Loyalty programs: essence, types, examples. Loyalty bonus program. Which program to choose

Loyalty programs are open and closed. Open loyalty programs do not impose hard restrictions on members; it is easier for potential customers to access them. Motivation to participate in the program is not a prerequisite. The audience for such programs is wider, which will dilute the program. Closed loyalty programs are intended for a limited number of participants, since a client must meet certain criteria to join the program. To participate in the program, there may be payment of an entrance fee, filling out a questionnaire, making a certain number of purchases. Participation in a closed program presupposes the motivation of consumers.

The decision to establish a closed or open loyalty program is determined by which customers the company is targeting, new or attracted. The advantages of open source programs are: a large number of participants, a more complete database (the possibility of segmentation), ease of connection (a lower level of consumer expectations), coverage of program costs through the number of participants.

The advantage of closed programs is: concentration on the target group, limiting the participation of unwanted customers, interaction more efficiently (higher than consumers' expectations), covering the costs of the program through membership fees.

There are also other types of customer loyalty programs:

• 1. Discount program.
• 2. Drawing of prizes.
• 3. Bonus program.
• 4. Coalition program.
• 1. Discount program. Provides the customer with a discount at the time of purchase. Discounts are provided on a discount card, which can be fixed or cumulative. V savings system the amount of the discount depends on the client's previous spending - the more the client has spent over the entire period of using the company's services, the more substantial discount will be received on all subsequent purchases.

The advantage of the discount program is that it is based on the principle of providing the client with benefits on an ongoing basis, encouraging the buyer to use the services of only one specific company.

The disadvantage of the discount program is that if the buyer receives a smaller discount, then the offer becomes simply not interesting for him. If you focus only on customer preferences, then the discount program can become unprofitable.

• 2. Material benefits are welcome in the prize draw, but most of all the main benefit is emotional. The client receives a prize received as a result of a "lucky chance". The effectiveness of the prize draw is not too high participation is passive. The mechanism for determining the winner is not transparent and therefore enhances the passivity of the “participants”.
• 3. The bonus program implies the accumulation of special points for clients, which he can later exchange for valuable gifts from the company's catalog. The main plus of the bonus program is the use of a material incentive to accumulate points, which can ensure the economic feasibility of the action. This incentive is economically feasible than providing a discount program, since the ratio of the bonus received by the consumer and the cost of purchases made by him may be more profitable for the company. Bonus programs are more emotional, a client who accepts an offer to participate in the program will be interested in accumulating bonuses, and the value of the cost of the offered goods will decrease for him. This program encourages the consumer to use the services of only the provider who provides him with benefits.

The main disadvantage in the bonus program is the complexity of compiling a catalog of gifts for clients. When forming, it is important to find a balance between customer interest and company benefit. The consumer will participate in the program only if he will be able to exchange the accumulated points for something of value to himself. The best gift within the framework of one company, there will be a product of this company, for which the client pays money in any case. The company will have to withdraw its part of popular goods from circulation in order to distribute them for free as gifts in exchange for bonuses. If you form a gift catalog on a leftover principle, then offer the consumer not very popular goods as gifts, then we can assume that the bonus program will lose its attractiveness for customers and stop working.

4. The coalition program unites several companies that do not compete with each other, but are aimed at one target audience.

This program can be built on a discount program or a bonus program. The coalition program can manage two types of operators: anchor and independent operators. Anchor operators are companies that organize loyalty programs; the program is created to develop the business of an anchor operator by attracting partners. Independent operators are companies specializing in the provision of services in the field of development and implementation, support of loyalty programs.

The advantage of the coalition program is the unification of the client bases of various programs. The program brings together different areas of activity and allows you to get a synergistic effect from the cross-use of the client base. Combining the databases makes it possible to plan various bonus promotions, as the use of a promotional gift in exchange for bonuses, you can use the products of your partners, thus promoting their business among their customers and increasing their loyalty without compromising your own budget.

Participation in such a program gives the company the opportunity to promote its goods through additional channels that have high dynamics and which can be considered highly potential for cross-marketing activities.

An important point for the coalition program is to adhere to the principle of not intersecting the commercial interests of the program participants.

The disadvantage of this program is to achieve efficiency, it is necessary to implement a large amount of support activities and form a separate brand of the program itself. The brand should be associated by the consumer not only with the companies, but also with the program itself.

In particular cases, the coalition program is the combination of a company discount card with a bank credit card. Means execution by credit card the role of bonus or discount. Banks encourage cardholders to use them to pay for their purchases, but for the rest of the program, the meaning remains the same. Such programs operate on a bonus scheme or on the principle of returning a part of the funds spent to the account of the holder of the kraft.

Unfortunately, many companies with loyalty programs and large databases do not use them effectively. The reasons for this are ignorance of how to rationally use the collected information, how to develop individual proposals for each customer segment, technical difficulties in the implementation of analytical processes, data inaccuracy, etc.

9) Closing the program. A question that few people pay attention to when starting a program due to the optimistic mood at the beginning of the path. However, do not forget that any project has its own life cycle. There may come a time when the program is no longer effective. It is necessary to determine in advance the critical indicators, upon reaching which it is necessary to curtail the program: Will it be transformed into something new? If not, how will the staff serving it be disbanded? How will the database be used? These and other questions are worth considering in advance.

In addition, when developing and implementing a customer loyalty program, it is necessary to comply with the 12 Laws of Customer Loyalty:

• 1) Build staff loyalty: please your employees, and they, in turn, will please customers.
• 2) Apply the 20/80 Rule: Approximately 80% of the company's revenue comes from 20% of customers.
• 3) Create stages of loyalty and ensure that customers move from one to another: the client becomes loyal to the company and its products and services gradually, step by step.
• 4) First serve, and then sell: consumers believe that they are coming to you because the services are pleasant, productive and addressed to them personally; if they are not, they leave.
• 5) Scrutinize customer complaints: worst of all, negative reviews clients about the company.
• 6) Be Responsive: Response speed is closely related to consumers' perceptions of a good service. More and more customers are counting on round-the-clock service.
• 7) Know what is valuable to customers: invest in customer loyalty research, which will allow you to understand how the company will satisfy customer needs.
• 8) Bring back lost clients: it is 2 times more likely to bring back an old client than to persuade a new one.
• 9) Use different channels in order to serve the customer well: customers often change channels of communication, but everywhere they expect good service.
• 10) Train customer service specialists.
• 11) Collaborate with partners: controlling the entire supply chain in order to ensure quality service to the end consumer, to be out of the reach of competitors.
• 12) Store information in one centralized database: Data from all points of contact with customers should be stored in one centralized customer database.

These laws make it possible to avoid the most common mistakes, help to better understand the consumer and most fully satisfy his needs related not only to the quality of the product as such, but also to everything that accompanies the process of purchasing a product or service, which means it will help to earn the client's commitment and build effective program customer loyalty.

A customer loyalty program cannot be carried out in a few weeks or months; it is a solution for building a long-term and effective strategy in relations with target groups.

At the present stage of development, especially in the service market, loyalty programs have already acquired transformations and are in a transitional phase, approaching the stage of maturity. Below we will consider and give a definition and give a classification of various loyalty programs. Richard Barlow, founder and CEO of a loyalty advertising and marketing services firm, defined the relationship that companies should strive for in their customer service: “Voluntary communication and other beneficial interactions between buyer and seller with the expectation of mutual benefit ". The greatest value to a firm for loyalty cards is that it provides data that helps to understand customer behavior. The information that customers provide when registering or using the card increases knowledge about them, allowing them to accept more good decisions in many areas of the company.

Loyalty program is the formation of long-term mutually beneficial relationships between the company and the client. Loyalty programs provide a wide scope for creativity and activity of company employees, and not only marketers and advertisers, but all without exception.

