How to create a Customer Loyalty Program -Shopify

Customer loyalty program is also known as rewards programs in aim of increasing retention, purchase frequently, lifetime customer value, and referrals. The best loyalty programs offer a combination of free gifts, exclusive discounts, early product releases and points for product redemption. Since expenditure for acquiring a new customer is increasingly higher than retaining a current one, so it’s important to focus on keeping your current customers to shop with you as much as possible that is known as retention marketing.

In this post, we’ll take a look at how to create a loyalty program for your online store and give your customers a reason to return for shopping. Before helping you to understand how to setup a loyalty program, I would like to make clear one thing that you do not have to build a loyalty program from the beginning. There are many turn-key solutions available in the Shopify App Store.

Step 1: Decide What You Will Reward Points For

We are all familiar with basic loyalty programs. For example, you buy something and get points for it. If you earn enough points, you receive some sorts of reward. Ecommerce has opened up more possibilities for potential loyalty programs that you can integrate into your business. It is obvious that you’ll still want to reward your customers for making purchases. However, there are still some other actions that you can choose to reward for as well: Account Registrations, Purchases, Referrals, Birthdays, Facebook Likes, Instagram Follows.

Step 2: Give Your Program and Point a Name

It seems to be that this step is often underrated. However, loyalty programs perform is actually better when they have a unique and identifiable name. Your loyalty point currency is the same. If you just call them points, they can look boring or even worse and worthless. Creating an interesting name for your program and currency can make your shoppers get excited about !

Step 3: Decide Point Value

Points are valuable at your store, so make sure that you know how much they are worth. If is your choice, it will set you up with a 1% back program by default. Each $1 spent will get your customer one point. They can then redeem 500 of those points for $5 off their next purchase. This means each point is worth 1 cent, creating a 1% back loyalty program.

Step 4: How Many Points Should You Reward

Now that you’ve decided what your points are worth, you need to assign the number of points that you will reward for different actions. While it seems logical to reward points for an action equal to the value it drives to your store, businesses don’t always have access to the data that would help them understand the value of every action their audience takes.

All in all, customer loyalty programs undoubtedly have a remarkable impact on the company’s development. Thus, it is extremely important to create a right customer loyalty program. Hope that this post will be helpful for you if you make plan to set up customer loyalty programs. Have any questions, don’t hesitate to leave some comments below, your support is our pleasure.

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