Interstellar Digital Marketing

How to Use Ecommerce Loyalty Programs to Retain Customers

When you own or manage an e-commerce business, one of your top priorities is customer retention. You want people to continue buying or using your products so that you can be successful, but how can this be done without spending a fortune on advertising? Luckily, there is an option: a loyalty program.

What is a Loyalty Program?

Loyalty programs (sometimes known as incentive programs) can be set up in a variety of ways to increase the rate of returning customers. This alone may actually help your bottom line since it is less expensive to keep regular patrons than to target new ones. In addition, 69% of consumers say that they are more likely to shop with a brand that has a loyalty or rewards program.

How can I get started?

You can achieve the goal of keeping customers satisfied and loyal to your business by using some of these ideas to help you get started:

Keep It Simple

Use simple actions or events to earn rewards points, and clearly explain the process customers must go through to earn these points. If it is too complicated, customers won't participate.

Use a Mix of Acquisition and Engagement Actions

There are near innumerable ways that you can reward customers for their loyalty. You can use the more traditional loyalty actions like Make 10 Purchases Get The 11th Free (like a punch card) or Spend $100 and get $5 Off. You can also reward customers for their behaviors, such as linking your Facebook page or reading a blog post.

By utilizing a mix of both acquisition-based and engagement-based actions, you provide options for your customers. The engagement actions allow them to warm up and get familiar with your brand before taking the more important acquisition actions.

Make the Rewards Tangible

When customers can actually see and experience the fruits of their actions, they’re more likely to stick with your brand (even when competitors have better prices). Therefore, you should offer a tangible reward, such as a percentage off or dollar amount off their order, free product or free shipping, and allow them to earn it in a reasonable timeframe. They should have to work for it a little bit, but it can’t be absurdly difficult or take a full year to earn their first reward.

Market the Program

In addition to highlighting the Rewards and Loyality program on your website, make sure you let customers know about it through your other marketing channels. Send an email letting customers know the program is live, and remind them about it often in your newsletters. Post about the program on your social media channels. Get brand ambassadors and influencers involved in promoting the program as well.

Monitor and Optimize

Is the program running smoothly for customers? Are they engaging with all of the actions? Do you need to add new ways to earn points? Do the rewards need to be adjusted to drive more sales or engagement actions? Like an marketing initiative, it’s important to monitor the performance and make adjustments as needed.

These are just a few of the ways to help you retain your current customers and gain new shoppers. This system keeps your consumers engaged with your company and more likely to stay with you long-term. Not only that, but the digital world in which we live, customers who are happy with your service are very likely to promote you online with comments, recommendations, and reviews.

If you follow these suggestions for loyalty programs, you are very likely to see increased customer activity on your site! IFor help getting started with your loyalty or rewards program, drop us a line today!