How to Set Up an Ecommerce Loyalty Program to Improve Retention and Build Community

In the past decades, eCommerce has been growing at a steady pace. The 2020 pandemic provoked a tremendous boost in online shopping preference to a point where experts expect global eCommerce sales to reach $6,3 billion by 2024. Therefore, it pushed more people to try ordering their stuff online or, in some cases, maybe even for the first time.

So when the entire eCommerce ecosystem is thriving, why would you even need a loyalty program?

The main goal of an eCommerce loyalty program should be to form a deep connection with a first-time customer to become a regular purchaser, so they are less likely to shop from your competitors.

Your customers now have more time to spend on the Internet searching for products. And relying solely on discounts won’t be enough to stand up to massive competitors like Amazon. This means you need to offer reasonable prices, great products, a convenient buying process, and tons of engagement points that keep customers coming back. This article is meant not only for purely eCommerce companies but also for any retailer that wants to branch out into online sales or strengthen their eCommerce channels. Therefore, An eCommerce loyalty program can bring significant advantages to your eCommerce store for the following reasons.

• Loyal customers are significantly more beneficial than new customers who will buy once. Indeed you’re saving money and increasing profitability when your customers are loyal to you. Statistically, New customers cost 5X more than repeat customers.
• Businesses with a loyalty program can retain 81% of shoppers. Also, 69% of shoppers prefer retailers based on customer loyalty or rewards. It proves that loyalty programs make customers stay with your business and discourage switching to rivals when they are encouraged by earning points or gaining a higher tier. Loyalty programs remarkably attract people to sign up and motivate them to return to continue receiving benefits.
• The average customer prefers to shop from a business that has purchased from previously. According to the Pareto Principle, 20% of a businesses’ existing customers contribute to 80% of its profits, indicating that loyal customers have a significant influence on the success of your business. Accordingly, With a customer loyalty program, You can reward your lifelong customers for remaining loyal to your business. As long as you retain customers, your business grows since a 5% increase in customer retention increases the profits by 25% to 125%. Also, according to a study, 62% of U.S mobile shoppers believed that this feature significantly increased their store visits.

What are Loyalty Program components?

There is one thing in common in all these kinds of programs that reward customers for taking specific actions. Businesses customize the principles to build their personal loyalty programs.

They can customize their programs using these factors:

1. These sorts of actions make customers gain rewards.

Successful loyalty programs’ main goal is to get customers to buy again to repeat orders. However, some businesses also reward their customers for signups, referrals, social shares, etc.

2. Ways that the customer can redeem and use their rewards.

Most online stores complicate their programs by offering rewards that are difficult to use, such as coupons or gift certificates. A helpful loyalty program makes it uncomplicated for the customer to earn and redeem their rewards.

3. The Types of rewards you will offer through your loyalty program.

You can offer your customers several kinds of rewards, from free shipping or a discount, since substantial rewards will lead to a thriving program.

4. The rules and regulations of your customer loyalty program.

To protect your program from abuse, You must have rules. However, it’s best to have a few rational rules and not make them excessively intricate, such as rewards being available to registered customers only. We hold the right to cancel an account at any time, or Points earned or redeemed do not apply to tax or shipping.

Ready to start your own loyalty program?

ECommerce business owners seize the opportunity to retain existing customers through eCommerce loyalty programs. Through the Mobiance platform, brands can reward customers with a crypto token that can be sold in exchanges or redeemed with products or services that other platform members offer. Consequently, brands can retain more customers and increase their revenue.

As long as you know the proper steps, you can quickly launch and automate the loyalty program. Just choose your rewards, determine your rewards system, and choose a suitable platform. After that, concentrate on marketing to heighten membership.