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Why is Loyalty Marketing important for an e-commerce store?
Loyalty. We pick it up early on as a word and an emotion. In our relationships with family and friends, we "feel" it. Additionally, when we get older, we gravitate toward particular institutions and workplaces, like college.
But things have emerged and evolved, leading to the invention of the term "loyalty marketing".
As the name says, customer loyalty simply refers to the quality of your consumer staying loyal to your product, brand, or services when compared to your competitors. Simply put, let's say you go to the store and request a specific brand of tea. Instead of buying tea from another brand because the seller says it is currently out of stock, you inquire about when it will be refilled. Additionally, since you frequently purchase the same item from the same store, you do not visit another store to request it. By doing this, you show that individual shopkeeper and the tea brand that you are a loyal customer.
According to the Oxford Dictionary, loyalty is "A strong sense of support or allegiance" as well as the trait of being loyal.
The same definition is given by HubSpot: "A customer's willingness to purchase from or work with a brand, again and again, is the outcome of a pleasant customer experience, customer happiness, and the value of the products or services the consumer receives from the transaction."
What is Loyalty Marketing?
It is a marketing strategy. By providing appealing incentives, a business hopes to attract and retain customers by engaging in loyalty marketing. This encourages customers to feel loyal to the business and continue buying its products.
A strategy is crucial for any sort of marketing.
A brand or business, on the other hand, uses a customer loyalty program to keep its current consumers and draw in new ones.
The business establishes a program to reward brand-loyal customers. Companies and retailers can use the program to provide customers discounts, prizes, special deals, and free products when they make larger purchases or take specific activities on a brand's website.
Loyalty Market Size
The market for loyalty management includes efficient and well-thought-out strategies for choosing, managing, relating to, and controlling client purchasing behavior. Due to its influence on brand value and the power of loyalty management programs to both retain existing consumers and draw in new ones, loyalty management has grown to be a crucial component of vendor strategy. The size of the global loyalty management market was $1,931 million in 2016, and it is anticipated to rise to $6,955 million by 2023, at a CAGR of 20.8%.
Why have loyalty programs become so popular with marketers?
The belief that you will generate more money from your current clients than from new consumers is shared by almost every eCommerce expert. Brands that have implemented loyalty marketing initiatives and improved customer satisfaction have been successful in boosting client lifetime value and turning them into loyal consumers.
Nowadays, loyalty programs are regarded as one of the best methods for increasing sales and cultivating client loyalty. Since selling to existing customers is much less expensive than recruiting new ones, many Shopify merchants make loyalty program strategies.
More than 90% of companies operate a customer loyalty program.
We aim to improve your ability to keep your current consumers, foster a relationship with them, and encourage repeat business. The following loyalty marketing techniques will assist you in increasing customer loyalty.
1. Create a successful rewards program.
More businesses are implementing incentive programs to keep customers after their first purchase. With the ability to receive prizes for signing up, making an order, leaving a review, etc., these rewards programs encourage consumers to shop online. Your customers are guaranteed to return to your store voluntarily thanks to this gamified experience.
With Growave and Loyalty Lion, you may set up this rewards system. You may build up a credit system and regulations for what actions are rewarded and how much through the Shopify app. In contrast to a point system, which is ambiguous and difficult for customers to comprehend, a credit system allows customers to see exactly how much real money they have earned.
2. Create a user account for customers that want to utilize it
Setting up an improved on-site experience that clients would want to return to can help you retain customers more effectively. Your customer account page is one place to accomplish this. Customers can access their personal information here, including connections to previous orders, order tracking information, etc. Although customers frequently visit this website to find crucial information, they aren't interested in staying and spending time there.
However, by enhancing the features offered on this customer account page, you may encourage visitors to stay on it longer, make it easier for them to keep items they like, and boost the number of repeat purchases. You may rebuild your customer account page using Flits and include features like rewards and wish lists. You can count on customers staying longer in your store.
3. Start a subscription–based service.
A subscription service can be ideal for you if you sell goods that must be purchased repeatedly. Customers can opt to subscribe to a product through a subscription program, purchasing it at a discounted price for a duration of 6 to 12 months. Customers can select how frequently they would want to get the item. This tactic makes it simpler for your customers to keep purchasing your products and aids you in capturing recurring revenue.
One of the finest ways to gently keep customers and foster brand loyalty is through a subscription service.
With Recharge, you can set up a subscription on your Shopify store.
