Since customer loyalty is essential for any successful business, it’s no surprise that there are numerous loyalty programs to help you increase and measure customer loyalty.
And it would be a huge mistake NOT to capitalize on them.
So, read on to find out how you can get the most out of these loyalty programs to keep your customers coming back for more.
What is a loyalty program?
A loyalty program is a type of marketing program that rewards customers for their patronage, purchases, or other activities. The aim is to encourage loyalty from the customer and increase customer lifetime value.
source: https://loyaltylion.com/blog/five-benefits-of-a-loyalty-program
The importance of customer loyalty for Shopify store
Increase eCommerce revenue
Let’s face it – no matter how great your business is, it’s not going to survive for long if you don’t have loyal customers. Loyal customers are more likely to make repeat purchases and refer other people to your store. This can result in an increase in revenue from existing customers as well as from new ones.
Build an effective brand advocacy program
Brand advocates are a pillar of each successful loyalty program. And interestingly enough, they don’t even need to be your customers! They can be influencers or other people who are willing to promote your store and products on their own platforms. You just need to provide them with the right incentives, such as exclusive discounts and special offers, in order for them to do so.
In terms of turning your existing customers into brand ambassadors, this could work as well. You need to dive deep into understanding the needs and wants of your customers, you can craft a loyalty program that encourages them to talk positively about your brand. This will, in turn, help you attract more prospects, which could lead to increased sales and customer loyalty.
Improve brand reputation
To encourage users to join and continue to use your loyalty program, you need to make sure that it is easy to use and offers rewards that are meaningful. Loyalty programs can help build relationships with your customers and create a positive brand reputation.
Increase profits in business
Happy customers mean increased profits. Simple as that. If you can create loyalty with customers and build relationships with them, they will be more likely to retain customers, so they come back to your online store again in the future. Customer loyalty helps in improving the profitability of your business by increasing the lifetime value of each customer. Even even though it requires time and effort, it’s a great long-term strategy that will keep working for you in the future.
Get valuable customer feedback
Interesting loyalty programs tend to help customers feel engaged and connected to the brand. This can lead to valuable feedback from customers that you can use to improve your business or product. You’ll be able to see what they like, what they don’t like, and how you can make changes accordingly. And if you’re all about retaining customers, a loyalty program can help you do just that. Not like you cannot proceed without it, but it’s a huge help from day one.
Attract new customers
A value-based loyalty program can help attract new customers. If a customer sees that they are getting something of value in exchange for their loyalty, they will be more likely to join your program and become loyal customers. This can help you build relationships with new customers and increase conversions from them – but also, it will help make them loyal customers.
On top of that, using Shopify conversion optimization techniques will help you pinpoint the ideal audience for your products, encourage more people to shop at your store, become loyal customers, and also recommend the store to others.
Improve customer retention
Customers engaged in loyalty programs are more likely to stay with your business. This is because they will become emotionally attached to the rewards and special offers associated with the program, which can help you retain them for longer.
Of course, it’s important to make sure that your loyalty program is continuously updated and improved, so you don’t lose your loyal customer base to competitors. Once you have built a successful loyalty program, it should become an integral part of your business strategy. Doing this will help increase customer lifetime value and establish a loyal client base for the long-term success of your business.
Reduce advertising costs
Yes, you read that right. Loyalty programs can help to reduce your advertising costs in the long run. This is because customers who are already engaged with your brand will be more likely to purchase from you and spread the word about your business, meaning that you don’t have to spend as much money on advertising and promotion. And since you offer them a rewards program at their disposal, you directly impact on their customer satisfaction and close the customer loyalty loop.
The most valuable types of loyal customers
#1 Transactional customers
These are customers who purchase a product or service to fulfill their immediate needs. They are typically more price-sensitive and have no need to develop a relationship with your brand. So, if you count on brand loyalty on top of their purchase, you’re likely to be disappointed.
#2 Emotional customers
These are the customers who feel a strong connection with your brand, so they become loyal and continue to buy from you. They often talk about your products on social media, wear your brand’s logo or clothing items, or recommend you to friends and family. They wouldn’t do it if they weren’t satisfied customers!
#3 Brand advocate customers
These are the customers who go above and beyond to support your business and help spread the word about it. They will write positive reviews, answer questions from potential customers, share offers or discounts with their friends, and so on. They often become the face of your brand and provide you with valuable feedback – while, indirectly, helping you with delivering great customer service.
#4 Relational customers
As the name suggests, these customers are loyal to your business because of the relationship they have formed with it.
They will often look for discounts and rewards from you, but also leave positive reviews, give feedback on product or service quality, and recommend your brand to others.
