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Do you always wonder about those loyalty programs and what kind of benefits do they provide? How elite do they appear to be? What kind of value do these programs add to your shopping experience? Well, a lot of businesses have started readdressing loyalty and launching their own loyalty programs targeting their audiences.

Every business these days has its free loyalty program where the customers will collect some points on every purchase and then can redeem those points in the future. And since these loyalty programs are free of cost, a lot of people end up signing for them. Given the ease of these no-cost memberships, people end up becoming members of 8-9 such programs. But does that promote loyalty?

A loyalty program aims to foster relationships between customers and brands. This would build “real” loyalty. Premium loyalty programs are in the market now. They tend to bridge the gap these free memberships have created. These programs give the members recurring benefits in exchange for a small fee.

The benefits are mostly “instant” or “upfront” rather than the “rewards later” format. The members can use these benefits right away and don’t have to wait for reaching a set limit before availing of the reward or redeeming the coins/points.

Premium loyalty programs provide the members with premium benefits that they can avail themselves of throughout the year. These programs provide specific benefits regarding brands and products in exchange for a recurring charge for the membership.

The members can engage with these loyalty programs whenever they want. The membership charge becomes a steady stream of revenue for the businesses which can then be invested into providing benefits through these loyalty programs.

The members avail themselves of the best offers by the brands, anytime anywhere. These premium programs have to provide more than what the free programs do to compel the customers to stick around. Customized deals according to the interests of the members are the premium benefits of these programs.

Flat discount offers, fast shipping, and delivery, easy returns are some other benefits you get if you’re a member of these premium loyalty programs. Many other benefits are related to enhancing experiences. They are non-monetary but tend to make your life easier through services like phone support, content streaming, podcasts, ebooks, etc.

Premium memberships go a long way when it comes to cultivating relationships with the brand’s most valuable and regular customers. These programs give them a range of choices and rewards to foster loyalty and ensure that they come back to you again.

Programs also bring in great and fast Return Of Investments (ROI) due to the recurring fee the members pay to stay in the program. They lure the most profitable customers, curate the best deals, and gather data for further customization and modifications.

Premium loyalty programs require a lot of effort. Right from the structuring, to implementation and keeping in check with the regulations and market policies, profits, and projections. Every consumer touchpoint is supposed to be there for the members to interact with and to prevent them from choosing your competitors.

The marketing team works towards promoting the brand, the premium benefits, and bringing in potential customers. Good content is very essential to connect with the audience if you want to convert them into your customers. Customer service needs to be efficient and smooth. It takes a lot of time, money, energy, and people from different departments to bring forth an implementable program.

Premium loyalty programs sell an “elite and exclusive experience” catering to the consumer’s desire of receiving “special treatment”.