A major challenge for FMCG brands has been an inability to own customers and direct interaction channels thus leading to higher marketing costs. Customers switching brands in the FMCG segment is another challenge to deal with. Loyalty programs are helping FMCG brands deal with these challenges effectively. Research highlights that loyalty program members are generating 12-18% more revenue for retailers.
Many popular FMCG brands have launched loyalty programs to increase repeat purchases, engage and retain their customers by building mutually beneficial long-term relationships. A loyalty program is also a great way to improve customers’ overall experience with a brand! Let’s look at some popular FMCG reward programs.
Popular loyalty programs in the FMCG industry
1. CVS ExtraCare Rewards
1 out of every 4 people in the U. S. is enrolled in the CVS ExtraCare reward program, making it one of the most popular loyalty programs. The loyalty program was revamped in 2021 to match members’ requirements.
The revamped loyalty program focuses more on personalization and digitization. Customers can track and redeem rewards via the CVS app. Furthermore, the CVS app also notifies members about the exclusive deals, coupons, and discount offers via ExtraCare SMS messages.
This constant communication with customers never lets customers forget CVS. The loyalty program also offers new gifts every week. These gifts can range from healthy snacks to beauty products.
Why is ExtraCare rewards one of the best loyalty programs?
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- CVS gives a 2% cashback on each purchase to ExtraCare members.
- ExtraCare members can join the other free loyalty programs CVS offers to get extra benefits, savings, and value.
- CVS ExtraCare reward program offers instant gratification to customers. This feature has attracted many customers to join CVS ExtraCare as customers like to see benefits instantly after performing an action.
- Flexibility in using rewards make this program popular. Customers can use their rewards whenever they want within 90 days of issuance.
2. The Body Shop
The Body Shop’s loyalty program, ‘Love your body club,’ aims to build quality relationships with customers. Being in a highly competitive market, the loyalty program has helped the brand position itself differently.
The mobile-friendly loyalty program allows users to interact easily with the brand through the mobile app.
Loyalty program members get vouchers for accumulating a certain number of points. These vouchers can be used via the app or through the store. Members have a three-month timeline to use up their coupons.
Unique features of the program:
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- One thing that sets the ‘Love Your Body Club’ apart is that members can donate their vouchers to charities. This enforces a feeling of social community among the members. In addition, the ability to help society drives members to stay engaged with loyalty programs and keep earning vouchers.
- The brand is also working towards sustainability with its ‘refill scheme.’ This scheme allows loyalty program members to reuse Body Shop’s containers by refilling them instead of purchasing new ones.
3. Simply Be
Simply Be is a popular size-inclusive women’s clothing brand in the UK. The brand is consistently working to remove the stigma around plus-sized fashion.
The loyalty program, Simply Be Perks, is built to reshape the fashion industry. The brand has partnered with many businesses, including, Aromatherapy associates, Hotel Chocolate, and Umberto Giannini.
Why Simply Be made the list of top FMCG programs?
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- Instead of offering points or cash-based rewards, Simply Be offers personalized perks to each member. These perks are based on the member’s interaction and purchase history with Simply Be.
- The rewards are always focused on uplifting members’ well-being.
- Partnerships with other brands help Simply Be Perks to provide unique rewards like Aromatherapy.
4. Abercrombie & Fitch
Abercrombie and Fitch’s loyalty program exudes inclusion and individuality with the help of powerful copy.
The loyalty program page starts with the line — ‘my Abercrombie is your loyalty program’. This line reflects that the loyalty program is customer-centric. The program repetitively highlights the benefits to motivate customers to join.
My Abercrombie has two versions — Members and VIP. The first version is free to join, but members can upgrade to the VIP program for a better experience by paying €600.
Benefits of the program include-
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- The brand sends an account summary to members every month. This summary includes a brief of the member’s experience with the brand in that month.
- Members get a 10% discount on membership anniversary.
- Abercrombie & Fitch also sends personalized emails to each member. These emails contain customized offers or product recommendations based on the customer’s purchase pattern.
5. PetSmart Treats
This free loyalty program is perfect for pet owners to shower extra love on pets. Customers can sign up through the PetSmart store, website, or app. The brand only collects basic details like the pet’s name and owner’s email and contact number while signing up. Later, members can enter details about their pets to get tailored recommendations.
Members can redeem points in the store or through the website. Petsmart Treats members get access to a members-only website and email offers.
Benefits offered by PetSmart Rewards-
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- Once customers book 10 Doggie Day Camp sessions, they are eligible for a complimentary session. The sessions include 8 hours of fun activities, socializing, and treats for pets.
- PetSmart offers a free surprise birthday gift for pets on their birthday.
Conclusion
Loyalty programs have enabled brands to offer more value to customers. The personalized rewards make it easier to build trust and form better relationships with customers.
Brands like CVS use innovative methods to get the eyeballs, while the Body Shop’s social initiative enables people to contribute to social causes by donating. Loyalty programs should not be considered as the transactional relationship between the user and the brand. Innovative ideas can put loyalty programs at the center of building customers’ trust. For any loyalty program to be success using relevant data intelligently and effectively is the key. Data then powers brands to create a sound loyalty strategy keeping the relevant customer segments in mind.
