Making of brand loyalty: the examples of loyalty programs

Let’s go back to 1958 to the United States. Not to a realistic version of it but to a dreamy version portrayed in pop culture and through Norman Rockwell’s American dreaming.

Let's take, for example, that you are a 40-year-old man.

You are a Dodge man or a Ford man. Maybe you’re also a man driving a Chevrolet? You find your values ​​in a car brand, and at the same time, the car brand shapes your values.

Let's go back to 2021. 

There aren't only five car brands on the market today; there are sixty.

That's why brand loyalty is harder to achieve today, while at one time, a couple of decades ago, it was taken for granted.

For brands to maintain and increase the brand loyalty of their customers, there has been an explosion of loyalty programs that give a bonus every time you choose just their brand over everyone else's. Almost every retail company has a loyalty program.

However, in that vast sea of ​​loyalty programs, a couple of them stand out, whose example you are free to copy, they won't mind.

Amazon Prime

It may not be a classic loyalty program, but we will put Amazon Prime in this category.

Amazon Prime is paid on an annual basis which makes it different from most loyalty programs, which are free. What do users get?

They can send and receive packages for free the same day or within a day, access to exclusive discounts, access to Amazon video service, as well as access to millions of albums, songs, and playlists.

Prime Day? Customers who have committed to the program get exclusive access to amazing discounts over the two days that Prime Day lasts. Of course, many will say that the deals are better on those two days than on Black Friday.

We put Amazon Prime here for several reasons, but the most important is that it's a paid loyalty program that is, in a way, ingenious. 

When a user chooses where to buy a product, he is offered a handful of retailers, but the fact that he has made a financial commitment to Amazon pushes him towards Amazon. Of course, it doesn't hurt they get a ton of benefits with Prime.

We can freely say that Amazon Prime is a small revolution in loyalty programs. However, because of the success Amazon has achieved with its loyalty program, we don't doubt that other brands will consider incorporating a paid model in the future.

Nike

Admittedly, we also have a slight brand bias here because we adore Nike as a brand, which you’ll probably notice.

They are the masters of branding, and their loyalty program is currently in 2031, while everyone else's is in 2021.

The Nike Membership Program Club loyalty program could be joined through the Nike website or their four applications.

Yes, you read that right, four apps - Nike App, Nike Run Club, Nike Training Club, and SNKRS.

The four principles connect these four applications and the entire Nike loyalty program - exclusivity, community, personalization, and a multichannel approach.

Exclusivity is manifested in exclusive offers, discounts, and opportunities. Yes, it seems obvious, but the amount of these exclusive opportunities is far above any other loyalty program. Exclusive game tickets, Nike events with Nike sponsored athletes, discounts users can’t get anywhere else, as well as products that can only be obtained through these apps.

We'll just say that exclusive and long-awaited models of Jordan sneakers can be purchased exclusively through the SNKRS application - if you are lucky, that is. That tells you enough about Nike’s loyalty program's vital role to the entire sneaker and street fashion culture.

Creating a community lies at the core of the Nike brand. That’s why the loyalty program encourages users to participate and be part of the community. Through the applications, users can free education, access to training with other members, mentoring, and the like. Not to mention the phenomenal copywriting that promotes that idea.

Personalization is, again, one of the things many brands do, but again, nowhere near the level Nike is currently at. From the possibility to create a unique look of sneaker models yourself through the website, to gifts for birthdays and anniversaries, to a personalized Nike Store tailored to the user. Although Nike Corporation is worth nearly $40 billion, they strive to show that they care about each user. And they succeed in that.

The multichannel approach is also not a novelty, it is very similar to the Starbucks program, which we will describe later in the text. In short, the app, the website, the shopping instore - all three are connected and networked to make the shopping and scoring experience as easy as possible.

A loyalty program without error.

Starbucks

The Starbucks loyalty program is so well known that many other brands have entirely copied their model. What's it about?

By purchasing at Starbucks, the users earn stars, which they can later exchange for free drinks, food, or drink supplements. For every dollar they spend, customers get two stars. In addition, free prizes can be received in coffee or tea, with 50 stars collected, special drinks if they contain 150 stars, lunch with 250 stars, and a selection of merchandise (T-shirt, hat, etc.) with 400 stars.

Sounds simple?

The ingenuity comes in the form of integration of shopping and the official Starbucks app. Through the app, users are offered the option of ordering their drink which they instantly pick up at Starbucks of their choice, and through the use of the app, they get extra stars.

In addition, payment for loyalty members is done exclusively with the Starbucks card or application, which additionally obliges members to spend at Starbucks.

Dubravica

All the best practices we have described are related to foreign brands and (primarily) to foreign markets. But it's time to praise a local brand and its loyalty program.

Dubravica only came out with its loyalty program in 2019 and is working on its version of what Starbucks offers. Don’t take that as a critique!

With the Dubravica Card, you get an 11% discount on purchases, with the Loyalty discount for prepaid money transfers to the Dubravica card or application up to 4.5%. Also, the birthday discount is 15% on the entire purchase. Also, an app gives the same benefits if you don’t want to carry another card in your wallet.

While this program is pretty rudimentary, it has excellent potential to grow into something exceptional. 

Of course, if you want a little or more help in creating your loyalty program, feel free to contact us - we have more than enough experience.