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This question is about customer loyalty statistics.
What are some different types of loyalty programs?
There are at least five common types of loyalty programs, as well as hybrid programs.
These include:
Point Programs. By far the most common type of program, point programs allows customers to earn points as they spend money. In turn, these points can be used for rewards, typically based on how many are earned.
Spend-Based Programs. This program offers consumers credits based on the amount they spend. While simple, it's been proven to increase transaction amounts and reduce churn rates.
Tiered Programs. Tiered programs encourage higher levels of loyalty by giving customers more rewards as they earn higher tiers. The result is more purchases and highly loyal customers.
Paid Programs. Otherwise known as VIP programs, these exclusive perks require an annual or monthly fee to access. The more exclusive access the program provides, the more successful it will be.
Value-based Programs. Value-based programs allow customers to identify with your brand, especially morally. As an example, imagine a program for military backpacks that donates part of your purchase to U.S. veterans.
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