Loyalty Programs for Improved eCommerce Customer Retention


Though many businesses understand the importance of customer loyalty and retention, they may need help knowing where to start when implementing their eCommerce loyalty programs. Luckily, there are a few easy steps you can take to improve eCommerce customer loyalty. Let’s get started right now!

Why are eCommerce loyalty programs vital for your company?

It’s no surprise that 84% of customers think they’re more inclined to connect with a business that offers attractive incentives, discounts, tailored offers, and exclusive deals.

Simply said, eCommerce firms with reward programs provide a better shopping experience for their customers. And, as they provide a better experience for their consumers, they improve critical business indicators such as Average Order Value and Customer Lifetime Value (CLV).

Therefore, it pays to invest in shopping and brand experiences that keep customers.

How to implement eCommerce loyalty programs that convert

1. Establish your objectives and do customer research

Without objectives and goals to determine the path of your project, no marketing plan can be successful. Begin by establishing your loyalty program’s aims. Set SMART objectives that are specific, measurable, achievable, realistic, and timely.

Once you’ve determined your objectives, consider your consumer base. To create strong eCommerce loyalty programs, you must first identify and meet your client’s requirements and preferences.

2. Select a proper loyalty program

Here are a few ideas to start your creative juices flowing:

  • Point-based: Customers can earn loyalty points by doing specified activities such as completing a purchase or sharing their experience with the company on social media. And participants get incentives at certain milestones or point values.
  • Tiered program: This kind of program gives clients various prizes based on their loyalty to the company. Customers go up the tier ladder when they make larger purchases and perform more detailed activities. 
  • Paid/subscription program: Customers that pay a one-time fee can receive further benefits through the paid loyalty program. Similarly, clients are paid a recurring monthly or quarterly cost instead of a one-time price in a subscription-based loyalty program.
  • Partner or community-based program: A difficult yet appealing loyalty program entails collaborations with similar brands to provide combined incentives and benefits.
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3. Decide reward criteria

Your loyalty program will fail if you do not decide which consumer behaviors to reward, your reward criteria, and the kind of perks you will provide.

While large and expensive rewards may be required to motivate customers, this is rarely the case. Start with a modest reward and simple criterion, then add complexity as the program grows.

4. Acquire customer loyalty software

Managing a client loyalty program across several nations, currencies, and devices is a difficult task. You need reliable eCommerce customer loyalty software to manage and optimize your process for consumers and staff.

These systems track transactions made by loyalty program members, compute point accumulation, allow users to buy and redeem points, and provide interactive capabilities to make the process more enjoyable for customers.

5. Begin exploring and perfecting

Once your eCommerce loyalty programs are up and running, it’s critical to monitor your success and how customers react to your rewards and incentives system.

You may utilize your loyalty program software to collect data and mix it with data from your online business to determine what works and doesn’t.

In Conclusion,

Following the tips in this article, you can create a loyalty program that helps your business retain customers and improve sales. Contact us today if you need help getting started or more information on how to create effective eCommerce loyalty programs. We’d be happy to chat about how we can help grow your business.


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