Hackernoon logoYou Need A Tech Loyalty Program: Here Are 5 Efficient Use Cases To Spark New Ideas by@shahmeer

You Need A Tech Loyalty Program: Here Are 5 Efficient Use Cases To Spark New Ideas

Author profile picture

@shahmeerShahmeer Khan

Tech writer sharing insights in fun and informative way. Checkout more: https://invozone.com/

Nowadays, business niches are so crowded. It is a business priority not only to attract clients but also to ensure that the customer's Lifetime Value (LTV) is steadily growing.

The most efficient methods have already become classics. These include a system of accumulating points (for purchases or invited friends), transitions to different levels of loyalty, paid programs, and promotions in social networks.

Right now, reward systems are gaining popularity faster than ever since the battle for users in the online market is becoming more and more intense. 2020 became the "Lockdown" year, set the fire under offline-focused companies, and forced entrepreneurs to find the new answer to the question “How can I attract clients?”

Fortunately, digital marketing tools allow every business to get valuable insights about their target audience effortlessly, and find a personalized approach to every customer. 

Of course, an individual approach to a client and loyalty programs have long been key elements of retention strategies in the majority of companies. For instance, the world-famous Starbucks coffee chain is famous not only for its coffee but also for how the company manages to take into account the interests and personal characteristics of each regular customer. 

No wonder they became leaders among restaurant loyalty apps; The Manifest study showed that 48% of mobile users regularly use Starbucks Rewards. Statistics are not only on the side of Starbucks but also on the side of the loyalty program in general: retention is still 5x cheaper than acquisition

In addition, an efficient retention strategy increases the company's profit up to 95%, because regular customers are ready to spend 67% more on their favorite purchases than new ones. Therefore, in this article, you’ll learn all about the best loyalty programs in the most innovative and fast-growing sector - technology companies.

1. Amazon

Even for such market giants as Amazon, competition plays a significant role and motivates them to create profitable loyalty programs for customers. In the case of this global eCommerce and entertainment platform, this is the unique Amazon Prime paid membership. 

Amazon Prime offers users the ability to receive free shipping, family loyalty programs, exclusive and discount offers, free video, and music subscriptions, and more. Besides, members of this privileged club who have an Amazon Pay ICICI credit card receive a 5% discount on purchases. In addition to the basic annual or monthly membership, there are also beneficial options for students (Prime Student).

It may seem unfair to many that all these bonuses are available not for long-term loyal users of the platform, but a cash payment, but this is what allows the company to make more profitable offers and maintain the exclusivity of its offer.

2. PayPal

PayPal is a well-known company for everyone who has ever thought about online purchases and money transactions to other countries. They found a good way to keep clients loyal with the earning rewards system. 

Customers can get points, miles, and cashback every time they pay with a credit card through the PayPal platform. For an easy start, they should link a credit card to the PayPal account. After the second half of 2020, the service of making purchases with loyalty points from Paypal merchants is also available for cardholders who are part of the FIS Premium Payback loyalty system. 

Thus, the loyalty program helps at the same time to strengthen the commitment of users to PayPal, increase the audience of merchants, and open up new functionality for FIS Premium Payback.

3.  Uber Eats

Well, what's the point of technology if it doesn't help you eat well? Uber Eats also offers an in-app points system for users but recently announced the ability to earn points at a specific restaurant in the app.

So, customers get the opportunity to become not just loyal users of the application, but also receive bonuses, the size of which is determined by the representatives of the restaurant. 

So far, the program is not available everywhere, but soon users around the world will be able to virtually become regulars in their favorite cafe, without leaving the couch at home. 

Also, the opportunity to receive your order 10 minutes earlier than the expected delivery time is already available in some countries for a small additional fee.

4.  Indacoin

The market that not only did not suffer losses but also took off to a new level this year is cryptocurrencies. If you want to dive into this space with a double benefit, leading fiat-to-crypto exchange Indacoin is a good option. Their loyalty program is really entertaining. 

So there are four loyalty ranks (Earth, Astronaut, Moon, Alien), which depend on how many bitcoins you bought through the platform and how many INDA tokens cashback you received for this. 

Becoming an Alien, you can make purchases in bitcoins with 0% fees, as long as you have the required amount of INDA tokens in your wallet. It's tricky but worth it!

5.  DropBox

DropBox is a file hosting known since 2007, which includes personal cloud storage, file synchronization, and client software. Our century is in every sense overloaded with information that needs to be stored somewhere. 

Cloud storage effectively solves this problem, but even there you need to pay extra for additional space. Everything ingenious is simple, like the DropBox referral program. 

Each user of the platform receives his referral link, which he can share with a friend, and if he uses it, the client will receive additional space for storing his files for free. This technique almost doubled the audience of the project.

So, Do I Really Need A Loyalty Program?

Loyalty programs are becoming a fundamental tool for attracting customer attention in almost all business sectors. Nevertheless, some companies do not see the point in loyalty programs but still stay afloat. 

For example, Apple is such a phenomenon. The corporation produces more and more expensive products every year without providing any bonuses to its regular customers, but its popularity is only growing. Most likely this is because Apple products are primarily a sign of elitism and innovation, on which discounts are not supposed to.

Perhaps now you know how to spend time with delicious food, new entertainment, and hobbies, while getting discounts and bonuses, having only access to the Internet. 

Loyalty programs for different brands are not particularly original, but they consistently strengthen the connection with consumers. So, according to statistics, more than 60% of customers change their attitude towards the company for the better when they learn that they can earn additional bonuses, even if they are small. And we think that your attitude is going to change as well!

Tags

Join Hacker Noon

Create your free account to unlock your custom reading experience.