The biggest advantage of a loyalty program is that it has the potential to align your entire business toward the most profitable segment of your customer base. Why You Need an Ecommerce Loyalty Program (Hint: Retention) These retailers see the greatest benefit from customer loyalty programs since they are at the greatest risk of losing customers to competitors.Ī loyalty program may also help you to stand out amongst your competition, giving you the upper hand and making you appear more customer-centric than other brands. Online retailers operating in markets with several competitors are also ideal candidates for a loyalty program. Or, test out a loyalty program to help grow a specific channel. If your various selling channels have different selling propositions – for instance, on your independent website your unique products are more of a draw than your prices, but on your Amazon channel, your price competitiveness wins out – then consider running different loyalty programs for those two audiences. Sephora, for instance, has a hugely successful loyalty program. Price sensitive customers respond better to rewards than customers in big ticket or luxury markets where price is not an important factor.Ī loyalty program in a fashion or beauty niche can also be successful. Online retailers operating in a niche where customers are price sensitive are ideal candidates for a loyalty program. Google Shopping is a tried and true favorite for most mid-market brands, but Facebook and Instagram are equally attractive and allow you to narrow down your audiences with Power Editor. Repeat orders are more likely when online retailers are generating a steady stream of new customers. Online retailers who receive a steady stream of at least ten or more orders a month will see greater benefit from a reward program. These retailers have the following characteristics: 1. However, certain types of internet retailers will see greater value from a loyalty program. Who Needs a Customer Loyalty Program?Īnyone who has customers can benefit from a loyalty program. Loyalty programs first originated in the 1950s, when grocers gave customers stamps for making purchases, eventually spawning airline miles rewards in the 1980s. Through the loyalty program, the customers may be given: – Emil Kristensen, CMO and co-founder, Sleeknote.Ĭustomer loyalty refers to a customer’s willingness to work with or buy from a brand repeatedly as a result of positive customer experience, satisfaction, and the value the customer gets from the transaction.Ī customer loyalty program helps push customer loyalty by providing rewards to customers that frequently patronize the business’ products and services.
Many businesses use loyalty programs to reward repeat purchases which has shown to be very effective, especially for ecommerce.
Show them that you’re the expert in your field and reward them for their loyalty. If you want lifetime customers, you not only have to continuously prove that your product is worth what they’re paying for it, you also have to give them that something extra.
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