Every business should strive to create a loyal customer base. Why? Well, the answer is obvious. Customers convert and spend more money with brands that they feel loyal to. They tell their friends and family about the positive experiences that they have had with these brands. This drives word-of- mouth marketing through the roof.

Don’t underestimate the power of word-of-mouth marketing. People trust their friends and therefore will be more receptive when they wax lyrical about a product that they purchased or a service that they have used. In what can be argued as a cynical consumer landscape, one where most of us are at least vaguely aware of how digital marketing gets you to put your hand in your pocket, the power of that personal admission of consumer satisfaction cannot be underestimated. 

Think of it this way, how often do you check the user reviews before buying something online? This is the digital version of word-of-mouth. Businesses that succeed understand this. They put the customer first. They invest in technology like a receipt OCR API which streamlines, bolsters, and improves the customer experience. And, most importantly, they invest much time and effort in cultivating loyalty. 

Now, rather than list all the different types of customer loyalty programs (something we’ve done before), we thought that we’d show you a few examples of the best and most innovative customer loyalty programs to help you get ideas for designing your own.

Interested in learning more? Keep reading.

Starbucks Loyalty Rewards

Let’s start with an oldie but a goodie. It’s common now for brands to build mobile apps to manage their loyalty programs, but when Starbucks launched its My Starbucks app this was a new idea. 

Its success changed loyal rewards programs forever. No longer did customers have to carry a little card around, getting it stamped every time they bought a coffee. All they needed to do was to pay for their coffee using the app which customer transferred money into. 

By centralizing customer transactions Starbucks created a goldmine of data. They were able to gain valuable insights into customer behaviour. They could discover which shop customers visit, identify seasonal drinks favourites, and learn the value of loyalty. All with a simple app. 

Is it any wonder that the model was copied by competing coffee shops? 

Could this be any better? Well, if you used a receipt parser API, like the one developed by Tabscanner, you have yet another way of keeping track of how much and often you buy that essential Pumpkin Spiced Latte at Starbucks! 

LEGO VIP Rewards

One of the world’s most popular toy brands, LEGO has been a staple for kids and adults alike for generations. They work with CrowdTwist Loyalty and Engagement to provide discounts for high spending customers, encouraging them to choose the rewards they want from the Passion Points they’ve acquired.

By building a program based on inclusion, LEGO was able to reward their members in a meaningful way. Their VIP rewards include: 

  • Bespoke rewards that they can’t get anywhere else
  • Tailored rewards that were only available to certain customers
  • Mobile wallet rewards that seamlessly connected in-store and online purchases
  • Bonus point rewards that gave members double or triple points for specific SKUs

With different ways to earn and redeem the rewards that appeal to customers, LEGO has made everyone feel like a VIP. Need further proof that the program is working? LEGO recently received a Loyalty360 Platinum award for Incentive and Reward Design.

What’s more when consumers employ receipt parsing technology, with the data insights gleaned, they can easily budget and manage their spending. 

Foot Locker’s Relaunched Customer Loyalty Program

With six separate brands under the Foot Locker umbrella: Foot Locker Kids, Foot Locker Lady, Foot Locker, Footaction, SIX:02 Runner’s Point Sidestep, Champs Sport Eastbay, the brand traditionally had six separate loyalty programs.

However, this all changed when Foot Locker united all brands under one three-tiered umbrella program – FLX. Members can redeem points for Head Starts (reservation slots for upcoming product releases), something that has proven to be highly popular amongst brand loyalists.

Moreover, customers have a huge amount of flexibility with how they spend their points, according to preferences like discounts, exclusive merchandise, partner rewards or charity donations. FLX has allowed customers to deepen its connections with customers by nurturing member communities. 

This has allowed Foot Locker to amass more than 11 million members in the US alone. As we move to a more digital world, expect Foot Locker to incorporate more and more tech innovations, like receipt parsing to further bolster their customer loyalty programs. 

Disney Movie Insiders Leverage Data 

Anyone who knows anything about the movies, knows that Disney owns the most profitable franchises in movie history – Star Wars, Marvel, and let’s not forget Pixar. But, as impressive as this sounds, what’s just as admirable is the entertainment juggernaut’s revamped customer loyalty program to better engage with members through different channels to promote the brand and capture data. 

Disney Movie Insiders facilitates direct contact between the company and its customers, generating buzz around upcoming releases whilst offering rewards for purchases. The customer loyalty program tracks and encourages viewership whilst building member profiles using data like viewing preferences, movie interests and household demographics.

Not only that, but Disney Movie Insiders has also expanded its network, making it easier for customers to earn points and rewards. As many of us have swapped night’s out at the cinema for staying at home with popcorn, Disney has made sure that members are rewarded with exclusive opportunities, like bespoke merchandise and the chance to be the first to watch new releases – something that has pleased many customers.

What could make this better? Maybe integrating receipt OCR API on the digital receipts of all purchases could add vital data insights that allow Disney to further tailor its services to customers.

The Evolution of Loyalty Programs

It’s clear that big name brands are already utilizing customer loyalty programs to attract and connect with customers in a personal and tailored way. This is likely to persist in the months and years to come with more and more brands designing better and better ways to reach and influence their customers through rewards. 

The only question we have for you is how effective is your customer loyalty program?