The Lowdown on Loyalty Apps

The Lowdown on Loyalty Apps

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.

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