What is a paid loyalty program?

Paid loyalty, or fee-based loyalty programs, give customers immediate and ongoing benefits for a participation fee. These fees can be recurring or one time. Paid programs may need to require proof-of-value to get signups, but the business can gain higher customer value from members. The most common example of a paid loyalty program is Amazon Prime.

How can a loyalty program improve customer experience?

For brands struggling to provide deep discounts, a points-based rewards system that provides customers with upgrades, freebies, exclusive offers, or early access to products could be a more cost-effective option to build customer relationships. Loyalty programs can also provide more value to customers by establishing a tiered program.

What are the different types of customer loyalty programs?

Points programs are among the most popular types of customer loyalty programs. They are useful because points are easy to earn and easy to redeem. Customers can redeem points for credit toward their next purchase, discounted services or giveaways. Customers can track points programs with a loyalty card, online account or mobile app.