Over time, customer loyalty programs have evolved. Your brand’s values and goals must be better understood, like your customer’s values, and prioritized to lure them into your VIP programs. On the flip side, your VIP incentive programs will only succeed if you know how to influence your customers.
You must understand that influencing your customers doesn’t happen overnight, but that can be made possible with careful planning and implementing VIP programs.
As reported, 94% of Americans would like to take advantage of exclusivity ahead, like the VIP programs.
It is becoming more popular since businesses realize the importance of incentive marketing. These programs make valued customers feel special, leading to customer acquisition and retention success. In this blog, we’ll look into the brands that have effectively incorporated VIP programs, where you can be inspired and jot down your business.
Let’s dive in.
1. Starbucks Rewards:
As the name implies, my Starbucks reward has officially changed to Starbucks Rewards on this fresh 2023, the VIP program, a famous coffee brand, introduced to reward its members with stars for every purchase they make.
The more stars you earn, the more rewards you can get!
Yes! You can choose the payment option that will give you more points. These stars can be redeemed with free coffee, food, and exclusive benefits like faster ordering and pick-up for VIP members.
Starbucks has launched an innovative VIP reward system with three levels: Welcome, Green, and Gold. It’s easy for customers to join and progress to the Welcome tier. It’s the first loyalty program that can be accessed through a mobile app. It’s useful for people with busy schedules.
2. Sephora Beauty Insider:
It shouldn’t be a surprise that Sephora’s Beauty Insider VIP program is a highly popular in-store and online feature. With an impressive 25 million members, this number clearly states how Sephora is committed to providing personalized experiences to each of its customers.
The Rouge members, who are in the top tier, contribute significantly to the company’s sales and growth, as confirmed by Stanley.
Sephora’s VIP program has three tiers: Insiders, VIPs, and Rogues. Customers are attracted to loyalty programs that provide benefits and the opportunity to advance, which is no secret.
Sephora’s mastery of gamification has proven to be a highly effective tool in driving customer engagement and propelling them toward the next membership tier. The brand thoroughly understands customer behavior psychology by highlighting the exclusive rewards that members receive through social media comments.
3. H&M Loyalty Program
Without a doubt, H&M is a multinational clothing retailer overgrowing in the fast-fashion industry with dazzling party collections to quintessential basic and functional wear for women, men, children, and every season.
The brand added the VIP program to its fashion chain to make it more attractive for customers to enjoy the exclusive and experimental bonus.
Customers can take advantage of the VIP membership by signing up for free. The brand has followed the point-based reward system, i.e., customers earn 1 point for every $1 they spend, whether online or in-store.
In addition to the interesting feature, H&M has partnered with Klarna, allowing customers to pay in installments or up to 30 days later. They also give exclusive benefits and offers to encourage customer loyalty, using psychological tactics and gamification to entice shoppers to return.
Loyal customers can also access the exclusive collaboration collection with world-renowned designers early.
4. Chipotle Rewards
Following Starbucks, Chipotle Mexican Grill has taken up the VIP program in the scale for customer engagement and retention strategy for their brand. This customer loyalty program works on a point system, and the customers earn 10 points for every $1 spent in restaurants or online.
The Chipotle reward program has been boosted to 24 million members and is marked as one of the fastest-growing reward programs in the restaurant industry’s history. According to the chain, gamification has 74% better customer engagement.
The brand has added a new program to pull their customer interest in gamification with the extra personalized challenge to earn extra points to collect the “Achievement Badge.”
With the digital sale marked as $2 billion, chipotle has rolled out an extra feature of the VIP program to help members to earn free food faster.
5. Lego VIP
Similar to other brands’ VIP programs, Lego VIP also offers rewards as point based system. The points can be earned by purchasing the Lego toys by logging in to the website, completing the company survey, or following their social media account.
The Lego VIP program rewards can be redeemed in exchange for discounts or other benefits. It might sound simple, but the VIP program member receives exclusive perks. They get access to Lego sets early, enjoy many gifts, and receive monthly promotions and special offers.
6. Marriott’s Marriott Bonvoy
The point-based program is the most popular VIP program, as most brands follow it because it is easy to earn and redeem.
Customers can redeem the points on their next purchase with the brand, either it can be for discounts or giveaways. These VIP points are also easy to track; customers can do it online via a mobile app or loyalty card.
Marriott Bonvoy might look the same as other hotel VIP programs, but when you look closely into it, they have more tiers incorporated with exclusive benefits.
