As humans, we’re always looking for more, and loyalty programs typically provide just that. By building loyalty programs, brands aim to connect with their community and provide an added bonus, a little extra that makes the consumer feel seen and appreciated. Loyalty programs help to shift the focus from acquiring new customers to celebrating the current ones.
Below we explore the 3 main benefits of loyalty programs and why they’re so powerful when creating a community.
What Are Loyalty Programs
According to a global report on brand loyalty, the average consumer is registered to 15 loyalty programs. Loyalty programs are long-term marketing campaigns that aim to encourage and reward loyal customers, usually through a points system or other benefits.
These programs have been around for centuries, with the first recorded “customer loyalty experience” dating back to 1793 when a merchant gave customers copper coins that could be redeemed for goods.
From trading stamps to vouchers on cereal boxes to frequent flier miles, these are all examples of how brands aim to both entice and reward customers at the same time.
The 3 Main Benefits Of Loyalty Programs
Exploring the advantages of loyalty programs for the consumer, there are the three main drawcards:
Get rewarded for something you were going to do anyway
Any well-functioning loyalty program will be centered around perks, arguably the biggest reason for joining the loyalty program in the first place. These perks might range from a point system, cashback rewards, or access to new launches before the rest of the world.
You’re always going to need groceries, and you will continue to buy them. If one company is offering you rewards for doing so at their store, you’re more inclined to go there as you’re essentially “getting free stuff”.
Loyalty programs are a great way to receive perks for tasks/purchases/trades you were going to do anyway, making something bigger than it was.
It creates a community-feel
In a society where we’re often left longing for connection and identity alignment, being a part of a loyalty program can build a sense of trust and oneness with the brand that you’re engaging with.
When we earn rewards, we tend to feel valued and appreciated. Loyalty programs are the perfect tool for businesses to connect on this level with their customers.
Receiving a sense of accomplishment
There’s nothing quite like the feeling of accomplishment when you figure out how to get more bang for your buck. Loyalty programs offer users that feeling of success, delivering that welcome dose of dopamine.
All in all, loyalty programs are designed to be mutually beneficial initiatives between businesses and customers that drive trust, personal interactions, aspiration, identity alignment, and create a more pleasurable user experience.
Have You Seen Oobit’s New Crypto Loyalty Program?
In our latest, very exciting launch, we’ve mapped out a loyalty program like no other. With a long list of easily-achievable levels, each reward tier is represented by one of our Oobits, a recently launched NFT collection.
Each time that users interact on the platform, whether buying, selling or trading cryptocurrencies, they earn points. These points are automatically calculated and the user seamlessly moves to the next level, where the perks increase and the Oobit changes (see below).
Users are automatically entered into the loyalty program and can easily review their progress by selecting Invest in the bottom right corner and then selecting the menu icon in the top right. Click on your level and you can review where you fall in the list of Oobits.
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