Power customer loyalty programs wherever and however your customers shop. Unlock real-time purchase and promotion validation with Microblink.
Customer loyalty programs are designed to reward customers for their repeat purchases and to incentivize them to continue shopping with your company. Loyalty programs typically offer incentives such as discounts, free products, exclusive experiences, or points that can be redeemed for various other rewards.
Premium customer loyalty programs also exist, which are typically defined as fee-based programs. While there are consumers that can get plenty of mileage out of free programs, premium members enjoy the enhanced perks and treatment they receive, whether transactional or experiential in nature. The most popular premium loyalty program, Amazon Prime, has been able to attract over 200 million global members thanks almost entirely to offering free, expedited shipping.
Many brands and retailers use game-like elements such as challenges, badges or leaderboards to engage their customers and keep them coming back for more. Starbucks, for example, uses its star rewards (i.e., points) to incentivize customers with different tiers of freebies they can earn, through a fun, user-friendly interface that doubles as a payment method.
As early adopters of customer loyalty programs within the food & beverage industry, Starbucks is still widely regarded as one of the premier loyalty programs available today. Sephora’s Beauty Insider program is another example of a leading retail customer loyalty program that has tiers (from free “Insider” to earned “Rouge” status, based on how much one spends) and offers exclusive savings (discounts), samples (gifts), and experiences.
The average US consumer belongs to 16 different loyalty
programs, but is actively using less than half of them.
Learn how to build lifetime customer value with innovative loyalty
Fortunately, solutions exist to help businesses track data related to their customers’ shopping behaviors and purchases (whether online or in-store), so that they can better understand customer habits and preferences and create more tailored, personalized loyalty strategies and programs.
First-party data is the foundation of knowing your customers and opens the door to endless, personalized methods of consumer engagement, thus creating and strengthening loyalty.
Businesses can take various approaches to capturing first-party data and delivering best-in-class customer loyalty. One approach, outlined above, is to develop a mobile loyalty app. The beauty of a mobile customer loyalty solution is that it meets today’s customers where they are (on their phones) and also enables companies to collect vital first-party data via account creation and user permission. Perhaps the most vital of such is the first-party data, however, but often overlooked, is handed back to consumers post-purchase in the form of receipts.
This data can be used to establish a baseline for customer loyalty programs (for example, levels of loyalty, tiers of engagement and subsequent approaches for rewards) or to ensure longtime customers are rewarded for their continued loyalty. (Just imagine signing up for a recently-launched customer loyalty program with your favorite grocery retailer to realize you’ve already earned elite status!)
✓ Gain unprecedented consumer visibility with SKU-level data
✓ Automate legacy approaches to receipt scanning and data collection
✓ Improve purchase data quality with >95% accuracy
What’s more, Microblink’s flagship receipt scanning solution, BlinkReceipt, captures images of physical receipts and extracts purchase data down to the SKU to deliver real-time promotion validation for CPGs and third-party loyalty rewards companies.
Ultimately, whether it’s focused on in-store, online or ideally a combination of both, the goal of any leading customer loyalty program is to deliver memorable, differentiated customer experiences that build lifetime customer value and translate into brand value and market share for decades to come.