{"id":158142,"date":"2024-01-06T16:16:31","date_gmt":"2024-01-06T15:16:31","guid":{"rendered":"https:\/\/skeepers.io\/blog\/examples-loyalty-programs-retail-higher-aov\/"},"modified":"2026-02-20T17:36:59","modified_gmt":"2026-02-20T16:36:59","slug":"examples-loyalty-programs-retail-higher-aov","status":"publish","type":"post","link":"https:\/\/skeepers.io\/us\/blog\/examples-loyalty-programs-retail-higher-aov\/","title":{"rendered":"8 examples of retail loyalty programs for a higher average order value"},"content":{"rendered":"<p style=\"text-align: justify;\"><span lang=\"EN-US\" data-contrast=\"auto\"><img decoding=\"async\" style=\"width: 6912px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/8%20examples%20of%20retail%20loyalty%20programs%20for%20a%20higher%20average%20order%20value.png\" alt=\"8 examples of retail loyalty programs for a higher average order value\" width=\"6912\" \/><\/span><\/p>\n<p style=\"text-align: justify;\"><span lang=\"EN-US\" data-contrast=\"auto\">With retail players multiplying their acquisition offers and marketing strategies to attract new business, consumers are spoilt for choice when it comes to shopping. The real challenge is to retain these one-time customers and turn them into loyal advocates of their brand, and make their investment worthwhile.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">To do this, most brands have implemented a loyalty program which can take multiple forms. Incentivizing customers is a great way to encourage\u00a0frequent repeat purchases, but how do you choose the most effective scheme to increase average order value?<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">In this article, we go through 8 examples of the most popular loyalty program types to help you make the best decision for your business.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\"><strong>What is a loyalty program?<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">A loyalty program is a marketing strategy aimed at retaining customers and getting them to continue to shop with or use the services of the brand, leveraging tactics ranging from discounts and cumulating redeemable points through to access to exclusive services or experiences.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.accenture.com\/_acnmedia\/pdf-43\/accenture-strategy-gcpr-customer-loyalty.pdf\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">90%<\/span><\/a><span data-contrast=\"auto\"> of businesses have a loyalty program in place a<\/span><span data-contrast=\"auto\">nd 72% of US adults belong to at least one loyalty scheme (Oracle).\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">In fact, according to research by eMarketer, 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience and over 70% of consumers are more likely to recommend a brand if it has a good loyalty program (Bond).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">There are three main reasons for consumer loyalty to a brand:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Necessity: your brand is the only option<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Accessibility: your products and services are the easier option<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Attraction: you\u2019re offering the best product or experience with consumer satisfaction as your top priority<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Loyalty programs touch on the attractivity of a brand, where the value offered by the scheme creates brand attachment, with the objective that the customer will prefer to shop from this brand over others.\u00a0\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\"><strong>How do loyalty schemes increase average order value?<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The profitability of focusing on customer retention has been proven multiple times, making loyalty an imperative asset for any retail brand.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Here are a few interesting facts:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">It costs 5 times more to acquire a new customer than to retain an existing one<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"none\">43% of customers spend more money<\/span><span data-contrast=\"auto\"> with brands they\u2019re loyal to<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Increasing customer retention rates by 5% can boost profits by 25% to 95%<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">65% of a company\u2019s business comes from existing customers<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">The probability of selling to an existing customer is 60-70%<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The Pareto principle shows that 80% of a brand\u2019s profits come from 20% of its customers<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">When a company achieves a 7% increase in brand loyalty, the customer lifetime value of each client can rise by 85%.<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">With existing customers spending 31% more per purchase, leveraging a loyalty scheme to get them to come back is the preferred strategy. Not only does a loyalty program drive the customer to buy more often, but it also encourages them to buy more products in a single purchase, naturally increasing average order value.