Updated: Sep 22, 2022
Recently, my friend Pavithra told me about the ongoing sale on Zivame. As the word ‘sale’ triggers something within us, I was tempted too.
So I asked her to remind me again and then I forgot about it. Because honestly, I didn’t really need to buy stuff from Zivame but still, I could take a look.
Next day, Pavithra’s sale reminder notification popped up in my WhatsApp and I went straight to the Zivame app.
As I started scrolling through the app, I came across my last purchase from November 2018.
Quite long, right? Well, that’s because
I’d switched to apps like Clovia, Myntra or Amazon
Back then, I rarely cared about reward benefits so didn’t see a point in sticking with Zivame.
But not anymore!
As someone who now understood the importance of customer loyalty and rewards, I was intrigued to check if I’ve earned any points.
However, I was quite disappointed to see that I was in a Bronze Circle of Radiance.
But then my disappointment turned into surprise when I paid attention to the Zivame Circle of Radiance.
I said, “Wait, when did this happen?”
Zivame Loyalty Program
After digging deeper into the app, I understood that Zivame offers a Circle of Radiance as part of its loyalty program.
Herein, you can level upto 3 circles - Bronze, Silver and Gold and claim benefits based on your past 12 months purchase value*.
Zivame Purchase Value = Sum (all valid order totals) - Shipping fees and COD charges
₹2000 - ₹4,999
₹5000 - ₹9,999
The higher you go, the better benefits you can claim based on the circle you’re in.
Now for a minute, let’s put the spotlight back on me being in the Bronze circle of radiance. I was eligible for exclusive sales and birthday discounts but the other benefits were enticing.
Especially because all I had to spend was ₹32 to make it to the Silver circle and guess what? I ended up adding some stuff to my cart.
What Got My Attention?
There are many loyalty programs out there that offer all kinds of benefits. So what was so different about the Zivame loyalty program?
I did my part of the work and found out that it was the fact that their loyalty program is tiered and gamified.
Tiered Loyalty Program
In one of my recent articles, I explained Goal Gradient effect, one of the 5 psychological principles behind loyalty program’s effectiveness.
It states that as users get closer to a reward, they speed up their behaviour to get to a goal faster.
The same happens in case of tiered loyalty programs. A tiered loyalty program lets exclusive customers enjoy benefits depending on milestones and ranking.
Each milestone has better benefits and once users complete one, they are encouraged to complete the next.
Now if we look at Zivame loyalty program which is based on purchase value, the more customers spend, the higher circle they can get into.
This sparks a gamification element too, making it fun for customers to engage with an app.
Even Myntra offers milestone-based rewards using a tiered loyalty program.
Are Tiered Loyalty Programs Good?
Tiered loyalty programs produce 1.8x higher ROI compared to programs that do not offer tiers, as per the Global Customer Loyalty Report 2022.
But whether they will work for your business or not depends on who your target audience is.
If you focus on high value customers, you can offer the best rewards to your best customers.
Since members would want to reach higher tiers, they’d be encouraged to spend more.
This will ensure quality and stability as top tier customers would engage with your business.
But tiered loyalty programs also increase your chance of attracting low tier customers because who doesn’t like extra benefits, right?
For example, we know that Apple’s audience is extremely high-quality but then there are also those who want to use their products for a symbol of status or fine user experience.
Apart from whether low tier customers will also join your tiered loyalty program along with the high ones, tiered loyalty programs can be complex too.
Since it involves keeping a member updated on their stage, how far they are from a tier and so on, it’s crucial that tiered loyalty programs are set right to avoid confusion.
That’s why Flyy offers a comprehensive and gamified loyalty program solution with which you can easily integrate milestone based rewards.
Say Hi to Flyy!
Flyy makes it possible for you to set up an end-to-end loyalty program wherein you can choose
Which or how many milestones your customers should achieve
What action a user should take in order to reach it
Wow far they are from a participar milestone and more
For instance, another use case of Zivame loyalty program could be offering bronze, silver and gold badges instead of circles.
Customers could perform actions such as referring a friend, sharing Zivame content on their social media and more, until they earn all 3 badges and become Zivame brand ambassador.
This is one of the many ways you could create a loyalty program. Click here to learn more.