make the loyalty programme convenient for client:

  • access to one's discounts without plastic cards, that can be just lost of left at home
  • ability to check the bonus balance in personal account for few seconds
  • being informed about personal promos and offers from shop
  • cashback usage
  • discount card passage to other personal allows points accumulation

VDcards mobile application is the electronic discount cards in your client's smartphone; convenient and simple interface for buyers and plenty of useful options for business:

  • sales funnel analysis
  • direct communication channel with customers via push-messages
  • setting of discounts, promotions, and VIP-offers for loyalty programme members
  • personal manager
  • flexible rates for each and every budget
  • mobile application branding in frame of your company corporate style

Call us to order the individual commercial offer or try using VDcards system right now — first two weeks for free!

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