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\"><strong>Rewards-based loyalty programs<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">These are the most common and traditional loyalty schemes and are based on transactional rewards. For example, a customer will get $5 off if they acquire 50 points from previous or current purchases. These direct reward systems do have their advantage, as customers know what they need to do to receive their reward, and they exist in multiple formats.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span data-contrast=\"none\">Points-based programs<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Free to join, straightforward to use, this type of scheme is the most common and allows customers to earn points for each purchase, which they can then redeem on their next purchase to receive a discount.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.madewell.com\/madewell-insider-faq.html\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Madewell Insider<\/span><\/a><span data-contrast=\"auto\"> program is an example of a successful fashion points loyalty program:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><img decoding=\"async\" style=\"width: 562px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-12-04-05-97-PM.png\" alt=\"undefined-Sep-06-2022-12-04-05-97-PM\" width=\"562\" \/><\/p>\n<p style=\"text-align: justify;\"><strong><span data-contrast=\"none\">Tiered programs<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Tiered programs encourage customers to spend more to reach a higher level of membership, giving them access to more discounts and benefits. These programs are also transaction-based and usually work with points, but are more tailored towards recognizing high value customers.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><a href=\"https:\/\/www.sephora.com\/profile\/BeautyInsider\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Sephora Beauty Insider<\/span><\/a><span data-contrast=\"auto\"> loyalty program is wildly popular:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"><img decoding=\"async\" style=\"width: 655px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-16-00-45-AM.png\" alt=\"undefined-Sep-06-2022-10-16-00-45-AM\" width=\"655\" \/><\/span><\/p>\n<p><strong><span data-contrast=\"none\">Punch card programs<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The ancestor of modern digital points programs, punch cards are still often used by local food or beauty outlets. They\u2019re based on a paper loyalty card that gets stamped for each purchase and typically results in a free product once a certain number of purchases have been completed.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Although they discontinued the program, Subway was a good example of a punch card system:<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\"><img decoding=\"async\" style=\"width: 434px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-11-58-41-AM.png\" alt=\"undefined-Sep-06-2022-10-11-58-41-AM\" width=\"434\" \/><\/span><\/p>\n<p><strong><span data-contrast=\"none\">Cashback programs<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">These allow loyal customer to earn money back from their purchases, either directly with a brand or through a cashback broker such as <\/span><a href=\"https:\/\/www.quidco.com\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Quidco<\/span><\/a><span data-contrast=\"auto\">. Similar to points-based programs, the customer cumulates a certain amount of cash that they can then reuse in future purchases.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">An example of a cashback loyalty scheme is <\/span><a href=\"https:\/\/www.tesco.com\/clubcard\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Tesco\u2019s Clubcard<\/span><\/a><span data-contrast=\"auto\">:\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-ccp-props=\"{}\"><img decoding=\"async\" style=\"width: 347px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-12-10-91-AM.png\" alt=\"undefined-Sep-06-2022-10-12-10-91-AM\" width=\"347\" \/><\/span><\/p>\n<p style=\"text-align: justify;\"><strong><span data-contrast=\"none\">Coalition programs<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">This is where multiple brands partner to create a standalone program, usually based on points that can then be redeemed across a number of different businesses.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The <\/span><a href=\"https:\/\/www.nectar.com\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Nectar<\/span><\/a><span data-contrast=\"auto\"> scheme is one of the most popular in the UK with over 300 participating partners:\u00a0<\/span><span data-ccp-props=\"{&quot;469777462&quot;:[7271],&quot;469777927&quot;:[0],&quot;469777928&quot;:[1]}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-ccp-props=\"{&quot;469777462&quot;:[7271],&quot;469777927&quot;:[0],&quot;469777928&quot;:[1]}\"><img decoding=\"async\" style=\"width: 655px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-16-34-17-AM.png\" alt=\"undefined-Sep-06-2022-10-16-34-17-AM\" width=\"655\" \/><\/span><span data-contrast=\"auto\">Although there is a direct link between customer loyalty rewards and customer retention, traditional loyalty programs incentivize and reward purchases only, but ignore the social aspect of loyalty. Rewards-based programs lack interactivity between the wider community of consumers (C2C) as the interaction remains merely that of brand-to-customer (B2C).