Loyalty Blogs

Top Strategies to Gain a Competitive Edge with Your Loyalty Program

  • Posted on November 10, 2023 by Robert
  • Reading time about 6 minutes
loyalty program

Having a loyalty program for a business is no longer an option, but a mandatory step to build and nurture a dedicated customer base. However, building a successful loyalty program with a unique edge takes experts’ guidance and a well-executed plan to meet evolving customer needs and market demands.

Go beyond points and rewards to make your loyalty program best-in-class in the market by taking the help of a reliable Customer Loyalty Software Solution. Consumers in the US are enrolled in an average of 18 loyalty programs among which they participate in only 50%. Over 90% of consumers in Australia are enrolled in one program at least and the overall loyalty market is projected to grow by 12.6% every year.

In this blog, we will learn the top ways that show how you can uniquely design a loyalty program to gain a competitive advantage and boost program member engagement.

Increasing Need For Building a Program with a Unique Edge

As competition is stiff in the loyalty market, making your loyalty program gain a competitive edge is indispensable. To differentiate the whole program, the feature of the loyalty program design or a member benefit should be unique that your members will find relevant and valuable.

Here’s how you can gain a unique edge in your loyalty program-

– Offer an element of intrigue to help entice customers and make them program members.

– Ensure to keep program members engaged with the program more frequently

– Focus on valuable customers to help become program advocates in a later phase

– Make sure that you foster a sense of exclusivity among program members

– Add an appealing element that members will always look forward to

– Helps the program act as a tool for marketing, public relations, and specific content generation.

Successful Brands With a Unique Edge in Their Loyalty Program Design

In this section, we will check out some of the top brands that have implemented a unique idea as part of their loyalty software design to make it a grand success.

1. AMEX Membership Rewards

American Express loyalty program is famous for many reasons and the unique benefit is just one example. AMEX Membership Rewards enable members to book a table months before at top restaurants in the world and allow only top-tier cardholders to access the table directly through the AMEX concierge.

2. H&M Members

The unique edge of the H&M membership program is that it rewards its members for recycling their clothes by offering 20 reward points along with a 15% off voucher per item and 5 points for bringing their bag while shopping in-store.

3. Qantas Frequent Flyer

One of the most unique offerings by Qantas Frequent Flyer Rewards is that Platinum members get the privilege to enjoy a spa in their first-class lounge along with massage and facial before boarding their flights.

4. Starbucks Rewards

Starbucks Rewards enable their members to enjoy free coffee and tea refills during store visits. Their digital extension of the loyalty program called Starbucks Odyssey allows members to earn points and digital journey stamps (NFTs) for completing journeys.

These digital journey stamps can be collected, brought, and sold later. Points can be used for redemption on multiple choices such as virtual espresso or martini-making classes, exclusive events & trips to Starbucks coffee farms.

5. Mecca Beauty Loop

Mecca Beauty Loop Rewards program enables members to customize their Beauty Loop boxes to each member and earn Beauty Loop bonuses to increase the perceived value of the reward boxes.

6. The North Face- XPLR Pass

The unique thing about the XPLR Pass program is that it allows selected members based on some criteria to become a part of product development through wear testing and field testing before the products are launched in the market for the public.

Tips to Build a Unique Loyalty Program & Make a Difference

As we can see, coming up with unique ideas to add to the X-factor in a loyalty program design is important to make a place in the competitive market. However, you need the help of the loyalty experts that has the expertise to add all the essential program elements.

Adding the unique edge element can be done carefully after thoroughly analyzing certain criteria, as stated below-

· Feasibility

Take time to figure out if the idea of your loyalty program is technically feasible or not. You can check out the current operational or technological limitations as well as business areas that may need to adapt to bring it to life.

· Viability

This aspect should be considered to see if your idea can be implemented efficiently and cost-effectively. What about the long-term goals – will it be sustainable over time and do we have enough resources to execute it successfully?

· Scalability

Ensure that your idea can be easily scaled up or down as per requirements. Whether the idea is adaptable to different markets or can evolve with time and changing needs.

· Desirability

The last important thing to make a loyalty program successful is to figure out whether the idea is desirable and valuable to the loyalty program members. Does the program look appealing to your target audience or it has been market-tested or not?

Apart from all the aspects stated above, make sure that you analyse competitors and their loyalty reward offerings to figure out unique and missing points that you can offer to your customers. Take time to review and come up with a loyalty program design that can attract new customers and retain existing ones.

Need Loyalty Experts?

As we can see, the need for a unique edge in your loyalty program design strategy is a must to differentiate it from existing loyalty programs offered by competitors. Whether you need to build an appealing loyalty program design, achieve desired business outcomes or meet the program’s unique edge, the Novus loyalty platform covers everything.

Having years of expertise working with global brands, Novus is an all-in-one Loyalty Program Management Software that has a bunch of loyalty experts who have successfully designed and built effective loyalty programs aligned with top design strategies for a competitive edge in the market. Connect with our skilled team if you are planning to level up your loyalty program and meet changing business needs and customer demands.

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