This proves that Marriott has taken gamification to the next level, making their customers engage better and also retain them from their competitors with the ultimate goal of making them reach the “ambassador elite.”
VIP program customers can earn points for various activities, including hotel stays, excursions, activities, and purchases made with the Marriott Bonvoy credit card. These collected points can be used to enjoy free hotel nights, meals, and other benefits.
7. Dose of Colors The Daily Dose Rewards
In the realm of online, there is plenty of beauty brands, from big brands like Sephora to smaller niche brands. These beauty brands strive to attract, engage and retain their loyal customers. In that way VIP program is an excellent way to do so.
Dose of Color is an American-based cruelty-free cosmetics company that is user-friendly, functional, and always on trend with the great VIP program.
The brand added an about us page with a small note from the founder and showcased the face behind this amazing product. Furthermore, they share their brand value in a creative acrostic poem style.
The Daily Dose reward program comes up with a 3-tier program – babe, squad, and VIP. The customer earns four doses for every $1 spent. If the customer is on the babe tier, they earn four doses for every $1 spent.
The Daily Dose reward program is easy and free to join, and customers can earn their doses immediately with no limit!
Customers can earn more doses by sharing and following the brand’s social handles. Moreover, the Dose of Colors offers extra points to the customers on their birthday only when they update their profile 30 days before the date.
Customers can redeem the points on their purchases and enjoy all perks and get access to the exclusive benefits of the brand.
8. Bank of America Preferred Rewards Program
Many financial institutions offer incentive programs to loyal customers to encourage them to do more business with their bank. One of the banks offering such rewards to their customers is Bank of America, which has joined the club by adding a “Preferred reward program” concept.
Bank of America, Preferred Reward program encourages customers to increase their assets holdings with Bank of America or Merrill Investments. To qualify for the program, customers should hold $20,000 combined deposits in Bank of America or Merrill Investment for over three months.
The preferred rewards VIP program offers eligible customers an increased interest rate on deposit accounts, credit card rewards, and reduced fees across Bank of America and Merrill Investment services.
The Bank of America has a four-tier preferred reward VIP membership: Gold, Platinum, Platinum Honors, and Diamond. All the benefits VIP program members must hold the qualifying combined balance in their account for the qualifying increase to the next tier.
If the balance drop below the preferred reward tier level you have achieved, the bank gives you 12 months and +3 months grace time to increase the balance amount to stay on that particular tier; else, you’ll be moved to the lower tier.
9. E.L.F Beauty Squad VIP Program
The cruelty-free cosmetics brand, e.l.f., has joined the VIP programs like other brands. In terms of encouraging its loyal customers, the brand has also followed the point-based system to make it simple for its customers to earn and redeem.
The brand offers its customers three tiers of loyalty programs: Fan, Pro, and Icon. Offering these tiering programs can help keep the customers engaged and increase their interest in gamification.
The more they play, the more they earn!
Beauty squad members earn points for shopping and engaging with e.l.f cosmetics by connecting on social media, writing a review signing up for email or text, and browsing on e.l.f. cosmetics.com, and more!
This clearly shows how the brand has powerfully linked gamification and customer engagement to stay at the top of their minds.
10. DSW VIP Program
It’s no surprise that tiered programs work similarly to video games, where customers naturally progress to the next level after completing one. These gamification features align perfectly with DSW’s brand marketing strategy of fostering exclusivity for loyal customers.
DSW, also known as Designer Shoe Warehouse, offers its customers a wide variety of cost-effective footwear options. However, the brand encourages customers to enroll in the complimentary DSW VIP program, which helps elevate lower-tier customers to the next level of purchasing.
DSW offers a customer loyalty program with three tiers: VIP Club (free to join), VIP Gold (requires an annual spend of $200), and VIP Elite (requires an annual spend of $500). The core element of the VIP programs remains the typical “the more you buy, the more points” concept, wherein club and gold members earn one point for every dollar spent, while elite members earn two points for every dollar spent.
Displaying VIP program information clearly and concisely is an effective way to help customers understand the value of each program tier. Encouraging them to strive for higher tiers and reap the benefits they offer should be a priority.
The Final Word
Maintaining a consistent customer experience throughout the entire customer lifecycle journey can significantly enhance customer loyalty toward the brand. Successful VIP programs reflect a brand’s ability to show gratitude toward its customers and provide them with personalized experiences. To achieve this, brands need to deeply understand what their customer’s value and how they prefer to receive it.
Brands that excel in this aspect can stand out among their competitors and build a community of loyal advocates who can contribute to their growth, exposure, and stronger customer relationships.
