Consumer loyalty programs are one of the most talked about marketing strategies in the current market. Every brand is trying to incorporate some or the other strategies to ensure customer loyalty for their brand. 

Be it gifts, rewards, discounts, or other benefits, all these are designed to ensure consumer loyalty and retain customers for the long term. However, while indulging in these loyalty programs and customer rewards programs we often forget about the psychological impact and planning behind this. 

This is what we are going to discuss here. Why do brands choose certain loyalty programs and what is the psychology behind designing these consumer loyalty programs?

The Science Behind Rewards

Who doesn’t like getting rewards, right? Even as kids we all loved the idea of getting rewards be it for scoring high marks, winning a competition, or any other task. The idea of these rewards was to appreciate the kids while also motivating them to get the same results in the future. 

A similar psychology is used in designing consumer loyalty programs. As consumers we make purchases with different brands, we spend a lot of time exploring their collections, make efforts to find the perfect fit for ourselves, and invest our hard-earned money. The brand is getting higher sales, consumer base, word-of-mouth marketing, and better profit rates with all this. But what are consumers getting? 

This is where customer rewards programs come into the picture. A brand always wants a loyal customer base which is making purchases from the brand. These loyal customers tend to make 68% more purchases as compared to new customers with higher cart sizes, and frequent purchases. This provides the brand with a good profit and enables them to enjoy better sales and revenue. 

To ensure that these frequent purchases never stop, and the cart size increases, brands have designed these consumer loyalty programs. These loyalty programs reward frequent purchases and customers with some additional benefits and rewards which can vary as per the different brand.

Implementing Loyalty Programs in India

The Indian market is filled with loyal customers and you can just look around your house and find some examples of it. Be it a small item such as tea leaves from one particular brand or clothing. However, for quite some time loyal customers were not given much importance since there was not much competition in the market. 

Now the dynamics have changed and there is a plethora of competitors in the market to offer the same products. Hence, there is a need to retain loyal customers for every brand. Now there is no compulsion for you can be a loyal customer for one brand only, you can be a loyal customer for as many brands as you wish and can enjoy customer rewards programs from all these brands. 

Some of the best examples of consumer loyalty programs that can be observed in the market are listed below.

• Additional Discount Coupons

One of the most commonly seen processes of consumer loyalty programs is offering additional discount coupons. These coupons are not available to every customer and hence are exclusive to loyal customers only. 

This makes the customers feel valued, exclusive, and heard by the brand which pushes the customers to be even more loyal to the brand for the long term. However, brands often add an expiry date over these coupons to ensure a frequent purchase by the customers and a higher cart size as well.

• Early Access to Sales

Loyal customers also get early access to sales which helps them shop for their favorite products with the brand at a great price. Also with this early access comes additional features such as priority delivery, no shipping charges, and other benefits as well. 

All these benefits or rewards are a way of the consumer loyalty program and make the consumer feel special, valued, and appreciated for their efforts shopping with the brand. This helps to ensure that the consumers stay loyal to the brand for the coming time. 

• Premium Membership

Another common approach is offering loyal consumers premium membership and access to exclusive products, limited editions, and other luxury items. This helps the consumers feel valued, and exclusive with the brand. 

Also, it helps to form a bond beyond purchase and helps the consumers to make an emotional bond with the brand for the time to come. This can also be integrated with a small gamification which makes the entire process engaging and interesting for the consumers.

Consumer Loyalty Programs with RewardPort

RewardPort is one of the leading loyalty program company in the country at this point and is dedicated to offer its clients the best possible solutions as per their needs. Here you can get your options customized as per the specific needs of your business and ensure that your customers are getting the best treatment. 

Furthermore, the expert team here offers you excellent expert opinions which helps you make better decisions when it comes to choosing the right customer loyalty programs for your business. It also helps you with the evaluation of the results to ensure you are on the right track and make any necessary changes required in the process to optimize it for better results. 

For more information and details get in touch with the RewardPort team today and ensure you get the best consumer rewards program integrated into your business.