The essence of the work on creating a loyalty program can be formulated as follows:

• - to involve the consumer in a dialogue, which will allow you to constantly receive information from him;
• - process this information qualitatively (database);
• - create and communicate an offer that is maximally focused on the needs of a particular consumer;
• - find out the consumer's reaction to the reporting proposal and correct the information in the database.

The key components of loyalty programs are:

• - customer database (customer identification).
• - complex of communications with clients (client retention).
• - a package of privileges (material and non-material incentives for the desired client behavior).
• - analytical core, allows you to predict how the client will behave tomorrow, as well as how his behavior will affect the performance of the business.

In the literature, there are several criteria for the classification of loyalty programs:

I. Depending on the tool used to reward the client;

II. Depending on the type of "entry" into the program;

III. Depending on the type of customer identification in the overhead line;

IV. Depending on the object;

V. Depending on the time and purpose;

Vi. Depending on the methods of providing the service.

Depending on the tools used, all brand loyalty programs are divided into two groups: price and, accordingly, non-price.

Pricing programs, as a rule, include discount and bonus cards aimed at making repeat purchases by the buyer, and, consequently, at increasing sales through a profitable offer.

The undoubted advantage of pricing methods is that they can be easily and quickly organized in a simple and accessible form... TO weaknesses loyalty programs built exclusively on price instruments, the short-term nature of this effect should be attributed.

Brand loyalty on the part of buyers can only be kept for the "promotion" period. In addition, discounts, which are often held, are associated by consumers with a deterioration in the quality of branded goods and an exaggerated price.

The goal of non-price brand loyalty programs is to build strong, long-term friendships with consumers by offering them predominantly unique emotional and social benefits from brand communication.

Despite the large number of specific activities aimed at building brand loyalty, the following should be highlighted (Fig. 1.2.):

Rice. 1.2.

Pricing programs:

Discount programs are one of the most common types of brand loyalty programs, which are focused on providing the consumer with the benefit in the form of returning a part of the paid value of the product immediately at the time of purchase.

Discount programs are available with fixed discounts and differentiated / cumulative discounts.

A loyalty discount program with fixed discounts is to provide a material benefit to the client in the form of some saved percentage of the cost of a product or service immediately at the time of purchase, and the amount of the discount does not change depending on the size or frequency of the purchase of goods or services. To receive a fixed discount, a customer must have a special discount card.

Such programs form customer loyalty to a particular institution in the event that the discount on the card for its owner is significant. In addition, these discounts can be transferred (accumulated) as the number (amount per receipt) of purchases increases and subsequently grow to a certain maximum. Such a process encourages the client to make repeat purchases and pick up the goods for certain maximum amounts.

Despite the popularity of discount programs, it should be noted that, due to price discounts, it is difficult to form a group of truly brand-loving consumers: there will always be a competitor who will offer a lower price and lure the customer over to his side.

Accumulative discount programs. The main feature of this type of discount programs is that in them, unlike programs with fixed discounts, the benefit is not some fixed and unchanging value that does not depend on the customer's purchasing activity: it directly depends on how often and on how much the consumer made previous purchases.

In this particular situation, an element of the benefit of psychological participation in the game appears: you buy more often and for a large amount - you get a lot of benefit.

However, the benefit itself remains qualitatively the same: a discount, a reduction in the purchase price of a product, savings. In other words, accumulative discount programs are addressed to consumers and pursue mainly rational purchase motives.

Brand loyalty bonus programs.

The idea of ​​bonus incentive programs is that when making a purchase, the consumer collects some conditional points (points, bonuses, points, miles). When a certain number of points is accumulated, the consumer gets the right to exchange them for a certain product or service at his own discretion. The more bonuses the consumer collects, the more expensive the gift he can purchase. Thus, the consumer is not only material benefit - additional item or a service, but also emotional - in the form of participation in the game and receiving the desired prize. In other words, all three types of benefits are present in bonus incentive programs, the motives of the participants in such programs are designated as “syncretic benefits”.

This type of loyalty reward program significantly increases brand loyalty on the part of existing customers, since the stimulation of the accumulation of bonuses occurs constantly, motivating the buyer to increase the added points, and therefore leads to a stable purchase of the products and services of this company. Another advantage of using bonuses is information about the customer base, which is gradually collected by the company during the implementation of the loyalty reward program. In addition to the undeniable benefits in building brand loyalty, bonus programs have their drawbacks.

The main one is that in some cases they are able to form customer loyalty not to the company itself and its brands, but to a specific loyalty program. As a result, a consumer loyal to the program, and not to a specific brand, can easily change it to a more profitable one at the moment, that is, switch to a competitor's brand.

Non-price programs.

Non-price loyalty programs are the most promising type of brand loyalty programs. While pricing loyalty programs seek to change consumer behavioral loyalty, non-pricing programs aim to build strong affective brand loyalty as they appeal to the feelings and emotions of shoppers. When consumers have an emotional attachment to a company, they will not consider offers from other companies (maybe more profitable in terms of price) and switch to competing brands.

Such consumers for a long time will be loyal to the company, providing it with long-term profit. There are quite a few non-price customer retention methods out there. But among all the diversity, it is necessary to highlight the stimulation of consumers in an active form (competitive loyalty programs) and the creation of clubs for regular consumers. Measures to stimulate consumers in an active form (competitive loyalty programs).

Active consumer incentives combine all types of incentives that require active and selective consumer participation. The playful nature of the event is a powerful tool for influencing each individual, and the opportunity to receive a free prize is a powerful incentive to participate.

During their implementation, manufacturers of goods and retail chains pursue the main goal: to create an emotional predisposition of the consumer to the brand in order to increase the volume of sales.

Loyal consumer clubs. One of the most promising non-price programs is the loyal customers club. D. Aaker in his book "Building strong brands" highlights this type of loyalty programs, as one that is able to bring brand loyalty to a "potentially higher level."

According to one of the leading foreign experts in the development of Butcher loyalty programs, the loyalty club is - “a communication-based association of people or organizations created and managed by a company in order to regularly contact members and offer them a valuable package of privileges with the aim of increasing their activity and loyalty to the company on the basis of emotional relationships. "

Constant contact of the company with consumers within the club makes it possible to better guarantee consumer satisfaction, contributes to strengthening customer loyalty.

The concept of the club provides for the provision of exclusive privileges to its members (the establishment of preferential prices for goods, the provision of special services). But the main advantage is that club members get access to closer communication and even collaboration with the company and with other club members.

The need to create clubs for regular consumers arises in markets where there is strong competition and many similar products. At present, in Russia a similar situation is observed in the retail fuel market, in the mobile phone sector, and in the publishing business.

The creation of loyalty programs in these areas of business is one of the key factors in brand differentiation and the formation of a sustainable favorable attitude towards it.

Comprehensive loyalty programs are based on a loyal customer club with periodic reinforcement of both price and non-price factors. That is, discount, bonus and competitive programs are distributed to customers only within the club.

For a more detailed consideration of the types of loyalty programs, we will use the summary table, which shows Comparative characteristics taking into account their advantages and disadvantages.

Table 1.2.

