As a brand, you want high customer retention rates and loyal customers who shop regularly.
And your customers want your brand to recognize them in a personalized way. They want to feel a sense of belonging. They want to know that you understand them.
But loyalty is harder than ever before. In fact, nearly two-thirds of customers say their loyalty is more difficult for retailers to maintain than ever before.
That’s true devotion that a brand can count on.
So, what’s the secret?
The Magic Behind Premium Loyalty
When nearly 100% of your program members shop with you at least once a month, your brand is in a preferred position driven by your most valuable customers.
Your premium loyalty program’s special benefits and perks come from a deep understanding of your customers.
After a brand identifies customer pain points, it addresses them through value-laden benefits that strengthen two-way relationships and form emotional bonds.
When emotional bonds are formed in customers due to an enticing loyalty program, members use it often enough that it becomes part of their daily lives.
This is the magic behind a premium loyalty program: Your members are so devoted to the program, which becomes second nature, that customer retention becomes almost automatic.
That’s why consumers who want these things often belong to premium loyalty programs, which retain members at a high rate because of the instant, relevant benefits they receive on a 24/7/365 basis.
Lululemon Exemplifies the Power of Premium Loyalty
To find a glowing example of premium loyalty (besides Amazon Prime), look no further than Canadian athletic apparel retailer Lululemon Athletica.
Lululemon’s program, which costs $128 annually, awards members a free pair of yoga pants, free expedited shipping for online orders, along with curated events and workout classes.
These are all amazing benefits for members and form an undeniable value proposition.
Outside of the inherent value of the benefits, the great thing about Lululemon’s program truly gives members a sense of community.
That sense of community enthralls members and satisfies a desire for exclusivity as well. Lululemon’s community drives significant engagement among its members and goes a long way toward retaining them for the long run.
Your Best Customers are Your Most Loyal
Preferred customers are your best customers. They are because they shop more, spend more and tell others about your brand.
The more consumers use your premium loyalty program, the more valuable it becomes. When it comes to loyalty programs, there’s a saying around always giving the best of your brand.
A premium loyalty program, by definition, is offering your customers the best your brand has to offer through appealing benefits and personalized communications.
It targets your best customers with the best your brand has to offer.
If nearly 100% of your members buy from you at least once a month, you’ve got a significant leg up on the competition.
The fact that your premium loyalty program is also your customer retention machine makes everyone a winner.
A one-size-fits-all loyalty program doesn’t work anymore because it doesn’t offer real value and make members feel exclusive.
Given the current national and global setting, where the only absolute is uncertainty, brands should make retention their No. 1 priority.
Brands need to address consumers’ individual desires and design loyalty programs that are uniquely identifiable.
Premium Loyalty is the Ultimate Retention Machine
Retaining loyalty program members for the long term is the goal.
And the best way to do that is through a premium loyalty program.
If people use the following terminology to describe your retail loyalty program today, you’re in a winning position:
- True Loyalty
- Emotional connection
- Part of my daily life
This means you have truly listened to your customers and offered them the benefits they want in an attractive premium loyalty program.
Consumers always love to be treated special with special benefits or perks.
Who wouldn’t want to fly first class once in their lives?
In the retail world, you can provide your customers with a first-class experience all the time with a premium loyalty program.
And that will always keep them coming back for more.
For even more interesting premium loyalty statistics and insights, download our free 2020 Premium Loyalty Data Study here.