5 Loyalty Programs in Retail that add value to Online Shopping

Posted on 25.7.2017
Written by Eva Ciga

If there is one thing, technology has made easier for everybody it is the ease of online shopping. This is great as you lie on your bed with a mobile device or sit at your desk with your shoes kicked out and do shopping in one place online. There is no standing in long lines as you can have your order delivered to your door. Now that is what we call outstanding. Loyalty program cam make it even more interesting not only for the shop owner but also for the shoppers.

However, if you are the owner of an e-commerce shop gaining new clients is not as easy as you would like it to be. It takes time and effort leaving you with other tasks heaping up on your desk. The fact remains you need new business to grow your e-commerce that needs fewer resources and time. Sounds like an excellent idea, right?

Therefore, what is the solution? Easy you use a customer loyalty program. In fact, new clients do not spend the same amount as your current customers. Statistics show that your repeat customers spend over 67% more than a new client. However, turning your new client into a repeat one is not an automatic process. This is why you need to consider one of the 5 loyalty programs for your retail and add value to your online shopping business.

By selecting the right one your clients will keep coming back to your online shop and purchase from you. In this post, we’ll guide you through five different loyalty programs to help you make an informed choice in which one is best for your e-commerce business.

What is a Loyalty Program?

The loyalty program is a way to reward your repeat customer, encouraging them to stay devoted. Using a great loyalty program is not about only giving away free stuff it is a channel to strengthen your customer relationships with them. There is much e-commerce, loyalty programs and choices are endless. So today, we will show you the top five programs on how to use them in your online shopping with great benefits.

Five different Loyalty Programs

There are different ways to implement a loyalty program and can do it as follow:

1. The Tier Loyalty Program

You have an online shop and your business has some exceptional customers. You have your regulars who visit your site at least once a day, week or during the month. These are your important clients and bring in the most revenue. Why not make it worth their while in the Tier Loyalty Program.

The tier systems a unique program based on your customers’ levels of loyalty to your brand. The program offers customers higher rewards when they spend more. This will give your clients a great reason to visit your online store often. The tier system is great for both the travel industry and other related industries. The size of the rewards increases over time for long-term clients and encourages them to use your service often.

You can set the tier loyalty program up as follows with different levels related to your client’s loyalty: Blue, Silver, Gold, and Platinum. Whenever your customers make a purchase, they receive points. The more they buy the higher level they will reach and the more rewarding it is for you and them.

The important thing is to find a balance for customers to reach the next level and needs to be realistic for them to achieve that. Set up different milestones, as it can be anything. You can offer clients special benefits like 25% more points with every purchase they make or include free shipping. You can even offer them discounts on your high-end items you are selling. The choices are endless with this loyalty program.

2. The Trouble-Free Point System

The point system is a trouble-free loyalty program based on the more your customer spends the more they receive. This is a great setup of your brick and mortar store or online shop. Why every time a client makes a purchase, they receive a certain amount of points based on the size of purchase they make.

Do not make the system complicated and keep it simple for your clients to understand and calculate. For example, one point could be a $1. You can also make a point count for every $5 – $10 spent. This helps your client to see the value and they do not need to grab the calculator to work out how many points they have earned with each purchase.

You can decide on which products you want to use the point system. For example, you can use the point system on buying beauty products. On the other hand, you can use it on each product available in your online shop. When the customer makes another purchase, they can redeem these points for discounts. This increases the average spends per customer and encourages them to invest in your brand.

3. The Value-based Loyalty Program

The value-based loyalty program is an excellent system for your online shop. This program is a more charitable related system. You need to structure your program around the values of your client. So how would you use this program to reward your client? Excellent question as you first need to define the values.

Whether you own an eco-friendly product store, bookstore, music equipment store, or online pet store your audience’s values count. For example, if you own a pet store and sell pet products you can start a loyalty program where client’s purchases render into currency or points.

Every time a client makes a purchase of $50, you can donate $5 to an organization that deals with different animal rescues. Here you need to keep your client updated on all the donations you have made to the organization and what is still due to them. No matter what form of e-commerce business you own you can support different organizations.

Further, you will help organizations and create a chance to connect with your client on a deeper level. This helps you to build a stronger relationship with them.

4. Charge Upfront Fees for VIP Benefits

This loyalty programs simple as customers pay a monthly or annual fee to join your VIP benefits club. The biggest concern with this program is you need a solid client base. This will help to keep your current clients and frequent buyers coming back for more. You need to make your paid program exceptional and valuable to your exclusive members or they will lose interest. Make sure that your membership fees are affordable. Further, you need to offer customers discounts, free shipping, and other great benefits that are valuable for clients to use.

5. The Grouping Program 

Are you the owner of a beauty product online store, pet food, or any other interesting brand online? This is where the grouping loyalty program can work for your business. This system offers customers with a more flexible reward. As a beauty product or a pet food supplier, you can collaborate with other online business to create a program beneficial for both of you and your customers.

If you own a beauty store, you can use a point base system and collaborate with different other fashion businesses to spend their points on a diverse range of products. Even collaborating with a salon is a great idea as the points earned can pay for a wash and a cut. The same applies to a pet store, as grouping with a local pet salon or veterinarian is a great advantage for both businesses.

Further, the more your customers spend the higher-priced product they receive. This creates brand awareness and drives revenue for all involved in the program.

Final Thoughts

If you implement any of the above 5 loyalty programs with care and thought, they will add value to your online shopping business. Further, you will see positive results, build a bigger customer base, and build a connection between you and your client. The results may not be instantaneous, but the results will astound you. Keep those retail businesses of yours going, as we cannot live without it anymore.

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