For Retailers

How To Build Customer Loyalty Programs That Drive Revenue

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As a marketing executive for a large brand, your job is a vital one. One of your main goals is to add new clients to your company’s customer list and cultivate customer loyalty. The latter can be accomplished by using customer loyalty programs.

You know how important customer loyalty is to a business. Customer loyalty is what propels your brand’s customers to buy your products time and time again. And they’ll do so, regardless of price or availability. 

These individuals will even pay more money to purchase products from your company. After all, your company is a trusted entity. It offers a product they have come to know and love.

According to research, existing customers often spend 31% more than new customer counterparts. And this customer group is 50% more likely to try your new products than a new customer. 

You can build customer loyalty by offering high quality products that consumers crave. You can also use a customer loyalty program and promote customer retention.

This type of program is an appreciation program for your customers. It’s set up to reward these individuals for being loyal and continual patrons of your company. 

As customers buy your products whenever they need something you offer, this will help boost your net profit. Retention rates can also be bumped up.

How custom rewards programs work:

  • Gives something to your customer in addition to your quality products
  • Thanks your customer for being a loyal shopper with your online store
  • The more they buy, the more they earn
  • Helps you to promote customer retention while building a customer base 
  • Helps you build your brand name
  • Customer loyalty programs are easy to put into motion 
  • Loyalty programs are cost efficient ways to keep customers happy

Why Use Customer Loyalty Programs

Customer loyalty programs offer more than just keeping your customers or acquiring new customers. These frequent buyer programs accomplish many more goals including:

Provides Rewards to Customers

With a customer appreciation program, you are giving your customers a gift. They already appreciate your products but you can make them even happier. You can provide customer contentment by giving them something extra.

These programs provide your customers with something extra. And they’re sure to remember this when making future purchases. 

Your reward incentives will keep them coming back for more!

Easy Way to Say Thank You

Loyalty programs are an easy way for your company to say thank you to loyal patrons. You are stating they are the reason the business is flourishing.

An appreciated customer is certain to remember this fact. After all, nobody wants to be just a number or a dollar sign. They want to be a face, a name, and a cherished loyal customer. 

By setting up a loyalty program, you’re thanking your customers for buying from your online business time and time again.

The More They Buy, The More They Earn

Customers will love earning rewards based on the amount that they purchase. And you’re sure to appreciate this, too!

The more your customers spend on products, the more points they’ll earn. It’s this setup that keeps them returning to your store. 

When you set up a loyalty program for buyers, you can turn occasional shoppers on your ecommerce site into continual patrons. 

Retain Current Customers While Building a New Customer Base

When you use a customer appreciation program, you’re promoting customer retention and building a new customer base. Both of these things are extremely important.

It’s important to get the word out on your ecommerce website and grow your customer base. However, it’s also vital to keep the customers you have and increase those sales. It’s possible to have the best of both worlds with these types of appreciation programs. 

A customer loyalty program can help achieve this goal and do it well.

Helps Build Your Brand Name

Think about loyalty incentives for your ecommerce company. As you do so, realize that these effective offerings will help to build your brand name overall.

You want your brand name to become a household name. You also want it to be a step above the competition. 

When customers learn about your loyalty program, they’ll start to use it and also tell friends about it. Once the word gets out, your brand name is sure to be on the minds of many, thanks to customers loyalty. 

Customer Loyalty Programs Are Easy to Set Up

A customer appreciation program is an easy one to put into place, if you haven’t done so yet.

First, decide what you want to offer. After that, figure out the requirements of the program. Once you have these factors figured out, you can offer the program. 

You can offer the program on your own or use a loyalty management platform to help you handle the details and monitoring. 

The popularity of your appreciation platform will determine how you proceed. If you have an influx of members, you need to be certain you can fulfill their requests. 

Steps to Build a Customer Loyalty Program

Now that you know why you should offer customer loyalty programs, it’s time to set one up. It’s easy to build an effective customer loyalty program if you know the steps. 