\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">In addition, discounts tend to dilute the value of the brand over time with consumers waiting for the next promotional offer to complete their purchase and in the long run, they may become more \u201cbargain hunters\u201d than loyal customers.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">This one-size-fits-all approach means that customers are all recognized in the same way, with little to no personalization, especially for high-value customers. The modern consumer wants more than that: they want to belong.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\"><strong>Fee-based loyalty programs<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Less common than rewards-based schemes, paid loyalty programs involve customers being able to access benefits or permanent discounts in exchange for an upfront fee, paid monthly or on an annual basis.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">The value of these programs is usually very high to make it worthwhile for subscribers and they can typically access benefits instantly as opposed to waiting for their next purchase. For the company offering this type of loyalty scheme, the return on investment is also very high. <\/span><a href=\"https:\/\/www.mckinsey.com\/business-functions\/growth-marketing-and-sales\/our-insights\/coping-with-the-big-switch-how-paid-loyalty-programs-can-help-bring-consumers-back-to-your-brand\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">McKinsey conducted thorough research<\/span><\/a><span data-contrast=\"auto\"> on paid loyalty programs and found that members of fee-based loyalty programs are 60% more likely to spend more on the brand, whilst free loyalty programs only increase that likelihood by 30%.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Amazon Prime is probably the most popular fee-based loyalty scheme in the market, with customers benefitting from faster and free delivery on certain items, as well as access to media platforms such as video or music content.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"><img decoding=\"async\" style=\"width: 459px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-16-58-76-AM.png\" alt=\"undefined-Sep-06-2022-10-16-58-76-AM\" width=\"459\" \/><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\"><strong>Experience-based loyalty programs<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">With <\/span><a href=\"https:\/\/hbr.org\/1995\/05\/do-rewards-really-create-loyalty\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">rewards-based schemes having a limited impact<\/span><\/a><span data-contrast=\"auto\">, retail &amp; CPG industry leaders have started to invest in an alternative model, based on building emotional loyalty with their customers as opposed to simply relying on transactional loyalty. At TokyWoky, we believe this is the way forward. True loyalty cannot be strictly transactional. Loyalty is emotional, it&#8217;s about being attached to a brand that you love, trust, and that shares your values.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-ccp-props=\"{}\">\u00a0<\/span><span data-contrast=\"auto\">To attract and increase this kind of loyalty, these brands are building an online community where they gather their best customers in a dedicated space where they can come together and interact with one another, powered by a wide range of engaging experiences created by the brand beyond the simple purchase journey and traditional brand-to-consumer marketing strategies.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">By sharing their own experiences with a brand\u2019s products, exchanging thoughts with others and actively participating in the brand\u2019s activities in a dedicated space, community members become more attached to the brand, which encourages them to be loyal, repurchase from the brand and tell their friends. TokyWoky\u2019s clients typically triple their Average Order Value and Customer Lifetime Value.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">A brand community\u2019s primary purpose is to offer engaging experiences that support a long-term loyalty and retention strategy. These experiences, or activities, keep members coming back over time so that they can interact with fellow fans and share their own views, within the realm of the brand, whilst benefitting from a gamified experience.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">There are multiple loyalty-building activities to choose from with a community platform like TokyWoky:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Competitions<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Product tests &amp; reviews<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Customer events<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Discussion boards<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"3\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Gamification\u00a0<\/span><span data-ccp-props=\"{&quot;134233279&quot;:true}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><strong><span data-contrast=\"none\">FeelUnique\u2019s brand community boosts loyalty and revenue:\u00a0<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{}\"><img decoding=\"async\" style=\"width: 487px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-17-17-95-AM.png\" alt=\"undefined-Sep-06-2022-10-17-17-95-AM\" width=\"487\" \/><\/span><\/p>\n<p><strong><span data-contrast=\"none\">Monki