How Companies Use VIP Programmes To Reward Customer Loyalty
A robust rewards program allows your company to strengthen relationships with your top customers through increasing rewards, statuses, and perks.
Many businesses now use VIP programmes and loyalty schemes to make their customers feel valued.
Loyal customers have been shown to spend 67% more on services and products than shoppers new to the brand.
64% of companies say that their loyalty programmes are the best way to interact with customers.
This article will look at some effective examples of loyalty schemes in action, and how they reward customer loyalty.
The Starbuck Rewards scheme works on the basis of offering stars – essentially points – to customers for every purchase they make. This star award system can be opted into via an app or online.
Starbucks were one of the first big companies to develop this kind of app-based loyalty scheme. They were certainly onto a big thing.
Loyal customers generate 40% of total revenue for the business. The loyalty program added 7% in sales in 2019.
Within the app, customers are rewarded for their stars with prizes and games – such as double star days when purchases are worth twice as many stars. They also receive free drinks on their birthdays.
These kinds of rewards show why loyalty schemes are so popular with shoppers. But they also highlight a goldmine for big companies such as Starbucks in terms of data.
By seeing exactly how customers are spending the company can make relevant inferences and change their marketing accordingly. This creates a powerful key to the behaviour of loyal customers, and a better chance to keep them loyal.
A big reason for the success of Amazon Prime is the rewards it offers its users. The primary bonus of the membership program is free two-day shipping on all sorts of products.
With no minimum spend, members pay an annual subscription and effectively write off the cost of shipping. This has been a big reason why many regular users of Amazon have chosen to sign up with the scheme.
Amazon Prime has also proven to be a hit for the reason that it streams exclusive content to its members. Popular TV shows and movies (particularly those that were produced or financed by the company) in certain cases can only be viewed with membership to the scheme.
Amazon Prime Gaming is another recently added incentive to the membership scheme. Prime Gaming offers members free games and a free subscription to the popular gaming community site Twitch (which Amazon bought in 2014).
Providing another way for Amazon to hold onto its loyal customer base, Prime Gaming offers exclusive games that can only be accessed via the program. As with the Prime Movies and TV streams, this is an important way for the company to hold onto and build its customer base.
Online bingo game playing has grown hugely in recent years.
The move from physical land-based casino spots to online play can be partly attributed to the convenience of playing wherever and whenever.
There is also a strong element of security associated with gaming online.
If you visit Wink Bingo website, you will see the VIP programme they have in place to reward their loyal players. Wink Bingo recently successfully added a loyalty scheme called Wink Rewards which rewards return players with added incentives such as wink slots free spins. There are also lots of opportunities to spend credits in the online shop for bonus features in the bingo game.
Wink Rewards works as many loyalty schemes do, but there is also an extra emphasis on converting points into shopping vouchers.
The company’s dynamic approach to new players as well as existing ones is showcased in the site’s introductory offer. By making a first wager of £10 at Wink Bingo, a 300% bonus will be received on a deposit and 1000 Wink Reward points.
The points can be converted instantly into a £10 voucher at a host of retailers such as Amazon, Argos and Pizza Express.
There are also points awarded for every £1 spent, meaning regular players can enjoy a steady flow of points going into their account. Various promotions occurring at different times such as a monthly 1 million rewards game also make it profitable to regularly check back and play.
Wink Bingo also has a feature called My Wink where players can find the latest deals and offers and challenges. Tailored to the specific player in question, the games provide another way of earning loyalty points.
Virgin Atlantic Flying Club
Virgin Atlantic Flying Club is a VIP programme that offers regular flyers with Virgin Atlantic the chance to earn air miles and points the more they fly with the airline.
These miles and points can then be added to future purchases, which mean the more a customer flies with the operator, the more benefits they will receive.
The Virgin Atlantic Flying Club is organised in three tiers for its members. Each tier offers its members different benefits and incentives.
A customer begins their scheme in the red tier where they can benefit from earning 2 points for every £1 spent on booking flights and hotel, and hotels plus car hire. There are also discounts on Virgin Holidays and deals with partner brands.
A move up to the silver tier offers all the incentives of red plus premium extras, 30% more points earn on every flight. The gold tier for the most loyal flyers has everything the previous two tiers offer plus complimentary offers, extra seating options, priority boarding and a host of other bonuses.
The most dynamic incentive-based loyalty schemes have proven to be successful throughout the world. Rewards for both the customer and the company prove to be a mutually beneficial enterprise.