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In today's hustling marketplace, cultivating customer loyalty is paramount. Starbucks sets an example by leveraging an omnichannel strategy and extending its reward program to customers.
Some established companies with loyalty programs have mastered the art. Statistics show that companies have a 60%–70% chance of closing a deal with an existing client, compared to a 5%–20% chance with a new client.
Many companies have already started using loyalty programs to mark their brands on the top. In this section, we will discuss the 5 best companies with loyalty programs. Let's delve into their strategies and discover what sets them apart.
5 Companies with Great Loyalty Program
1. Marriott Bonvoy - Hospitality Industry
Overview of Marriott Bonvoy loyalty program
Marriott International provides Marriott Bonvoy, with a comprehensive reward program that spans a global network of more than 7,000 hotels. Members can take advantage of several perks, such as complimentary nights, hotel upgrades, and special events.
Points system and rewards for stays at Marriott hotels
Higher tier members receive bonus points, and members receive points for every dollar spent on eligible stays. Redeeming points can get you free nights, hotel upgrades, events, and much more.
Membership tiers and personalized experiences
There are several membership tiers available with Marriott Bonvoy, including Silver, Gold, Platinum, Titanium, and Ambassador. With each grade comes ever greater value privileges like lounge access, late checkout, and personalized service from an ambassador.
Revenue/Growth
With 200 million hotel loyalty members, Marriott Bonvoy accounts for 35% of gross fee income, with the top 1% of members contributing the most.
The program's revenue is significantly boosted by these highly engaged consumers, many of whom use the mobile app, own co-branded credit cards, and participate in other activities such using Homes and Villas by Marriott Bonvoy.
Marriott uses the revenue from its loyalty programme as a key performance indicator to assess the financial effects of its large membership base and engagement tactics.
2. Sephora Beauty Insider- Retail
Sephora's loyalty program
Leading beauty shop Sephora offers a variety of skincare, cosmetics, and fragrance goods, as well as a loyalty program named Sephora Beauty Insider. It provides members with several benefits, including birthday presents, points for purchases, and special access to events.
Tiered membership levels with increasing benefits
Insider, VIB (Very Important Beauty Insider), and Rouge are the three tiers that Beauty Insider offers; each has superior benefits and incentives. With every dollar spent, members accrue points that can be exchanged for goods, freebies, or activities.
Personalized recommendations and exclusive offers
Personalized product recommendations are presented by Sephora based on a member's preferences and past purchases. Birthday presents, early access to new items, and invitations to VIP parties are examples of exclusive offers.
Revenue/Growth
The Sephora Beauty Insider programme has helped the company's sales rise significantly with over 25 million members. They got over 80% of sales from members of its loyalty programme, which resulted in a 25% rise in revenue over the previous year.
3. Delta SkyMiles - Airlines
Introduction to Delta SkyMiles loyalty program
One of the biggest airlines in the world, Delta Air Lines, has a loyalty program identified as Delta SkyMiles. It provides members with a number of advantages, such as upgrades, priority boarding, lounge access, and miles for travel.
Earning miles and redemption options
Miles can be accrued by members for travel, Delta Vacations packages, and qualifying partner transactions. The redemption of miles can be used to purchase flights, and seat preferences.
Exclusive perks for members, such as priority boarding and lounge access
Members of Delta SkyMiles are entitled to free upgrades, priority boarding, and access to Delta Sky Club lounges.
Revenue/Growth
The airline reported that during the third quarter of 2023, the most miles redeemed for award travel in the program's history showed the program's ongoing strength.
At an average revenue per passenger of $32.10, Delta's loyalty program generated $5.5 billion in revenue, placing it second globally after American Airlines.
4. Chase Bank - Ultimate Rewards - Banking
Overview of the Chase Ultimate Rewards program
Travel, gift cards, and cashback are just a few of the redemption options that Chase Bank offers its cardholders. It provides bonus spending categories, sign-up bonuses, and transferable points to Chase's hotel and airline partners.
Earning points through credit card spending and redemption options
Every dollar that is spent on eligible purchases made with Chase credit cards earns points for the cardholder. Points can be transferred to Chase's hotel and airline partners, or redeemed for gift cards, travel, and statement credits.
Unique features like sign-up bonuses and transferable points
In addition to facilitating point transfers across Chase cards and to Chase's airline and hotel partners, Chase provides sign-up bonuses to new members.
Revenue/Growth
Chase disclosed a $330 million charge in the second quarter of 2018 for engaged customers who used their Ultimate Rewards points faster than anticipated. This suggests that the program is generating a lot of engagement and redemptions from loyal customers.
5. NikePlus
Description of Nike's loyalty program
Nike is a popular sportswear and athletic shoe brand worldwide. Members can take advantage of early access to releases, member-only items, and customized training plans, among other features.
Member-exclusive products and early access to releases
Members of NikePlus have access to member-only events, early access to limited-edition releases, and unique products. In addition, they get customized training plans and product recommendations based on their fitness objectives.
Personalized training programs and rewards for fitness goals
NikePlus provides individualized training plans based on the interests and fitness objectives of each member. Members have access to goal-setting tools, progress monitoring, and professional advice from Nike.
Nike also gives its members rewards for hitting fitness benchmarks, such as finishing a predetermined amount of workouts or hitting a predetermined distance target. Discounts on Nike clothing, admission to VIP events, and special products are some examples of rewards.
Revenue/Growth
With the Nike app and SNKR app currently available in over 20 countries and exceeding other channels, contributing to 38% digital growth in Q2, the NikePlus program has been a key factor in Nike's total digital development.
Conclusion
These excellent loyalty programs from Nike, Marriott, Sephora, Delta, and Chase demonstrate the value of building relationships with customers. These companies with loyalty programs raise the bar for loyalty programme success in the current industry by fostering long-term client loyalty and driving revenue growth through personalized experiences and rewards.
