Uncovering the Types of Customer Loyalty Programs

Many offline and online companies are utilising loyalty programs. Loyalty programs are tools implemented to reward buying behavior. As a business owner, you have to know the different forms of loyalty programs so you can use one model or two that will work out for you.

Here are the different types of customer loyalty programs:

Point Program

This is the most common loyalty program in the world. It is also the simplest one. Point program is based on a simple principle – you spend more to get more. This type of program will allow the customers to make purchases and avail of discounts or other special treats. Point program will work toward gathering a certain amount of points in order to redeem a specific reward.

Spend Program

In this program, customers will get credits for the amount that they spend in your store. This program is also easy to understand and maintain. Many businesses already proved this to be an effective way of increasing transaction amounts and reducing churn rate.

Tiered Program

The tiered program features the right balance between desirable and attainable rewards. This program is also easy to understand – it will reward initial loyalty as well as encourage more purchases. When you look at it closely, a tiered program is based on the different levels of loyalty.

When customers purchase something, they get points. Just like any loyalty program, the more points the customers acquire, the higher the level they will reach. If they reach a certain level, there will be more rewards available to them.

Game Program

You can also think of something interactive and engaging – game program. This will turn the loyalty program into a game to encourage repeat purchases. It will also strengthen the brand image and make it more entertaining and interesting.

Value-based Program

This type of program will encourage more brand ambassadors. It is not like a point program because it focuses on the value. If you choose this type of program, you will connect with your customers on a deeper level.


The paid-program requires the customers to pay a monthly or annual fee to join your VIP member club. As a member, the customer will get t to enjoy special services, discounts, and other unique opportunities. One example is Brand Bucks. It provides various opportunities for the customers, which ultimately translates to greater savings.

Partnered Program

Partnered programs are effective because it offers customers with more opportunities. It also builds new business relationships, which can help in the growth of your business. By partnering, you show how you care about the customer needs.

Hybrid Loyalty Programs

Lastly, there is the hybrid loyalty program. This is the amalgamation of more than one type of loyalty systems. As a business owner, you can merge two different programs. At the end of the day, these programs will encourage customers to spend more because it entails more rewards.


Now that you know the different types of customer loyalty programs, you can make an informed decision about what model to use. At the end of the day, the goal here is customer retention, which can boost sales. You have to prioritise this because it is less expensive retaining a customer than acquiring a new one.

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