Favorite Loyalty Programs (Part One)

In Loyalty & CRM by lindsey1 Comment

the best loyalty programs out there include starbucks dsw and chicos they offer rewards quickly

 

While working on Loyalty World USA 2012 I was wondering what companies people believe have the best loyalty programs.  After a little research I found a lot of companies ranging from clothing to food/beverages to electronics.  I will highlight some of them and reveal why they are the best:

Starbucks: Starbucks offers a My Starbucks Reward card that is one of the best loyalty programs out there. Every time you pay with your registered Starbucks card you earn a star. 1 star brings you to the Welcome Level. Here you earn a free drink on your birthday. After earning 5 stars you made it to the Green Level which includes the free birthday drink, syrup or soy milk with no extra charge, free refills on coffee and tea, and a free drink when you buy a pound of coffee beans. After 30 stars in one year you make it to the Gold Level. This includes previous rewards and a free drink every 15 stars, a personalized rewards card, and special offers/coupons by email. This program is known as one of the best because it gives you free stuff and it doesn't take that long to start seeing rewards!

DSW: DSW has a free loyalty program allowing you to earn points every time you spend.  Once you reach 1500 points you receive a $10 certificate.  Now you might say that 1500 points is a lot but get this – you earn 500 points just for signing up! Then you earn 10 points for every $1 you spend on a regularly priced item and 5 points for every $1 you spend on a clearance item.  They also send you a $5 certificate on your birthday.  Still think 1500 points is too hard to achieve?  Well twice a year DSW gives you the opportunity to double your points!  They also offer loyalty program members special offers and free shipping on certain items.  The points expire within 24 months which is a long time to earn as many points as you can! And hey, who doesn't love buying shoes?

Chico's: Chico's offers a Passport Program for their loyal members.  After spending $500 at Chico's (it can take you a day or a 4 four years) – I've seen my mother do it very quickly – you become a Passport member, before that you are a Preliminary Passport Member.  This is a free program with no fees to maintain membership.  As a Preliminary Passport member you are the first to know about any offers, sales, or new collections.  You also receive a preview of new collections via email.  As a Passport member you get birthday bonuses, 5% off every merchandise purchase, double discount days, invitations to parties and events, and private sales.  My mother is a Passport member and I have seen her receive 20% off her entire purchase in addition to all the sales going on at the store!  The membership is free and definitely a great program. 

I found so many companies with great loyalty programs that I decided to break this post up into three parts! Check back later for Parts 2 and 3!

 

For the full lists read: smart money and the street

Comments

  1. Katie Lips

    Interesting article Lindsey and I look forward to parts 2 & 3. I’m particularly intruiged by what makes a good loyalty programme and why we like some better than others. e.g. is it
    - Easier to earn points
    - Better rewards
    - Alternative (to cash) rewards e.g. Birthday Coffee
    - Ability to earn rewards for social actions ( sharing / liking)
    - Location based rewards
    - Rewards from related brands (complimentary rewards and services)
    - Ease of use via a mobile app

    I’m interested in the balance between brand and customer desires and the ‘virtuous cycle’ in loyalty programme design.

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