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Benefits of Loyalty Program

Online shopping is evolving very quickly because it is very convenient and brings the excitement of exploring new ideas. It is fun to find new products with such ease, and when it brings rewards and extra gifts without any cost, it makes us stick with such a particular brand. 

The best formula to make your customers loyal to you is rewarding them through some loyalty program. It makes the customer happy that they are also getting something in return as a reward or points to redeem later along with the money they spent. Loyalty programs have gained popularity and are available almost everywhere, including salons, restaurants, etc.

There has been a lot done to make loyalty programs competitive with each other, and there are some excellent tools and software to give a unique edge to your business.

For your convenience, we have compiled a guide with the top eCommerce loyalty and rewards programs. So, let’s get started with it! 

How Can a Loyalty Program Help Your Ecommerce Business?

Customers who have been with your company for a long time might be rewarded for their dedication to a customer loyalty program. The greater the number of customers you retain, the greater your firm’s growth. An exciting study indicated that a 5 percent improvement in customer loyalty could boost a business’s earnings by 25 percent to 125 percent. Loyalty programs are definitely worth it.

It is a proven reality for any eCommerce business to have loyal customers that keep coming back to it.

  • It costs a lot in advertisement and marketing to bring in new customers compared to the loyal ones, which gives more profit to the business than the earlier mentioned ones.
  • The joy of getting points and redeeming them makes customers stick to the brand.
  • Loyalty programs make customers believe in you and your services.
  • Loyalty programs can make users talk about it to others and ask them to participate and try it out, which can be a great form of marketing.

Challenges for eCommerce Businesses in Terms of Customer Retention

In terms of customer retention, following can be the challenges for eCommerce businesses.

Building emotional connection

Customers’ trust and loyalty can also be gained by showing sympathy and demonstrating fundamental values. Exchange programs, bringing back used products for charity or donation can also be a part of loyalty reward programs. In the times of the COVID-19 pandemic, many eCommerce businesses used this approach to bring in new customers and gain their loyalty.

Convenient buying process

Price and convenience are equally crucial for the customers; Amazon realized it and became the reason for its success. Customers nowadays want convenience more than anything else, like one-click checkout, and lightning-fast delivery is very much important to them.

Going out of the buying cycle

The primary KPI for an eCommerce brand is to keep the engagement rate high. If there is only transaction-related interaction between brand and customer, it will be challenging to maintain a relationship. To cope with this, loyalty programs should offer rewards to customers for writing reviews on the website and sharing them on social media or an online treasure hunt feature to encourage product discovery which will generate positive word of mouth.

Rewarding the customer on their first purchase will encourage them to stay around and redeem their points on their next purchase.

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