How To Make A Great VIP Program (Examples Included)
When launching a business, you should build a strategy, which will be successful not only in the short-term period but in the long run as well. One of the main keys to success is making up a base of repeat customers, which will come back to you and buy your product on a regular basis. According to the research, repeat customers bring over 40% of the businesses revenue.
In order to make a customer want to come back to your brand, you should give him a strong incentive for doing it. A VIP program is a fantastic tool which will help you attract the attention of many customers and encourage them to stay with your brand for a long time. Besides, VIP programs help businesses see which products are the best-sellers and which products are not that demanded.
Tips on How to Build an Effective VIP Program
VIP programs are used almost by all popular and successful brands. They can be used by all businesses, regardless of the industry, they are operating in. However, building up a VIP program is not an easy task. You should think it over many times if you want it to be successful. Here are 5 hints on how to make a great and reasonable VIP program:
1. Decide how many tiers your VIP program will consist of.
Tier-system is the most popular scheme used by many brands. It’s very simple and effective. There is a certain number of tiers each customer can reach, with each bringing higher and better rewards.
By increasing the prizes from tier to tier, VIP programs motivate customers to climb up the VIP program ladder. However, it’s extremely important to make an effective structure of the loyalty program. You should decide how many tiers there will be in your program so that it will make each customer interested in it.
2. Set challenging but achievable tier entry goals.
In order to reach a certain tier of the VIP program, a customer should buy a certain number of your products or services. This milestone shouldn’t be easily-achievable, otherwise, it won’t make any sense for the business. At the same time, it should be possible to achieve the milestone. For example, if the first tier entry goal of the cafe’s VIP program is 1,000 coffee cups bought in a year, hardly anyone will try to reach it and buy 3 cups of coffee every single day. And if the tier entry milestone of the VIP online casino program is 100 spins made in a month, it can be advantageous for both you and your customer.
3. Make the highest tier exclusive and special.
Customers should be motivated enough to reach the last tier of your VIP program. Moreover, they should feel more valued and special than other regular customers. If the last tier of your VIP program has around 20% of your customers, will they feel truly special? At the best-case scenario, around 5% of your customers should get access to the highest rewards and prizes advertised by your loyalty program.
4. Grant a unique shopping experience to the highest tier.
The competition rate in each industry is very high nowadays. People have a lot of brands to choose from. That’s why you should make your customers see why your brand is worth choosing. That 5 % of customers who will have managed to reach the last tier of the program should feel all the advantages of choosing your brand over your competitors. Reward them with some specific prizes and opportunities that can be hardly found elsewhere.
5. Communicate with the participants of the VIP program.
Communication plays an important role in loyalty program management. Each loyalty program member should see that he is important to you. Send some messages or emails to your VIP customers, reminding them of the rewards awaiting them in your store. It will also be a nice idea to offer them download a special app where they could see a progress bar, showing how close they are to the next tier.
Examples of the Greatest VIP Programs Offered by Popular Brands
Many world-famous companies offer loyalty programs. For example, Starbucks – the most popular American coffee company – gives you 2 stars for each dollar spent. Depending on how many Starbucks starts you have collected, you can exchange them for various prizes, starting from the customized drinks to signature cups and bags of coffee.
Another shining example of a successful VIP program can be found in Playamo Casino. Their program consists of 10 tiers. The prizes are not that diverse and include mostly free spins and real cash, but the prize for reaching the last tier is simply mind-blowing – Ferrari 488 GTB! Have you seen many online casinos offering you to hunt for a real supercar? We haven’t.
So, if a VIP program is well-thought-out, it will be beneficial for both business owners and repeat customers. Follow the tips described in this article, and your VIP program will likely succeed.
