A little luxury certainly goes a long way. The most prestigious offering of holidays, fashion, entertainment, and dining highlight a modern life for people. By taking the time to indulge ourselves once every so often, customers can put themselves at the heart of a mutually beneficial transaction.
Just as a large percentage of the population has grown aware of the importance of making room for pampering, so too have the brands and companies. Many labels across a wide range of industries have learned that treating their customers to luxury rewards is a valuable way to get their message across.
Are loyalty schemes beneficial to companies?
The power of rewarding customers through loyalty schemes has proven to be successful in a diverse collection of industries. They carry several significant benefits which can be noted as the following:
Loyalty schemes offer a powerful method of retaining customers. By making rewards available staying with the brand, companies have seen that it pays off to keep their existing customers. Statistics show that loyal customers spend an average of 67% more than new ones.
Customer retention also makes perfect sense in the fact that it costs more in marketing to acquire new customers. While gaining new customers and revenue is always a key endeavor, keeping hold of current customers should always be prioritized.
Companies can achieve this goal by personalizing the shopping experience as much as possible. Marketing departments should always attempt to make the consumer feel valued. By reassuring the customer that they have the ultimate say in their purchases, companies will reap the rewards.
Reward Schemes and the Travel Industry
Frequent flyer schemes are not a new idea; in fact, Texas International Airlines is credited with offering the first scheme in 1979. The core of these schemes is that passengers are rewarded by staying loyal to their chosen airline.
Customers enrolled in the program accumulate points based on the distances traveled on board. The mileage points can then be used to purchase goods and services, or redeemed for money off further air travel. The idea of offering exclusive aircraft lounge access to members of loyalty schemes is key to opening up the promise of luxurious air travel.
Fashion and Loyalty Schemes
Luxury and high-end fashion go hand in hand. It will come as no surprise then, that the luxury fashion industry also employs loyalty programs.
Creating a sense of exclusivity is the most important part of successful loyalty schemes in the fashion industry. Companies offer exclusive gifts of items and stock that may otherwise be unavailable in stores. New designer clothes, and items signed by designers and stars, also represent a strong selling point for luxury reward schemes.
VIP sections of the schemes also provide loyal customers with the chance to experience new products earlier. This reinforcement of the idea of exclusivity is another way that labels can hang onto their customer base, as well as selling the idea that they are cherished and valued.
Rewards in the Gambling Industry
With the gambling industry booming there is no wonder that online casinos and bookmakers are now providing different rewards and bonus options to their players. As various providers are now entering the market, gambling sites need to ensure they attract new players and retain them by offering the best promotions.
Online gambling operators provide a wealth of promotions to appeal to new players. The following is a selection of some of the most successful ways that gaming outlets appeal to new customers.
Also known as a deposit bonus, this feature offers new players with a bonus amount of cash for every deposit they make. It is the most common bonus for attracting players to open new accounts. Not all welcome bonuses are the same, however. Exactly how much the rates are capped and the percentage of bonus available can vary greatly
For example, a 100% bonus with a cap of $100 deposit would mean that if a player put $100 down as a deposit, they would benefit from doubling their balance. A 200% bonus with a $200 cap is less common but has been used as a further way to appeal. This would offer a $200 bonus on a deposit of $100.
A free bet promotion is in effect a no-risk bet. If the player makes a bet and it does not win, the company will refund the amount lost.
The offer is generally used as a way to market the sportsbooks services as an easy way to try out the games on offer.
The refer-a-friend style of scheme is extremely popular among many industries. The idea of rewarding existing customers with a monetary bonus or credit for referring their friends to a product or service has been hugely successful.
Customers acquired through referrals have a 37% higher retention rate, while people referred to by a friend are up to 4 times more likely to make a purchase.
In the gambling industry, friend referral schemes have made a lasting impact. Gamers can earn cash for bets by referring friends. The money is generally released once the refereed friend bets more than a set value.
Rewards and loyalty schemes are essential for companies looking to enhance their luxury image. They provide the exclusivity and customer-focused value that helps bring new customers into the fold while retaining loyal members.