In this article, you’ll find
- What Are Loyalty Programs For Shopify Store Owners?
- Types Of Reward Programs
- Why Loyalty Programs Are Important For Shopify Store Owners?
- Example Of Shopify Loyalty Program
- How To Create A Loyalty Program On Shopify: Top 9 Strategies
- How Much Do Loyalty Programs Increase Sales Of Your Shopify Store?
- Best Shopify Apps To Increase Customer Loyalty
- How To Manage And Measure Your Loyalty Programs
- When To Add Loyalty Programs?
- Conclusion
- FAQs
Today, almost 65% of revenue comes from the repeat business of existing customers. Acquiring new customers is 5 to 25 times more expensive than retaining the old ones!
Whether you are a brick-and-mortar store in the heart of a bustling city or an Shopify store owner operating behind the screens, customer loyalty is crucial for any business.
We are not stopping you from acquiring new consumers. But at the same time, it is also vital that your old shoppers get the attention they deserve.
How do you do it?
It’s simple. All you need to do is make your customers feel appreciated, and what better than loyalty programs to help you out? When done right, a loyalty program can keep your old customers coming back by providing them additional value. Below are the steps to creating your own loyalty program.
What Are Loyalty Programs For Shopify Store Owners?
Before we understand how to create a loyalty program, let’s dive into the details on what it entails.
A loyalty program is a rewards system. Your customer gains something each time they make a purchase. These rewards can be in the form of points, discounts, and other offers like get one free. It is an excellent customer retention strategy that works because of one main reason. It provides your customers value.
After all, who doesn’t enjoy a reward for buying their favoriate products?
But the reward you offer must be enticing. The end game of loyalty programs is to build a loyal customer base while boosting repeat purchases.
Types Of Reward Programs
While creativity is the limit, look at popular reward programs that can help you make a mark.
Point-Based Programs
It is the most popular loyalty program. Here, your customers can earn points with every purchase or action you may have asked them to take, such as writing reviews or referring the program to a friend. Your customer can use the points to make a purchase.
Tiered Programs
Each tier gets unlocked after fulfilling set criteria. The higher you go, the greater the reward.
Subscription-Based
In this loyalty program, customers pay a recurring fee, which can be monthly, quarterly, or yearly, to enjoy certain perks like free shipping or early access to sales. It can be a great program when done right.
Cashback programs
With this reward system, your customers receive a percentage of the purchase amount. Customers can redeem them on future purchases.
Gamification
You can use gaming elements to make it fun. Your customers may earn badges or leaderboards to ensure it is engaging. This is how to create a loyalty program with a dash of fun!
Why Loyalty Programs Are Important For Shopify Store Owners?
Members of loyalty programs generate 12-18% more incremental revenue growth per year compared to non-members. As you can see, loyalty programs can be lucrative.
When you create a reward system that aligns with your brand, it helps you retain customers. A mere 5% increase in customer retention is associated with a 25% increase in profit. That’s not all. They can even help increase average order value.
Loyalty programs are almost like appreciating your customers for choosing you. It makes them like you more and choose you for all their purchases. Also, 57% of consumers spend more on brands to which they are loyal.
Finally, let’s not forget loyal customers are the best brand advocates. They help you expand your customer base effortlessly without having to burn your wallet on promotions. So, as an e-commerce store owner, embrace the power of loyalty programs!
Example Of Shopify Loyalty Program
MVMT or Moment Watches came up with a loyalty program where they offered a variety of ways for their customers to earn and redeem points. Some of the features of their reward program include;
- Customers can earn on every dollar they spend on the brand.
- Customers can refer friends and earn points when they make a purchase.
- Customers receive points as a birthday gift.
- Customers can gain points for following the brand on social media.
- They follow the tiered system. As one achieves different levels, the rewards and exclusive access go up.
- Customers can redeem the points on future purchases.
This is how to create a loyalty program. It is wholesome and encourages repeat purchases. But it also motivates customers to refer friends and follow the brand on social media. It is a perfect example of a successful loyalty program.
How To Create A Loyalty Program for Shopify: Top 9 Strategies
Now, let’s unpack the best strategies on how to create a loyalty program effortlessly to take your Shopify store to new heights.
- Choose The Right Loyalty Program For Your Brand
75% of consumers in loyalty programs tend to buy more products from the companies they partner with. So, offering the right program is always the key.
