Loyalty programs – an essential ingredient for e-commerce success

What is a customer loyalty program?

For consumers, it’s a chance to get rewarded for making purchases and now, even taking certain actions like writing reviews, liking brands on Facebook and more. To an e-commerce site, it’s an opportunity to create a deeper relationship with customers. Here are the biggest benefits of a loyalty program for e-commerce sites:

  • Create loyal customers:

Rewarding people for engaging with you builds loyalty to your brand and a greater willingness to continue buying from you.

  • Inspire referrals:

When a customer gets excited about being rewarded, he or she is going to talk about it. A loyalty program gets customers excited, which makes them happy to share their experiences with friends and family and spread the good word.

  • Increase the percentage of repeat customers:

Perks, benefits and special incentives offered in a loyalty program will cause customers to spend more time and money on a website. This is a greatest opportunity to increase sales without the need to increase traffic.

  • Loyalty programs give you a gold mine of customer data:

A good rewards program will allow e-commerce sites to gather valuable data about its customers. Armed with data from demographics to purchasing trends, retailer’s can segment their customer list in powerful ways to target promotions and messages to customers based on their behavior. Retailers can also use this data to make their product offerings much more suited to the needs of their most loyal customers.

Loyalty programs represent a great opportunity to put brands at the forefront of customers’ minds and even better, get them excited to tell their stories for years to come.

By Andrew Tsai

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