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: Amazon drives up customer loyalty through their paid premium subscription membership Amazon Prime. This allows members unlimited free shipping (on many items) and access to various other content. By charging a flat annual fee, customer return as their benefits of the membership increase with the amount of purchases on the website.
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How they do it: The Home Depot offers a loyalty program called ”Home Depot’s Pro Xtra” to professionals and contractors. It combines bulk-pricing with weekly specials and rebates.
Learn more about The Home Depot →
How they do it: Shell started a loyalty program for its customers called Fuel Rewards®. Members earn 5¢/gallon for every $25 spent inside participating Shell stations.
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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.
Learn more about Lufthansa →
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.