Say there is a cafe near your office. They are a popular coffee chain and run a loyalty program where each purchase results in points. It is redeemable anywhere. It is something that might lure you.
However, another cafe brings you a subscription-based model. You pay a certain amount monthly for unlimited coffee from a set menu. While they are a coffee chain, the subscription is valid for that particular store. Now, this reward system may not be ideal for everyone!
Remember, it is not just about the program but the type of loyalty program you choose. It should align with your brand and customers and must be hassle-free. So, the first step in how to create a loyalty program is to choose the right type.
- What Are The Goals of Your Loyalty Program?
Yes, loyalty programs are great. A staggering 84% of consumers say they may stick with a brand that offers a loyalty program. But your goal is not just to create a reward system.
When it comes to how to create a loyalty program, understand the outcome you need. Is it an increase in revenue or higher engagement? Figure it out.
For instance, you see that your social media accounts lack followers. To amp it up, you come up with a loyalty program. Customers who share their experiences and interests with the brand earn points.
So, define the specific goals before implementing a loyalty program as the main objectives guide you in creating the right reward system.
- Understand Your Target Audience
Did you know? Today, 77% of consumers move on to the next brand, abandoning their loyalty more quickly than three years ago.
You don’t get a second or a third chance here because the competition is very high. If you don’t stand up to the occasion, there is another e-commerce store.
So, how to create a loyalty program that lures in your customers?
Well, you must get to know your audience fully and thoroughly. You can also try using surveys and feedback to make it easier.
- Don’t Forget To Personalize The Loyalty Program
Imagine this. You have recently purchased a beautiful dress from a Shopify store. Per their loyalty program, you receive a gift on purchase above a certain amount.
But you don’t receive anything random. They knew you were fond of scarves and included them as a gift rather than something generic.
This is personalization, and it can be super beneficial. Today, 76% of consumers say they are more likely to purchase from brands that personalize. 49% of customers also say they have made impulse purchases after receiving personalized recommendations.
So, use data and purchase history to offer relevant rewards that resonate with your customers’ tastes. It guarantees a happy customer and increases the value of your loyalty program.
This is how to create a loyalty program that clicks immediately!
- Offer Valuable Rewards
How to create a loyalty program? Well, make sure your reward is something your customer wants. Go for something alluring.
Remember, 53% of customers want loyalty programs that are easy to use. 39% enjoy amazing discounts and 37% want programs that are easy to understand.
Curating rewards that resonate with your customers is how to create loyalty programs.
- Measure and Tweak!
Understanding how to create a loyalty program is vital. But then, what next?
It is time to measure and tweak your loyalty program. It’s not just about creating a reward system. You must also regularly evaluate or update it to ensure long-term success.
Look for key performance indicators, like average order value or customer lifetime value. And take all feedback seriously.
Remember, fine-tuning your loyalty program is needed to ensure it remains relevant despite changing customer preferences.
- Promote Your Program
You know how to create a loyalty program. That’s amazing. But how will your audience know you are running one?
Promotion is the answer. From email marketing to social media posts, get the word out there. However, choose the methods your audience prefers.
Today, 57% of customers don’t recommend a business due to a poorly designed website on mobile. So, use eye-catching banners, pop-ups, or dedicated program pages.
Regularly engage with customers through newsletters and in-app notifications and keep reminding them of the benefits.
Create an exceptional promotional strategy fit for your brand. It ensures the customers are informed about the product.
- Simplify Enrollment
Today, when already the attention span is so low, complex enrollment procedures will not do the deed.
You need to simplify the process to create an effective loyalty program. Always keep it straightforward to ensure hassle-free sign-ups. Make it quick. Have a user-friendly registration process. Here, keep basic, like name and email address.
To sweeten the deal, you can also offer a sign-up bonus as an instant incentive for joining. It can be a discount, free item, or extra loyalty points. Whatever you think resonates with your audience.
By simplifying enrollment and providing an immediate reward, you encourage more customers to participate. This is a vital tip on how to create a loyalty program.
- Be Consistent
Creating a loyalty program is just the beginning. To make it work, you must be consistent. Use tools like emails and in-app messages to keep your customers informed about rewards and special events. This keeps them engaged and in the loop. Keep the conversation going!
