5 Ways To Build A Successful eCommerce Loyalty Program For Higher Customer Retention In 2021

eCommerce Loyalty Programs: What Types Are There?

  • Points system: This type of program is based on the principle of buyers spending more to collect more points that can be redeemed for discounts, special items, freebies, cashback and so on. It’s suitable for shoppers with frequent and low-cost purchases.
  • Tier system: Based on loyalty levels, this program pushes the buyer up the rewards tier. The more they buy, the higher they go. The goal of this program is to keep buyers for the long term and is most often used by businesses whose customers make big purchases. For high effectiveness of its tier system, a business should start with a base reward given to buyers for simply being a part of the program and make higher tiers easy to achieve to reduce program abandonment.
  • Partnership program: Forming partnerships with other businesses is particularly effective at retaining a millennial audience. These loyalty programs present consumers with more choices, which is important for 82% of them. This method is great for raising brand awareness and aligning with up-and-coming brands.
  • VIP program: With these types of loyalty programs, consumers gain access to exclusive benefits such as priority access to new products and events, discounts, freebies, personalized customer support and more. To join VIP programs, customers may need to pay a membership fee.
  • Hybrid program: eCommerce businesses most frequently use this type of loyalty system that combines some of the above program types to maximize program efficiency and drive specific results.

1. Organize Your eCommerce Loyalty Program Into Tiers

2. Offer Buyer Rewards

3. Use Gamification

  • Fun product recommendations based on a user’s tastes in music, personality, horoscope, pets etc. (the info you can ask them about when they create their account)
  • Product quizzes that improve product awareness and are linked to product pages and points system that can be redeemed in cash
  • Wheel of Fortune-type of minigames that give away discounts and freebies
  • User avatars that customers can create and claim points with for each purchase

4. Add A Personal Touch

5. Engage With Your Customers Outside Of The Buying Cycle

  • Providing Friend Referral awards
  • Asking them to write a user review in exchange for a discount on their next purchase
  • Asking them to upload their own photos of purchased items
  • Giving them surveys to partake in
  • Enrolling them in competitions

How to Implement Loyalty Programs with Blue Bite Experiences

What Are The Benefits Of Customer Loyalty Programs?

  • Retention of existing customers: This is a potential money-saver, because it is five times more expensive to gain a new customer than to keep an old one.
  • Acquisition of new customers: With that said, having loyalty perks and benefits is a strong lead magnet for attracting new prospects.
  • Return of lost customers: A loyalty program can serve as a big incentive for lost customers to come back to your online shop business.
  • Rise in revenue: Loyalty systems convert first-time buyers into repeat buyers and repeat buyers spend more.
  • Increase in customer lifetime value: This is the result of the increase of a customer’s shopping frequency.
  • Identification of your best/ideal customers: A loyalty plan identifies your best customers — those that keep coming back to you. This reveals a pattern in their behavior and general traits. You can use this data to inform your future marketing strategies in order to target the most qualified audience.
  • Cut down advertising costs: Knowing who your ideal customers are reduces the cost and time needed to do the market research. It also improves ad targeting to be more accurate by directly advertising to new consumers that fit the profile of your best customers.
  • Attain customer advocacy: Repeat customers act as your brand ambassadors/influencers by using word-of-mouth to tell their friends what they love about your brand.
  • Be different from your competitors: A carefully tailored loyalty plan makes your brand unique in the eyes of consumers. A loyalty plan incorporated into outstanding web design is a great asset that will further help your eCommerce brand stand out.



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