enjoys a 4X increase on the conversion rate from their community members:<\/span><\/strong><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><img decoding=\"async\" style=\"width: 479px;\" src=\"https:\/\/1619544.fs1.hubspotusercontent-na1.net\/hubfs\/1619544\/undefined-Sep-06-2022-10-17-31-45-AM.png\" alt=\"undefined-Sep-06-2022-10-17-31-45-AM\" width=\"479\" \/><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #239efb;\">\u00a0<strong>How to choose the best customer loyalty strategy for my retail brand<\/strong>\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">If you\u2019re looking to get started with a loyalty program, your first thought is naturally likely to be a rewards-based scheme. This approach is really effective for brands that want a very large number of consumers to join the program, regardless of their value, and aren\u2019t looking to necessarily personalize the loyalty experience. Increasing AOV with this type of loyalty program will entail offering rewards related to more expensive purchases e.g. a minimum order value or multiple products.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">For brands looking to leverage the potential of their best customers to drive loyalty and advocacy beyond transactions, experience-based loyalty programs impulsed by a brand community, are the best solution to increase AOV, especially if the focus is placed on encouraging customers to pair products together through beauty routines or outfits of the day, as well as posting product reviews.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">Brand communities do not actually need to replace traditional loyalty programs, they\u2019re designed to further retain customers by providing an additional layer of engagement to a brand\u2019s existing loyalty strategy. In fact, TokyWoky\u2019s platform can easily integrate with most loyalty softwares, including custom solutions, to ensure a seamless customer experience.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span data-contrast=\"auto\">As for fee-based loyalty programs, these are not suitable for every brand, although they have a clear impact on customer lifetime value. Beyond the membership cost which is a barrier to entry that will require a lot of proof of value, paid schemes entail quite a bit of resources to manage them from billing to customer service training. As such, they\u2019re best suited to large brands who are able to support these requirements as well as offer benefits that outweigh the fee.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p style=\"text-align: justify; margin-top: 12pt; margin-right: 0cm; margin-bottom: 0cm; padding-left: 0cm;\">\n<p style=\"text-align: justify; margin-top: 12pt; margin-right: 0cm; margin-bottom: 0cm; padding-left: 0cm; font-weight: bold; font-size: 24px;\">If you want to learn more about the TokyWoky platform and the community building process, <a href=\"mailto:nora@tokywoky.com\" rel=\"noopener\">get in touch with our team<\/a>. We\u2019d love to help you choose the best strategy for your brand community!<\/p>\n<p style=\"text-align: justify; margin-top: 12pt; margin-right: 0cm; margin-bottom: 0cm; padding-left: 0cm; font-size: 12px; font-weight: normal;\"><a href=\"https:\/\/www.canva.com\" rel=\"noopener\" target=\"_blank\">Image credit<\/a><\/p>\n<p style=\"text-align: justify; margin-top: 12pt; margin-right: 0cm; margin-bottom: 0cm; padding-left: 0cm; font-weight: bold; font-size: 24px;\">\n<p style=\"text-align: justify; margin-top: 12pt; margin-right: 0cm; margin-bottom: 0cm; padding-left: 0cm; font-weight: bold; font-size: 24px;\">\n<p style=\"font-weight: bold; font-size: 20px;\">\n<p style=\"font-weight: bold; font-size: 20px;\">\n","protected":false},"excerpt":{"rendered":"<p>With retail players multiplying their acquisition offers and marketing strategies to attract new business, consumers are spoilt for choice when it comes to shopping. The real challenge is to retain these one-time customers and turn them into loyal advocates of their brand, and make their investment worthwhile.\u00a0\u00a0<\/p>\n","protected":false},"author":69,"featured_media":150360,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4133],"tags":[],"case_study_solution":[],"landing_page_cat":[],"post_folder":[],"class_list":["post-158142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-brand-communities-us"],"acf":[],"_links":{"self":[{"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/posts\/158142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/users\/69"}],"replies":[{"embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/comments?post=158142"}],"version-history":[{"count":0,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/posts\/158142\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/media\/150360"}],"wp:attachment":[{"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/media?parent=158142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/categories?post=158142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/tags?post=158142"},{"taxonomy":"case_study_solution","embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/case_study_solution?post=158142"},{"taxonomy":"landing_page_cat","embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/landing_page_cat?post=158142"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/skeepers.io\/us\/wp-json\/wp\/v2\/post_folder?post=158142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}