{"id":7360,"date":"2024-02-14T08:33:07","date_gmt":"2024-02-14T07:33:07","guid":{"rendered":"https:\/\/www.crmcarecloud.com\/?p=7360"},"modified":"2024-07-11T09:36:50","modified_gmt":"2024-07-11T07:36:50","slug":"navigate-through-customer-programs-with-carecloud","status":"publish","type":"post","link":"https:\/\/www.crmcarecloud.com\/it\/blog\/trucchi\/navigate-through-customer-programs-with-carecloud\/","title":{"rendered":"Navigate through Customer Programs with CareCloud"},"content":{"rendered":"

Customer or “loyalty” programs undergo revival as an ideal way to collect customer data and build brand identity. Choosing the right type of customer program is crucial to reap the benefits it provides. This article will explore three main types while offering shining examples of each. Loyalty awaits.<\/p>\n\n\n\n

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CUSTOMER PROGRAMS GET ANOTHER CHANCE<\/p>\n\n\n\n

The major shift toward omnichannel strategies and personalization opened new possibilities and responsibilities. To cater to each customer, you need their data. Collecting them for marketing purposes grows increasingly difficult as new regulations emerge.  <\/p>\n\n\n\n

At the same time, you may have noticed a surge in loyalty or customer programs. While overlooked back then, it is now the best way to collect customer data to power automation and personalization.<\/p>\n\n\n\n

Besides increasing retention, they help solidify your brand identity. According to Zippia.com, the average customer spends 20% more as a loyalty program member.\u00a0<\/p>\n\n\n\n

Let’s look at some of the essential types of customer programs.<\/p>\n\n\n\n

POINT-BASED PROGRAM<\/p>\n\n\n\n

This type involves gaining points for a specific action (a purchase, product promotion, or writing a review). While straightforward, it still increases engagement, collects customer data, and builds loyalty. <\/p>\n\n\n\n

Customers can exchange said points for a discount, with each point representing a monetary value. Additionally, you can exchange points for services or unique products. Clarity, simplicity, and transparency should also be among your topmost concerns when implementing this customer program. <\/p>\n\n\n\n

The North Face works on a basic point-based program, but the range of its rewards stands out among the rest. With up to a 12.5% return rate, its VIPeak offers high rewards in a neatly structured, simple, and cleverly named customer program. <\/p>\n\n\n\n

TIER-BASED PROGRAM<\/p>\n\n\n\n

This customer program centers on levels of loyalty. Whether by acquiring points or buying, the customers gradually reach higher and higher membership tiers with increasingly exclusive rewards. The main advantage is superb customer engagement, as each buyer attains status with his purchases. The feeling of being valued does wonders for retention.<\/p>\n\n\n\n

Nowadays, programs add gamification elements to engage customers further and hook them. Completion bars, challenges, or achievements motivate customers to buy more and engage with your brand.<\/p>\n\n\n\n

One exciting example is Marriott Hotels, which offers five tiers awarded based on customers’ hotel stays over a certain period. Customers gain extra services the higher their tier is, ranging from better Wi-Fi to later check-outs to lounge access. <\/p>\n\n\n\n

According to Kalibri Labs, in 2019, pre-COVID, this hotel chain increased the number of repeat customers staying overnight by 62% after implementing their program.<\/p>\n\n\n\n

SUBSCRIPTION-BASED PROGRAM<\/p>\n\n\n\n

This type of customer program goes in the opposite direction: customers pay for monthly or annual subscriptions. In exchange, they get substantially more rewards and services: discounts, free deliveries, etc. Logically, this program aims specifically at customers with the most potential and value.<\/p>\n\n\n\n

Subscribers become more active and engaged as their purchase frequency increases. Moreover, according to a survey by McKinsey, 60% of customers are likely to spend more after paying the subscription. <\/p>\n\n\n\n

Not surprisingly, the king of subscription-based programs is Amazon Prime. Each member gains copious amounts of goods for just a few euros a month:<\/p>\n\n\n\n