Here’s how you can establish a customer loyalty program for your ecommerce website:

1. Create a Memorable Program Name

The first step to take when setting up a new loyalty program is to choose a memorable name. This name should embrace the overall experience. 

You want the name of your customer appreciation program to stand out. It should also be easy to remember. 

The name should be clever and unique and have a catchy title. After all, you don’t want it to be just like any other reward program.

Draw your customers in and get them excited to be a loyalty program member. 

2. Describe the Meaning Behind Your Loyalty Program

A lot of companies offer customer appreciation programs. Therefore, make yours stand out!

A good way to do so is to detail the meaning behind your program. Your customers know you’re trying to gain customer loyalty by offering rewards. 

But, what else makes your program a step above the rest when compared to the competition?

Explain your value proposition. While doing so, highlight the features of your loyalty program. This will prompt them to jump at the chance to be a part of it. 

If you support certain causes, mention these nonprofit organizations or other charitable entities that you support. 

You might just find that your causes are near and dear to the hearts of your customers, too.

3. Reward Customer Purchases and More

A loyalty program offers free products and discounts according to their purchase amount. This earning platform is great, but be sure to offer more ways for rewards to be earned.

Some additional ways your customers can earn points and help your business at the same time include:

  • Follow your social media pages filled with user-generated content
  • Share your brand name and products on social media
  • Subscribe to your blog
  • Comment on your latest products

Provide your customers with various ways to earn rewards. Once you do so, they’re certain to take advantage of these opportunities. 

4. Offer Enticing Rewards

Brainstorm your loyalty program setup and get your loyalty cards ready. Also, make sure the rewards you offer are exciting and worthwhile. You want these items to take the customer experience to another level. 

If the rewards are just so-so, your customers aren’t going to try their hardest for point accrual. Alternatively, if you offer really good rewards, the program will be a successful hit with customers. 

Always remember the main purpose to offering a customer program is to get your customers to continually visit your ecommerce website for all their online needs. With this in mind, make it worth their time and money.

5. Redeeming Points Should Be an Easy Process

As you think about your loyalty program game plan, consider length of time. In other words, how long it will take for your customers to earn points.

Also, make it an easy process for them to redeem these tokens of appreciation. It shouldn’t be an overly burdensome and lengthy process.

Make the rewards easy to obtain and the redemption process an easy one to follow. 

If your loyalty program is confusing and takes forever for customers to gain results, the customer appreciation program may not be appreciated. 

6. Think About Customer Values When Structuring Your Program

As you put your loyalty program together, think about customer values. What would strike a chord and make them want to sign up? 

Many shoppers are interested in charities and philanthropic causes. You can address these values by adding philanthropic aspects to your loyalty program and help a charity.

You can support a specific cause and encourage your loyalty program members to help others. 

7. Remind Customers to Enroll and Use the Loyalty Program

Once your new loyalty program is set up, send out reminders. Continually remind customers to join and use it. 

If you only advertise for initial sign up, they might do so and then forget it. Ultimately, this won’t reap great benefits for you or your customer.

If you’re looking for a great way to proceed, there are various options to keep your program fresh on the minds of many. If you use a point system, add friendly reminders next to products. As a great example, “If you buy this product, you’ll earn “x” points!” 

There are other ways to remind your customers to enroll in your customer appreciation program and use it. These include social media posts, newsletters, website content, and emails via their email address.

A well thought out email campaign is a great way to help your new customer appreciation program gain momentum, so keep this email address option in mind. This will help to get the word out. This will also increase program participation. 

8. Join Forces With Another Brand

Sometimes two is better than one. This is the case when one ecommerce brand joins forces with another brand. 

If your brand is friendly with another brand and both want to offer a loyalty program for customers, considering joining forces. When you do so, your customers can redeem loyalty points for your products or the other brand’s products.

