Create non-monetary programs
Posted: Thu Feb 20, 2025 6:03 am
How does it work? Understanding your customer deeply means understanding their values and sense of worth. Depending on your industry, they may see more sense in non-monetary rewards than discounts.
For whom? Just as any company can offer promotional coupons and discount codes, any company can promote customer loyalty without involving a strictly monetary benefit.
Success story: Patagonia, an eco-friendly mexico mobile database company, realized that its customers wanted more than just points and discounts from a loyalty program. So, in partnership with eBay, it implemented the Common Threads Initiative in late 2011 to help customers resell their highly durable Patagonia clothing through the company's website. The main point to highlight is that this type of customer loyalty program is based on one of the core values of the brand and, naturally, of its audience: concern for sustainability and high-quality products.
Partner with another company
How does it work? Just like in the case we just discussed, strategic partnerships (also known as coalition programs) to build customer loyalty can be super effective for customer retention and growth for your business. Which company would be a good partner? Once again, it all comes down to understanding your customers’ daily lives and their purchasing processes.
For whom? All businesses. For example, if you’re a dog food company, you might partner with a veterinary practice or a boarding kennel to offer co-branded offerings. When you provide your customers with something that’s relevant to them but goes beyond what your business can offer on its own, you’re showing them that you understand and care about their needs. Plus, it helps you expand your network and reach your partners’ customers, too.
Success Story: American Express has a huge partner base across the U.S. Its Plenti program allows consumers to pool earned rewards from multiple retailers such as Macy’s, AT&T, Rite Aid, Enterprise Rent-A-Car, Hulu, and more. Members of the program earn and redeem points for purchases at these stores by connecting their loyalty card to their Plenti account. For example, they can use the points they earn from renting a car from Rent-A-Car to pay their AT&T phone bill. Flexibility is key here.
For whom? Just as any company can offer promotional coupons and discount codes, any company can promote customer loyalty without involving a strictly monetary benefit.
Success story: Patagonia, an eco-friendly mexico mobile database company, realized that its customers wanted more than just points and discounts from a loyalty program. So, in partnership with eBay, it implemented the Common Threads Initiative in late 2011 to help customers resell their highly durable Patagonia clothing through the company's website. The main point to highlight is that this type of customer loyalty program is based on one of the core values of the brand and, naturally, of its audience: concern for sustainability and high-quality products.
Partner with another company
How does it work? Just like in the case we just discussed, strategic partnerships (also known as coalition programs) to build customer loyalty can be super effective for customer retention and growth for your business. Which company would be a good partner? Once again, it all comes down to understanding your customers’ daily lives and their purchasing processes.
For whom? All businesses. For example, if you’re a dog food company, you might partner with a veterinary practice or a boarding kennel to offer co-branded offerings. When you provide your customers with something that’s relevant to them but goes beyond what your business can offer on its own, you’re showing them that you understand and care about their needs. Plus, it helps you expand your network and reach your partners’ customers, too.
Success Story: American Express has a huge partner base across the U.S. Its Plenti program allows consumers to pool earned rewards from multiple retailers such as Macy’s, AT&T, Rite Aid, Enterprise Rent-A-Car, Hulu, and more. Members of the program earn and redeem points for purchases at these stores by connecting their loyalty card to their Plenti account. For example, they can use the points they earn from renting a car from Rent-A-Car to pay their AT&T phone bill. Flexibility is key here.