Introducing a loyalty program to your e-commerce store is a great way to attract repeat customers and stay ahead of your competition. In fact, a massive 55% of the world’s top retailers have a loyalty scheme in place and it has proved to be a perfect strategy for increasing e-commerce sales.
Benefits of introducing a loyalty programme in ecommerce
On average, retailers that have a loyalty program earn around an 88% higher profit, with customers visiting twice as often and spending 4 times as much money than normal. Attracting a new customer to your website is only the first step to running a successful ecommerce store, as 48% of consumers surveyed have revealed that their first-time shopping experience is the most crucial time for deciding their loyalty.
How to set up a loyalty programme
A loyalty scheme could be anything from a physical card to an online store account. Most e-commerce software includes a loyalty program feature – if they don’t already have one, then you are sure to find an e-commerce extension for it.
- Make sure to link customer accounts with a phone number or email address. This will make it easier for your customers to shop both online and in-store.
- To help increase brand awareness and website traffic, introduce rewards not only for purchases, but for non-purchases such as shares on Facebook and retweets.
- Use your loyalty program to collect and analyse customer data. You can use this information to offer targeted discounts and rewards, unique to your customers.
- Having a tiered system will give customers incentives to spend more money and reach the next level for even better rewards.
Is a loyalty programme right for my shop?
Remember, it costs retailers up to 10 times more money to get new customers in comparison to keeping old customers. However, certain e-commerce stores with narrow profit margins may not be able to afford to be so flexible with their prices. In this case – although a great way to increase ecommerce sales – you may find this strategy too damaging for your profits.