Loyalty and Rewards Points for Your Ecommerce Platform

Loyalty and Rewards Points for Your Ecommerce Platform

Quick Summary: E-commerce has seen tremendous growth for the past decade, and especially after the pandemic, the trend of online shopping went crazy. Social media influencers have significantly hyped up the online market and there is one thing that is on the boom– ecommerce loyalty programs! So whether you are the owner of an essential business that is in all time demand, or a non-essentials business that is still struggling to rise: you must consider including loyalty and reward points to attract and retain customers.

It is impossible to stand against e commerce giants like Amazon, Flipkart, if you are just offering good products and services. Today’s customer likes to collect points and wants attractive rewards to keep repeating the purchase. Just offering discounts is not enough.

So what are the loyalty programs?

An ecommerce loyalty program focuses mainly on customer retention and customer engagement. The best programs ensure that the existing customers are coming back to the site and shop more often in higher quantities, or interact with the business everytime they make a purchase. Those programs have a simple and comprehensible design, providing an enjoyable and amusing shopping encounter for the user. 

You can make your business stand out in following ways-

  • Offer unique rewards and VIP benefits, like myntra offers its elite members an exclusive insight into the sale before it is actually LIVE on the website. 
  • Special discounts for members. 
  • Communities to share product reviews, product recommendations and suggestions. 
  • ENcouraging customers to upload a recommended product video. 
  • Social media contests to encourage word of mouth and build credibility. 
  • A seamless buying experience and hassle-free returns for frequent customers.
ecommerce loyalty programs

Types of Loyalty Programs that might fit your business needs

  • Point based programs- While being one of the oldest types of loyalty programs, it is something that is still relevant. It gives your customer some points each time a purchase is made. The points are redeemable after a certain limit is reached and therefore the customer is retained as he can burn those points later. However, in a more modern approach, customers can earn points through multiple interactions like sharing recommendations on social media, completing their profile, sharing reviews on the brand’s website or simply subscribing to a newsletter. Point based loyalty programs are quick to implement and since they are the oldest, it is easier for customers to understand how it works, so for any company who is in the launch phase, point system works best. 
  • Tiered loyalty programs- A tiered loyalty program is a structured strategy to lure customers to shop more from the brand. The existing customers get a variety of rewards and benefits depending on their spending and interaction with the brand.  These types of programs are particularly popular among shoppers because they enable customers to advance and climb the hierarchy to earn better benefits. Higher tiers offer extra premium benefits and exclusive shopping experiences like free access to spa services, free delivery, free products or early access to sales. Additionally, tiers are linked to status, making customers more inclined to make repeat purchases to maintain their standing.
  • Perk programs- Perks, much like those offered in corporate jobs, provide unconditional benefits that everyone looks forward to. These perks are highly effective, especially if you have a unique product or aim to establish a brand identity with your existing customers. They also enhance brand credibility and loyalty. For instance, the popular IKEA brand offers its members perks such as free workshops, events, and complimentary tea or coffee at their stores.
  • Subscription based programs- Subscription based loyalty programs foster higher levels of engagement from customers. By offering members a range of exclusive discounts, rewards and incentives, your brand can continuously engage with the subscribers and motivate them to renew their subscription and maintain their loyalty with time. 
Customer Engagement Level

Approaches to stay relevant 

  1. Engaging customers outside of the buying cycle- Traditional approaches involved giving rewards to the customers, only when they make a purchase. Unless customers are loyal to your brand, just offering them discounts or a membership won’t work in the long run. And if customers forget their credentials or forget to login to their profile, they will switch to another brand very soon. That’s why next-gen loyalty programs should give customers a valid reason to come back, like friend referrals, user reviews, surveys, and incentivizing frequent logins. 
  2. Omnichannel- No doubt online shopping is a trend now. But the pandemic has affected brick-and-mortar shops to a great extent. So if you have an offline presence, bridging the gap between online and retail stores with a loyalty program can help in increasing the footfall in unique ways. 
  3. Membership page- Membership page is a customized webpage on your website which acts as a gateway where your customers can learn about the rules of the membership, browse and redeem rewards, unlock new coupons, and complete challenges etc. 
  4. Gamification- Discount wheels, online fun games, badges, and polls– these all are types of gamification where the goal is to make the loyalty reward program more engaging and fun. Makeup giant Nykaa often utilizes prize wheels to engage their customers and offer them discounts for repeat purchase. 

So let’s come up with a unique reward loyalty program

It doesn’t really matter if you are witnessing a downside in customer interest. Because loyalty rewards programs can prove to be essential tools to bring back those customers and retain them at the same time. A unique and properly designed program can not only engage customers in a fun way, but also creates brand loyalty. So what’s the wait?

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