Customer Loyalty 10#
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.
Examples: Iconic Cases
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.
Learn more about American Express →
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: 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.
Learn more about Starbucks →
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.
Learn more about Amazon Store →
How they do it: Walmart’s Savings Catcher is a customer loyalty initiative which promises customers that they will always get the lowerst prices at the company’s stores. If a customer finds the same product at another location for a lower price, Walmart will credit the difference directly to a special gift card to be redeemed at Walmart.
Learn more about Walmart →
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.
Top Industries
24% of firms using pattern
19% of firms using pattern
5% of firms using pattern
All Industries
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.
Top Co-Occurrences
5 pattern co-occurrences
5 pattern co-occurrences
5 pattern co-occurrences