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Ecommerce Loyalty Programs In My Eyes

Customer retention is an important task of retailers. In fact, 85% of all ecommerce brands using discounts and other promotional schemes to add value to their customers. But, there is a number which we should pay attention, there are 97% of rewards programs are transaction-based. It means that almost promotional activities can attract customers in only one time. It tells us that we need to invest in customer retention right today, if we don’t want to be loser in future.

Here are some aspects of E-commerce Loyalty Programs which based on my personal opinion.


An Introduction to E-commerce Loyalty Programs

The true loyalty programs are win-win. It can help you increase sales from existing customers and also help reduce the rates of abandoned purchases. In a marketplace with a very high level of competition, the loyalty programs are the effective ways to increase customer retention and profitability.

The benefits that the loyalty program brings to ecommerce business are quite clear. To retain customers, the businesses need to recognize and reward their best customers, incentivise and delight the valued customers. So, customer loyalty programs can bring a miracle to your business.

Importance of Loyalty Programmes

In fact, three out of four U.S companies generate a better return on investment with loyalty programs. And the study shows that 69% of U.S companies track the lifetime value of each customer who participates in their loyalty programs and the average value is $1,803. This is number showing that investments in loyalty programs are very effective. We can list 8 biggest advantages of the Loyalty Programmes.

  • Win greater share of wallet: it encourages the consumers to purchase more from you and less from competitors.
  • Encourages additional purchases: Consumers will tend to buy more with the loyalty programmes.
  • Reflects customer behavior and preferences: the Customer Relationship Management (CRM) systems provide a tool for collecting customer data and tracking behavior. It allows to analyze the information such as what a consumer buys, how much, and how often.
  • Increases business communication with customers: helps to stay in touch with customers and ensures that public awareness.
  • Assess business’s marketing efforts: helps to track customer purchases of a business which can help identify profitable customers and also assist in the evaluation of specific promotions.
  • Nourishes the product: enhance the value of the product brand, increase product availability, or neutralize a competitor’s program.
  • Contributes to provide specialized, differentiated service: A loyalty program provides a tool to reward customers according to their value to the business.
  • Attract new customers: this is a treasured function for any businesses. For many consumers, the reward program may lead to mouth publicity further engaging with new customers.

A Road to Customer Loyalty


Building and achieving customer loyalty is not simple in a highly competitive online marketplace today. But you can do this by smart branding, appropriate usage of social media and clear pathways…

Look at the image above, you can see that at each stage along the road, customer is influenced by different things. So, in each phase, the businesses will need something new to push them forward.

  1. Browser shopping:

The first step in the purchase process, the shopper will visit your site and browse the products. At this step, you need to build a good brand image in the mind of the customers. You should use the colors that strong and consistent to impress them about what you do. Always try to give your brand a personality.

  1. Customer:

When customer has completed a single purchase, most likely they came from social media. Today, social media is an essential channel for branding and marketing. Advertising on social media is a very common marketing strategy and if you can use social media properly, you will have many opportunities to get more loyalty customer.

  1. Returning customers:

They are customers who have made the second purchase. Offer them discounts or promo codes are the effective way to rewarding customers and ensure that the customers return. Use can use this strategy throughout the year not just for special occasions.

You also can use the advanced tools like Remarketing to track the customers that haven’t purchased anything recently, or have abandoned shopping carts.

  1. Repeat customers:

At this stage, customers came back and bought more products on your store. We can learn some useful experiences from huge ecommerce sites such as Amazon. They send the emails detailing products similar to others that you’ve purchased or viewed. Many consumers like to get the personal emails which address their interests and also offer them discounts. They are more likely to comeback your store to shopping.

  1. Loyal Customers:

These are the customers who visit your store and shopping regularly. Consider to use live chat, which can help you to engage with customer on a one-to-one basis, you may give them some special offer to lead them to another purchase. Always take care and provide them the most enthusiastic support to build a sustainable loyalty!

Source @brainsins

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