Success Stories: Digital Loyalty Programmes in Retail Brands

In today’s hyper-competitive market, retailers in particular are under pressure to boost customer retention to ensure long-term, dependable revenue.

Thanks to the contemporary ubiquity of smartphones and ecommerce, digital loyalty programmes have emerged as one of the most effective methods of ensuring customer loyalty and repeat purchases.

So, what does it take for a retailer to build and launch a successful digital loyalty scheme? And what kind of features do the best apps have? This article will provide examples of a few key use cases, showcasing how some major retailers leveraged digital loyalty programmes to retain devoted consumers. Read on to learn more.

What is a Loyalty Programme?

Before we look at specific examples, we need to first consider what some of the key features of loyalty programmes are in the first place.

In brief, a loyalty programme is a customer loyalty scheme designed to incentivise the public into purchasing your products repeatedly. These incentives take the form of enticing benefits designed to encourage consumers to remain loyal to one retailer in particular.

Indeed, recent research shows that over 83% of consumers claim that a good loyalty programme will influence their decision to buy from a brand again. Thus, loyalty programmes are ideal for guaranteeing dependable, long-term revenue — particularly when it comes to retailers.

Retail Loyalty Programme Examples

With all this in mind, let's examine some popular retailers that have already developed successful loyalty programmes of their own.

IKEA

Swedish furniture retailer IKEA’s mobile loyalty programme, IKEA Family, offers customers a range of perks and discounts. But it also takes advantage of something the brand is peripherally known for, its food.

Yes, IKEA is well-known for its in-store cafeterias, where busy shoppers can grab a bite to eat if so inclined. IKEA Family has taken advantage of this by integrating its cafeteria into its reward scheme. IKEA shoppers can redeem the points they earn while shopping and spend them on free hot drinks or discounted meals.

Other tantalising perks include special member-only events (such as free home furnishing workshops and previews of new ranges) and partial refunds if a recently purchased item is discounted in-store within 90 days.

The Body Shop

The UK cosmetics, skincare, and perfume company is a great example of a retailer that has leveraged its loyalty scheme to align its ESG goals and values with those of its target consumer base.

Through The Body Shop’s own loyalty programme, customers can access a number of perks by accruing points through purchasing, such as exclusive events and birthday presents, as well as discounts and other special offers.

However, upon earning over 100 points, the brand gives its customers the option to donate the £10 value of their score to the charity of their choice. In this way, loyalty to the brand has a knock-on effect of supporting the social cause of the member’s choice — thus boosting retention via positive emotional association.

The North Face

The North Face is a retailer of outdoor wear and other essential camping/hiking equipment. It already boasts a fanatically loyal customer base.

However, the brand has leveraged its digital loyalty programme, XPLR Pass, to boost retention. This loyalty programme follows a points-based model, with purchases accruing points consumers can then spend on exclusive perks.

These benefits include invitations to annual member-only XPLR Pass Trail Days, events like group hikes, activities, lunch, merchandise, and talks from special guest speakers.

GameStop

The American video games retailer GameStop has launched its loyalty scheme, GameStop PowerUp Rewards Pro. This tier-based paid loyalty program sees members pay a $14.99 yearly fee to access a range of perks, starting with:

• $5 monthly reward coupon
• $10 welcome bonus, double points
• 2% back for each purchase in rewards points.

Members (Pros) can redeem 1,000 points for $1 in rewards — potentially earning up to $150 in annual value. In addition, members are also entitled to a free subscription to the gaming magazine GameInformer.

Walmart

Walmart+ is the supermarket chain’s subscription-based loyalty programme. For $12.95 per month or $98 per year, the retailer promises members that it can save them more than $1,300 annually. Money-saving perks on offer to members include:

• Contact-free checkout
• 10 cents per gallon saved at Walmart gas stations
• Early access to Black Friday sales and product launches
• 6 months free of Spotify premium
• Free delivery of groceries

Future Platforms: Loyalty Programme Experts

Here at Future Platforms, we know how to create loyalty programmes that customers respond to and provide a measurable return on investment for the brands that adopt them.

Our experienced team of developers and designers will work with you to create and launch a digital loyalty programme that your customers won't be able to live without. You can then take steps to find out what features they want most and find the best ways to provide them with personalised perks to boost retention.

So, if you'd like to know more about our services, contact our team today.