How to Create a Consumer Electronics Loyalty Program [Guide]

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When creating a customer loyalty program, you should consider the industry you’re in and the types of products you sell.

Not all industries are created equal. Some industries have a higher purchase frequency than others. For example, customers can buy groceries weekly, but may buy beauty products every couple of weeks or once a month.

On the other hand, in an industry like electronics, it’s unlikely customers will have weekly or even monthly needs. But then again, this may depend on the types of products you sell.

This is one of the main reasons it’s harder to create electronics loyalty programs. The pace at which your customers buy products differs from almost any other industry. 

In this article, we’ll be looking closely at some of the world’s leading electronics loyalty programs and why they work well. We’ll also explore buyer behavior in the consumer electronics industry.

We’ll also show you how to create your own electronics rewards program.

You may notice that the following examples are mega brands. But don’t fret, we’ll show you how to get the inspiration you need for your electronics business.

Buyer behavior and statistics in the consumer electronics industry

The global consumer electronics market was valued at $740.79 billion in 2019. This figure is expected to surge past $1.06 trillion by 2030, marking a compound annual growth rate (CAGR) of 4.62%. (Report Insights)

It’s worth noting consumer electronics include, but aren’t limited to home appliances, handheld devices, smart devices, video games, gaming merchandise,…etc.

When it comes to buying products, consumer electronics customers have a different buyer’s journey than other e-commerce and retail customers.

“Nearly 50% of consumer electronics shoppers have decided what brand to buy when they begin their shopping journey.” (Think With Google)

Moreover, for 87% of shoppers “knowing they got a good deal” was important to them “when deciding which brand or retailer to buy from.” (Think With Google)

These are important points to consider when creating your loyalty program and your loyalty program strategy.

Despite being a thriving and active industry, the consumer electronics industry isn’t one you’d find in our list of best industries for loyalty programs. But that doesn’t mean, there aren’t any electronics rewards programs out there.

There are several. But it may take longer to create a rewards program for consumer electronics customers compared to more fast-paced industries like beauty or food.

World’s best consumer electronics loyalty programs

Now, let’s look at the world’s best electronics loyalty programs, what makes them successful, and their loyalty marketing strategies.

Best Buy

Popular consumer electronics company Best Buy has an interesting and different kind of rewards program. Though ‘My Best Buy’ looks like a tiered rewards program, it’s also different from other tiered loyalty programs.

The first tier, called ‘My Best Buy,’ is free to join and comes with one perk, free standard shipping. It is one of the most-sought-out perks in rewards programs.

The second and third tiers are paid tiers or premium tiers. So, unlike regular tiered loyalty programs, where you level up based on annual purchases, joining Best Buy’s higher tiers requires an annual fee.

To join the second tier, called ‘My Best Buy Plus,’ customers pay $49.99 a year. To get into the third tier, ‘My Best Buy Total,’ customers need to pay a hefty $179.99 a year.

Despite the steep fees, My Best Buy Plus has nearly 2,000 reviews, while My Best Buy Total boasts almost 14,000 reviews!

Both paid tiers offer customers

• free 2-day shipping
• exclusive member prices on thousands of products
• extended access to sales and special events
• “extended 60-day return window on most products”

In addition to the above, the $179.99-My Best Buy Total tier also gives customers

• Protection plans, including AppleCare+
• 24/7 tech support
• 20% off repairs
• VIP member support

Both tiers in Best Buy’s premium rewards program offer customers a return on their experience with the brand.

Best Buy also has a frequently-asked questions (FAQs) page, which quickly answers customers’ top questions.

At Gameball, we highly recommend all brands provide an FAQs page or loyalty program explanatory page.

Microsoft

Many don’t know this, but global tech leader Microsoft has a loyalty program called Bing Rewards.

Surprisingly, Microsoft’s rewards program is available in many regions and countries. Here’s the full list of countries where Bing Rewards is available.

One of the major benefits of Microsoft’s loyalty program is the many ways you can earn points. Microsoft notes that people are automatically enrolled in the rewards program. All you have to do is log in to your account.

“You likely have a Microsoft account if you’ve ever played on Xbox, made a Skype call, or have a Hotmail or Outlook email account. Microsoft Rewards doesn’t ask for a commitment or fees. It's included in your Microsoft account.” - Microsoft

Unlike other consumer electronics loyalty programs on this list, Microsoft’s Bing Rewards offers customers points for actions other than making purchases.

