Premium Loyalty Program: For your premium customers

The current retail market is brimming with competition. Every player-big or small- is working towards the same goal: building strong customer relationships. In a time when customers are presented with unlimited choices, achieving the desired goal is difficult.

That is why most companies resort to loyalty programs!

Traditional loyalty programs offer many features- be it reward points on every purchase, faster product delivery, or extra retail discounts. However, these programs work with a ‘one size fits all’ approach whilst offering delayed rewards. But with today’s tech-savvy customers seeking instant gratification and greater personalization, this approach wouldn’t bear desired results.

So how can you differentiate yourself from your competition? The answer lies in premium loyalty programs!

What is a Premium Loyalty program?

In the simplest terms, a premium loyalty program is where customers pay a definite recurring fee and avail premium offerings from their favorite brand almost immediately. For the customer, it means premium benefits at any time they want. For your brand, it offers greater customer loyalty and enhanced Customer Lifetime Value.

Such programs are designed by keeping the customer at the heart of everything. Keeping up with Pareto’s principle, these programs ensure that your premium customers keep coming back to you every time they wish to make a purchase. This in turn increases the average order value of the top customers for your business.

Why would a customer join your premium loyalty program?

Statistics show that a normal household has subscribed to an average of 29 loyalty programs but avail the benefit of very few of them. The reason lies in the value that they derive from these traditional programs. Nearly all of them offer the same benefits which take time to realize. The message is clear- people are looking for premium services that offer them great value and instant satisfaction.
Additionally, today’s customer is hungry for experiences. By adding experiential benefits to the loyalty program that best aligns with your customer’s persona and lifestyle, you will strike an emotional chord with them. According to a report by, this has proven to increase customer lifetime value by over 306%.

So, discounts and coupons- check! Experiential benefits- check! Brand affinity and advocacy- check and check!

Why wouldn’t your customer pay for that?

How would a premium loyalty program operate financially?
Premium loyalty program works on the usage model. The more your customer purchases with you, the better. Unlike a traditional program where businesses earn more money by virtue of the number of unredeemed awards or other prepaid services that are never used, a premium program brings you more money with every new reward claimed.

As a customer, the greater financial benefit is observed when they make multiple purchases with your brand on all possible channels and get rewarded for the same.

As a business, the benefit is realized in terms of Average Order Value and Lifetime Value that the premium customers bring to you with every purchase beyond the initial buy-in. Any added features or investments just ramp up these numbers.

Does a premium loyalty program come with any disadvantages?

A loyalty program, of any kind, comes with discounts and offers. In the case of premium programs, the discount percentage is relatively higher sometimes. Discounts, regardless of their form, have the capability to hurt a company’s bottom line.

But here’s the catch- With fairly priced premium loyalty programs, the purchase frequency of your loyal customers increases multi-folds. So if the program increases your average order value and purchase frequency, with fair discounts, recouping your losses wouldn’t be an issue. Such programs rather improve your top line.

Can your existing program and premium program coexist?
Absolutely yes! The premium loyalty program will add just another level to your existing free plan. In fact, it is always easier to show the benefits of an existing plan to your customers and make them shift to the premium plan. This practice will turn your usual customers into loyal ones. Even if any of your premium customers move to the free level, it is always easier to upgrade them from there.

Given the wide array of choices available in the market, all your customers might not have a strong affinity for your brand. However, there will always be a healthy percentage of loyal customers who stick to your brand regardless. With a free as well as a premium loyalty plan running, you get to address the entire spectrum of your customers whilst constantly upgrading them.

Level up the loyalty quotient with Loyalty 3.0 of Reciproci
The benefits of having a Premium Loyalty Plan over a traditional one are already covered. But how do you create a loyalty plan that strikes the right chord with your premium customers? Leave that to us at Reciproci!

We understand the customers are at the heart of every business process. We build experiences and interactions to boost the engagement of your customers with your brand that drives up their loyalty. With Loyalty 3.0, we introduce gamification and personalization along with multi-channel communication to your customers, especially the GenZ and Millennials.
This leads to an increase in AOV and order frequency thus generating a secured positive revenue stream for your company. With Loyalty 3.0 of Reciproci, customer loyalty is guaranteed!

Cloud Kitchen Infographic, Aggregator, Experience Commerce, Customer Loyalty, Brand Ownership


Reciproci is aimed to provide “traditional business” a digital omnichannel edge over their “born-digital” rivals.

Contact Info

Nelson, #111, M Krishnappa Layout Lalbagh Road, Banglore- 560027

+91 (80) 22219722 / 23

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