For them, it’s more like convenience loyalty or price loyalty, yet they are loyal to your brand in their own way.
source: https://www.yotpo.com/blog/the-state-of-brand-loyalty-2021-global-consumer-survey/
The best types of Shopify loyalty programs
Cashback reward program
This type of program lets customers gain back a portion of what they spend in your store with each purchase. This not only rewards existing customers but encourages new shoppers to visit as well – everyone loves having the opportunity to make their money worth more!
Furthermore, cashback programs can promote customer loyalty; sure, you’re giving away some of your profits now but you’ll be rewarded with a much higher rate of returns in the long run. Prime members spend even 5 times more than non-members and shop more often, so if you offer an incredible cashback program, it’s likely that your customers will stay loyal to you.
Punch card loyalty program
One of the most tried-and-true methods is the punch card loyalty program, where customers receive a physical card or virtual stamp every time they make a purchase – and when they accumulate enough stamps, they get something free!
Such customer loyalty programs used to work well for brick-and-mortar stores because customers are likely to carry their cards around with them and remember to bring them back when making purchases.
However, they find success with Shopify online stores too; customers will often register an account and link their card to it, so they can easily keep track of their progress.
A punch card (often in a form of a loyalty app) also has a novelty factor that can help build brand awareness and encourage repeat business. Customers enjoy being rewarded for their continued patronage and will return for future purchases.
Paid Loyalty Program
Paid loyalty program is where customers pay a small fee to join the program and receive exclusive discounts and rewards. Why would anyone pay to join a loyalty program? It’s simple – these programs offer customers access to exclusive offers that they can’t get anywhere else.
The customer loyalty membership fee can assure them that their data is secure and protected from any abuse. Paid loyalty programs also tend to be more successful than free ones because customers are more likely to stay loyal if they have already invested in something.
Amazon prime members are willing to pay $99 a year for exclusive discounts and fast shipping, so it’s possible that your customers will do the same.
These programs reward existing customers for their purchase history while giving them incentives to shop more often. And, if structured correctly, a paid loyalty program can quickly become one of the best investments a business can make. Customers earn rewards on every purchase and businesses encourage customer loyalty using this method.
Points program
This system allows shoppers to accumulate points for every purchase they make and then redeem these points for discounts and other incentives. The best part about running a points program on Shopify is that customers get excited when they realize how quickly their points start adding up – providing them with extra motivation to come back for more! Then, they can redeem points and be your repeat customers, forever.
This type of customer loyalty program rewards those who are loyal to your store, creating an atmosphere of connection between you and your customers in a much more meaningful way than promotions alone can provide.
With customer loyalty more important than ever, using the right program to keep customers coming back is essential!
Omnichannel loyalty programs
A customer loyalty program is an effective tool to reward customers for their repeat business. An omnichannel customer loyalty program ties in multiple channels such as physical stores, websites, or mobile apps into a single customer experience allowing customers to collect points and redeem rewards regardless of where they shop.
Such rewards programs can offer several benefits for businesses including increased sales, higher customer engagement, better visibility, and data accuracy, and improved customer retention. With an omnichannel rewards program, there is greater potential to personalize after-sales service on the spot too.
Coalition loyalty programs
These types of loyalty programs give customers points for activities beyond buying from your store – such as making referrals, connecting social media accounts, and signing up for newsletters – in addition to the purchase-based points they’d earn with traditional customer loyalty programs.
And, while it’s true that you might not get as much immediate ROI from this type of loyalty program, you’ll be rewarded with a much higher rate of returns.
There’s something to be said for fostering an increased sense of community and connection between your customers and your business – which results in more loyal customers overall since repeat customers typically spend more with your store in the long run.
Value-based programs
When it comes to creating meaningful customer loyalty, value-based Shopify programs offer an ideal solution. Offering a variety of rewards based on customers’ spending levels or frequency of purchase is a great way to get customers engaged and drive repeat purchases.
With tailored reward structures, businesses can create the perfect customer loyalty program that uniquely rewards their best customers while also promoting continued sales. As an added benefit, value-based customer loyalty programs make it easier for businesses to track their customer behavior, further improving sales and driving increased customer engagement.
Premium loyalty programs
If you’re looking for an effective way to motivate your customers and reward them for their loyalty, then premium rewards programs might be just the thing for you. These programs let you offer rewards such as special discounts and exclusive product offerings to your most loyal customers. The real benefit of such a program lies in how it rewards shoppers over time – with increasingly better offers, bonuses, or exclusive access to events or custom products.
Hybrid loyalty programs
With more and more customers seeking out their favorite brands for rewards for shopping, hybrid customer loyalty programs are quickly becoming one of the most effective ways to reward shoppers on Shopify.