Comparative characteristics of types of loyalty programs

Loyalty program type	Dignity	Flaws
Price: discount-accumulative, bonus	- simplicity of the rules for calculating discounts; - does not require large time and administrative costs; - a discount in the form of a certificate will most likely force the client to return to the company; - much easier to manage and evaluate results than a loyalty program based on points (bonuses) - allows you to create different offers for different groups of customers	-does not provide instant reward to the client; - both profitable and non-profitable clients are rewarded; - this loyalty program can be quite expensive, depending on the threshold and size of the discount; -may not delete regular customers; - easily copied by competitors
Pricing: Discount with instant discount	- simplicity for the client; - instant reward; - a flexible system of discounts (you can convince at the place of service provision to purchase more goods (services) at the offered discount, - this program is easy to manage and implement.	- the discount suggests that the regular price is too high, - it is difficult to complete the existence of such a program, - can alienate inconsistent customers, - discounts significantly affect the profitability of one outlet
Non-price loyalty programs: competitive, loyalty clubs	- basic principles the programs are simple enough for consumers to understand; - this program is rather difficult to copy, since the number of accumulated points and the reward for them can be quickly changed, which makes it possible to provide a more competitive offer; - great opportunities to draw up a relevant offer for each group of target customers; - accrue additional points for the purchase of the required items of goods by the participants;	-increase in the number of conditions of the program, as well as retail outlets in which it is applied - confuses buyers; - loyalty programs, in which the accumulation of about 1000 points is required to receive a reward, negates all the advantages of the accumulative points system; - depending on the target audience, interest in this loyalty program may wane;
- allows you to avoid discounts on products; - you can use the accumulative points system on brands for which a discount is unacceptable; - this program can also be used to reward employees; - given view currencies can also be used by suppliers in order to support the loyalty program; - the ability to accumulate information about consumers, in order to carry out targeted promotion of products; - the opportunity to profitably use the difference between the number of accumulated points and the number of points that can be exchanged.	- for the mining of points (bonuses) significant costs are required; - it is very difficult to maintain the relationship between an attractive consumer offer and management requirements for setting the exchange rate for points; - an item is required for unforeseen expenses that may arise with excessive accumulation of points; - most often, expenses exceed income.

Depending on the presence / absence of entrance barriers or conditions for participants, loyalty programs are divided into: open or closed.

Rice. 1.3.

The loyalty and discount programs are in most cases open, while the Loyalty Clubs are closed. Almost everyone can participate in the open program. Participation in the open program does not require the fulfillment of any conditions. By using such a loyalty program, it is possible to create a very large database. Not everyone can participate in the closed program. In order to become a member, you need to go through a certain procedure, such as payment of an entrance fee or an annual payment of membership fees, filling out a special questionnaire, etc. Sometimes companies offer clients to fulfill certain conditions.

For example, make purchases for a certain amount, make a certain number of purchases within a limited period. Such restrictions allow attracting only the most important target audience to participate in the program. Both open and closed customer reward programs have advantages and disadvantages.

Table 1.2. the advantages of open and closed programs, which were formulated by S. Butcher, are described.

Table 1.3.

Characteristics of loyalty programs depending on entry barriers for participants

Closed loyalty programs	Open loyalty programs
Membership fees help cover the costs of the program.	The number of participants can be quite large.
The prerequisites for participation in the program help to form a group of participants and focus on the target group.	Broader and more complete database.
Limited access makes participation in the program more attractive to consumers.	Competitors' potential customers and consumers can easily join the program.
A clearly defined structure of program participants makes further communication of the company with consumers more efficient.	A complete customer database, after a certain analysis, helps to segment all the customers of the company, which makes it possible to develop special ways of communication for each group.
	The large number of participants helps to achieve such a number of participants in which the costs of the program become more efficient more quickly.
The prerequisites for joining the program keep the number of participants at a constant level, helping to reduce costs.
The program database includes only those customers whose interest in the goods of the organizing company is very high.
Paying membership fees raises client expectations of the program and thus compels program organizers to continually improve the value proposition to consumers.

Depending on the object, all loyalty programs on the B2C market are divided into: segmented and non-segmented.

Segmented loyalty program - loyalty programs aimed at a clear circle of customers (for example, women, children, highlighted age categories).

Unsegmented loyalty programs, on the contrary, do not have special allocations in the field of activity and therefore they are intended for all customers without exception.

Depending on the time and goals, loyalty programs can be divided into:

• 1.operating;
• 2. strategic (long-term).

Operating LPs are a special type of loyalty programs that primarily pursue short-term goals of the company, such as:

• - bringing a new product to the market;
• - making a profit in a short time;
• - short-term increase in the frequency of visits to retail outlets;
• - improvement of equity indicators, etc.

Such programs often motivate a customer to make a purchase or use a service.

Unlike operational DPs, strategic programs are introduced for long-term customer contact. The goals of such programs are:

• - brand promotion;
• - improving the image of the brand and the company as a whole - solving the company's problems;
• - maintaining public relations;
• - building a "dialogue" with the client through the system of accumulating privileges and various mailings, both by phone and by electronic network.
• - maintaining a client base, etc.

Depending on the method of providing the service, loyalty programs are: individual and coalition.

Rice. 1.4.

Individual programs are created by the company in itself and only for its clients. The consumer makes purchases in a store or a chain of stores of a company and receives goods from the same company as a reward.

The program itself consists of several parts, including recruiting new members, tracking customer purchases, keeping in touch with them, and rewarding members. But the implementation of such a program requires large financial investments: equipment, personnel and other costs.

Coalition loyalty programs are the most promising type of registration and bonus systems. In them, discounts and bonuses can be received in various participants of such a system. In this case, together with the participating companies and clients, a third party appears in the system - the organizer of the coalition loyalty program, which can be one of the participants in the coalition loyalty program or be an independent organization.

The first type of operators first creates their own incentive program in order to retain the customers they already have, and then other companies join them. The independent operator of the coalition loyalty program creates a customer reward program rather than tying it to a specific business and a specific customer base.

When introducing its own CRM (customer relationship management) systems, an enterprise can work only with its customers. The Coalition Consumer Promotion Program, among other things, enables an enterprise to take into account consumer preferences in various aspects of consumption, establishing feedback with the customer and tracking his purchases.

An additional effect - attracting new clients, exchanging the client base with other partner enterprises is achieved due to the coalition nature of the program. This approach creates unprecedented opportunities for customers to realize their bonuses, choose from a catalog of various prizes, depending on their interests, and program participants significantly expand the number of loyal customers, create information bases for their customers, and get the opportunity to work with them in a targeted manner. The organizers profit from operating activities. Thus, this approach is objectively beneficial to all its participants.

The scheme of interaction between the program participants, where one of the coalition partners acts as the operator, is as follows: Usually, loyalty programs are developed for a specific trading company, performing the functions of anchor and grouping boutiques, restaurants, car services and other retail and service enterprises around themselves.

Experience shows that a client cannot be loyal to an anchor coalition program, to one bank or one insurance company, one restaurant or one boutique. His needs can only be met by a pool of companies that match his expectations and his lifestyle. The only question is how to properly form this pool and offer the consumer a package of privileges.

The scheme of interaction between program participants, where one of the coalition partners acts as the operator, is as follows:

Rice. 1.5.

A co-branding loyalty program is a program that allows non-competing companies to mutually beneficially interact by issuing joint Multicards (gift and / or loyalty cards), which must be accepted at all points of sale of companies participating in the project. The essential difference between co-branding and other types of loyalty programs is that this technology is based on the interaction of two or more brands.

It is essential for the development of such loyalty programs that the co-branding card matches the requirements of consumers. If the card allows the maximum satisfaction of all customer requests, then it will be used more often.

Successful joint programs of banks and retail chains are capable of producing tangible financial results.

Retailers also record a significant increase in the average amount of a one-time purchase when paying with a co-branded card. Despite the existing risks and difficulties, the direction of such programs is strategic in bank marketing.

Depending on the type of customer identification in the LP, loyalty programs are divided into:

Rice. 1.6.

The main difference between such programs is the use of special electronic cards, thanks to which it is possible to identify the client, his actions, changes in behavior. If loyalty programs, which do not include cards in their toolkit, but can provide an opportunity for "communication" with the client, then personalized programs provide such an opportunity that allows you to send advertising messages, monitor changes in the client base and conclusions regarding further marketing actions.

In conclusion, we present a comprehensive, generalized classification scheme for various types of loyalty programs:

Rice. 1.7.

Thus, customer loyalty can be defined as a positive attitude of a customer to a particular product, brand, store, service, etc., which, although it is a consequence of factors that are significant for the customer, lies rather in the emotional sphere. The problem of creating a loyal consumer is currently in the center of attention of marketers. In order to stimulate customers and be in accordance with their requirements, as well as to minimize losses, namely, losses in the number of customers, and increase the number of sales, it is necessary to develop a loyalty program, the main content of which and the mechanism of its implementation will be considered Further.

