Drive Retention with Attractive Level Loyalty Rewards

by Bistriti Poddar |

Loyalty Programs are playing an active role in the marketing domain for a long period now. With years of advancements and research done specifically to improve loyalty among customers, brands have come up with upgraded and futuristic loyalty programs that align excellently with brand values. 

What are Level Loyalty Rewards and why are they attractive to customers?

A Level Loyalty Program specifically rewards customers based on the rank or level they are assigned, depending upon the amount spent or contributions made towards the brand. Unlike conventional loyalty programs that follow the same outline of execution, Level Loyalty Rewards are granted to customers who satisfy specific criteria set within the program. The entire program consists of levels defined by different kinds of rewards, services or benefits that increase in value with every ascending level. The attribute of creating a competitive environment and a rank of superiority makes level loyalty programs all the more enticing. Brands have successfully incorporated the use of behavioral science in order to design a program that automatically induces a sense of eagerness and passion among customers to make their way to the top.

Benefits of Level Loyalty Rewards

There are several brands that work splendidly with tiered loyalty programs. They have set a remarkable example of an exceptionally well functioned model that brings in noticeable changes to the business. Below mentioned are few prominent benefits that come along with a well designed and successfully implemented level loyalty program-

  1. Induced brand loyalty by offering levels of superiority– A level loyalty reward program helps customers connect with the brand on a deeper level. By offering them a position of importance, distinguished by exclusive rewards and services, the brand makes its customers connect and comply emotionally. The customers in turn understand their worth to the brand isn’t simply monetary restricted, hence enhancing loyalty. Several tiered base loyalty programs, create a free first level to ensure large scale participation of customers. Though gradually only the most loyal customers get to the top with maximum advantages, level loyalty rewards creates exclusivity and promotes healthy competition.
  2. Boost Competitiveness that directly helps the brand– We love to be a rank holder especially when that comes with personal privileges exclusively given by the brand for getting to the rank. Several gamification techniques, progress bars and milestones keep the customers engaged and in constant reminder of the brand’s value in the customer’s life. Level Loyalty Rewards are uniquely made to bring out the competitive attributes in customers, which in turn will help and uplift the brand. By inspiring customers to climb up the loyalty ladder, brands that successfully draft, design and implement a level loyalty reward system make sure that their customers get to enjoy the series of incremental achievements.
  3. Segmentation creates a better understanding– Along with creating different tiers for exceeding value of incentives, level loyalty programs help segment customers for a brand’s better supervision of the program’s growth and value of individual customers presiding in the system. By analyzing the activity and goals of participating members, the brand can have a better understanding of them. The end goal is to identify your most valuable customers and to give them a place in the top tiers to bring in maximum profit for the business and effectively work on customer retention.
  4. Customers can retain benefits for a longer period of time– Unlike the other loyalty reward programs that do not follow the tiered system, mostly rely on points or tips that stand with no value once the coins are utilized and the service is redeemed. This way the customers hold no specific record of previously acquired rank of status or importance and everything expires with the claiming of the pending reward. Level Loyalty Programs on the other hand is a system that allows even long time customers to retain their benefits to keep enjoying their ranks for the longest period of time.
  5. Opens numerous new ways to stay connected– Through Level Loyalty Rewards Program brands can connect with customers with personalized messages and give them constant reminders on upcoming enticing offers, benefits reminder, usage summary etc. As customers of that brand are already segregated based on their value and importance to the business, it becomes more simple to reach out to the right set of customers with the right strategized message.

Examples of brands that offer level loyalty rewards

Few brands have successfully taken up to level rewards loyalty and have been thriving ever since. These brands not only aim at excellent customer retention but also at the same time assure the feeling of authority and importance among customers by making them their top priority.

  1. Sephora- This multinational retailer of personal and beauty care products finds its name topping the list of several high functioning loyalty programs. The most brilliant attribute of Sephora’s very successful level loyalty reward program is that the brand makes it extremely straightforward and undemanding for customers to enroll themselves for the program. Once the exclusive program is joined, members get specialized treatments with every purchase they make, big or small. Often in-store points are granted to customers with every dollar they spend, which allows them to redeem several exclusive products before it even hits the market. Other than that customers also get free in-store makeups, early access to gifts and bonuses on entering a new tier.
  2. Starbucks- The Starbucks loyalty program is a huge success once again for understanding their customers and giving them exactly what they need. The loyalty program app is easy to install in mobile devices, making the entire scheme handy and directly accessible. Other than putting convenience as the top priority, the brand has successfully made it to the top by granting customers cool perks like free birthday drinks, easy refills and getting permission to cut the line! The brand also takes product personalization seriously and caters to customers with frequent notifications and emails to remind them of several upcoming offers or a reward that they are eligible for. Again by making the first tier free for everyone, the brand has ensured the active participation of a wider customer base.
  3. Uber- The competition is comparatively tighter for Uber due to the rising number of ride sharing businesses in the arena. The customers have solemnly believed in Uber Supremacy that offers a level loyalty program highly tempting and mutually beneficial. The three tiers of the brand’s level loyalty program offers exclusive benefits that are extremely hard to pass. The first level comes with no monetary expenditure and the second tier, permits customers several benefits, the most enticing one being free cancellation of rides. The third tier gives access to its customers to the brand’s extended very plausible venture, Uber Eats. It not only gives three UberEats delivery absolutely free every year but also grants priority pickups at airports. Customers can also get their points instantly doubled up when riding with UberBlack, motivating customers to enjoy the premium services.
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