Customers can earn points for

• Browsing! “Earn points when you actively browse the web using Microsoft Edge.”
• Searching! “Search with Bing on your PC and phone and quickly earn points every day.”
• Shopping. You get points for “virtually every purchase from Microsoft.”

The Microsoft customer loyalty program has a two-tier system, simply called Level 1 and Level 2. Customers can rise from Level 1 by reaching and consistently adding 500 points each month. “No matter how you earn points, they all count toward your status,” notes Microsoft.

And why should members try to maintain their Level 2 status? Because “Level 2 members can earn 5 times more points on Bing.com, save up to 10% on rewards from Microsoft products and services, and get access to exclusive offers.”

Customers can redeem rewards in the form of various vouchers, access to games, newly-released movies, among other perks.

Unlike the loyalty points reward system in almost every loyalty program out there, points in Microsoft’s program “don’t have any cash value.” To redeem “something worth $5,” you need about 5,000 points.

Microsoft Rewards points expire after 18 months if there “are no earning activities.”

Samsung

Did you know that global tech company Samsung has a rewards program? It’s a leading electronics loyalty program. But it’s limited to customers in the United States.

Samsung REWARDS is a 3-tier loyalty program. The 3 tiers are Silver, Gold, and Platinum.

Starting the second tier, Gold, customers begin to see real benefits such as 1% points back and 10% off “accessories for most phones/tablets, home appliances, and home entertainment products,” which is applicable to specific products.

The Samsung REWARDS program also includes a referral marketing program that promises “up to $1000 in rewards!”

It’s not clear, however, what the value of points are in the Samsung loyalty program.

Gamestop PowerUp Pro

GameStop PowerUp Pro is a US-based retailer for consumer electronics, video games, and gaming merchandise.

Gaming fans are constantly trying to get their hands on the latest games or special edition games. This makes GameStop’s rewards program, the GameStop PowerUp Rewards Pro, super enticing for gamers and fans.

Why? Not only does the GameStop PowerUp Rewards Pro reward customers with bonus points, but also with “exclusive early access to new products.”

The GameStop PowerUp Rewards Pro is a paid loyalty program, where members pay $25 a year to get

• A $5 monthly reward coupon (that totals $60 in coupons a year)
• A $10 signup reward
• Double points
• “5% Extra Off ALL pre-owned products, collectibles,” and on clearance items, among other products
• 2% back on each purchase in the form of rewards points
• “Pro exclusive deal and drops AND Pro Weeks.”
• Access to Game Informer, the world’s leading video game magazine

Among other perks.

How does it work?

Customers get 20 points for each $1 spent at GameStop.

To join the GameStop PowerUp Rewards Pro, customers pay an annual fee of $25. When renewing their subscription to the rewards program, customers also get a $5 Renewal Reward.

Amazon Prime

The world’s leading online retailer has one of the most popular loyalty programs. Although, consumers may argue whether Amazon Prime is really a loyalty program.

Amazon Prime falls under the paid loyalty programs category. It offers perks to paying members. But you don’t earn points for your purchases and don’t get ‘extra’ perks for making more purchases. There’s also no personalization and customers aren’t recognized among the hoards using Prime.

Amazon Prime members get

• Free shipping on millions of products
• Next-day delivery on millions of products
• In some countries, there is same-day delivery
• Subscription to Prime Video
• Prime-only discounts on select products
• Access to Black Friday and other seasonal discounts ahead of non-Prime members (sometimes combined with additional Prime discounts)
• Additional discounts via local banks

Amazon’s Prime program is also available in many countries around the world. Accordingly, the fee differs from one country to another. Members can either pay for a monthly subscription or an annual one.

How to create a successful electronics loyalty program

To create your own successful consumer electronics loyalty programs, let’s roundup the top perks the above programs offer their customers.

-       Consider buying behavior

It’s important to take your customers’ buying behavior into consideration. If you’re just launching your consumer electronics brand, this may take some time.

You can use your rewards program to run many customer surveys to gain insights into your customers’ behavior. You can also use surveys to measure customer satisfaction and retention.

-       Determine the type of loyalty program you want

There are several types of loyalty programs and you need to choose one of those types for your electronics rewards program.

Aside from programs like Microsoft’s and Samsung’s, it’s ‌best to have a clear points system to show customers the value they’re getting from your rewards program.

That’s why the easiest way is to start with a points-based loyalty program. Customers accumulate points for purchases and other actions, which translate to discounts later on.

As brands grow bigger, many revamp their rewards programs to a tiered- program, a paid or premium program or a combination of the two.

