How to create a loyalty program for your store?

06.09.2022 Angelika Siczek
people in front of the computer screen

The development of an online store consists of a great number of activities that are intended to consistently increase sales.  Copywriters are commissioned to create unique content that is valuable to users and googlebots. E-marketing specialists are responsible for implementing effective SEO campaigns, GoogleAds, FacebookAds, etc., cooperation with affiliate networks is established, the offer is expanded, social media strategy is implemented. The so-called multichannel activities carried out as part of Internet marketing should skillfully use all the potential that lies in the Internet. Therefore, a well-written, individual loyalty program that will build a devoted community around the store is crucial for running e-business.

What is a loyalty program?

A loyalty program is one of the strategies that make up the entire spectrum of activities implemented within online marketing. The purpose of implementing the program is to reward loyal customers who are in close contact with the brand, frequently purchasing from a specific e-store. The involvement of the e-consumer should be increased accordingly by appreciating their loyalty. The more active the customer is, the more rewards he should receive.

Loyalty program – why is it worth it?

A loyalty program in the e-commerce area is not something that was invented from scratch. Such ventures existed much earlier, even before the development of e-commerce. The popularity of such programs is mainly due to the fact that the cost of retaining a customer is much lower than the cost of acquiring a brand new customer. Moreover, a loyal customer plays a special role for a brand, becoming its ambassador, recommending it to others, encouraging them to buy. Regardless of the business conducted, such a loyal customer becomes extremely valuable to the brand. Therefore, marketing activities have been reformatted in a new way, so that they allow to attract customers who will purchase regularly.

A well-written loyalty program effectively encourages people to spend more per shopping cart, allows you to stand out from the competition, enables you to run more effective newsletter campaigns, increases website traffic, and increases the potential of your marketing efforts.

What are the elements of a good loyalty program?

If the loyalty program is to fulfill its role, it must be well thought out, and above all, the user should quickly navigate in it, understand what it is about. It is supposed to be valuable not only to the e-tailer, but it must bring the same high value to customers.

Well-written terms and conditions of the program

The terms and conditions of a loyalty program must be written in such a way that the consumer knows what to do in order to benefit from participation in such a program.  Let the scheme of operation of such a program encourage the customer to purchase a product that is rewarded with points, for example, for every sale made in an online store the customer will receive points that will be recorded in his virtual account. Once the customer has collected a sufficient amount, he or she will be able to exchange the collected points for prizes, a list of which should be located in an easily accessible place on the e-store’s website.

However, it is worth extending the possibilities of earning points a bit. Let the user also receive them for signing up for a newsletter, writing an opinion on a purchased product, recommending the store or a specific item from the offer, visiting the store a certain number of times in a given month, etc.

Let’s note one more thing. A loyalty program must have its own separate terms and conditions. This document is unlikely to become the primary source reading of the store’s customers. Therefore, let the most important points from the regulations (e.g. on collecting points or receiving rewards) be presented in a short, attractive form.

Rewards that users will appreciate

Without rewards, there is no loyalty program. Only what prizes to choose, so that the client finds them attractive enough to enroll in the program. It would seem that it is difficult to please both sides. However, in an online store, we have a tremendous amount of options. We can offer a lot, at very little cost.  We can reward with free shipping, a discount code, but also an attractive but inexpensive product, or a so-called “stock layaway.” Let’s also remember a rule of thumb to follow. Customers often collect points that they want to exchange for a product they have long desired. So we should not remove items from a previously prepared list. The only case that is a rational reason for the disappearance of a product should be the depletion of stock.

A loyalty program is one of the most effective tools for gaining a loyal customer base. They will be the foundation of the e-business conducted, they will become brand ambassadors who further recommend the brand. Well-written, being comprehensible to users, it will in the long run require no involvement in daily operations. On the other hand, the intended effects of the loyalty program will be felt on a daily basis.

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