There are three broad type of loyalty programs supported by Hashtag Loyalty:
Points programs are among the most popular types of customer loyalty programs. They're useful because points are easy to earn and easy to redeem.
Customer earns points for performing actions (Eg. Making a purchase OR Visiting a store OR Referring a friend) which can be redeemed in the future for credit toward their next purchase, discounted services, or giveaways.
Cash back programs are like points programs.
A customer spends a certain amount to get a certain amount back usually in “cash” that can be used exclusively at a retailer. They’re very easy to understand and maintain. Since the concept is basically the same as points programs, there’s not much more to explain.
Originally, companies would give members actual paper cards that were “punched” when they bought items or services. After the customer filled out the card, it could be redeemed for a reward. Do you remember going to the local deli and having the cashier punch a little circle in your paper card? After about nine or so punches, you would get a free sandwich.
While some small mom and pop shops still use actual paper cards, many brands have upgraded to electronic versions of them.
Both Points & Cashback programs could be additionally run as a tiered program.
Tiered loyalty programs offer different rewards based on milestones that members cross. Typically, these milestones are measured in Rupees. The more a member spends, the higher the tier he or she enters.
These milestones can be a great way to increase member engagement because they add levels of exclusivity to the program. Everyone gets the same thing with traditional points programs. In tiered programs, it becomes a status thing.
With each tier comes better benefits. This adds a gamification element. Gamification incorporates addictive elements originally designed for video games into the loyalty program. Things like progress bars and milestones keep customers coming back over and over to earn points. Simply put, they make the program fun. And easy to understand.
Also, since the higher levels provide better benefits, these programs by nature make your most valuable customers feel the most valuable. They know they’re getting rewards not available to everyone.
Tiered programs on Hashtag Loyalty can be run as part of either a Points or Cashback program, where the Points/Cashback earned by the customer and incentives available to redeem are defined by the customer’s tier or ‘status’ with the brand