In the past, we’ve talked about how to create a loyalty program for your online store. However, that’s just the first step. If you want the program to be successful, you’ll need to make it fun and user-friendly. You’ll also want to offer truly valuable rewards. This way, you can increase returning customer rates.
In this article, we’ll go over four strategies you can use to improve your loyalty program and boost lifetime revenue per user. Let’s get to it!
1. Make It Easy for Customers To Access Rewards
First and foremost, when it comes to a loyalty program, you’ll need to make it easy for customers to access rewards. By “easy,” we don’t mean giving points or rewards away like candy.
Customers should be able to accumulate rewards at a reasonable pace. That is to say, they shouldn’t need to spend thousands of dollars on your store before they see any perks.
Once customers accumulate enough points, it should also be easy for them to identify and unlock the rewards they want. If the option to redeem rewards is hard to find, users will likely find that frustrating. This may even dissuade them from continuing to shop at your store.
Ideally, users should be able to see how many points they have at any time, and how many they need in order to unlock the rewards they want. Furthermore, once they claim their rewards, getting them should be almost instantaneous (unless we’re talking about items you need to ship).
Overall, it’s best to think about a loyalty program as a contract between users and your store. Customers get to feel valued and receive real benefits for their continued support. Meanwhile, you spend a little money on perks or rewards, and in exchange, you get customers who keep coming back to your store.
2. Look for Ways To Implement Gamification
You’ve probably heard about gamification before. In the context of an online store, it means to make using your website feel a bit like a game. Prizes are at the core of gamification, which makes it perfect for a loyalty program.
Some online stores offer occasional perks for repeat customers. For example, they might send the occasional email thanking you for your patronage, and include a discount coupon code.
That can be a great way to get users to return to your store. However, unless you’re sending frequent discount codes, it doesn’t encourage consistent loyalty.
Programs that give users points and enable them to see how many they’ve accumulated are more likely to keep customers interested. It gives people a sense of progression, and can entice them to make bigger purchases or complete tasks to get more points.
What’s more, a more traditional loyalty program might only offer points for purchases. But with gamification, you can also ask customers to complete tasks that will benefit your business in other ways.
For example, you might give customers points for taking an easy online quiz, sharing their birthday details, or following your company’s social media accounts:
Another smart way to implement gamification with a loyalty program is to offer different rewards tiers:
When customers earn a certain amount of points and reach a specific tier, it’s like progressing to the next level in a game. For instance, you might allow customers to advance depending on how much money they spend, with higher levels offering bigger discounts (you could also make this a paid loyalty program).
Alternatively, you can reward users with badges that give them specific benefits, like free shipping or early access to products. Or you could simply present them with a prize wheel every time they make a purchase.
3. Offer Rewards That Customers Actually Want
Since the draw of a loyalty program is the rewards, you’ll want to be sure you’re offering benefits and perks that customers actually want. If you don’t, they’ll be unlikely to participate.
Moreover, poor rewards might even frustrate shoppers. For instance, if you’re providing random knick knacks as rewards in deliveries, customers might actually find that a nuisance.
If you’ve been running your store for a while, you should have a solid grasp of what customers want. To make your loyalty program a success, use that information when deciding what rewards to offer.
If your store is newer or you’re not sure what customers might want, discounts are always a strong option. You can offer flat-fee or percentage-based discount codes that users can unlock by accumulating points.
However, keep in mind that depending on how big the purchase is, percentage-based discounts can be expensive for your business. If you want to offer them as an option (because they are enticing), we recommend putting a cap on the discount.
Remember that you’re free to experiment with different types of rewards too. If your loyalty program is lagging, we recommend testing different strategies for a period of time and seeing what works and what doesn’t. After all, A/B testing isn’t just useful for content marketing.
4. Remind Users of Their Progress
One of the primary goals behind a loyalty program is to keep users coming back to the store. This is important because at any given time, you’re competing with hundreds of other websites for a user’s attention.
Having a loyalty program is a great start, but if you don’t remind users about it, a lot of them might forget about it. That applies even if they’re a point away from unlocking a reward.
One simple way to combat this issue is to send users periodic reminders about their standing in the loyalty program. If you use a points system, you can send an email that includes their current total, ways to earn more points, and the closest reward they can unlock:
Some users might ignore these emails, but the people who care about your products will be reminded to make another purchase in your store. Simple weekly or monthly emails can make a big difference.
Conclusion
An e-commerce loyalty program can help you get a regular influx of returning customers. In order to be successful, though, you’ll need to create an appealing rewards system using gamification and a straightforward model for redeeming points or prizes. Offering genuinely valuable benefits will also go a long way towards ensuring participation.
Do you have any questions about how to run a successful e-commerce loyalty program? Let’s talk about them in the comments section below!
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