Do you know repeat customers have a higher lifetime value for your business?
It costs 5x more to acquire new customers rather than nurturing existing customers. So, successful businesses across the globe put their endeavors to retain more and more existing customers. Further, about 65% of a company\’s business comes from existing customers. Hence, it\’s a wise idea to implement a loyalty program and retain your present customer base.
If you want your customers to be brand loyal, you need to offer high-quality products and services all the time. Are you looking for approaches to develop customer loyalty programs for e-Commerce, you have landed to the right spot. This article focused on loyalty programs for the e-commerce industry.
Let’s start with what is a customer loyalty program?
A loyalty program is a set of structured strategies to gain more brand loyal customers by presenting rewards. It often favors the business’ products and services. With a loyalty program, businesses are offering rewards points, coupons, free merchandise, etc.
Brand loyal customers are willing to work with or buy from a brand frequently as a result of customer satisfaction, positive experience, and the value the customer receives from the transaction.
Loyalty programs were introduced in the 1950s when grocers giveaways stamps to the customers on making a purchase.
Why your e-commerce business needs a loyalty program?
Loyalty programs bring many opportunities for businesses to increase sales. Here are the key reasons that your E-commerce business needs a loyalty program;
- Increase retention of the existing customers – the customers, who gain rewards from your business, are likely to make repeat business again and again.
- Easily acquire new customers – loyalty programs are designed to attract new customers. In fact, when you offer rewards or giveaways, the word of mouth publicity helps to get new consumers.
- Win back the lost customers – you have an exclusive opportunity to gain the lost customers with the loyalty programs. The program shows the value you offer to your customers, and you might get back the previous customers.
- Identify the brand influencers – it helps to identify which customers are brand loyal. They are a great source to gain word of mouth publicity.
- Standout from the competition – each business holds an unprecedented proposition, so as its loyalty program. Introducing a unique loyalty program allows you to sustain market competition and stand out among the competitors.
- Delight your customers – a loyalty program always has something to offer for customers, which makes your customers delighted. Thus, the likelihood of their repeat purchase increases
How to build loyalty programs for eCommerce?
Now that is it clear why is a loyalty program and why it is essential for e-commerce business. Let\’s move on to create loyalty programs that entice more customers.
#1. Reward points
You can offer reward points on a purchase which can be used in the next purchase. Reward points are one of the most common and easiest techniques to retain more customers. It\’s based on the simple convention that the customers who spend more will get more points.
For instance, With this type of reward, you are reducing the likelihood of your customers turning towards your competitors. The points bolster their investment in your business. However, when you are applying reward points, make sure you apply for both offline and online stores.
#2. Membership program
When you enter a membership program for your eCommerce business, you secure some amount of profitability with the customers. In general, revenue from membership programs is higher than any other offerings. For instance, Flipkart has introduced many interesting benefits to the customers who get Flipkart\’s membership. The benefits include free delivery, specialized access to sale, etc.
Mostly, eCommerce businesses propose special discounts, early delivery, or limited sale for their exclusive members. The one-time charge of membership brings many benefits to the customers. Hence, it is a worthy option to increase brand loyal customers. But, do not forget to align membership benefits with your brand values.
#3. Subscription base discount
Subscription-based selling increases brand values. Customers love convenience services. And, with the subscription you an offer discount coupons or special deals for the selected customers. Moreover, if your product is suitable for direct sale via a subscription, go for it. You can easily incentivize prospects and attract them to spend more on your products.
Also, you can track the customer response with the subscription-based discount, which will help you to define future strategies. Besides pulling in more consumers, you have an opportunity to build lifetime relationships via this loyalty program.
#4. Introduce a partnership program
Introducing a partnership program is a big win-win for your eCommerce business and your partner. When you partner with other businesses, you formulate a loyalty program that not only contributes more benefits to customers but also allows building new business relationships. In this method, you are partnering with another business to increase sales.
# 5. Cashback program
Offering cash back on a purchase is one of the best ways to boost repeat business. Paytm has attracted millions of customers via cashback offers. With this offer, Paytm has become the first choice of customers for in-store payment. Especially in India, a cashback offer is a great way to retain more customers and entice them for repeat business.
#6. Organize sweepstakes
Businesses often invite customers to participate in sweepstakes to increase their customer base. It\’s an easy way to seize customers attention and make them buy from your business. With that purchase, they get a chance to enter in a pool to win interesting giveaways.
There are plenty of ways to captivate your audience to participate in the sweepstakes such as email marketing, social media publicity, direct mail, and many more. However, you need to make sure that the giveaways are also aligned with your business values.
Thus, each business should introduce some kind of loyalty program to reward its customers, especially in the eCommerce industry verticals. So, don’t wait to get a loyalty program for your eCommerce business and increase profitability.
LoyaltyXpert is one of the leading loyalty program services providers in India. We assist businesses to implement the right loyalty program in order to get the maximum benefit out of it. Also, you can get a customized loyalty program as per your business needs. Contact us now and get the loyalty program that boosts your business growth.