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We surveyed over 400 ecommerce brands that joined the LoyaltyLion platform from the second half of 2020 to the first half of 2021. We wanted to find out the key objectives they are trying to achieve with their loyalty program.
A lot of the objectives were top-level. For some, a loyalty program may seem like another plate to spin, another tool in their kit to get a handle on to meet these challenges. But when we dug deeper and revealed the real pain points of our merchants.
Competition was top of the list – and it’s not a surprise either. With an estimated 12 million – 24 million ecommerce sites across the entire globe, with more and more being created every single day, cost per acquisition is skyrocketing. This impacts on return on your investment not only because of cost and competition but also data privacy changes that have led to a reduction in conversion rates.
Keep reading for the top three key objectives that are top of mind for merchants when choosing a loyalty platform and what it means for you. Or why not request a call back from one of our Loyalty Consultants to discuss your objectives and pain points in detail.
Retaining new customers is the number one objective for ecommerce merchants. But, unfortunately, it is also the most difficult objective to achieve. You’re facing tougher competition and this will only increase. To keep competitors at bay and get a true return on investment, making customers loyal is the answer.
This is why merchants are turning to loyalty programs as the go-to strategy, especially if they’re struggling to turn first-time buyers into repeat purchasers and VIP customers.
A loyalty program allows you to build an emotional connection with your customers and use first-party data to nurture customers through the customer lifecycle with personalized and meaningful interactions.
You also shouldn’t think that deploying a loyalty program will guarantee the results you want straight away. Without the right platform provider and features, it’s really easy to create a loyalty program that falls short. As with every new strategy to execute it well you need to give it the attention and love it deserves and continuously improve it.
If you are new to the loyalty program world, the loyalty partner you select here is crucial to the success of your program. You must benchmark your existing or future loyalty partner on whether they:
To have all of the above you need a loyalty provider that purely focuses on loyalty. At LoyaltyLion, we are experts in loyalty and the whole organization is structured and optimized to make sure merchants are successful in turning customers into loyal ones.
Merchants with or without a loyalty program are taking their customers’ loyalty for granted. Just because they’re repeat purchasers now doesn’t mean they’ll continue to be. Or, if you have an existing loyalty program it doesn’t mean they’ll come back to your store in the future. Especially with copycat competitors appearing every day and enticing customers over with aggressive discounts.
It sounds really simple: customers buy, they get awarded points and they come back to your store and redeem. Sounds simple right? In actual fact, there are layers of complexity to secure success:
Understanding where the customer is in their journey with your brand, what persona they are, how you configure/customize your loyalty program and executing loyalty-led marketing communications are crucial to successfully rewarding your customers with the right rewards at the right time.
This objective is in fact a combination of the number one and two key objectives. What makes it different is the focus on the full lifecycle of the customer journey and connection with your brand.
We have to break this down into personas and how a loyalty-first strategy with clear marketing specific to each persona works to move your customers to the persona you want them to be.
But remember, buying motivations and brand preference do change. Seasonality also affects the tactics you use to interact with your customers. Being loyalty-first means using first-party data to make sure your interactions with your customers are personalized and meaningful.
At LoyaltyLion through best practice content, ongoing training, using our advanced features and a dedicated customer success team, we help our merchants move their shoppers through the customer journey based on nine personas:
A customer’s lifecycle can move between personas very easily. Take a Lapsed customer for example, through loyalty marketing tactics such as a “Welcome Back” campaign – where you remind them of points or rewards they’ve built up that will expire – they can easily become a Repeat purchaser and engage with you more actively. Once they are a Repeat Purchaser, you can use loyalty marketing tactics to move them into the VIP persona and deploy tactics there to keep them loyal to you.
This cycle continues and the different tactics to move customers back and forth between personas is your opportunity to have loyalty-led strategies in place that manage the customer lifecycle. The best part is, a lot of these strategies can be set up and automated with out of the box features such as loyalty emails within our platform, and integrating with Email Service Providers.
Your key objectives will differ and are dependent on your business, products, and the customers you have. How you are successful in achieving them is dependent on whether your strategies are loyalty-first and whether they’re achieving the right objectives.
Speak to a Loyalty Consultant today and see how you can put loyalty at the heart of your tactics and strategies to achieve your key objectives.[hubspot portal=”4855278″ id=”ce3fd471-95a7-498f-af8c-58ba7643f7ec” type=”form”]