It’s easy to get caught up in the rush of attracting new ecommerce customers, just like it’s all too easy for humans to enthusiastically start a project—only to trail off and neglect to complete it. But it turns out that what you do with customer acquisitions can be make-or-break for your online store. Is your store fostering a deep, lasting sense of loyalty among customers? Or are you forgetting about shoppers after their first purchase? One way to appreciate and retain shoppers over time is to establish a club focused on rewarding ecommerce customer loyalty over time. Here’s how to design an effective program from day one.
Why Customer Loyalty Matters
According to an Invesp infographic, existing customers are 50 percent more likely to try new products, and they spend 31 percent more in general buying them. Simply put: It costs much more to attract new traffic than it does to retain what you already have. If you’re only focused on getting new traffic and buyers, you’re missing out on the immense value loyal, long-time customers can provide.
In other words, it’s mightily important to invest in customer lifetime value (CLV). Getting a customer may earn you a conversion, but retaining a customer earns you a long-term buying relationship with a loyal shopper—plus someone who will tell their friends and family how much they love your store.
Keep It Simple, Seller
Most loyalty programs use points to determine eligibility for special discounts or rewards. But your shoppers shouldn’t dread doing complex calculations to figure out where they stand. As HubSpot writes, “Fourteen points equals one dollar, and twenty dollars earns 50 percent off your next purchase in April” is a real headache. Keep your conversions simple and tangible so customers know what they’re working toward and how to redeem their efforts.
Explain Details Clearly
Even if your loyalty program is based in simplicity, people may forget a detail here or there. Shoppers belong to multiple clubs these days, so they’ll appreciate a central resource they can find, peruse and put into action.
When you’re planning how to create an ecommerce website, choosing a platform with highly customizable navigation will allow you to easily add “extras” like an explanation page for your loyalty club right where people can see it on your home page. That way, nobody will be left in the dark.
Offer Relevant Rewards
Fully three-fourths of customers say they stay in loyalty programs because they “get rewards and offers relevant to them.” In other words, to keep people loyal, you must give them what they want—which might vary based upon where they are in their life’s journey. Retention means paying special attention to what established customers want and need, usually some combination of discounts, exclusive offers, members-only pricing or even their own say in what they earn.
No matter what you sell, you can learn from luxury brands here. According to Forbes, “[Consumers] want perks like exclusive access, insider knowledge and more personalized, intimate service.” That’s exactly what your loyalty club is poised to provide.
Don’t Forget Your Brand
Your loyalty club should exude your brand in every aspect: name, tone, colors, logo, etc. Part of branding is developing your own currency—like Starbucks’ Stars versus Caribou Coffee’s Perks. This will depend on your store name, branding strategy and inventory, but don’t be afraid to get creative here.
Follow these principles and shoppers will be clamoring to join the club. By rewarding ecommerce customer loyalty over time, you’ll be amplifying your CLV and creating an unforgettable bond.