If, down the line, you decide to switch to a paid rewards program, you may either change it to a tiered program or have a one-time or annual fee.

-       Offer several ways to earn points

The world’s best loyalty programs have a clear points system and offer customers multiple ways to earn points. Regardless of the industry they’re in.

Letting customers earn points for non-transactional actions, that is actions that don’t involve paying money to earn points, gives your rewards program a boost in the customer’s view.

They don’t feel limited by purchases and they’re more likely to engage with your program and brand.

Microsoft does this, although their method involves points for searches using the Bing Browser. (If you think about it, it’s a way to get more people to use Bing.)

You can let customers gain points by

o   Following your brand on social media (Ex: Get 10 points for following [brand name] on Twitter/Facebook/Instagram)

o   Sharing social media posts (Ex: I just joined [brand name’s] rewards program!)

o   Rating products

o   Leaving product reviews

o   Answering customer surveys

Among others.

-       Offer value (hint: Free shipping)

The essence of a successful customer loyalty program is to provide value for customers.

Consumer electronics customers should know what’s in it for them, what’s the value they’re getting when joining your rewards program.

If you don’t highlight the benefits, not only will customers resist joining your program, but also will turn to competitors for their needs.

With loyalty programs, customers may be willing to switch stores in exchange for benefits. But with no clear benefits, why bother?

One of the top perks you can offer your loyal customers is free shipping.

Both Best Buy and Amazon Prime offer free shipping as a perk to loyal customers. Customers in Best Buy’s free tier get free standard shipping on their purchases.

Research by Statista shows US consumers viewing ‘free shipping’ as having a ‘great impact’ on their buying decisions. Between 2012 and 2017, free shipping’s impact on consumer decisions rose from 64% to 73%.

Offer more value by offering more perks. Free shipping is great. But it’s not everything.

Not sure what means more for your customers? Ask them.

For example, offering rewards in the form of cashback rewards or discount coupons may be enticing to price-conscious buyers. Or it may be attractive to frequent buyers who want to see faster results on their purchases.

-       Consider a tiered program

Apart from Amazon Prime, the other electronics loyalty programs on this list are tiered programs. They offer two or three tiers. In standard tiered rewards programs, the more customers spend, the higher they rise between tiers. And the higher the tier, the better the perks.

Further reading: Tiering in Loyalty Programs: What Is It and How to Use It

You can consider creating a tiered program from the beginning. You can use a points system to define the tiers. Then, explain to customers how many points they need to earn per year to reach a tier and maintain it.

In this case, you create tiers based on the different levels of customer spending.

Alternatively, as your brand grows, you can switch to a tiered rewards program. You can follow Best Buy’s example and offer a free tier and one or more paid tiers.

Get inspiration for your tiered rewards program from the best fashion brands’ loyalty programs and the best beauty loyalty programs.

-       Ensure long-term perks

One of the benefits of loyalty programs is that they’re long-term. They help you create long-term customer retention. This, in turn, translates to a higher customer lifetime value (CLV) per customer.

CLV measures how much you can earn from a customer during the course of their relationship with your business. Usually, the longer a customer buys from a brand, the higher their lifetime value.

Learn more about calculating customer lifetime value and how to increase CLV in e-commerce.

That’s why with loyalty programs, and specifically with electronics loyalty programs, we recommend you create long-term perks.

More tips and ideas for your consumer electronics rewards program with Gameball

Building a brand in today’s fast-paced almost-always-online environment isn’t easy.

The consumer electronics industry is a fast-paced one, especially if you sell online and video games. But it’s not the same as the grocery or beauty industries, where purchase frequency is significantly higher.

That’s why, when creating a consumer electronics loyalty program, you should try to get creative with the rewards you’re offering. And how customers can get those rewards and perks. 

Here are some of our expert tips to not only entice customers to join your rewards program but also create a program that grows with your business.

-        Grow your customer base with referrals

Getting customers to sign up to your rewards program is the first step in your loyalty marketing strategy. The second is growing your loyal customer base. The best way to do that is to use referrals.

Referral marketing is about getting your loyal customers to refer you to their friends, family, and network.

One of the benefits of referrals is when people get recommendations from others, they feel they can trust you. It’s a kind of social proof.

Learn more about referrals by following these referral marketing best practices. Don’t forget to keep an eye on these referral program metrics, especially your referral program conversion rate.

-        Diversify your rewards

To make your consumer electronics loyalty program a success, you should offer various kinds of the rewards.

This not only gives customers reasons to join your rewards program, but also gives your loyal customers reasons to stay.