Modern economic theory has developed several approaches to understanding how to develop a program with which it would be possible to retain customers and increase their level of loyalty.

According to another classification, all programs are divided into price and non-price. A number of authors understand price programs as programs based on the impact on rational behavior. Non-price programs are programs that primarily affect emotions. In particular, R. Plis classifies discounts, bonus programs as pricing programs, and loyal customer clubs as non-pricing programs, which are based on the provision of certain benefits and privileges to its members that are inaccessible to the bulk of customers, including the provision of certain price benefits.

The most common classification of loyalty programs is based on the type of reward, and according to this criterion, all programs are divided into material and psychological. Tangibles are based on price instruments (discounts, gifts, coupons), while intangibles are a combination of both emotional and material benefits.

The analytical review "Current state and prospects of development of loyalty programs in Russia" by RosBusinessConsulting provides the following classification (Fig. 7.3).

Analysis of existing loyalty programs allows us to highlight certain criteria, by which they can be classified.

1. Programs that differ in the number of partners. Loyalty programs can be coalition, specialized(mono-branding) and co-branded. Coalition programs are subdivided into coalition programs with an independent operator - programs implemented on the basis of a "prize model" in order to maximize profit by the program operator, and programs with an anchor partner who is the operator of the program. Specialized programs are created by the company exclusively for its own use. Co-branding programs are carried out on the basis of the international payment system; it includes two members: a company with a well-known trade mark, and financial institution(bank). These programs can use two incentive schemes: in the first, the bank acts as an issuer plastic card and often as an operator, in the second - it offers its own loyalty scheme. In the first

Rice. 7.3. Loyalty programs classification according to RosBusinessConsulting

In this case, banks or payment systems allow you to accumulate points or receive discounts when using a card when paying for goods and services. When launching a co-branding program, banks often use a different scheme, the so-called cash-back: thanks to this scheme, the client returns to his bank account a certain percentage of the purchase he made. For example, if you pay in a store with a credit card and spend $ 100, you can get 1 cent back. Such programs are widespread in the West in greater numbers than in our country. This can be easily explained by the absence of obstacles to the use of the card in Everyday life, and the ubiquity of businesses supporting settlements in leading payment systems.

Loyalty savings program Keep the change bank Bank of America allows cardholders to save the cash difference between the amount spent on a debit card and the nearest whole dollar amount. These funds are transferred to a special deposit account of the client. The program is extremely popular and has already attracted new clients to the bank. Now about 30% of all program participants are new clients of the bank.

One way or another, card loyalty programs created by the bank or with the participation of the bank are closely related to the payment systems, the cards of which are issued by the bank. A loyalty program based on a payment system can be autonomous, or, on the contrary, it can imply the receipt of an incentive by the client, subject to the use of a card of a specific bank, a specific payment system within the framework of a specific loyalty program. It is worth noting here that the bank is ideal for joining the coalition loyalty program. Since, unlike other spheres of business, where the introduction of a loyalty program would require the creation of special clubs, the issue of cards, technical re-equipment and other difficulties, the bank should only turn to the use of a familiar financial instrument - a bank plastic card.

2. Programs that differ in terms of entry. According to this criterion, all loyalty programs can be divided into two types - closed and open. The preference for this or that type depends on the objectives of the program, the chosen target audience and particular characteristics. The organizers of closed loyalty programs require customers to pay membership fees and fill out an entrance questionnaire, thereby seeking to select customers in certain target groups. Often times, a customer must meet certain criteria to be eligible for a loyalty program. This allows for a more thorough focus on the main target group and avoids the involvement of those who like to profit at someone else's expense in the program.

Open loyalty programs do not require meeting any conditions, but as a result, they often involve many clients that do not bring profit to the company. The creation of such programs is ideal if the intended target groups are too large or the potential clients and competitors' clients are also included in the main target groups. At the same time, the absence of any conditions for participation in the program makes it more attractive and convenient for many clients.

• 3. Programs that differ in terms of impact targets. Three types of programs should be distinguished here: attraction programs, retention programs, shopping behavior change programs. This typology can be considered rather arbitrary, since a loyalty program in terms of impact on the company's audience always pursues several goals, since loyalty marketing itself is aimed to a greater extent at retaining consumers.
• 4. Audience targeted programs. Depending on the nature of the target groups and focus, programs are distinguished. for end consumers(programs B2C), entrepreneurs (programs B2B) and distributors(programs B2D).

Considering loyalty programs from the point of view of audience specifics, three conditional groups of programs can be distinguished: programs in the luxury segment ( luxury programs), programs for the middle class and designed for consumers who prefer discounts and chain incentives, discount programs.

• 5. Programs that differ in the geography of action. Any loyalty systems are divided into international, national, regional and local. The signs of attribution to the corresponding category are obvious and follow from the name. The international loyalty program operates on the territory of several countries, the national system - on the territory of one country in two or more regions, the regional - on the territory of only one region, the local - in one district, city or smaller territorial entity.
• 6. Programs with and without the use of an identifier / differing in the type of technology platform. According to this criterion, all programs can be divided into the following: without ID(identifying) elements; visual ID elements; embossed information; magnetic stripe recording; barcode; smart technologies, visual cards, RFID and NFC technologies and, biometric technologies.
• 7. Programs that differ in the type of reward / mechanism of reward. There is no consensus on how loyalty programs are divided by type of rewards. The fundamental principle of any program is the mechanism for its implementation, which is based on a scheme for identifying the intensity of participation in the program and the corresponding reward, which may consist of several types or combinations of loyalty rewards. In addition, elements of loyalty programs can include various promotions and advertising campaigns.

Thus, loyalty programs can be classified, on the one hand, according to the standard criteria for most marketing funds, on the other hand, the features of creating and implementing programs add a number of specific features into their distribution.

Loyalty programs today exist everywhere, in any branch of every market. Sellers and service providers are doing their best to retain their customers, and there is a very reasonable explanation for this. The fact is that it costs any company, on average, five to ten times more to attract new customers than to retain an existing customer. Accordingly, in order to reduce costs, companies launch a variety of loyalty programs, which will be discussed in this article. Moreover, statistics show that regular customers spend in most cases more than fifty percent more money in stores than new ones. Accordingly, it makes sense to invest in retaining your existing customer base. And this is done precisely through loyalty programs.

What it is?

Loyalty programs are common today tools that companies use to attract customers, and most importantly, retain them. A loyalty program is a certain set of conditions under which the client receives certain bonuses, discounts, and so on. Most often, loyalty programs are accompanied by the issuance of a branded card, which allows you to either accumulate points, which can then be exchanged for something profitable, or receive discounts that are not available to regular customers. In fact, there are a large number of such programs, and in this article you will find out what types of them exist, as well as familiarize yourself with the most striking examples of each of the types.

But more on that later - now you need to spend some more time studying the theory. Before you know all about the species and practical application loyalty programs, you need to learn about the main goals that such programs pursue, as well as about the tasks that are set for them.

Loyalty program goals

Regardless of whether a loyalty bonus program is being considered or otherwise, it should always have clearly defined goals. The first and main goal of any company using such a program is to achieve a specific sales volume by increasing the number of customers. However, this is a short-term goal, most often it is used for seasonal promotions as part of the loyalty program. The long-term goal of such programs is to build a broader customer base. This is precisely why such a tool was invented - with its help the company can ensure the creation of a group of customers who will constantly visit a store, bank, restaurant or any other establishment in the future. The customer loyalty program, however, has slightly more potential goals that need to be distinguished from much larger goals. It is about the tasks that will now be discussed.

Loyalty program objectives

Tasks are sort of subsections of goals that help you achieve them. If we are talking about the goal of increasing the total volume of sales, then the tasks for the program should be set accordingly. First of all, the task is to calculate the size of the market in which the company operates. Secondly, it is an increase in the average order volume of a customer. And of course, this is an increase in the efficiency of staff, which is reflected in the percentage of visitors who become buyers or customers.

