Why your online loyalty program shouldn’t just reward purchases

Some loyalty programs just reward purchases. Meaning, when someone makes a purchase on their site, they reward them by offering them points, discounts or other benefits. But, whether you know it or not, there are also many other different loyalty program types.

It’s understandable to think that only rewarding purchase is a smart idea as your customers have just spent their money on you, you want to reward them.

But a problem arises if that’s the only thing you’re rewarding.

Just rewarding purchases tells your customers, you only value them when they are spending money.

But when you think about it, there are many more non-purchase-based actions where you value your customers, and these should be rewarded too – demonstrating that there are many different loyalty program types.

Engagement is one of these instances and should not be looked over.

Deeper brand engagement = deeper loyalty

Other ways to reward your loyal fans

There are other ways to reward your customers other than just for purchasing items such as:

  • Creating an account
  • Referring friends
  • Connecting with social media or writing a review
  • Consuming content

Creating an account:

When a potential customer first creates their account, it does not necessarily mean they will definitely make a purchase.

Rewarding sign-ups is a great way to let that new signee know they’re valued and you’re looking forward to having them on board. This way, they’re much more likely to make a purchase.

Referring friends:

Your customers often become your biggest and best advocates and will recommend your service and refer their friends. This is invaluable to you.

Your customers are marketing your product for free, so why not reward this?

Connecting with social media or writing a review:

As we stated before, your customer often becomes your most loyal advocates. And so activities, like writing a review or connecting with you on your social media accounts, should be rewarded too as it’s a great way to expand your reach.

Gaining feedback from your customers is a brilliant way to make improvements to your products. Knowing they’ll be rewarded for offering their honest feedback, means customers will be eager to provide you with it.

One simple way to reward your customers is through time spent on your website.

At LoyaltyLion, we allow our merchants to reward time spent. When they log in, a pop up comes up to say they have won a certain amount of points for spending the time on the website. This, in turn, promotes loyalty as customers are likely to come back if they know spending time on the website helps them gain points.  

Consuming content: 

Content is king and has been for a while. If you notice your customers are reading your content why not reward them for these efforts? 

Use your online loyalty program to drive long-term retention

It’s super important that you value your customers at all stages of interaction. From creating an account to making that repeat purchase. Every action your customer takes can benefit your business so it’s crucial you reward all types of actions too.

It’s always been the case that if customers are to be rewarded then they need to spend money.

However online loyalty programs allow you to reward much more than just purchases.

97% of loyalty programs put their focus only on transactional rewards. If you’re just rewarding purchases, your program is likely to fail. 77% of transaction-based programs actually fail in the first two years. It’s important to think outside the box of other things you can reward your customers for.

By only rewarding behaviours such as purchases, you don’t give your customers any choice. If they want rewards, they have to make purchases, it’s as simple as that. However, this approach does not always work.

Why not give them a degree of customisation and autonomy regarding the things they want to be rewarded for?

You can use your online loyalty program to drive long-term retention of your loyal members. This will, in turn, lower your investment. If you want long-term retention, then you need to be rewarding your customers continuously, not just when they purchase.

We hope this blog post has helped you understand that there are a variety of loyalty program types out there that you could be implementing today to elevate your store.

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