Just make sure the brands are different enough. This way you won’t lose your customers to the other company.

9. Make Earning Points Fun and Interactive

Add another layer to your loyalty program by making it fun and interactive. Do more than the usual “spend this much money, earn this” program.

If your budget allows, create online games for members to earn extra points. Or, ask them to complete surveys or answer trivia questions for points. 

All these options enable your customers to earn points and have a lot of fun doing so!

10. Encourage Customers to Spread the Word

Once your customer loyalty program is set up, encourage customers to get the word out.

Ask them to spread the word about your loyalty program and brand. They can accomplish this through user-generated content on social media. They can also advertise your brand simply by word of mouth. 

You can pick up some new customers as well as new program members by doing so.

Examples of a Successful Customer Loyalty Program

Now that you know what to include with your loyalty program, you want to perfect it. 

This can be done by looking at successful customer loyalty programs of other brands.

From footwear brands to cosmetic companies, many well-known entities offer loyalty programs.

If you’re new to loyalty programs, check out what other large brands are doing. View the competition and make sure your loyalty program is even better. 

Start your research now with these top brands:

Nike

The Nike Membership program is an all-in-one rewards program. This customer experience program offers exclusive access to shoes. It also notifies members of special events and running programs. 

The Nike Membership program integrates with various Nike apps and provides customers with rewards access at their fingertips. 

This top seller in athletic footwear and clothing provides a loyalty program that offers industry insight and access to events and deals.

Sephora

Cosmetic giant, Sephora, offers a customer loyalty program for its fashion-forward customers. These customers have discerning tastes and won’t trust their cosmetic needs to just any company.

When you join Sephora Beauty Insider club, you’ll gain access to beauty tips, events, and deals.

Sephora Beauty Insider Rewards Bazaar provides customers with points through purchase. Customers can use these points to obtain the latest and greatest Sephora products. 

In addition to points, Sephora’s Beauty Insider customer appreciation program provides information and members-only access to special events. 

ThirdLove

ThirdLove draws customers in with their program. It also turns occasional shoppers into loyal brand enthusiasts. 

ThirdLove Hooked Rewards offers bundle savings when customers buy two or more bras. Members of the program also can receive free shipping, gifts, and so much more.

The ThirdLove referral program works wonders for this brand. In fact, 22% of their triggered email revenue was from loyalty program triggers!  

Soko Glam

Soko Glam, a Korean skincare company, turns regular customers into VIPs with their loyalty program.

Soko Rewards offers loyalty program members many reward options. These offerings include exclusive deluxe samples, sensational freebies, and more. The program perks are definitely worth the initial purchase and sign-up.

And this company has had a successful run with its customer engagement program. The results show a 20x higher engagement from Soko Glam VIPs. 

And every purchase made is an opportunity to earn fantastic perks!

Edens Garden

Edens Garden, a premier essential oil company, offers an exceptional buyer program. 

The Edens Garden Aroma Notes program enables customers to earn points every time they make a purchase. They can then use those reward points from the loyalty program to put towards Edens Garden products.

Customer appreciation is extremely apparent with Edens Garden. The company has had a 72% increase in total revenue due to repeat customers year-to-date. 

Harley-Davidson 

Harley-Davidson sellers often offer rewards programs for avid Harley-Davidson riders. 

Every purchase you make in-person at the retail business offers points to spend at the Harley-Davidson store. 

With this program, you don’t have to wait months to reap the benefits of the rewards program. Customer points are deposited the day after purchase. 

Plus, customers can easily log in to the site and view their points accrual. They’re also able to check how long it will take to earn additional rewards. 

Harley-Davidson buyers are loyal patrons. They idolize the brand and are sure to spread the good word. You want buyers of your products to view you as Harley-Davidson customers view that company. 

Amazon Prime

Amazon Prime has a popular customer loyalty program. Amazon Prime members gain access to great deals and rewards through this subscription service.

