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How Ecommerce Brands Can Beat Competitors Through Loyalty Programs

Digital marketers across industries are heavily relying on an effective customer loyalty program. Loyalty programs help eCommerce brands handle customer retention and other good reasons. According to a report, almost 64% of retail brands say that the loyalty program is an effective way to connect with their customers.

What does that mean, you may wonder?

Digital consumers are more sophisticated than ever. They know what they want and have little tolerance for bad customer experiences. They know they have a plethora of options to switch to competitors. Thus, the ball is now in the merchant’s corner, and it’s up to you as a WooCommerce brand to find:

  • What does your customer need? ,
  • That is what will make them happy, and
  • What can force them to keep coming back to your eCommerce store?

Customer loyalty program is an alternative growth channel. It can help eCommerce brands improve several aspects of their business, such as:

  • The repurchase rate is skyrocketing.
  • Igniting customer acquisition.

The following are four customer loyalty point programs’ benefits for eCommerce brands:

Benefits of Loyalty Programs for eCommerce Brands

Escalate your repurchase rate with a rewards points program.

The rewards points program is at the heart of loyalty marketing tactics. Every loyalty point program is versatile. It is a currency you can use to incentivize various profitable behaviors by your clients. A points loyalty program can be anything. It includes earning points for every dollar spent, following your store on social media, or writing a product review on your WooCommerce site. For each action, you can reward them with points.

Your customers will reap the benefits of these points when they redeem them. This is where your customer knowledge will come into play. In other words, what your buyers would find valuable is to go out of the box to get it. You can make your program super creative and offer rewards in the form of:

free products,


free shipping, and more 

The benefit: Customers love getting rewards like free perks or discounts. It becomes a huge motivator to keep coming back to your eCommerce store, using your rewards, and increasing your repurchase rate. 

Diminish Acquisition Costs Through a Referral Program

A whopping 92% of consumers say that they trust the recommendations and word of mouth from family and friends more than advertisements. Considering the rising costs of online advertising, it’s worth exploring more organic ways of spreading the word about your eCommerce brand. 

A referral is a form of customer behavior where a client or someone familiar with your brand distributes a message to family and friends with a clear Call To Action (CTA): buy your products. 

When we talk about creating an attractive referral program, consider different incentives. Incentivizing referrals can ensure the referral is successful and everybody gets the desired result. You might have already seen an example of a referral in WooCommerce brands: “Give $5, Get $5.”

The benefit: Given that customers trust referrals more than any other form of advertising, you can massively lower your acquisition costs and still enhance the result of your efforts by attaining new customers and creating brand ambassadors. 

Differentiate your e-commerce brand from the competition.

If the pandemic has taught us anything, it is that the online marketplace will continue to expand with more and more brands, raising the bar for a fine client experience and enhancing the competition across the industries.

So, get started early and make sure your company offers something that your competitors don’t: a loyalty program app that houses your rewards offers and allows you to tailor them to the deepest detail. It will make it easier for customers to decide where to buy, and you won’t have to worry about price discrepancies with your competitors.

Increase the Average Order Value

Your main goal as an e-commerce marketer is to increase profits. The best way to do this is to escalate the average order value (AOV).

A customer loyalty program can execute this strategy for you. For example, you can offer different perks, like shipping, for orders above the AOV, and customers will need to stretch a bit to get a valuable reward.

Moreover, based on the insights about your customers, you can offer discounts they will love and will not be shy about spending a bit more to attain them.

Another way your loyalty program can aid you in increasing your AOV is through strategic VIP programs based on the amount spent at your store. Try to structure the tiers to inspire customers to spend more and access the amazing perks that come with each tier. 

Final Words

A customer loyalty program is a powerful tool for all eCommerce marketers searching for a way to power customer engagement and ignites sustainable business growth. Considering the cost of acquiring new customers, enhancing the value of the ones already acquired makes sense.

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