Loyalty Program for E-commerce: Tips for Success

Loyalty program it’s a customer acquisition and retention strategy that’s becoming increasingly popular in online stores.

A great way to build customer loyalty, when implemented correctly, this action has a significant impact on results.

5 tips for creating a Loyalty Program for your ecommerce

It is generally agreed among marketing and sales experts that it is more profitable to retain current customers than to acquire new ones.

A new customer needs to be attracted and convinced to try your product, and that means spending money on advertising, time, and labor.

Furthermore, according to a study by Harvard Business School, regular customers spend on average 67% more than new customers.

One of the best strategies for creating loyal and repeat customers is to offer a loyalty program that rewards them for returning.

But for this strategy to generate effective results, it is essential to create relevant offers,tailored to the specific needs of your audience.

Check out five solid tips to ensure you implement an attractive and effective reward system.

– How to build customer loyalty for your online store

1. Keep it simple

The best part of a loyalty program is the benefits it offers.

Therefore, make sure that these rewards are not only exciting, but also truly attainable.

If customers have to buy large quantities of products in order to receive only a small discount coupon, it is highly unlikely that they will bother to join the program.

Instead, offer something reasonable. Like:

• 50% discount after X purchases;
• Buy two products and get the third one free;
• Progressive discount;
• Redeemable points;
• Free shipping for purchases that reach a minimum value, etc.

These types of offers are easy to understand and motivate your customers to spend more or buy more often.

If your reward system is complicated to understand and meet, or ask for unrealistic requirements, it is unlikely to succeed.

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2. Offer privileges

Offering exclusive benefits to members is a great incentive for buyers to join the program.

However, to be able to enjoy these advantages without incurring losses, it is necessary to find a balance between:

• The membership fees that your customers pay
• The cost for your e-commerce to provide the benefits

One of the biggest money-makers for Amazon is its Prime service, because of the various benefits it offers.

Members pay an annual fee and receive free, fast shipping on Prime items year-round — incentivizing them to shop more and exclusively with Amazon.

In fact, members of their loyalty program spend more than twice as much as non-members.

Take advantage of this tip from the undisputed leader in e-commerce and offer your customers exclusive benefits, such as free shipping upgrades or special discounts.

3. Create personalized incentives

Did you know that sending a personalized promotion encourages 65% of customers to make another purchase?

This number is likely to increase even further as online store owners understand their customers’ behavior in order to customize promotions.

And if you work in online sales, it’s becoming increasingly easy to do this.

The most innovative e-commerce platforms allow you to track your customers’ purchases, sending them their information and preferences.

Many allow their retailers to:

• See which items your customers buy frequently;
• Check your individual preferences;
• Tailor special offers around these specific interests;
• Invite customers to join your loyalty program via email.

With so many resources available for free on the internet, you can also use specific software and applications for delivering personalized emails.

– 6 strategies to customize e-commerce and sell more

4. Use your social networks

Your social media presence isn’t just for promoting your products and finding new customers.

You can take advantage of them to also increase the number of repeat buyers, offering special discounts on these platforms.

According to a Nielsen study, 95% of people under 34 will share a product with their followers if they receive a reward, such as discounts or loyalty points.

So, designing a unique rewards system for your social media followers is a great way to take advantage of this trend.

You can offer bonuses when people like your page or follow your account, for example.

Or use your pages to share exclusive promotional codes and offers that only your followers will see.

In addition to acquiring new customers, this serves as an incentive for your followers to regularly check your social media channels and share your links.

– 7 Tactics to Boost Your Online Sales with Social Media

5. Measure and track ROI

You will need to monitor the results of your loyalty program regularly to ensure that it is actually generating profitable returns for your ecommerce.

Most importantly, you need to assess how well your loyalty program is generating loyal customers. After all, a 5% increase in retention can lead to up to 100% growth in profits.

Whether through sales charts, program enrollment, or simple satisfaction surveys, monitor the results and effectiveness of the action.

Check factors such as: 

• Click-through rates on email offers;
• Repeat visits;
• Reach and engagement on social media;
• Reduction of churn.

Keep in mind that loyalty programs are designed to build long-term relationships with the customer.

So, if you don’t see amazing results immediately, give it some time before changing your strategy.

– How to create an online store

Invest in a loyalty program to increase your sales

Everyone loves recognition and rewards.

Make your customers feel special and appreciated offering rewards through a loyalty program designed for them.

Next, measure, track, and analyze the results, and be prepared to adjust your marketing campaigns.

With the customer acquired, focus on the next important step: getting the product to the buyer’s home.

The success of your e-commerce business and customer satisfaction depends on fast and timely delivery.

If something goes wrong with that, the customer gets frustrated, negative reviews start to appear, and all your hard work goes down the drain.

To avoid this, rely on the services of a delivery partner specializing in e-commerce, such as Delivery365 app.

A true revolution in the way products and services are delivered, the Delivery365 app is perfect for e-commerce businesses of all sizes and segments, guaranteeing the safe and fast transport of products.

– How to create a service delivery business

To learn more, visit our website, check our services and offer the best delivery option to your buyers.