Loyalty programs have been around since ancient times. As per many historians, the inception of the most rudimentary form of loyalty programs can be traced back to Ancient Egypt, where citizens earned and exchanged wooden tokens for food and beverages.
But what’s extremely remarkable about loyalty programs is the way they’ve revolutionized a wide range of industries since they became mainstream.
Now, businesses in all industries are leveraging digital loyalty programs to retain customers and enhance their growth.
At LoyaltyXpert, we have created effective loyalty programs for various types of businesses in a wide range of industries. In this blog post, we have discussed how loyalty programs are driving growth in various industries. Read on and thank us later.
Industries for Loyalty Programs
The industries mentioned in this blog are the top ones we have seen benefit from loyalty programs
Did you know that more than three-fourths of customers will favor an FMCG (Fast Moving Consumer Goods) brand that has a relevant loyalty program? FMCG is one of the oldest and largest industries in the world, and loyalty programs play a huge role in making the industry what it is today.
Here are some stats. As per recent KPMG data, more than 75 percent of customers said they’ll favor a brand offering attractive loyalty programs. Another study revealed that loyalty programs can enhance revenue growth by 15 to 25 percent.
As it is, a lot of FMCG brands are facing challenges to acquire new customers. But with rising competition and a plethora of options, many of them are finding it extremely difficult to retain their customers and get them to buy repeatedly.
In such a scenario, the brands that have robust and well-designed loyalty programs in place are enjoying long standing loyalty from their customers, channel partners, and influencers. Some of the most successful loyalty programs in the FMCG sector are P&G Grocery Rewards, Pepsi Nation Rewards, Nestlé Collect, and My Coke Rewards, just to name a few.
FMEG and FMCD
Like FMEG, (Fast Moving Electrical Goods) and FMCD (Fast Moving Consumer Durables) sectors have benefited a lot from loyalty programs.
After the success of loyalty programs in the FMEG sector, businesses in the FMCD and FMEG industries designed and launched attractive loyalty programs to engage customers and drive repeat purchases.
Now, it’s impossible to think where the sector would be without loyalty programs. Let’s take a look at some of the top players in the space—Apple, Dell, LG, and Samsung—all of them have extremely strong and effective loyalty programs.
Travel, Tourism, and Hospitality sector
Loyalty programs are more popular than ever before in the travel, tourism, and hospitality sector. Here are some stats to drive home the point. As per Google and Greenberg data, a majority of high-value travelers are motivated by loyalty programs when booking travel. Another study found that after the pandemic, loyalty programs immensely helped several leading hotel chains increase their repeat business.
As per a survey conducted by Catalyst, eight out of every ten travel and hospitality marketers said that their company has a loyalty program in place. Interestingly, the same study also asserted that some loyalty programs are worth more than the brands.
Some of the best loyalty programs in the travel, tourism, and hospitality sectors are Accor Live Limitless, Alaska Airlines, Best Western Rewards, Choice Privileges, IHG Rewards, Hilton Honors, Marriott Bonvoy, and Misterb&b.
“For example, American Airlines’ passenger loyalty program advantage was valued at USD 19.5 to USD 31.5 billion, while the value of American Airlines stood at USD 6 billion.”
Paint and Coatings
In the past, the global paint industry was a highly consolidated and competitive sector. Only some paints and coatings makers enjoyed a much larger chunk of the market share. But the advent of digital loyalty programs has tipped the scales in favor of small and medium manufacturers.
By creating and running unique digital loyalty programs, many new paints and coatings manufacturers could sell their products and retain a lot of their customers and channel partners.
Some of them also carved a place for themselves in the highly competitive market and created strong brand identities.
At LoyaltyXpert, we have helped some fast-growing paints and coatings manufacturers such as Dreamwall Paints, Solo Paints, Taralac Paints, and Valli Paints. These four companies have managed to create a name for themselves in the Indian paint industry.
For instance, Dreamwall Paints, which is one of the largest paints and coatings manufacturers in Karnataka and Maharashtra, has created strong relationships with its customers for its extremely high-quality products.
Tirunelveli-based Solo Paints innovates eco-friendly products and provides vegetable seeds with each paint container for absolutely free.
📜Suggest Read: Fully-Automated & integrated PAAS Solution redefining Loyalty Programs for Taralac Paints
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Plywood, Laminates, and MDFs
The plywood, laminates, and medium-density fiberboards (MDFs) sector immensely benefited a lot from different types of loyalty programs.
Brand and customer loyalty programs enabled plywood, laminate, and MDF manufacturers to provide their products at attractive offers and create long standing relationships with customers.
Using channel and influencer loyalty programs, several manufacturers engage channel partners and carpenters, who are the most important influencers in the sector.
IT and Telecom
The IT and telecom sectors have extremely sophisticated loyalty programs that provide a lot of benefits to their customers and channel partners.
Effective digital loyalty programs enable IT and telecom companies to differentiate from the competition and decrease customer churn.
📜Suggest Read: Telecommunications Loyalty Programs: Rewards And Examples
Taking everything into account,
Loyalty programs have transformed many industries. Most of these industries leverage digital loyalty programs not only for customers but also for channel partners and influencers.
At LoyaltyXpert, we have a proven track record of creating customer loyalty programs, channel loyalty programs, and influencer loyalty programs for businesses across industries. If you are looking for digital loyalty programs, contact us today for a free demo.