If we are talking about creating a customer base, then the first task will again be to calculate the market capacity, then segment consumers by sector, determine the target audience in different sectors and describe the needs of potential customers. After that, you need to define all possible conditions and the features of the program, methods and means by which the impact on the visitor will be carried out in order to turn him into a buyer. Such tasks are set when developing a loyalty program. Well, now it's time to look at individual examples - each company may look for a different approach to loyalty programs, however, there are seven main types, which will be discussed below.

Accumulative program

The first loyalty bonus program, which will be discussed, is a cumulative one. It is one of the most common and at the same time one of the simplest and most unpretentious. Its essence lies in the fact that the client makes purchases, for which he receives bonus points that accumulate on his client card. When he accumulates the required number of points, he can exchange them for some material object or an impressive discount.

There are a huge number of examples of such a loyalty program - almost every supermarket has such a card, various cafes also offer a savings system: for example, you buy ten burgers, and you get the eleventh one for free. This loyalty program for customers is extremely simple and therefore very effective. People do not need to puzzle over the rules, they do not need absolutely anything from them - just spend money and receive bonus points. But this is not the only option on the market today.

Multi-tiered program

How else can a loyalty program work? Bonuses, for example, may not be single-tiered, but multi-tiered. What does it mean? This means that you purchase goods or services from one company and accumulate your bonus points. The difference from the previous model is that when you accumulated a certain number of points in the previous model, you spent them and started again. In this case, you simply move to a new level, which gives you greater advantages than the previous one.

This approach is often used by airlines. For example, the famous airline Virgin divides its frequent flyers into several clubs, where the former is red and the latter is gold. If you have accumulated the required number of points to get into the red club, then you will receive privileges such as a discount on car or property rentals at your destination. However, you do not have to stop there, but grow further, since in the gold club you will find a double number of miles accumulated during the flight for further exchange for a free flight, as well as access to the VIP zones of the world's airports.

Paid program

Loyalty programs of banks and other major institutions and global brands are often paid as well. It would seem that it sounds rather absurd: the company wants to keep the client, but at the same time makes him pay. Who will agree to this? But in reality, it all depends on the target audience, as well as what the company is ready to offer in return. It often happens that it is much more pleasant to receive impressive bonuses in return for a small fee than constant free small bonuses, which, in fact, are not really needed by anyone.

The clearest example of such a program is AmazonPrime. You pay one hundred dollars for an annual subscription, but you still get free express delivery of any goods, as well as access to bonus resources that are paid for other users. This model is extremely reliable, as the user will definitely make purchases in large quantities so as not to waste your annual contribution. Amazon's loyalty program is just one of many examples of a paid model, in fact, there are a huge number of them.

Intangible remuneration

Sometimes you need to be creative in order to attract buyers. This applies to this model, in which there is no specific material reward for the accumulation of the required amount of points. But how does it work in this case? The company can offer all kinds of thematic services to its regular customers.

The easiest way to explain this is with the specific example of Patagonia, a famous sportswear brand. For some time, the loyalty program of this company was quite standard - accumulating points and exchanging them for some little things or discounts for more serious goods. However, statistics have shown that few people are generally interested in such offers in this market segment. Then the company accepted quite creative solution- she changed the loyalty program, offering people free repair of sportswear and equipment when they accumulate the required number of bonus points. Given the fact that sports equipment is different from standard clothing, this approach has been incredibly successful, and the impact of this step has been very high. A loyalty program whose bonuses are not specific and tangible can also function very well.

affiliate program

You can also often hear about affiliate loyalty programs. Examples of this kind are quite common. Their essence lies in the fact that not one company participates in one loyalty program, but several at once. When making a purchase or purchasing a service from one company from the network of partners, you receive bonus points on the card, which you can then use in the store of another company. This allows you to greatly increase your customer base, and also provides huge scale your program.

An example is the Plenti loyalty program, which unites about ten large American companies of a wide variety of profiles: American Express, AT&T mobile company, and even Hulu Internet TV. You can use the services of one of these companies, but benefit from a completely different one. The essence of a loyalty program of such a plan is not only to attract your own customers, but also to develop a full-fledged network that would help increase the efficiency of all its participants at once.

Elements of gamification

Developing a loyalty program is a tough job that has to be done by creative people. Now almost every company has such programs, so if you slip into commonplace, then you are unlikely to get the result you would like. Naturally, if we are talking about a large network or a large brand, then here you can simply offer a basic loyalty program, and people will still make purchases from you. But if you want to work for a client and act in a non-standard way, then there is a loyalty program with gamification elements for you. The bottom line is to conduct a variety of contests and sweepstakes, adding an element of excitement. Nobody gets anything just like that in such a loyalty program, but if you are lucky, you can get a very nice prize. This approach appeals to the hidden instincts of man. It is because of them that people go to the casino, but only here the difference is that you do not need to waste money - you cannot lose. You just purchase the product you need, and along with it comes the chance to win something extra.

An interesting example is the food delivery network GrubHub's. You place an order and at the same time get the opportunity to play a game in which the chance of success is 25 percent. That is, you do not need to spend extra money or your time. You simply try and win one of four occasions when you receive a free dessert or drink for your meal.

Natural program

A store loyalty program is something that sounds pretty trite already. As mentioned above, almost every store, every restaurant, every beauty salon and every bank has its own loyalty program. Therefore, the introduction of a banal version may affect your benefit negatively, not positively. And this is where the natural loyalty program comes into play, in other words, its complete absence. Naturally, this approach in modern world not everyone can afford. Most often, such a step is taken by those brands that already have an impressive customer base. It is important that this company produces a product or provides a service of the kind that would define an entire market segment. Simply put, it should be special offer which is enough on its own to attract buyers.

The simplest example is Apple, which produces unique smartphones, tablets and computers. Even the most loyal customers, who have all types of equipment of every generation, receive absolutely no bonuses. Promotions, loyalty programs, discounts and so on - all this is absolutely unnecessary for this company, because its brand is so well-known that people will continue to buy these products in any conditions. What they, in fact, are doing - Apple has not offered its customers a single discount in the history of its existence, but nevertheless, sales continue to grow every year.

However, as mentioned above, not every company can afford it, and where Apple can safely dismiss any marketing ideas, a lesser-known manufacturer of technology in the absence of a loyalty program will lose a huge number of customers. So loyalty programs are a very important tool in modern commercial activities and you should definitely use it if you want to attract more customers.

Any commercial company builds a business with a view to making a profit. The product produced should not only be relevant, but also be in demand as a quality product. The number of buyers directly depends on this condition. Along with marketing - a way to build customer trust, loyalty programs are created. Their main goal is to turn one-time purchases into recurring monthly sales.

What is customer loyalty and does business need it

Customer loyalty - the degree of customer confidence in the company and its products.

A loyal customer is characterized as:

• Making frequent and constant purchases, regardless of the price.
• Recommending a product to his friends.
• Actively participating in promotions and sales, surveys and contests.
• Ready to overpay when a substitute analogue appears.

Fierce competition in the market and monopolization processes pose new challenges for entrepreneurs. In some industries, customer retention is considered a better tactic than acquiring new ones.

Small and medium-sized businesses are interested in this approach in the first place. The large number of online stores and large suppliers that can make a significant discount is the main factor in the decline in competitiveness. Keeping a customer in the face of a wide variety is becoming the main task of loyalty programs.

Loyalty levels

Rational

Rational loyalty is based on cooperation that is beneficial for both parties to the transaction. Possible only with high quality product or service. Otherwise, no one will be able to force the buyer to buy a second item at a lower price or return again for a purchase at a discount.
At the same time, material incentives for sales should be based on an individual approach so that the client appreciates that the company cares about the status of his personal purchases.

Formed by:

• Stimulating regular customers.
• Identifying the most active buyers.
• Rewards only meaningful purchases in accordance with consumer behavior client (not on a permanent basis).

