4 Common Types of Loyalty Programs to Consider as a Customer

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Thanks to the pandemic, more business owners are utilizing customer loyalty programs. Even though COVID-19 is on its way out, businesses have benefited as much as they did before the pandemic. The United States is set to have its massive holiday sales in history.

With the increased business, many businesses have introduced loyalty programs. If you haven’t joined one yet, you need to.
You don’t want to be late for the party. More customers are joining loyalty programs each day.

Loyalty programs are great for customers, but they are beneficial to businesses at a whole new level. Here are four types of loyalty programs you need to be a part.

Point-based Programs

As a customer, it is important to be aware of the different types of loyalty programs that businesses may offer to take advantage of the benefits that these programs can provide.

Point-based systems allow customers to earn points for each purchase that they make, which can then be redeemed for rewards such as discounts, free merchandise, or even free services. You can check out the best loyalty programs here and view these rewards.

Tier-based Programs

Tier-based systems offer different levels of rewards based on how often a customer makes purchases, with the most frequent shoppers receiving the most valuable rewards. These are where customers can move up to different levels based on their spending. Businesses can also offer loyalty programs that give customers access to exclusive deals or special events.

This type of loyalty program typically offers different tiers or levels, with each level offering more benefits and privileges. Customers can move up the tiers by spending more or meeting certain criteria.

Rewards-based Programs

Under this program, customers can earn rewards for every purchase they make. These rewards can be in the form of points, cash back, or vouchers. Customers earn rebates or points for every purchase they make.

The rebates can be used towards future purchases, or they can be cashed out. These are a great way to loyalty and keep customers coming back.

These programs simply give customers a percentage of their purchase price back in the form of cash or a credit towards future purchases. This program rewards customers with free items or services for making a certain number of purchases.

Discount-based Programs

With this program, where customers get a certain percentage off their buy for being a loyalty member. Customers can enjoy discounts on their purchases. The discounts may be fixed or variable, and they can be applied to future purchases or used immediately.

Choose the Best Types of Loyalty Programs

By taking the time to learn about the different types of loyalty programs available, customers can make sure that they are taking advantage of all the benefits that these programs have to offer.

There are many different loyalty programs that businesses can use to reward their customers. All these programs have divergent benefits and perks, so it’s foremost to choose the one that best fits your needs as a customer.

Explore our other helpful resources on retail and business.