There are many different types of customer loyalty programs. In this presentation we have discussed in brief 3 basic types of loyalty programs.
Frequency Loyalty Program
Earn Points & Exchange for Rewards
Cash Back Loyalty Program
Lets Go Through Them One by One…
ü This loyalty rewards program encourages the
customers to buy more.
ü For example: If a customer has bought 4 items
then he gets the 5th one free.
ü Therefore by rewarding the customer on the 5th
purchase this loyalty scheme helps increase sales.
Loyalty rewards programs
oThis is the simplest type of customer loyalty
o It is easy and cost effective to set up this
customer rewards program.
o It allows businesses to set up tiers to reward
increase in levels of purchase behavior.
customer loyalty programme
oThe Downside of this customer loyalty program
is that its too simple.
o Its simplicity does not allow companies to
collect customer information.
o You lose valuable data which can otherwise be
used in further marketing efforts.
customer loyalty program
ü In this type of customer rewards program
customers earn points on each purchase.
ü These points can then be exchanged for rewards.
ü Rewards can be weekend getaways, movie
tickets, spa etc.
Customer rewards programs
o It’s a simple process for customer to
understand, set up and follow.
o Once rewarded customers remember their
rewards for a long time which encourages them to
stay loyal to your products and services.
oThis customer loyalty program needs a careful
system to track points correctly.
o Since there is no instant gratification for
customers, they could lose interest in the programme
and abandon it.
o Customers constantly need to be reminded of the
points they have earned.
customer loyalty program
ü In this type of Rewards Programme, your
customers will earn money after crossing a certain
ü They can then spend this earned cash on their
best reward programme
o It is a simple system to set up and follow.
o Customers love the idea of earning money by
spending money which encourages them to come to
you more frequently.
o You may not be able to attract customers in low
spending category using this type of Loyalty
o It may not be suitable for businesses where the
customers have no need to frequent your store.
o There are many different types of customer
o We just discussed 3 basic types in brief.
o Hope this was helpful and gave you a better idea
about loyalty programs & their Benefits.
GraceKennedy Value Rewards programme has partnered with
numerous brands and businesses to create exciting reward packages
ranging from entertainment and personal care services to gifts and
Customers have the freedom to choose the reward they desire based
on the points they've earned.GKVR participating subsidiaries, Hi-Lo,
GK General Insurance, First Global Bank, Bill Express and FX