Loyalty Program Training Agenda
Loyalty Program Training Agenda
Loyalty Program Training Agenda
You can find Loyalty programs everywhere these days. From major airlines like Jet Airways,
Etihad to local dry cleaners, it seems like wherever we go a company is offering us the
option of joining their rewards or loyalty club program. Various software are in place to
support such loyalty program across various industries.
Target Audience: New Joiners, Fresh Graduates and experienced professional from software
industry who want to pursue career in Loyalty Domain
To my surprise, a good definition of loyalty program (LP) is hard to find. Considering the
amount of focus and resources directed towards loyalty programs in modern business, one
would think better definitions would be available. Below are the three best definitions I
found, and ironically, none of them were from a “customer service” site:
“Loyalty programs are structured marketing efforts that reward, and therefore
encourage, loyal buying behavior — behavior which is potentially beneficial to the
firm.” “A rewards program offered by a company to customers who frequently make
purchases.”
“A customer loyalty program is a structured and long-term marketing effort which
provides incentives to repeat customers who demonstrate loyal buying behavior.”
Since the existing definitions are so weak and since I cannot very well have a post
entitled “What Is a Loyalty Program” without defining the term, I decided to take a
stab at creating a more comprehensive definition myself.
Many readers might remember S&H Green Stamps as the primary rewards program of the
pre-Internet era. I vividly remember getting those ever-familiar green stamps from the
grocery store as a child and filling up those ridiculous books to get, well… stuff. However,
though a rewards program, the S&H program was not truly an LP, since it stretched across
retailers and was not exclusive to any one store or brand.
Modern loyalty programs are generally tied to specific brands, such as Starbucks Rewards, or
groups of related brands such as Hilton Honors. As can be seen in the chart below, the
prevalence of loyalty programs also varies greatly by industry.
Points that can be redeemed for products and services from the company
Points that can be redeemed for products and services from third parties
Cash back rewards that are accumulated and paid at regular intervals, often annually
Other rewards for being a member, e.g. member-only sales, first notice of new
products, extra discounts
Tiered benefits at different levels of the program
Despite some major commonalities, the list of reward types and program structures
seems almost limitless in its variety. Accordingly, the efficacy of loyalty programs is
inconsistent and leads to some interesting data.
You need a scalable strategy for incentivizing customers to buy from you again and again…
And that’s where customer loyalty programs come in.
With the right initiative, you can turn one-time buyers into repeat customers, and keep your
brand top of mind.
In this post, I’ll show you how top e-commerce companies are using different types of loyalty
programs to drive more sales, improve customer retention, and build stronger relationships
with customers.