A customer loyalty program is a crucial consideration for your business. If you're a thriving business looking to boost your sales, it's about time you start implementing such a program. The benefits are endless. From improving the purchase experience of your customers to improving your sales, gaining customer behavior analytics, and increasing your product's reach, there is so much you can do with a customer loyalty program.
And you know the best part about implementing such programs? They work. According to a 2017 consumer survey in the United States, a total of 3.8 billion customers had subscribed to loyalty programs.
Discount coupons, stars, points, and bucks are some of the features that customers can gain from a loyalty program. Not only that, as a business owner, but you are also getting insights and marketing data that you could have been almost inaccessible before.
Boost Sales by Implementing a Customer Loyalty Program
In this article, we will take you through five strategies you can use to implement a customer loyalty program for your online store.
Strategy 1: Implementing a Basic Points System
A points and rewards system is perhaps the best way to get your loyalty program up and running. It also happens to be the most common method to ensure customer loyalty. By introducing a points system for your store, customers can earn points on the amount they spent on your store.
The amount of points you want to reward your customer for the dollar value of their purchase depends entirely on you. Either way, with a points and rewards system, you are gaining more sales by turning the purchasing process into a game, whereby customers feel as if they're getting a better offer for their purchases (often, they do). At the same time, by making them spend more, you are directly boosting your sales in the process.
A simple yet powerful concept, you can integrate a points and rewards program into most business models with relative ease.
For WooCommerce users, integrating a points and rewards system is relatively simple with the help of plugins. One such plugin that allows you to introduce points and rewards functionality to your store is FlyCart’s Loyalty Points, Rewards for WooCommerce. It’s an all-in-one customer engagement plugin that allows you to distribute points to customers based on the actions they’re taking on your store. Whether it be points for signing-up or writing a review, if you’re looking to engage customers in your store, FlyCart’s customer loyalty plugin is your best choice.
Strategy 2: Referral Programs
Similar to the previous section, introducing a referral program on your store also builds up customer loyalty, in addition to your email marketing list.
With a referral program at your disposal, customers can get points on referring your store products to their friends and family members. Once a new user signs up to your store, they also get sign-up points while the referrer gets points for making a successful referral. All the points in this discussion are redeemable and can be applied to products of your choice.
With such rewards, loyalty isn't the only thing you're getting from your customers. You are also nurturing new leads on your store with the same tactics.
To introduce a referral functionality on your store, you don’t need to look for another plugin since FlyCart’s customer loyalty plugin comes equipped with a referral system that allows you to distribute redeemable points and rewards to both referrer and referee on successful referral.
If you want to opt for a coupons-based referral system, then you can use the Referral System for WooCommerce plugin.
Strategy 3: Purchase Based Rewards
A points and rewards program is an excellent way to get more customers to your store. That's already been established in the previous sections. But what if you could add a membership functionality within that program?
Here's how! Not every single one of your customers will be the same. Some will spend more than others. To gain more loyalty from such customers, you can give them special privileges that reward them for their purchasing habits.
For example, a customer purchasing products worth $2500 versus a customer who only pays $50. Do you want the low-tier customer to have the same privileges? Of course not, it's unintuitive.
First of all, to introduce such functionality, you can make your store accessible to all. Anyone can sign up for your store to become an insider. Additionally, they can reap the rewards of being a member like free points, and the like.
However, once a customer reaches above a specific purchase threshold, say, $350 worth of goods purchased, you upgrade their plan to become VIP members with more benefits and advantages. The benefits can range from anything between more points to extra freebies, or free shipping.
Moreover, you can also create a leaderboard showing the names of the customers who are VIP, and how much privileges they get for being VIP. This helps entice other customers to purchase more and get into the big leagues.
Strategy 4: Strategic Alliances
Once you've created a customer loyalty program, you now have to promote it. If you're just new into the market and want more exposure, then strategic alliances are your best choice. Because let's face it: marketing is expensive both when you're starting out and in general. This is why you need to partner with another company to promote and gain more customers for your program.
It's a win-win situation for both. The stronger partner gets affiliate commissions, while you are getting more customers whom you can target using the strategies we've outlined in the section above.
Now, you might think that the partnership will be a loss for your business since you are losing money on affiliate commissions payments. But think of it this way, if you do things right, you will be gaining more customers that you can nurture even further. So in the long run, you are the one reaping the benefits.
Strategy 5: Loyalty and Corporate Social Responsibility
You can tailor your loyalty program to reach customers on a personal level by making it in-tune with your business' mission and vision.
This strategy is considerably different from the strategies we've discussed before since the mission and vision statement differ from company to company.
There are plenty of companies that have introduced programs and loyalty programs around their corporate social responsibility initiatives.
Take the example of TOMS, whose mission is to see shoes on the feet of every child in need. To accomplish that purpose, they have created a loyalty program that promises customers that they will donate shoes to children on every purchase. So if you are buying ten pairs of shoes, then the store will give out ten shoes to their children's fund.
Where in the previous sections, we were talking about personal profits, this is about giving back to the community and gaining more customers who support your cause. The ones who would love to help people out in that fashion will gladly purchase your store products to accomplish a charitable purpose.
Building a loyal customer base is a great way to boost sales for your business. Regardless of whether you're a large scale eCommerce business or a regular traditional store, the strategies we've discussed in this article will help you grow your business significantly.
This is because it follows the concept of retaining store customers. As your current customers are a lot cheaper to market to than newer ones, you will find these strategies beneficial. Your loyal customers will gladly spend more money on your products.
If you're feeling overwhelmed at these strategies, then we would recommend you start with something as simple as a regular points system for your store. Starting small you can, later on, use the other examples from this article, and implement them accordingly in your store.
Lastly, it's best to A/B test since, depending on your store, some strategies might work or some might not.
Rai Jibran is an eComm enthusiast and works at Codup to simplify marketing and development roadblocks. Playing with the analytical data and digging into useful insights is his most favorite thing to do. Besides work, he is passionate about contributing to the communities and helping others.