When you’re a company of a certain size, customers perceive your brand to blow out the competition online. The battle to attract and retain customers is more heated than ever, but building a custom enterprise loyalty program can feel like a daunting task.
Numerous studies conclude that customers are more likely to stick with brands that offer a customer loyalty program, with 66% of them saying the potential for earning rewards has an effect on their spending behavior. The value behind building your enterprise loyalty program is clear, but the path to implementation and best practices can be less so.
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Building an Enterprise Loyalty Program
Though the process behind launching an enterprise loyalty program runs highly parallel to that of launching a regular loyalty program – brands take it to the next level by implementing standard loyalty practices on a grander scale than the norm. Where other brands may opt for a standard points-for-purchase model, enterprise loyalty programs are full-fledged marketing initiatives with branded experiential rewards, loyalty apps, SMS implementation, and much more.
But every loyalty program, enterprise or otherwise, isloyalty program working not one-size-fits-all. It’s important to consider your customers and hone in on what features they will actually use and appreciate – ultimately, creating a program that’s compelling for your customers to engage with and challenging for your competitors to replicate.
“What’s going to change in 2021-2022 is now really enhancing loyalty programs to become customized and verticalized,” Al Lalani, Chief Strategist of Annex Cloud. “So, loyalty programs built for CPG manufacturers versus loyalty programs built for electronics manufacturers are all uniquely different in their customer experience. Customizing for those verticals is becoming increasingly important and customizing it specifically to the product is pivotal to success in the industry.”
It’s all about customization and finding a way to stay true to your brand. Here are 5 brands we feel are crushing the enterprise loyalty market today.
Nordstrom: Perks Over Points
Consumers are much more likely to repeat their purchasing behavior with the opportunity of unique incentives and experiences. With that said, the consumers who make up Nordstrom’s loyal shopping community can rejoice over Nordstrom’s revamped rewards program, called the Nordy Club.
The Nordy Club takes a slightly different, but nonetheless effective, approach in its focus on perks more than points. Delivering clear value to their customers with perks like early access to sales and members-only discounts is pivotal in this industry.
Club members can also now see the ins and outs of the program outlined on one concise explanatory webpage. Nordstrom really hooks in their customers with their experiential reward offerings though, including free alterations, complimentary curbside pickup, and access to beauty workshops. These higher-brow benefits also align with Nordstrom’s brand as a luxury department store, supporting their value image better than falling back on tactics like discounts.
Not all great loyalty programs have to be complex. In fact, the simpler your program is for the customer to understand, the better. Chipotle is a great example of this, relaunching their rewards program in 2018 with a simple and direct focus: “Turning Eating Into Rewards.” You earn points for every dollar spent at Chipotle.
As an extra bonus, customers can earn 50% more points for ordering online or in the Chipotle app, encouraging their community to further connect in additional ways. Once you earn enough points? Yep, free burrito. And with those extra loyalty savings, go ahead and throw some extra guacamole on there too.
Uber: Seamless Incorporation
Fans of Uber exist far and wide, and once someone adopts the use of Uber they’re usually loyal to the platform. Uber has continuously expanded its value offerings across its expanded geographical territories, many cities offering their differentiated products including UberX, Uber Pool, Uber Jump Scooters or Uber Eats.
Though they offer a variety of product offerings, Uber’s program makes it clear that they put the needs and wants of their riders first. Uber allows their customers to earn rewards seamlessly across the board – receiving rewards for every interaction and purchase, whether that’s a ride or some late-night Thai food delivery.
These rewards have a VIP tiered component as well – riders move up through the Blue, Gold, Platinum, and Diamond tiers, they get access to amazing perks like complimentary UberBlack upgrades, accelerated points earning, and more.
REI: Long-Term Investment
Outdoor-enthusiast corporation REI sets a golden example with customer engagement through easy, long-term investment, and ultimately loyalty. Shifting focus away from driving customer spending amounts, they create value for their community while building loyalty through their Co-Op program. For just $20, customers can become a lifetime member of the REI Co-op and it’s worth it.
This access grants them access to special discounts on not just clothing and gear as well as experiences like outdoor activity classes, excursions, events and shop services. And as a quite literal bonus, members receive an annual dividend based on how much they spent during the previous year, making them feel like real shareholders in both the business and REI community.
ULTA: Points Add Up
ULTA’s Ultimate Rewards program makes it clear to customers what points they earn from purchases, and just how far those points can go. Members earn one point for every dollar spent on products and services, which they can redeem and put towards more than 20,000 products. More points = more dollars off future purchases.
Not only do points add up and translate into dollar savings, but they also qualify members to higher membership tiers. After spending $450 in one calendar year, members can elevate to platinum status, and diamond status after $1,200. At each of these levels, members are able to unlock even more perks and get more promo point periods, where they can earn up to 5x points on certain products.
To incentivize high-spenders even further, ULTA also offers double points to their customers per dollar spent when using their Ultamate Rewards credit card. And of course, like any good enterprise loyalty program, ULTA offers their customers birthday gifts!
Launching Your Enterprise Loyalty Program
How is your enterprise loyalty program working for your brand? Is it flushed with experiential rewards that incorporate your brand story? Are you able to reward customers for using branded hashtags or for following you on Instagram? If you consider yourself an industry leader, it’s time to ditch the simple points-for-purchase model and find a vendor that will build you a best-in-class loyalty program that speaks to your brand’s true identity.
Annex Cloud has helped so many major brands across varying industries identify a program that is right for them. Let us help you identify your enterprise loyalty program by talking to one of our experts today!