Emotional

Emotional loyalty is based on a positive attitude towards a product and a company. Customers are not indifferent to products, they love them, they are fans. Each of their purchases is associated with joy and good mood. At the same time, buyers do not react to signals and tricks of competitors.

Formed by:

• Brand reputation and ideology.
• The importance of products in the eyes of the consumer (properties, functions, appearance).
• Recommendations and reviews from friends and acquaintances.

Behavioral

Behavioral loyalty is based on experience with a firm or the experience of making a purchase. There is no emotional attachment to the brand. Transactions take place regularly due to the accessible location, proximity to the house, and a large assortment of the store. This kind of loyalty is unstable.

Formed by:

• Approving attitude of buyers towards products in general.
• The lack of a similar product from competitors.
• Consumer behavioral factors and living conditions.

Loyalty building stages

First visit

A person enters a store, not yet knowing about the goods and their quality. The first impression is about service and product range. A customer-oriented approach to newbies is also considered one of the points of the loyalty program.

Factors of attracting a client to this stage become:

• lively approach;
• technological approach;
• company presentation (brand, required information).

This is where the rule comes into play: the buyer is satisfied with the service if the communication is built without directly stimulating the purchase. At the same time, it is important to weed out only those customers who will be interested in the purchase.

The technological approach is designed to openly motivate people to buy. They switch to him at the moment when they are sure of the desire to buy a product right now.

To end the dialogue, he uses the following techniques:

• personal manager;
• special prices;
• purchase bonuses;
• priority service;
• limited edition for exclusive clients;
• closed club of buyers.

Customer confidence is also shaped by the image of the company. An unfamiliar small shop with an unpresentable look will cause natural doubts among the client. And business packaging is the basis for creating customer loyalty.

This includes:

• managers (the face of the company);
• team (consultants);
• in-house management technology (efficiency, continuity, consistency);
• awards and certificates.

For all 3 factors, you can significantly influence consumer behavior and smoothly lead him to a purchase.

But the first service may not bring the desired result: the client will not have the required amount on hand, or he will leave, citing a simple interest. Only in 25% of cases does a new guest become a loyal customer. And to turn him into a real buyer, you need a sincere desire to help and provide useful information(from the context of the conversation).

First purchase of goods

At this stage of the formation of loyalty, the client comes to a direct conclusion about whether he will continue to use the services of the company. He has already talked with the employees, made a conclusion about their literacy and competence, the ability to navigate the advantages and disadvantages of the assortment.

Based on his own experience, recommendations and advice, information from review sites, a person gives an objective assessment of the staff. Buying a quality product with poor service will not play a special role. Next time the buyer will 100% contact another company. But if the customer is confirmed with his knowledge base about the product, without telling anything new, he will still return to the store again, because once he has already received competent advice.

Repeat visit

If the client is satisfied with the quality of the goods and service, he will often turn to the services of the company. And, possibly, will make repeat purchases. And the presence of incentives (discount on the second purchase, certificates) will lead him to the store again.

The next appeal to the services of the company will finally consolidate a complete picture of the organization. At this stage, it is important to actively collaborate with the client by sending out customized sales quotes or reminders.

Attachment to the company

This stage of loyalty development is close to complete customer confidence.

The main factors that get in the way of getting a regular customer:

• insufficient product range;
• lucrative offers from competitors;
• uselessness of goods or lack of funds for purchase;
• insufficient incentives to buy;
• weak differentiation of individual offers;
• neglect of preferences and preferential purchases.

Otherwise, 50% of buyers return and make new purchases. This is especially true for online stores and specialized firms. The person who finds suitable solution in a particular organization does not switch to other channels. He is confident in the reliability of the purchase, high-quality service and in case of problems, he can save money for other needs.

Customer loyalty

A person develops loyalty to the company after long-term use of the service, when he has made more than one or two purchases, but uses the services regularly. Full loyalty is stimulated only at the technological level.

If the quality of the product changes or ceases to suit the buyer, he will go to a competitor. During this period, a competent pricing policy in relation to the client comes into play. To finally secure it for the company, a study of needs and satisfaction with the quality of service is required.

Another classification of customer loyalty stages is as follows:

• casual client;
• ordinary consumer;
• regular customer;
• loyal customer;
• adherent;
• fanatic.

Loyalty program types

The loyalty program is a system of rewards for regular customers in order to ensure stable sales.

Loyalty discount program

Discounts and discounts as a means of incentives are the most popular loyalty programs. Depending on the consumer, they can be provided on a one-time basis or on a funded system. The amount of discounts is charged depending on the customer's loyalty: the more he buys, the more benefits he gets. In some cases, escrow discounts are used where the discount percentage is lowered in the absence of sales.

The discount program is characterized by:

• A material benefit for the consumer and a loss for the company.
• Simplicity of accounting and control.
• Low efficiency if there are worthy competitors.
• A limited period of interest in the discount.
• The provocation of price wars.
• Possibility of personification.

Discounts work in various industries trade: catering, grocery, perfumery, hardware stores, gas stations, airlines. Without communication with the client and constant communication, the costs of discount cards do not justify themselves.

Loyalty bonus program

Unlike discounts, bonuses are provided for each one-time purchase. They are exchanged against payment for the goods (partial or full). Bonuses vary in form. Most often these are points, local currency (miles from Aeroflot, rubles from Pyaterochka, stickers from Dixie) or stale goods.

The loyalty bonus program is characterized by:

• Efficiency with constant sales.
• Significant costs in the presence of paying customers.
• Limited validity period.
• Inability to calculate points in some cases (promotion period, limit or threshold of points, number of purchases).
• Not suitable for one-off and expensive items.
• Requires special technological solutions (calculation of points and possible costs).

The bonus program works in various clothing boutiques, flower shops, souvenir shops, car services and workshops. Less consumer preferable and more labor intensive for the firm.

Multi-tiered loyalty programs

Multi-tiered loyalty programs are developed taking into account individual purchase histories. Dedicated customer bases provide control. The total amount spent varies by levels, according to which the client receives a discount (direct dependence).

Multilevel loyalty programs are characterized by:

• The interests of the consumer himself in improving his status.
• Developed in areas with VIP service.
• The high cost of bonuses.
• The need to develop programs and account for each operation by the client.
• A flexible system for accumulating points.
• Direct motivation to make purchases.

Multi-tiered loyalty programs operate in banking and insurance, airlines and transportation, hotels and supermarkets. The total amount of accumulated bonuses makes it possible to receive goods for free or exchange them for a discount.

Paid loyalty program

Based on the purchase of the right to receive bonuses and privileges. The client is notified of this possibility, and he signs a contract for the provision of services. The payment under the agreement is a regular subscription fee or a one-time payment.

The paid loyalty program is characterized by:

• Special service, additional features and terms of limited use of resources for the client.
• It is developed in relation to regularly purchased goods, for which you can set high bonuses and discounts.
• Ease of organization and vision.
• Minimal losses for the company (salary of responsible persons).
• The ability to calculate the costs of bonuses and discounts.
• Lack of feedback and approval in case of overpricing (commensurate cost of the effect of information does not bring benefits).

Works in the salons of mobile operators, B2B enterprises, online stores and information services, consulting and business support.

Loyalty programs with intangible rewards

Various privileges and advantages (not in monetary terms) act as intangible loyalty programs. To do this, you need to clearly understand what the client wants. Examples include repairing expensive equipment, refurbishing handicrafts, accessories, and replacing wearing parts in workshops.

It is characterized by the following features:

• Directly linked to the object of sale.
• Requires additional space and warehouses.
• Demanded by customers.
• Facilitates the use and operation of the product.
• Provides gifts and services as a reward.

The non-material loyalty program will only work in the sales area (not services). Suitable for large companies, as well as private craftsmen and manufacturers of durable goods. Used in perfume shops, household chemicals and packaging to protect the environment (exchange of empty packages for products).

