Customers are retained and loyalty assured by providing value beyond the actual product or service itself, i.e., through incentive-based programs. The goal is to increase loyalty by creating an emotional connection or simply rewarding it with special offers. Customers are voluntarily bound to the company, which protects future revenue.
How they do it: The loyalty program My Best Buy allows customers to get rewards for points collected with purchases at Best Buy. In addition My Best Buy members benefit from better purchasing conditions such as free shipping, access to sales and offers and extended return and exchange periods.
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How they do it: American Express lets its credit card customers collect reward points for each spent. By offering money and in-kind rewards for a certain amount of collected reward points, customers are incentivized to use the card more.
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How they do it: Starbucks Rewards is often regarded as one of the best retail loyalty programs in existence. Every $1 spent in a Starbucks will credit 2 ”Stars” to a member’s account, which the users subsequently are able to redeem for free food or beverages.
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How they do it: Lufthansa’s loyalty program ”Miles & More” allows customers to collect status tier and reward points for each flight or spend with the airline. This allows the company to tie frequent flyers to them by offering rewards which can be physical products or flights as well as access to exclusive lounges and priority treatment at the airport.
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How they do it: Airlines such as American Airlines have a big customer loyalty program, rewarding passengers for flying and spending with the airline. Through their loyal behaviour, customers can earn status which allows benefits such as lounge access, upgrades and priority treatment as well as spend loyalty points to purchase physical goods.
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Below, the top industries for the pattern "Customer Loyalty" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 5 firms using this pattern.
Below, the pattern "Customer Loyalty" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