By combining points-based, tiered, and VIP programs, a hybrid program enables brands the flexibility to engage with their customers in new, exciting ways – and reward loyal customers, encouraging them to jump on a referral marketing bandwagon at the same time. Customers earn points in various ways, ultimately leading to higher rewards, improved customer data processing, and better experiences.
The perks of best loyalty programs range from discounts and free shipping to exclusive experiences, giving customers an incentive to come back time and again. These rewards offer significant cost savings compared to traditional marketing teams’ strategies.
Ultimately, hybrid customer loyalty programs allow Shopify merchants the opportunity to build long-term relationships with their customers while boosting repeat sales and growing their customer base.
Tiered programs
Customer loyalty referral programs are becoming increasingly important, and tiered loyalty programs are quickly gaining in popularity. Customer loyalty programs work in a way that they reward higher-spending customers with more exclusive benefits and rewards. Different tiers can offer discounts, free shipping, free samples, or even VIP access to special events or promotions.
The higher their tier, the more valuable the rewards, making customers feel appreciated and incentivizing them to increase their spending with your store.
Not only do these programs strengthen customer engagement, but they also encourage repeat purchases through valuable incentives. And, well, who doesn’t like being rewarded? With the right-tiered loyalty program, everyone wins – especially the customer. And if you want to get repeat customers, measure customer loyalty, and impact how much customer spends in your store – that’s the way to go!
How to build customer loyalty on Shopify online store?
Create a loyalty program that rewards customers for spending money on your store
Building customer loyalty on a Shopify online store can be a challenge, but creating a reward program for customers is an excellent way to say thank you and show how much you appreciate their business. Reward programs are excellent incentives that offer customers discounts and points for making purchases in your store.
This puts them at ease and gives them the motivation to keep returning to your store again and again. You can also nurture customer loyalty by adding a personal touch to each transaction; take the time to thank each customer via email or through personalized messages in the packaging of their order.
Showing genuine appreciation will go a long way and make customers feel special, ultimately converting them into loyal patrons.
Give customers exclusive access to sales and discounts that aren’t available to the general public
Everyone loves getting special deals and discounts, and loyal customers are no exception. Offering exclusive discounts or early access to sales is a way to go if you want to reward your most valuable shoppers while also encouraging them to keep coming back. This lets you build relationships with customers while generating repeat purchases. With the right customer loyalty program in place, you can provide VIP treatment to your best customers
Send personalized emails with product recommendations based on past purchases
Personalization is not overrated – it’s a powerful tool to engage customers and encourage them to stay loyal. Sending emails with personalized product recommendations gives customers the sense that you’re paying attention to their interests and preferences. This creates an emotional connection that can lead to long-term loyalty, resulting in a higher customer retention rate, as well as customer willingness to repeat the purchase and higher customer satisfaction.
Show appreciation for customer feedback and implement their suggestions whenever possible
As an added bonus, showing appreciation for customer feedback can go a long way in building loyalty.
Not only does it show that you value their opinions and care about making changes, but it also encourages customers to keep coming back because they feel heard and respected. Whenever possible, reward customers for their feedback with discounts or reward points to further reinforce the customer loyalty loop.
Make it easy for customers to contact you with questions or concerns
Make sure it’s easy for customers to reach out with questions or concerns to your customer service representative – whether that’s through email, live chat, social media sites, or a dedicated support portal – and then be sure to provide timely answers. This level of social media responsiveness will show customers that you value them as customers, which is essential if you want to build customer loyalty.
source: https://uk.loccitane.com/
source: https://uk.loccitane.com/
Offer a wide variety of payment options
Whoever said convenience is key was right – customers expect a wide variety of payment options when shopping online. This means offering multiple currencies, payment gateways, social media payment options, and bank transfer methods to make sure no customer is left behind.
Providing more payment methods encourages people to finish their purchases without any delays or hiccups, which is essential if you want to build customer loyalty. And with payment information that is securely stored, customers will be able to shop with you again in the future – and that would encourage both repeat customers and new customers.
Increase customer loyalty with Shopify agency WeCanFly
Customer loyalty means the world to your business – it leads to increased brand loyalty and repeat purchases, as well as positive word of mouth. With rewards programs, you can cultivate purchase habits, acquire new customers, process customer data to encourage customers for your referral program, and watch your loyal customers shop regularly with you. It’s easy to do with Shopify – so if you’re not there yet, you might want to consider migration to Shopify.
Now you know how to build loyalty, create a positive customer experience, and increase customer satisfaction in your online store. Still, it can be hard to implement all of these ideas without outside help. That’s where Shopify plus agency comes in – they can provide you with the tools and resources needed to make sure your customer loyalty efforts are successful.
From creating a reward program to providing personalized customer service, Shopify agency has the experience and expertise to help you boost customer loyalty and make sure your customers keep coming back.
WeCanFly
