What is a Loyalty Programme?
According to eMarketer, nearly 60% of internet users view earning rewards and points as “one of the most valued aspects of the shopping experience.”
A loyalty/reward programme is a marketing strategy designed to encourage customers to repeat buy, increase spend per purchase and refer to friends/family by rewarding them with points, discounts and other perks.
Loyalty programmes are based on the perception of added value with consumers now consider a loyalty/reward programme a leading factor in choosing and then sticking with a brand.
The psychology behind loyalty programmes
Loyalty programmes make sense as they’re based on human behavioural principles and psychology:
- Goal anticipation and the motivation to earn rewards – even as adults this is very alluring
- Positive reinforcement and the power of habit - by delivering a reward every time a customer completes a specific action, they will learn to associate this with a positive outcome and thereby repeat the behaviour
- FOMO – fear of missing out
- VIP programmes feed the need for social status, exclusivity and ego
Why you should consider a Loyalty Programme for your ecommerce store
With apps making the whole process of setting up and managing a loyalty programme so easy, in no time you can be:
- Saving on acquisition costs
- Increasing AOV (average order value) and spend
- Improving customer retention
- Encouraging brand loyalty
- Encouraging referrals and recommendations
- Encouraging social sharing
- Providing good customer service
What activities should you reward as part of a loyalty scheme?
Be sure to make achieving points attainable for your customers, perhaps starting customers off with a welcome bonus to get the ball rolling:
- Sign up
- Orders
- Reviews
- Referrals
- Email sign up
- Social sharing
Our top picks of Loyalty apps
Here is a short list of loyalty apps that we’ve worked with and would recommend:
Smile: Loyalty & Rewards
Appstle Loyalty & Rewards
Rivo Loyalty Rewards Referrals
Gameball: Loyalty Program + VIP
Loyalty Lion Rewards & Referral
Top tips for getting the most out of your loyalty programme
- Take the time to personalise and brand the programme to ensure a consistent user experience
- Provide clear instructions for customers – how the scheme works, the value of points, and how points can be redeemed
- Providing special rewards for customer’s birthdays work a treat!
- Consider events such as double-points days/events
- Consider flexibility – allowing the customer to personalise the scheme to their preferences, for example the choice of free shipping or a discount
- Consider introducing tiers and/or a VIP scheme – customers love exclusivity
- Consider instant rewards for quicker retention
If you require any guidance or support with setting up a loyalty/referral scheme on your Shopify store then get in touch, we’d be delighted to help.