If your Shopify store struggles to find loyal customers and increase loyalty from existing ones, it’s time to consider setting up a robust loyalty program. Implementing a successful rewards program can help you boost customer engagement and improve their buying experience by providing them with exclusive perks such as discounts, points, activities, or something even more creative.
With the right strategies in place, your Shopify loyalty program has tremendous potential to generate significant revenue for your shop.
In this post, we’ll explore how you can craft an effective loyalty program for your Shopify store that will reap long-term results.
Many businesses offer loyalty programs to reward and incentivize their customers for continued patronage. In essence, loyalty programs are designed to give customers something extra for the time and money they invest in the business, making them more likely to return again and again.
The rewards of loyalty programs vary by company but can include:
Loyalty programs for Shopify stores have seen a significant surge in popularity over the last few years. They are becoming increasingly attractive for customers and merchants, as loyal customers often spend more money per purchase and shop with the same store more often than non-loyal ones.
Research conducted in 2020 showed that over 70% of customers would consider a loyalty program when purchasing, indicating the importance of loyalty programs today. A well-thought-out loyalty system can help Shopify stores stand out from competitors and build lasting relationships with customers, while encouraging frequent purchases or returning visits.
Considering this potential, it’s no wonder that Shopify has recently incorporated powerful tools for merchants to efficiently set up interactive rewards systems for their customers.
And the stats from LoyaltyLion’s Shopify merchants back these claims up. Some of the successes our users have seen include the following:
A Shopify store can’t thrive without a loyalty program because it is the fundamental key to acquiring and keeping customers, boosting customer engagement, and growing revenue.We might sound like a broken record, but acquiring new customers is increasingly expensive.
With acquisition costs becoming increasingly expensive and growth potential limited with “one and done” customers, establishing a loyalty program can help you gain an edge over your competitors. Loyalty programs offer added benefits for customers who keep coming back; this incentive encourages them to shop more often and build long-term relationships with your brand.
Not only does this increase the chance of repeat sales, but it also encourages higher spending with each purchase. Studies have found that loyal customers spend anywhere from two to ten times more than new customers over the course of the year. As such, having a loyalty program helps maximize revenue generation over time by rewarding shoppers for continuing to shop at your store instead of going elsewhere.
Additionally, seasonal and social trends can significantly impact the annual performance of Shopify stores. With a loyalty program, you can ensure that your store remains competitive throughout the year by providing a steady and evenly-spread flow of personalized rewards alongside the bigger occasions, such as birthdays, holidays or anniversaries.
This helps boost engagement among current and potential customers while also helping your business capture more revenue during the slower shopping periods.
Setting up a loyalty program for your Shopify store doesn’t have to be a hassle. Here’s how you can start a loyalty program for your Shopify store.
Before setting up a loyalty program, you need to identify what you want it to accomplish. Do you want customers to purchase more frequently? Increase their average order size? Refer more customers? Understanding your goals will help guide the design of your loyalty program and ensure it meets those objectives—as well as driving results for your store.
Once you clearly understand what goals you’d like your loyalty program to achieve, it’s time to decide which type of rewards program will best meet those objectives. There are generally four types of reward programs: points-based rewards programs, tiered rewards programs, tiered discounts programs, and referral programs.
Next, merchants must choose a platform where customers can enroll in the loyalty program. And there are lots of Shopify apps dedicated to loyalty and rewards. There are many providers out there that offer both free and paid options, so merchants should research these before making a decision.
To make the research process easier, we recommend our solution, LoyaltyLion.
Once the platform has been chosen, merchants must design their loyalty program and create all necessary graphics and copywriting materials for promotion. Merchants should pay attention to detail when creating a loyalty program to ensure that customers understand how it works and what benefits they can receive from participating.
Promoting a loyalty program for Shopify stores can effectively increase customer engagement and encourage repeat purchases. Loyalty programs are prevalent; research shows that the average shopper is enrolled in 16.7 loyalty programs worldwide. Here are some tips on promoting a loyalty program on your Shopify store:
You have to optimize your loyalty program over time as you gain more insights into your customers’ behaviors and preferences. Regularly review performance metrics such as customer engagement levels and redemption rates to ensure that your program runs smoothly and provides value to customers and your business. Adjust points values or reward offers as needed to increase participation in the loyalty program.
Additionally, consider introducing new offerings such as exclusive content or special promotions for members of your loyalty program to differentiate from competitors and foster continued customer engagement.
Finally, once your Shopify store’s loyalty program is set up and running smoothly, don’t forget about measuring its performance over time so that you can make sure it is performing as expected—and optimize its performance if needed.
Use analytics data such as points earned per transaction or the total number of referrals generated by existing members—as well as qualitative feedback from participants—to gauge whether the overall objectives are being met, and fine-tune things if necessary (or introduce new elements). Doing this regularly will help ensure that your Shopify store’s loyalty efforts consistently deliver maximum return on investment over time!
To learn more about how LoyaltyLion can grow your Shopify store, request a demo to book a call with our team.
Connect with a Loyalty Analyst
Connect with a Loyalty Analyst