How to Create Successful Loyalty Programs – 5 Effective Tips

Leveraging loyalty programs on your website it’s an important marketing strategy, as they let you offer value to your customers and motivate them to like and promote your brand, to repeat purchases and to increase their customer lifetime value. We know that people love getting discounts and rewards, and they are ready to hunt for them on your website if you let them. The more points and rewards they gain the more they come back to redeem them and shop more with you.

Thank your most loyal customers by using a system of ranks or tiers, to keep the best ones engaged with your loyalty program and your business. For example, when reaching a certain condition or making a purchase, customers in addition to or instead of points gets a special status that allows them to enjoy certain privileges or get access to additional features.

Shopify Apps Store offers a bunch of apps with Loyalty and Rewards Program like Growave. So use the power of reward programs, make sure you use your customers’ love for getting rewarded and show your love by providing value to each of them.

We here at Growave are ready to help you to build your own Shopify store, and in this article, we are sharing 5 effective tips on how to create a successful Loyalty and Rewards program:

1. Keep Things Simple

If you overcomplicate your loyalty rewards program, there is always the chance that customers won’t understand it. If that happens, it will just end up being ignored and forgotten. Avoid this by making the process easy for customers to understand. But not only that, make it simple for your customers to sign up to as well. Create a points system that’s easy to track so the situation is clear. Give out points to customers on the back of purchases, explaining how they can redeem those accumulated points, whether or not those points expire, and if so, when.

2. Introduce Personalization

The idea of loyalty stems from a particular customer bonding with a particular brand. If a customer feels like a number on a list, they’ll never feel loyal to your brand.

If you, on the other hand, go above and beyond to show them that they are special and that you appreciate their business, they’ll be inspired to come back, especially with the many perks and rewards you send their way. This is where you need to introduce personalization to show how much you know their preferences.

Remember, personalization is not complicated, it’s based on the knowledge you’ve gathered on your audience, and in your own creativity to spice up your loyalty schemes with that knowledge. For example, sending out personalized mugs to customers who come back to your store, with, for example, a special quote you know they love is a great way to connect.

3. Understand Your Audience

Before beginning this endeavor and spewing out reward programs, it is first vital to get a good hold of your target audience. The key to the success of any loyalty program lies in the detailed knowledge of customers including their demographics, current preference trends, their competitor knowledge, and their motivational factors. It is also vital to know what they ‘need’ as opposed to what they ‘want’. From direct surveys to casual customer interactions through social media engagement, there are numerous ways in which this information can be obtained.

4. Offer Easy Ways to Earn and Redeem Points

Now that you are providing gamification experiences to your customers, you should make sure that they get their reward in the most hassle-free way. From a customer perspective, if they have to scratch open a reward, the last thing they want is to have to go through a ton of steps to claim a $20 discount. 

Surveys suggest that the mark of an effective customer loyalty program is their active participation in collecting points and redeeming rewards. You should consider giving points frequently enough so that loyal, high-value customers get their rewards within three months and others, within six months.

5. Surprise And Delight Customers Along The Way

Initially, customers will want to join your loyalty program to receive a special discount or reward. As discussed in the previous point, this great way to get them to join the loyalty program, however, keeping them engaged with the program is equally as important. Many businesses forget this and wonder why their customers aren’t using the program.

The study shows that American consumers belong to an average of 14 rewards programs, however, they actually only actively engage with half of them.

This suggests that consumers are likely to forget about using a loyalty program if there is no incentive to continue. There are thousands of loyalty programs available today, so it’s important to make sure yours stands out.

Done right, customer loyalty programs can boost profits and improve customer retention. This means they have the power to make a significant impact on your bottom line. Implement the right loyalty program for your customers, manage it well, and you can ensure long-lasting success for your business.