With Amazon Prime, members receive free, fast shipping. Movie and music streaming is also included. Members also get exclusive shopping deals and unlimited reading options.

There’s an annual fee for this service but members don’t mind. The benefits are that good!

With over 150 million members, Amazon Prime is an obvious popular choice. It’s also a great example of a successful loyalty program. 

Pottery Barn

The Pottery Barn has a reward program, The Key member rewards, which draws in loyal consumers. Pottery Barn fans are avid purchasers of these products. 

Even better, this program doesn’t just cover Pottery Barn purchases. This includes all Pottery Barn brands, including Williams Sonoma and West Elm. Key members can purchase through any of these stores to earn and use rewards.  

Some of the benefits Pottery Barn offers through its loyal customer program include 3% back in rewards on all purchases, special offers, and free design services.

If you’re a big fan of Pottery Barn and its sister stores, you’re going to want to sign up for this program. Do so and you’ll earn rewards you can use at any of the stores. 

The North Face

 

The North Face caters to outdoor enthusiasts of all skill levels. Their VIPeak Rewards program offers points for rewards redemption. There’s also early access to new products and special events.

And this company starts the earning process off right away. Shoppers sign up for VIPeak Rewards and get a 10% off coupon right away. This type of immediate gratification also draws shoppers in to sign up.

This company offers a little bit of something for everyone. Ultimately, occasional buyers turn into VIPeak Rewards members who buy often from The North Face. 

Since outdoor enthusiasts are often loyal to specific brands, The North Face program is high in demand. Shoppers of The North Face can get all their products here and earn points doing so. 

Each brand mentioned above provides individuality to their rewards programs. Some are basic offerings based on a simple yet effective point-for-purchase setup. In the alternative, some brands expand this type of program to offer more than the competition.  

It’s up to you to decide what works best for your online store when it comes to the ideal customer loyalty program.  

Loyalty Programs Offer Customer Appreciation and Retention

The purpose of a customer loyalty program is two-fold. This offering shows customer appreciation and promotes customer retention. 

When you establish a customer loyalty program or reward programs, look at your customer data. See what your customers want and can use regarding your inclusions. All of this will help you increase customer participation in the program. 

It’s important to remember that one of your goals is to thank consumers and offer them great deals, special events, and discounts. 

This type of incentive setup helps retain customers and makes it likely they will repeatedly return to shop at your online store.

Loyalty programs that work well and succeed contain the following features:

  • Customers must be able to easily sign up
  • Exceptional and memorable rewards and program features
  • Reward program must stand out from the competition
  • Points must be easily obtained and used
  • Continually updated to keep it fresh and enticing

When creating your new loyalty program or updating a current one, follow the aforementioned steps.  

And, remember, check out the competition to see what other successful brands are offering. And, always go above and beyond. You want to offer something special to your customers that they’ll appreciate.   

Tier system reward programs are also good concepts to employ. These will prompt your loyal customers to spend more to earn additional rewards. 

When you take the necessary steps to set up an unforgettable customer loyalty program, you will gain new customers and repeat customers. 

You can use a loyalty management platform, such as Antavo, or take it upon yourself to handle all of the loyalty program details. 

Expansive and inclusive customer loyalty programs are something that all ecommerce websites should offer.

Now that you realize the value of loyalty programs, you can take your profit goals one step further. Consider adding a charitable aspect to your site. Doing so will attract an additional client base, the charitable kind.  

Giving your website a philanthropic touch-up will help to draw in more loyal customers. You can even add the loyalty program plus the charitable aspect. 

For help giving your ecommerce website a philanthropic tone, visit ShoppingGives. This website combines ecommerce sites and philanthropy in one. 

Learn how ShoppingGives can help with its integrated platform that provides ecommerce websites with a giving feature.  

By including a loyalty program along with a charitable feature, your brand will soar. Just be sure to acknowledge the customers that make your company a success. It will pay off in the end.