Loyalty affiliate program

Affiliate programs are developed in conjunction with other companies that supply related products, provide installation and repair of products, and in any other way may be useful to customers.

Loyalty affiliate programs are characterized by:

• Long-term business relationships with companies that produce components, accessories or provide services.
• They are developed both for the convenience of the client and for the search for new sales markets through the partner bases.
• The presence of bonus incentives when contacting partners.

They are effectively implemented in the field of communications and the Internet, air traffic, car rental.

Loyalty programs with gamification elements

The introduction of game processes into programs is a consequence of the company's desire to lure a client. On the one side, game contests should diversify the shopping process, on the other hand - motivate serious and dear customers to take part.

Gameified programs are characterized by:

• Direct benefits to buyers.
• A transparent mechanism for the selection of winners.
• Understandable conditions that weed out all lovers of free gifts.
• A quick result from the action.

Programs with elements of gamification are implemented in various areas of business. This technique is especially popular in clothing boutiques, markets and shopping centers, establishments Catering and leisure.

Natural loyalty programs

This approach means that the firm does not develop special loyalty programs. Everything happens as usual. The brand wins the attention of customers due to its uniqueness, the management does not see the need to encourage them. The product is one of a kind and meets the requirements of buyers to the maximum. Such goods include electronic equipment (cameras, telephones), new developments and know-how, as well as designer clothes and products from certain industries.

How to choose a customer loyalty program

Put yourself in the buyer's shoes

Doing business involves tremendous work, constant analysis and accounting. In such conditions, there is not enough time for a detailed analysis of the possible needs of customers. If you do not assess the quality of goods and services, you can independently think over the necessary development paths. To do this, any novice businessman tries to put himself in the shoes of the buyer.

But any business has blind spots that arise largely due to a biased assessment of the business. Therefore, they first analyze the assortment and sales, and then proceed to the selection of the optimal loyalty program (discounts, bonuses or gifts).

Ask buyers

Ask a regular target audience (buyers) about what they need more - discounts or bonuses. You can create a survey on social networks, by mailing, on the website. Interested parties will definitely express their opinion or propose a concrete solution. Be sure to leave a field where visitors can leave their own answer.

Make an analysis of competitors

An analysis of competitors will reveal both the right decisions and the unreasonable ones. In business, people learn from the mistakes of others. One miscalculation can have a significant impact on your budget, especially in an environment of erratic sales.

Understand what is more profitable for business

If big discounts are not designed for the budget, you should either refuse to hold promotions altogether, or come up with an interesting bonus program. For a regular client, these conditions are insignificant, but for a business they can result in losses. You need to act based on your own interests. According to surveys, most shoppers view sales and discounts as cheating.

What are the types of customer loyalty

• True. Characterized by constant interest in a brand or company, does not depend on external factors and pricing policy. It arises with an emotional attachment to the product and is in no way connected with other types of necessity.
• Latent. It is characterized by subconscious attachment to the brand. But the customer has no purchase opportunity. Sales are rare and volatile.
• False. The customer buys products frequently. The reasons for this are: necessity, high quality, lack of competitors, envy and other objective factors. New clothes bring a feeling of joy, but there is no emotional attachment.
• Disloyalty (lack of trust). The customer once bought the product and never came back. He didn't like the service or the product itself. Accordingly, she does not feel any feelings at the mention of the brand.

What works better: discount or bonuses

By means of discount and bonus loyalty programs, most firms form a trusting relationship with their customers. Discounts and bonuses (both cumulative and fixed) differ insignificantly from each other. The discount carries a large financial burden in the current period.

• reduce the price;
• are an additional benefit from an already made purchase;
• increase the perceived value of plastic;
• taken for granted.

• exchanged for payment;
• are a bonus for a future purchase (investment);
• increase the value of the relationship with the seller;
• more interesting for clients (idea);
• motivate the buyer to return.

To increase the average check, only discounts are used. To increase future purchases and build loyalty, they resort to bonus programs.

In both cases, there are risks: bonuses and discounts are fraught with a loss of benefits, moreover, an illiterately composed company can cause negativity or ridicule on the part of buyers.

How to prepare for the implementation of a loyalty program

Evaluate the effectiveness of your loyalty program

The main indicator of customer loyalty is the Net Support Index (NPS). To calculate it, a survey is carried out. The client establishes how much he trusts the company (brand). Answers are counted in points (1-10). After questioning, each client is assigned to one of the groups:

• client-promoter (9-10);
• passive consumer (7-8);
• customer-detractor (0-6).

The overall loyalty score is equal to the difference between the number of promoters and detractors.
NPS is counted as the share of promoters in the total number of respondents. The higher it is, the more stable the enterprise is.

Another indicator is customer churn (the ratio of customers leaving to the total number of customers per year). It is compared to an inflow when assessing financial risks.

There are other methods for measuring customer loyalty, such as RFM analysis. All customers are divided into 3 groups depending on the age of purchases, their frequency and quantity, and the amount of spending. And calculate them specific gravity as a percentage.

The most labor-intensive methods are considered to be CES (Customer Effort Assessment). Most often, they use standard performance indicators applicable to loyalty programs.

Key mistakes when implementing a loyalty program

Uneconomical economy

Calculating bonuses and discounts using a computer is not enough. It is necessary to take into account the basics of trade marketing and consumer psychology. Distribution of discounts without mathematical modeling is a banal attraction of generosity, in which the marginality of the business decreases. The most loyal customers make constant purchases anyway. And rare customers are stimulated to an insignificant extent due to the differentiation of discounts by the amount of sales.

Cut seven times, measured one

Loyalty model optimization requires daily analysis. Taking into account and identifying interdependent factors allows you to make adjustments to the essence of the proposal. For this, a working group, engaged in optimization in the direction of "sale - the amount of remuneration." Its task is to make it possible to manage what cannot be measured.

One size fits all

The behavior and habits of consumer segments are different. In about half of the cases, the chosen reward system does not meet the interests of clients (it is difficult to accumulate bonuses, an unattractive prize). In fact, there is no customer focus.

The science of building fruitful alliances

Marketers find it essential to use co-branding and coalition loyalty programs. Their essence is to create a joint campaign in an alliance with another enterprise. The partnership helps to reduce the churn of customers - the consumer receives an additional service to the product, the lack of which was the main obstacle in using the product.

How to build the next generation loyalty program

Stop spending, start investing

The design of the program is based on the calculation of the client's prospects and cost-effectiveness. That is, the company is aware of who, how and when will receive bonuses. The allowable discount level for each customer is measured by the CLV (Customer Lifetime Value) system.

Personalize your participation in the program

It is necessary to keep a record of all customer data (geolocation, transactions, history of requests, polls). Without the consumer's information genome, it is impossible to identify his preferences and interest in the program.

Combine different types of customer motivation

You cannot influence the consumer only from a rational point of view. This only creates tolerance for the brand. An emotional loyalty program should generate interest and action. True loyalty is formed only at the level of feelings.

Cultivate an omnichannel business model

The more tools the company uses to communicate with the consumer, the wider the reach potential buyers... Everyone has different opportunities and lifestyles. The creation of accounts in various social networks, applications, chat channels is positively perceived by regular customers.

Actively manage customer experiences

Investigate customer problems and history of customer inquiries. More than 70% of consumers leave because of poor service. Working with complaints and eliminating gaps is the main task in communicating with regular customers.

6 ways to measure the effectiveness of a company's loyalty program

Evaluating the effectiveness of the program makes it possible to manage and optimize customer loyalty. The calculation of efficiency is performed using (see Indicators):

• basic performance indicators KPI;
• analysis of sales dynamics;
• cohort analysis;
• Look-alike analysis;
• effective analysis;
• LTV metrics.

Examples of unusual loyalty programs for banks, hotels, gas stations and carriers

Thank you from Sberbank: bonuses

It makes it possible to collect points by simply making purchases in various stores and online services. With each payment with a card from the bank's partners, the user also receives a cashback (up to 20%). All points can be viewed in the application or on the bank's website in your personal account.