Diversifying your rewards also entices customers to spend more to rise in levels or tiers to get the bigger rewards. Not to mention, diversifying your rewards keeps your program interesting.

Further reading: Instant Rewards: The Special Recipe for Increasing Customer Loyalty

-        Offer birthday rewards and perks

While some people may not like surprises, few would complain about getting a birthday gift. Having a loyalty program is a great way to incentivize customers with birthday rewards.

With consumer electronics, you can offer customers one of several rewards on their birthday. These include:

o   Birthday vouchers (Ex: a $10 or $20 voucher)

o   Double points for 3 days, a week, or even all month

o   Limited-time birthday discount (such as 10% or 15% off) for 3 days or a week

o   An annual gift from a list of products

-        Increase engagement with challenges

Another benefit of loyalty programs is being able to engage customers. You can create your entire customer engagement strategy through your loyalty and referral program.

One way to engage customers is to use Gameball’s challenges feature, which comes with badges for when customers pass those challenges.

You can create challenges for special events like birthdays, Halloween, Christmas, New Year’s, among others.

As an electronics loyalty program, you can tailor your badges to be similar to the products or product categories you sell.

For example, if you sell gaming merchandise or video games, you can create badges for newly-released games.

Imagine badges for FIFA2024 or Crash Bandicoot or Harry Potter!*

Further reading: How to Use Challenges to Engage Customers and Grow Revenues

-        Improve your marketing with customer segmentation

Customer segmentation is what separates brands with a one-for-all loyalty program and those with a personalized program with rewards, perks, and engagement.

Using customer segmentation in Gameball, you can divide customers into groups using tags. For example, you can group customers by behavior, types of products they buy, their average order value,…etc.

You can also divide customers into top-spenders, weekly buyers, among other segments. You can also use RFM customer segmentation as another way to improve your marketing.

Further reading: How to Drive Loyalty with RFM Customer Segmentation in Gameball

-        Add flavor with gamification

Gamified loyalty programs go hand-in-hand with electronics loyalty programs. Especially if you sell games and gaming consoles and accessories.

Gamification includes elements like progress bars, achievements and milestones, along with a game-like feel to your rewards program.

Further reading: Building Gamification for Gen-Z: How Gamified Experiences Captivate Gen-Z Consumers 

Grab our free ebook on Gamification in Mobile Commerce for Growth Teams

-        Create an omnichannel experience

As your business grows, you may consider expanding from just having an e-commerce website to adding a mobile app. Or maybe a physical store. Or even both.

Being able to sell across more than one channel means you need to create an omnichannel customer experience that draws customers in.

To put it simply, an omnichannel customer experience is having “individual customer touchpoints over a variety of channels that seamless connect, allowing customers to pick up where they left off on one channel and continue the experience on another.” (Genesys)

This involves aligning all of your marketing efforts, including loyalty, email, social, and other types of marketing.

It’s an advanced marketing strategy. But it’s one you can combine with loyalty programs to create seamless and personalized customer experiences.

-        Combine email marketing and loyalty marketing

Merging your loyalty marketing with email can take your business to new highs. Email remains one of the most profitable investments for businesses. E-commerce included.

Using email marketing automation, you can automate the creation of a weekly or monthly newsletter, create email campaigns to increase sales, among others.

You can start by giving customers points for joining your email list. Email marketing is also great for personalization and segmentation.

For example, if you have customers who buy games and related merchandise and some who don’t, you can tailor your email messages to each group based on their buying habits.

Further reading: Increase Loyalty & Sales with These 13 Examples of E-commerce Email Flows

Wrapping it up

Are there pros and cons to loyalty programs? The answer is ‘yes.’

Are loyalty programs for everyone? Probably not. But they can work for you if you put in the hard work at the beginning of your journey.

As a business owner, you need to make money. And loyalty programs help you make that money.

Unless you attempt to build your loyalty program from scratch, then it’s going to be a sizable investment with lots of time wasted!

But if you choose to use loyalty software like Gameball, then you’ve saved yourself months of time and money. All you have to do is tailor your consumer electronics rewards program to your business and customers.

One of the essentials of creating a successful loyalty program is to offer value to your customers.

Customers are always thinking ‘What’s in it for me?’ And if your rewards program doesn’t answer that question, then they have no reason to join or buy from you.

Want to create your electronics loyalty program? Sign up to Gameball and start creating your points, levels, and rewards.

Is your consumer electronics store on Shopify? We’ve got you covered. Get Gameball from the Shopify app store and start building relationships with customers.

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