4. Offer rewards for consumer referrals.
Customers who recommend a business's products to friends can earn incentives through referral programs. By using this strategy, you may increase client loyalty while also attracting new ones. For referring a friend, some referral programs provide discounts or in-store credit, while others could provide in-store gifts.
Referral Candy and Growave are one of the best referral apps for Shopify.
5. Set personalized marketing to use.
A customer's name and other information can be used in personalized marketing to make email advertisements, order receipts, and newsletters more compelling and relevant to the individual. You can more effectively target the particular preferences and requirements of each customer by customizing your marketing plan. Customers may be more likely to make repeat purchases if you remind them of the unique demands your products and services address in their lives.
6. Offer rewards on referrals and reviews.
We do not buy any products online now unless we have seen a few reviews. Don’t' we? Referrals and Rewards are an important part of an e commerce store now. There are many applications now that help out in providing reviews.yotpo is once such application.
There are various types of customer loyalty programs that you can create for your customers.
Tier-based loyalty programs
Customer incentives vary according to rank in tiered customer loyalty programs, a sort of membership. Businesses frequently rank group membership based on particular parameters, such as sales or engagement.
Customers have a goal thanks to these customer incentives schemes. The more exclusive and superior gifts they acquire, the higher their tier.
Point-based loyalty programs
The most popular kind of incentive system is a point-based one. Customers can collect reward points that can be redeemed for gifts, money, benefits, and other things. Points are not the only way customers may accrue them. Additionally, they can gain points by submitting reviews, celebrating a birthday, sharing on social media, or using gamification.
Paid loyalty programs
Customers receive instant and continuous benefits through paid loyalty, or service charge loyalty programs, in exchange for a membership fee. These costs may be one-time or recurrent.
Paid programs can need to demand a demonstration of value to signups, but members can provide a better value client for the firm.
Value-driven loyalty programs
A value-based loyalty program is designed to foster a closer relationship with customers. It entails giving a portion of purchases to charities or welfare initiatives. You can have one that reflects the beliefs of your clients, or you can offer a variety of charities from which to pick.
Customers are not genuinely rewarded by this scheme. But because the benefits are shared with society, it has a particular place in their hearts. This model is frequently used by brands to develop hybrid loyalty programs.
Why Loyalty Programs are important for your business?
- Boosts sales
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Cost-Saving Strategy
In general, keeping your present customers is less inexpensive than finding new ones. To gain the trust of your current customers would have required a lot of effort, money, and time, and it would also require a commitment to turn a potential customer into a loyal one. However, since your present customers have already taken your trip, it is less expensive to persuade them to buy from you frequently than it would be to persuade a new consumer.
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Increases awareness of a brand
Loyalty programs may be able to organically reach more consumers. Customers who earn rewards for their purchases are more inclined to tell their friends and family about the company or service. Loyalty programs are an effective approach to cutting down on the high cost of customer acquisition.
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Customer Satisfaction
Customers benefit more from buying at e-commerce companies with rewards programs. Customer loyalty programs do ensure that its customers are happy and satisfied. Incentives demonstrate that you value them as more than simply one-time clients and that you hope to maintain a positive relationship with them in the term.
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Differentiates Your Company from the Competition
Incentives let buyers make far more accessible decisions when deciding where to purchase goods. Show consideration and respect for each consumer. By appealing to your client's emotions, you may deliver a more individualized customer experience and set your brand and company apart.
Give your clients the knowledge that you value their company and want them to return. Create loyalty marketing plans to increase sales on your Shopify store.
As you can see, maintaining a loyal customer base is essential to the success of your Shopify store. This comprehensive overview of loyalty marketing tactics is intended to improve your relationship with your consumers and boost Shopify sales.
Lucent Commerce is one such platform that offers you an all-in-one solution. It provides you with simple and efficient applications that help your e-commerce store grow and flourish. Our application Simply Shipping Protection is a custom solution that provides without involving any third party. Moreover, it is integrated with Partners like Recharge- Here you can instantly add Recharge through subscription-based products.
Whereas our Partners like Yotpo, Growave, Loyalty Lion, and Flits help you fulfill customer claims through in-store credits.
Our other applications include Simply OTP Login- Which helps you log in seamlessly to your store.
Simply Cartbooster - This simple application lets you create attractive Post- Purchase Upsells to increase your Average Order Value as well as sales.
Gain benefits from all these applications today. Visit us at www.lucentcommerce.com.