This loyalty program is multi-partner. You can spend points or get cash back in various online markets, restaurants, cinemas and home stores. Points can be used to pay for housing and communal services, travel packages or communications.

Thus, the client is provided with ample opportunities to realize the reward, which significantly affects the volume of electronic purchases. The bank, in turn, has the opportunity to use temporarily free funds on the accounts. Taking into account the cost of the program, the incentive freeze of funds brings sufficient income to the bank, which is ready to pay up to 50% of the funds put into circulation.

SPG & Marriott Rewards: rewards

Marriott hotel chains offer a multi-tiered loyalty program with affiliate bonuses and gamification elements. There are also elements of the loyalty discount program (cashback, discounts).

Bonuses are awarded for each night of stay at the hotel. The industry giant uses a whole reward system that is difficult to assign to a specific group. Also interesting is the offer of privileged service in hotel chains around the world. When buying a tour to these hotels (29 brands), you need to get 1 of 5 statuses from silver VIP to paid privileged.

Can be spent at both e-commerce stores and the Marriott chain (free overnight). A separate point is the possibility of converting points into air miles. This diversification of opportunities is aimed at attracting new customers who want to save money. An application has been created for regular customers where you can choose the required level of service and additional VIP services.

Loyalty Cards of the LUKOIL Club

The loyalty program operates on the basis of a plastic card and its virtual substitute. Clients get the opportunity to get a discount, use points in partner companies, and also receive income for the balance of funds.

As a VIP service, it is possible to use the capabilities of the mobile application (hotline, gas station locator, promotions). The program is a discount type of incentive and offers savings on fuel with frequent refueling.

RZD Bonus

This program is bonus. When paying for each trip, points are awarded that can be spent on an additional trip - an award ticket. To do this, the account opened through the official website must have enough points.

The system has several levels, special conditions families and students can benefit. To do this, you need to create a personal account. You can accumulate points even if a person uses the services of other carriers (partners). Frequent trips allow you to quickly save up for travels in high-speed trains such as "Sapsan", "Strizh", "Lastochka" and "Nevsky Express". The loyalty program from Russian Railways is multi-tiered and allows you to benefit in the future from regular rail trips.

Loyalty programs are designed to stimulate the client for mutually beneficial cooperation. If the program is drawn up without appropriate calculations, the business owner runs the risk of incurring serious losses. In this case, you should not count on the actions of competitors. Without a comprehensive financial analysis and mathematical modeling using specialized tools, the loyalty program will not bring results. And in conditions of poor quality of goods or services, they will not pay attention to it.

Loyalty discount program

Having a discount for a purchase in a store attracts buyers who see it as a direct benefit. Grocery and hardware stores, perfumery and cosmetics stores, gas stations, cafes, restaurants and other retail outlets distribute discount cards among customers, which become permanent, to increase sales.

There are the following types of loyalty discount programs:

• with a fixed discount (5, 7 or 10%);
• with a cumulative discount (frequent purchases accumulate a discount).

Remark 1

Discount loyalty programs are the simplest and most easily controlled, but ineffective for both the seller and the buyer. The seller loses part of the profit, and for the buyer the discount does not mean close attachment to a particular outlet.

Benefits of a loyalty discount program:

1. discounts are a tool to attract buyers;
2. easily organized and regulated system;
3. minimum costs for development and implementation;
4. the presence of a discount card gives a feeling of privilege;
5. motivates to make frequent purchases to increase the discount percentage;
6. increases loyalty to a brand, product or company.

Cons of the loyalty discount program:

1. ease of copying by competitors;
2. the presence of several cards of competing companies with the same discounts does not increase customer loyalty (he does not care where to make a purchase);
3. absence feedback(communications) with consumers;
4. the growing volume of losses from discounts for the seller;
5. attracting more unprofitable customers (profitable consumers are interested in the quality of service, and the intangible component of the program).

Discount or discount loyalty programs are quite easy to implement, but they do not stimulate customers to repeat and constant purchases, which reduces the company's revenue. A discount is an impersonal attraction tool designed for a massive one-time influx of buyers.

Loyalty bonus program

Despite all the advantages of loyalty discount programs, bonus systems are gaining momentum. The consumer is involved in a kind of game that motivates him to repeat purchases. Currently, many retail chains, pharmacies, gas stations, public catering enterprises have switched from a discount to a bonus customer loyalty program (Detsky Mir, Letual, etc.).

Definition 1

The loyalty bonus system is a type of customer incentive, which consists in receiving bonus points when making a purchase. Points are awarded in proportion to purchases, accumulated on the client's card, respectively, the consumer is interested in making them for large amounts.

Benefits of bonuses compared to discounts:

• Bind the client;
• contribute to savings;
• demonstrate an individual approach to each consumer;
• evoke sympathy at the emotional and psychological level.

Remark 2

The main advantage of the loyalty bonus program is the delayed use of points, which means that the client arrives at the second, third and subsequent times. This contributes to the emergence of a base of regular customers who bring guaranteed profits to the company.

Bonus system advantages:

1. retention of customers through incentives translates them into the category of "loyal customers";
2. the ability to stimulate primary and repeat purchases (game mechanism, "I spend more, I get more");
3. accumulation of customer information using questionnaires;
4. burned out and unspent bonuses remain with the company;
5. building trust with customers;
6. additional bonuses for purchases.

Cons of the loyalty bonus program:

1. lack of communication does not allow the system to work;
2. to participate in the program, the buyer must make a purchase for a certain amount and receive a bonus card;
3. the need for feedback;
4. to receive a discount or a gift, you must present a bonus card each time;
5. difficulties in implementation;
6. narrow range of rewards;
7. not all gifts attract customers.

Multi-tiered loyalty programs

This type of loyalty program is similar to a bonus system, but differs in that it is used only for high-value goods and services. The content of the multi-tiered loyalty program is simple, but difficulties arise in its implementation. The basis of this system is the direct relationship between how much the client spends on the purchase of goods and services, and the privileges that he receives as a result of interaction with the company (additional services, guarantees). Such a system is widespread in the banking and insurance spheres of activity. She gained particular popularity in airlines (accumulation of miles).

A tiered system means that buyer rewards increase as you climb the loyalty ladder. The main advantage of the program over other systems is that the client receives not only short-term, but also long-term benefits. The only drawback is that the time interval between buying and receiving a reward is too long, and the likelihood of losing interest in the program increases.

The essence of this loyalty program is to divide customers into groups depending on the amount they spend on the purchase of a product or service. The larger the amount, the more privileges and rewards. These can be significant discounts, additional options, or free services.

Remark 3

The driving force behind a tiered loyalty program is the desire to be in a better position than the average consumer, so the customer is willing to spend more. Accordingly, this system is in demand in the VIP segments.

Since bonuses in a multi-tiered loyalty program are weighty in comparison with other systems, an individual approach to each client is required. This complicates both the design and implementation of the program.

Loyalty affiliate programs

The essence of the partner customer loyalty system is that this program is attended by not one company, but several. By purchasing goods or services from one firm, the buyer receives a card, accumulates bonuses that can be used when purchasing goods or services from another firm of the network of partners. This contributes to the growth of the customer base and the huge scale of the loyalty program.

Strategic partnerships or coalition loyalty programs quickly grow your customer base and demonstrate customer care. For the successful implementation of this program, it is necessary to conduct research and study the related interests and needs of clients.

Definition 2

The affiliate program is a common tool for increasing loyalty, especially popular among banking and financial companies. Clients accumulate points and receive rewards from partner firms. An example is the "Thank you from Sberbank" program. When paying with a card of this bank at various points of sale, bonus points are accumulated.

The affiliate loyalty system also provides for the joining of efforts of two or more companies to attract buyers. This is cross-marketing or co-branding, i.e. joint promotion.