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Loyalty Programs for eCommerce: A Comprehensive Guide

  • By Agira Technologies
  • December 11, 2020

eCommerce has seen an incredible rise for the last decade, and now the Coronavirus pandemic has tilted the balance in favor of online shopping. If you are running an eCommerce store, there’s one thing for certain. You will need eCommerce loyalty programs are now more important than ever.

What Is an eCommerce Loyalty Program?

The eCommerce Loyalty Program is a customer engagement platform intended to retain and engage your current customers, so they can purchase in higher amounts, shop more often, or connect more often with your company. The best programs are easy-to-understand, show a straightforward path to higher levels and incentives, and deliver an enjoyable experience.

Best Loyalty Program Features for eCommerce Companies

With these main challenges in mind, here is a list of some of the best online rewards services to inspire you.

Point-based loyalty programs

One of the oldest reward program mechanics to earn & burn is collecting points and investing them. Consumers can gain points for several interactions in a more up-to-date approach, not just sales purchases, such as posting product pages on social media, finishing their profile, or subscribing to a newsletter. Point solutions are simple to handle, and quick to execute, ideal for organizations who want to start rapidly.

Tiered loyalty programs

Tiered systems are the best among online shoppers since the system helps them make improvements in the scheme, to make more gains if they invest more money or gain more points. Higher third parties are synonymous with more unique brand interactions and VIP incentives, rewards that many consumers would aspire for. Since third parties represent a position within the company, consumers are more likely to make extra transactions to prevent losing their status.

Finally, ranking needs a serious commitment, ensuring that participants are less likely to give up their perks to start from square one with another brand’s loyalty program.

Perk programs

Perk systems totally surrender points, offering absolute rewards to all participants. Perks are a perfect solution whether you offer a special offering or are only trying to raise your clients’ goodwill. For these purposes, this form of software is suitable for brands who strive to make the shopping experience more fun or increase brand awareness.

Hybrid programs

In most cases, eCommerce firms have selected a hybrid-type loyalty scheme, combining and balancing elements from the above program styles to optimize performance and boost real KPIs. This involves incorporating loyalty logic, such as gamification (e.g., badges and challenges) and loyalty groups.

10 Tips For Launching A Reward Program

Launching an incentive program is a crucial step in increasing your company, and one that you don’t want to screw up.

1. Keep It Simple

If the software is difficult to use or difficult to learn, it won’t be used. Simplicity and predictability are essential to developing trust-based customer service.

2. Start With Your Existing Mailing List

You’ve already got regular clients. They trust you enough to be on your mailing list. Using this to your benefit and making them feel unique at the same time by allowing them to be the first participants of your loyalty scheme. Ensure your program is flawless with the support of an audience that you know would be open to.

3. Make It Easy To Join

Just inquire about the details you really need. Loyalty services can be excellent for capturing rewards, but no one wants to share their life story with an eCommerce store. 

Email grab, and maybe your customer’s name and birthday (if you’re doing something extra to help them rejoice, like a discount) are all you really need at this stage.

4. Make Earning Rules Simple

If no one understands how to earn in your program, they may ignore it. The simpler the rules are, the more likely your customers are to try to earn actively.

5. Make Spending Rules Simple

If no one knows how to make a profit from your software, they can disregard it. The clearer the rules are, the more inclined your consumers are to attempt to make a profit deliberately.

6. Launch In Digestible Chunks

Once again, simplicity is tremendous. If consumers have to leap through hoops to buy, they can find like; after all, the loyalty program isn’t that high even if they enjoyed the ease of making money and your business.

7. Don’t Overwhelm Customers With Options

Keep the incentives clear, meaningful to your client, and easy to access or buy.

8. Have Your End Goal In Mind

You began your company with a good base. A business strategy that helped you see your vision’s viability and a straightforward direction to your goals. The policy of allegiance deserves similar consideration. It’s the way to attract your clients, and the bottom line is profitable.

9. Use Automation

You’ve been working on convenience for the consumer. Don’t worry about convenience for you too. Automation will reduce the burden on your end while allowing your customers to feel respected and in contact with your company.

10. Make It About Your Customer, Not About Money

The incentives you give and the way the program looks to the client make it happen to them. If you’re just worried about earning your end, you’re going to miss the target, and maybe you’re going to ruin your reputation with the client. People are searching for a personal relation, also (or even more) in e-commerce.

Do keep it simple. Start with your existing customers. And most importantly, make your program about your customers, not your bottom line.

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Agira Technologies

AgiraTech is a technology company whose business services and domain solutions supports global clients who comprise the current world economy. Services we offer : Web development, Mobile App development, Blockchain, IoT and DevOps Consulting