These were all the best strategies on how to create a loyalty program!
How Much Do Loyalty Programs Increase Sales Of Your Shopify Store?
77% of consumers with retail subscriptions buy more products from the brands they have great relationships with.
When you do it well, loyalty programs can be an excellent support system. They can significantly boost your sales. How? The answer is simple.
Rewards offer an incentive to return. While it helps with customer retention, it also encourages bigger and more frequent transactions to bring in more profits.
Also, let’s not forget another main advantage.
Loyal consumers will refer your business to their family and friends, expanding your base effortlessly. For this, you can always use Shopify’s built-in features or other third-party apps. Remember, loyalty programs can contribute to your bottom line. So use it wisely.
Best Shopify Apps To Increase Customer Loyalty
Now, look at the best Shopify apps that can help increase your customer loyalty with reward programs.
Automatic Discounts & Upsells
This is a fantastic app that helps you run tiered automatic discounts, gifts, BOGO, and member discounts effortlessly. So, if you were wondering how to create a loyalty program, this is it. Here, you can manage discount promos in a single app, customize them to match your store’s design, and activate pre-built promotions with a simple click.
Joy: Loyalty & Rewards Program
This easy-to-use app will help you create loyalty programs, VIP tiers, rewards based on actions, and more! It also comes with POS-supported, built-in automated email notifications and other app integrations. Explore all the features and try it out today!
Rise.ai: Gift Cards and Loyalty
Rise.ai is the perfect platform that offers gift cards and store credit platform. With these advanced solutions, you can create the best loyalty programs. Understand all their features well as they can help you with customer retention and customer LTV.
How To Choose The Best Shopify Loyalty App
Here are a few tips to choose the perfect app to start your loyalty programs.
- Have a clear objective of what you want to achieve with the program, and choose the app accordingly.
- Avoid complicated apps that require too much effort
- Make sure the app you choose resonates with your brand and customer preferences
- Check if the app seamlessly integrates with your Shopify store without any hassles
- Choose an app that takes care of the above pointers and is still within your budget
- The app you choose must have robust customer service to handle any queries
- Don’t forget to read the reviews and understand what people are saying
- Look for apps that can offer you insight to help you tweak your loyalty program
How To Manage And Measure Your Loyalty Programs?
Now you know how to create a loyalty program. But that’s not the end of it. You also need to manage and measure. This is how you can do it:
- Always have a specific goal for your program so you can measure your success
- KPIs are important and help you understand if you are on the right path
- Use analytics tools to measure the result of your loyalty program
- Regularly collect feedback from your customers to make the necessary improvements
When To Add Loyalty Programs?
Having customer loyalty by your side is imperative for success. Today, 60% of reward programs make most shoppers more loyal to a brand. But knowing how to create a loyalty program alone won’t help. The right time is also essential.
The ideal time to come up with a reward system can be once you have a stable customer base. It is because you want to reward existing customers for their loyalty and encourage them to keep coming back. That said, even as a new business, you can develop a loyalty program strategically to meet your goals and convert new customers into loyal ones.
Nurture Loyalty With Loyalty Program
Now you know when and how to create a loyalty program that aids the growth of your brand. When you implement it thoughtfully, the reward system can be incredibly enticing. 6 out of 10 consumers involved in loyalty programs have more positive experiences with the said brands because they believe their connection surpasses the transactional. So, make loyalty programs a part of your business strategy to welcome success.
FAQs
What are the 3 R’s of loyalty programs?
The 3 R’s of a loyalty program are rewards, recognition, and relevance. Keeping these fundamental elements in mind while creating your rewards program can ensure its success.
How do I add loyalty programs to Shopify?
To add loyalty programs to Shopify that stand out and help you meet your goals, you can use apps like Automatic Discounts & Upsell from the Shopify App Store.
Does Shopify support loyalty programs?
Yes, Shopify supports loyalty programs through various third-party apps on their app store.
How to create a loyalty program on Shopify?
If you want to know how to create a loyalty program on Shopify, it is simple. You must use the apps available on the Shopify store. Complete details and strategies on how to create a loyalty program are mentioned in the above article.
Can I sell a membership on Shopify?
Yes, you can sell memberships on Shopify by using various membership and subscription apps available on the Shopify App Store.
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