Ecommerce Loyalty Programme IdeasBy Liz Coulson, June 3rd 2020
Loyalty programmes can be a powerful tool for ecommerce businesses of all sizes. In this post, we explain the benefits you can experience with a customer loyalty programme, best practices, and also, the different types of loyalty programmes you can use for inspiration.
Benefits of a Ecommerce Customer Loyalty Programme
If done correctly, your ecommerce business will see rewards: a boost in customer loyalty, repeat purchases and your cost efficiency will improve too.
- Customer Loyalty/Retention: An engaging ecommerce customer loyalty programme will ensure your business isn't forgotten, but instead very much remembered. Your brand will be at the forefront of your customers' minds, helping you grow a loyal following.
- Repeat Purchases: Rewarding your customers for shopping with you will encourage them to buy from you again, especially if your competitors aren't doing something similar.
- Cost Effective: Having a following of loyal customers that place several orders with you means you don't have to spend as much money acquiring new ones to make up your order numbers – and this can be expensive.
When you build your ecommerce loyalty programme, consider your business' other important KPIs, can you include them into your programme and experience more benefits? For example, increase your social media reviews by rewarding your customers when they leave you one. This might be a manual process so you might only reward your customers for this a few months a year.
Now that you're aware of a few benefits of creating a loyalty programme, next up, what to consider when creating one for your ecommerce business.
Loyalty Programme Best Practices
Give a Variety of Rewards
Give your customers rewards they want. The incentive goes a long way towards encouraging people to sign up to your ecommerce loyalty programme in the first place, and to continue shopping with you. To make sure everybody's happy, you might need to offer a variety of rewards – and there are definitely lots you can offer!
- Tangible rewards like a product
- Custom rewards based on peoples purchase history
You will need to find out which reward(s) most motivates your customers and gives you success. To do this, test which reward works best for your different objectives during different stages of your programme, e.g. signing up, giving you more information like their birthday.
If you choose to implement a tiered loyalty programme (we'll touch on this later on), you can turn different tiers into different levels of rewards.
Easy Rewarding Process
Your customer loyalty programme has to be easy for your customers to understand and use. Initially, you will need to show how easy it is for your customers to earn points to encourage them to sign up and continue using your loyalty programme. Here are some ways you can reward your customers, showing them just this:
- Signing up to your programme
- Giving you useful information, like their birthday (so you can send automated marketing emails), you could give your customers a birthday present – hooray for extra points!
- Making their first purchase
When giving your customers a reward, you can make the timing work in your favour, or encourage people to shop with you, increasing your sales.
Give your customers a deadline to redeem their reward. It might just encourage them to place an additional order with you so they don't lose their reward. Setting a deadline will give your customers the fear of missing out (FOMO) with a time limitation tactic.
If you didn't want to put a deadline on reward redemption but wanted to give people FOMO, another option is limiting the quantities of free products you are giving away. This will encourage people to visit your online store and to redeem their free gift to ensure they can get their reward.
Or, you could simply put no limitation on the rewards your customers earn.
Payment with Points
Your loyal customers will soon have points stocked up in their account (if this is the route you choose to take), it's important they can use them easily too. You will need to review your checkout process and put new processes into place so your customers can use their points to contribute to the purchase of an item and also, use their points to pay for an item in full.
Sign Up Opportunities
You will need a marketing plan to launch your brand customer loyalty programme to your existing customers. People can't sign up if they don't know about it, and not everybody will sign up instantly. You just need to make sure that it's easy for those to sign up when they change their mind.
To encourage people to sign up, tell your customers about the benefits they will receive because of joining – and continue to do this wherever you can e.g. social media, checkout pages, email marketing.
Ecommerce Loyalty Programme Ideas
There are many different loyalty programmes that you can use for inspiration, below are a couple of examples.
- Reward Scheme: Everytime your customer spends money with you, they earn points which they can swap for rewards whenever they like. For example, they could swap their points for £5 off their order ect.
- Tiered System: Reward people the more they spend with you, for example with points; with this, people will move up your tiers and in return receive better rewards whether that's a discount or a tangible product. A tiered reward system encourages people to spend more to move up to the different tiers.
If you like parts from different loyalty programmes, take them and mix them together to create your own programme if it'll meet your business needs better than just the one.
How To Increase Sales
As well as being a natural incentive to increase your sales, you can actively use your loyalty programme to give your ecommerce orders a boost.
During your quieter periods you can offer more points for certain products; this could be great if you have stock to move before the next season and likewise offer more points during a certain period of time. It doesn't have to be a full day, a few hours might be enough to pull your sales in. You could offer your customers a flat rate of points.
This way of approaching sales could work during your busier periods too like Black Friday. You could give your customers lots of points as a reward for shopping with you rather than giving everybody a discount, therefore only rewarding your loyal customers.
Customer loyalty programmes help companies of all sizes keep their customers engaged, and reward them for their loyalty. We hope this article has given you an idea of the benefits your business can experience and given you a starting point to develop your very own loyalty programme. Let us know how you get on!
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