5 Brands with the best customer loyalty programmes

Do you know that an existing customer is more likely to spend 67% more than a brand new customer? Don’t believe our word for it, check out this article by Inc. where they have detailed down how you can grow your Sales by 10x.

But before you go ahead and explore the other nine variants, have you ever given enough consideration to building a customer loyalty programme for your brand?

As a marketer, you must have already scoured dozens of articles on why it is so important for your brand to have a customer loyalty programme. If you still need further convincing, you can read our comprehensive blog post on the same topic.

But here’s the kick!

“The average customer is involved in 14 loyalty programmes but has the capacity of engaging with just 7.”

According to The Loyalty Report 2017, companies lose effort and time by developing a thorough customer loyalty program only to miss out the coveted loyalty. 

So how do you actually keep your business out of this segment? How exactly do you provide “additional value” to your customers which will make them loyal to you before anyone else?

We will help you with the answer! We looked at some of the most successful loyalty programmes out there right now and noted down the most relevant takeaways from all of them to help you understand what suits your business better. 

Here are the Top 5 brands with the most effective Customer Loyalty Programmes -

1. Starbucks Rewards
2. JC Penney Rewards
3. Dunkin’ Donuts Perks
4. Tesco Clubcard
5. Pizza Hut Rewards

Let's see what makes them stand out among other loyalty programmes.

1. Starbucks Rewards.

What Caught Our Eyes - 

1. An engaging mobile experience
2. Rewards incentives which capture engagement
3. Integration with other platforms and services

Starbucks has grabbed the most used loyalty programme title (a whopping 48%) among large restaurant chains. In order to delight their customer, the coffee chain magnet went beyond their rich in-store experiences and provides an equally engaging digital experience.

By offering personalisation elements, challenges to earn extra “stars” (this is what they call their reward points) and additional benefits like in-store refills, special member offers/events, and the advantage of paying ahead via mobile, Starbucks has managed to set a benchmark.

Not to mention, by partnering with service providers like Spotify and Lyft, they have ensured their customer’s needs are met by using their loyalty app only. 

You can read more about the Starbucks Loyalty Program from here.

2. JC Penney Rewards 

What Caught Our Eyes - 

1. Points that DON’T expire
2. Exclusive benefits for members only
3. Allowing customers to manage their rewards anytime, anywhere

JC Penney revamped its customer loyalty program a couple of years ago to bring in more value to their customers. What made us look twice at their efforts was the fact that they listened to what the buyers wanted and integrated the same in a detailed programme which helped them get better engagement.

By introducing a simple term which states a JC Penney customer will receive $10 for every 200 points earned and by placing no expiry on the same, the retailer has ensured their customers actually benefit from the programme instead of rushing them and eventually losing them further.

Not to mention, throughout the year they come up with exciting offers for members only which their buyers now equate with belonging to an exclusive club. 

You can read more JC Penney and their Rewards Programme from here. 

3. Dunkin’ Donuts Perks

What Caught Our Eyes - 

1. On-the-go ordering for members 
2. Offline campaign promotions
3. User-friendly mobile experience

Before saying anything, here’s a fact you should know. 

The new Dunkin’ Donuts perks members increased their year-on-year spending by 40%!!!

How exactly did Dunkin’ Donuts manage to do that? In order to claim customer’s attention in an overcrowded space dominated by Starbucks and others, Dunkin’ Donuts launched an exclusive on-the-go ordering for its loyalty programme members. This was their biggest effort since they had their drive-through outlets. By implementing 360-degree marketing campaigns which combined online benefits and some kickass offline marketing event extravaganzas, the brand was able to not only acquire new members for their loyalty programs but also more purchases from existing members. 

You can read more about the Dunkin’ Donuts Perks Members from here.

4. Tesco Clubcard

What Caught Our Eyes - 

1. Personalised Promotion 
2. Data Integration
3. Effective Emailers 

While in terms of developing a rewards program, Tesco stayed put to its original offerings, it is the way they had executed it, ensured a 30% increase in their customer loyalty retention efforts. 

What Tesco did differently was the fact they understood and emphasised on personalisation in marketing their rewards programmes. They did so by integrating customer purchasing behaviour data and their preferred communication messaging to their digital media channels. The end result was an average customer received up to six personalised emailers which offered attractive rewards for their favourite Tesco item. And Tesco was rewarded by getting an additional 3000 customers being reactivated from each campaign. 

You can read more about Tesco Clubcard and their personalisation efforts from here. 

You can also read more about personalisation in marketing and how we at Xeno have helped brands like Taco Bell and Forever New retain their customers by 10x from here.

5. Pizza Hut Rewards

What Caught Our Eyes - 

1. In-store Points
2. Branding their own currency as ‘slices’
3. Focus on a better customer experience

In late 2018, the brand decided to ramp-up its existing rewards program and since then has seen a rise in its conversion rate by 50%. The new efforts involved both digital and offline innovations. While Pizza Hut Digital Ventures (PHDV) ensures customers have a seamless experience for online orders and encourages this behaviour by offering rewards, the in-store experience offers them a unique reward in the name of slices which allows customers to choose from different menu items as per their gained points.

You can read from about Pizza Hut Rewards from here.

If you have read through till here then by now you will know that brands that have tasted success with their loyalty programmes have got one factor in common. Through various means and methods, they have tried to open a new dialogue with their customers and have implemented strategies which take into consideration, personalisation and actual value. 

This is doable but not without its own challenges. We at Xeno have worked hard to understand what makes customers stick to a particular brand and we will be happy to share our insights with you. Feel free to schedule a call with our experts and let’s figure out a way to delight your customers together!