Sticky Tips&Tricks

💡 Loyalty & Referrals Tips & Tricks

  • 30 November 2022
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💡 Loyalty & Referrals Tips & Tricks
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Hey, everyone! 

Where are you in your Loyalty & Referrals journey?

🥳 Are you launching your Loyalty program?

💝 Or do you need to get back to the basics and revamp what you offer your customers? 


#Tip 1 is all about the makings of a successful loyalty program


First, figure out the program structure. Your goal is to create a Loyalty program that resonates with shoppers while also targeting larger brand goals. It doesn’t need to be complicated. Choose 4 to 6 campaigns that align with your objectives: reward for signing up, leaving a review, and adding your birthday. From here, you’ll need to assign these campaigns value — what shoppers receive in exchange for these actions.

Your program reward structure should be obtainable and easy to grasp. Customers need to understand program mechanics and reward options when they land on your rewards page. Why? 


💡 Simplicity breaks down customer hesitation and drives program engagement


Some questions that will help you in this process:

  • What rewards and perks will entice different groups of shoppers?
  • How do you plan to engage different customer segments about your program launch?
  • Do your VIP tier names resonate with your target audience?
  • How will you encourage shoppers to “level up” their VIP tier?
  • Which reward or perk is best to tease during your pre-launch stages?
  • After the initial launch, how can you launch timely campaigns to encourage sign-ups from new shoppers?

Here is an example of how Lyres considers this and implements it in a loyalty program - the Frequent Sipper’s Club. 🍸

Lyres’ loyal customers, the frequent Sippers VIPs, are not only redeeming points more often and spending more, but they’re also increasing the brand’s followers & actively engaging on social channels.

With an engaging loyalty program, Lyres’ average order value is up 60%, revenue is up 27%, and loyalty members have a 30% higher purchase rate compared to non-members.


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#Tip 2: Increase customer lifetime value with the Punch card campaign



Punch Card is a purchase-based earning rule (previously known as a campaign) that lets you reward customers for a number of succeeding, qualified purchases.

This earning rule allows you to set a target number of purchases with a target spend amount for each transaction. You can also choose to make the earning rule active for a limited time, so your customers will need to complete the required number of purchases within a set time frame in order to earn a reward.

This will enhance your customers' shopping experience by adding more value to their purchases, which helps to encourage them to shop again from your store.


Setting up your Punch Card Earning Rule


You can decide on the total number of purchases, set an amount of purchase and other qualifiers in your Punch card setup page. 



As punch cards move online, how are D2C brands in the space rising to the occasion?


We asked Cure’s Senior Marketing Manager Hannah Bender and Art of Tea’s Channel Marketing Manager Devika Kelly about how their brands are navigating loyalty today.


Q: Physical punch card campaigns have been a longstanding reward method for Food  & Beverage brands selling in stores. As brands with D2C channels, when did you decide it was the right time to implement a loyalty program?


Devika: Before the pandemic, wholesale was the biggest chunk of our business. And then when COVID hit, almost all of our wholesale clients were forced to temporarily or permanently shut down. All of a sudden, our business was completely transformed, and it was scary.

We really had to pivot and start focusing on our eCommerce business. It was all so unprecedented and no one knew if things would ever really go back to their pre-pandemic states, so we knew we had to make some fundamental changes to how we operated as a company. We actually ended up seeing that our D2C business boomed. I think it might have been something that was providing comfort.

We know that people were shopping online a little bit more during the pandemic, people were trying to prioritize health and wellness. And in spite of all the uncertainty, our D2C customers allowed us to get through the pandemic and really uncover all of these new possibilities for ways to grow the business. Since then, we have had a bigger focus on D2C, and we really just wanted to reward those customers that gave us that life to get through.

Hannah: It’s interesting to hear how Art of Tea thinks about loyalty as a business that has been around longer than Cure. Lauren Picasso founded the business in 2019, but ultimately our business grew up in the pandemic, where we saw consumers prioritizing their health more than ever. Cure started thinking about a loyalty program last summer as we grew our community of loyal customers.

I actually was brought into the company to help figure out how a loyalty program could work for us, having seen how amazing brands like Sephora and Bloomingdale’s do it. We started researching and asking questions: Let’s see how they’re structured. Let’s see how effective they’ve been for other brands, especially early-stage startups. Let’s learn about how best-in-class companies are doing them.

A big part of the process was doing interviews with technology partners and trying to find the right one. Interviewing with Yotpo was a big step. With everything we learned, loyalty was a no-brainer for us as a D2C business. Like Art of Tea, currently half our business is direct-to-consumer and half is retail distribution. And with that split, it made sense for us to launch a loyalty program.


Ready to create your Punch card campaign? Share with us your thoughts and questions!