70% of shoppers*
prefer a retailer that offers a loyalty program
As more and more retailers do —
the number of programs per person increased
from 11 to 13 last year**
Fewer and fewer customers actually make use of them —
only 6 of them are being actively used**
Learn which aspects of shopping experience might be valuable to your customers and how to amplify them through your loyalty program.
online comic book store
Max shares his market with a couple of local stores and, frankly, there is not much difference between any of them, which is why customers feel free to move back and forth to get something a little cheaper or a little sooner. Max is clearly in need of a loyalty program, but he does not have any room for a meaningful discount policy.
However, there is a way Max may reward loyal clients without resorting to monetary incentives. All he has to do is to figure out what makes his clients feel good about the purchase and and turn it into a benefit of his loyalty program. For example, a lot of what they buy is limited editions and snatching them up before anyone else does is a big part of overall experience. So, if his most loyal customers would be granted early access to exclusive items it might give them a sense of privileged status, save them the trouble of competing with other buyers, and might even give them an excuse to brag via social channels.
Fortunately, implementation is not a problem. Using eCommerce Gamification Suite allows to enroll customers in the program, track their lifetime spending, and automatically assign them to a new group when they are past a certain threshold. Once customers move to a new group they can be granted exclusive access rights with the help of Catalog Permissions extension. That’s it, Max is rewarding his clients with valuable benefits and his price point stays exactly where it was.
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online organic beauty products store
Sarah sources her merchandise from a bunch of small-scale manufacturers, which means that credibility is somewhat an issue and prospective clients might feel uncertain about the brands and products they don't know. She did the best she could with the overall presentation and providing extensive product descriptions, but she believes having existing clients back her up might take things to a whole new level.
And we concur, because this is a perfect task for our Points & Rewards extension. With its help it becomes possible to organize a loyalty program that specifically promotes advocacy. Not only does it award redeemable points for writing reviews, but it has an in-build referral system that rewards clients for each invited friend as well as for the purchases these friends make.
All Sarah has to do is set up the extension, communicate the policy to her clients, sit back and watch the growth of both her credibility score and her customer base.
online pet food store
The good thing about animal food is that it’s a fixed expense in every household with a pet. The bad thing about animal food is that there is only a handful of brands and you can get them pretty much anywhere, but, if it were up to John, he’d rather people got it at his store.
Luckily, it could be up to John. There is a variety of ways to encourage people to come back repeatedly and in John’s case a classic discount accumulation might just do the trick. He may choose Points & Rewards extension for Magento to award redeemable points proportionately to customer’s spending.
He may also opt for a tier system, where his customers will be granted progressive discounts depending on their lifetime spending, which could be implemented with the combination of eCommerce Gamification Suite and native Magento functions of either "Category price rules" or "Tier price". John also knows that some of his customers go crazy for animal-themed items, so he might exploit this by creating a bunch of cute badges to reward certain behaviors.
Finally, John might use both extensions together to allow his customers earn and spend points at progressively attractive rates. Our gamification extension will be tracking lifetime spendings and automatically assigning customers to new tiers, while our points & rewards extension will use these tiers to determine point exchange rates.
Certainly those cases might not be the exact match for you, but, however different your store is, the General Principle is always the same:
· learn what your customers value;
· place it within their reach;
· just not too close ;)
Once you’ve found the right thing to use as leverage you are certain to leave your competition behind. And if they catch up then, well, it’s time to come up with something new ;)