Check out this article’s best benefits and effective types of loyalty programs. Remember to obtain the 5+ supreme Magento 2 Addons to increase the retention rate!
According to a report by Salesforce, 95% of customers said they’re more likely to trust a company that can increase their loyalty. Moreover, 91% percent of buyers said their trust in a brand makes their purchase more frequently.
Additionally, the annual research of “ State of the connected customers” also cited that 57% of customers will switch to buy your competitors’ products if it provides a better experience.
Thus, what can the merchant do to prevent this appalling scenario?
The answer is building an effective Loyalty Program. If you’re still don’t know what it is, just take a journey with me through this article and obtain all the valuable Magento 2 addons and information.
Let’s get started!
What Is Loyalty Program?
By definition, the customer loyalty program is a marketing strategy that recognizes and rewards customers who engage or purchase a brand on a regular basis. For example, the company can offer a gift card, discount and other special incentives as a reward program to attract and retain existing customers.
Moreover, these incentives and specific benefits frequently result in the customer becoming a more frequent consumer or in the best-case scenario – a brand promoter.
05 Benefits Of Loyalty Program
Increase customer retention rate
As cited in a survey report from BIA/Kelsey, repeat customers accounted for more than half of their annual revenue. In addition, these consumers were also likely to spend 67 percent more than new customers.
That’s a statistic you can’t afford to overlook. At the same time, acquiring new customers may cost you at least five times as much as keeping existing ones. So, it’s evident that loyalty buyers will help brand optimize their total cost.
As a result, one of the most significant advantages of loyalty programs is that you can do more to keep customers turning back and spending more. And that’s led to the increase in retention rate.
A retained customer is a valuable asset to any brand because they generate more revenue, have a higher likelihood of becoming brand advocates, and represent the brand as a trustworthy brand loyalist.
Incentivizing more shopping
Brands usually use different tiers for their reward members, encouraging customers to spend more money. The idea is based on a promotional strategy: when customers shop more often, they can save more money.
For example, loyalty members can unlock additional rewards and perks when they reach a specific dollar amount. You can provide free shipping and returns, gift cards, and extra freebies as a store owner.
Attract new customers
Even though attracting new customers can be costly, it can be mitigated to some extent if your e-commerce business has a good loyalty program.
By developing an interactive program with multiple tiers and benefits for your customers, you can increase the likelihood that new ones will sign up for what you have to offer.
Some brands even use referral programs to persuade their customers to recommend the brand to their friends and family. Current customers receive a discount for each referred person, and new customers also receive a discount.
Create personal relationships
Lastly, the loyalty program also provides a direct line of communication with your customers and build up relationships easier. With the data you get when they opt-in to your program, store owners can personalize moments for each customer.
Thereby, buyers will understand that your store focuses on them, cares about them, and makes them feel like they are receiving a “special treatment”. Thus, a loyalty program will drive more customers’ appreciation and interest in what your brand offers.
05 Impressive Types Of Reward Program
The most popular loyalty program in the ecommerce world is the point program. This idea is based on the “spend more to get more” promotional-based principle.
In this way, every time a customer makes a purchase in-store or online, they receive a certain number of points based on their purchase volume. These points can be redeemed for freebies, coupons, cashback, and other benefits.
One tip to facilitate your point program in Magento 2 is installing Magento 2 addons, such as Magento 2 Reward Point extension or Magento 2 Loyalty Program, etc.
Depending on each policy, customers not only accumulate points through purchasing activities but also can reward points by sharing on social media, giving reviews, celebrating a birthday, or engaging in gamification.
As a result, it can enhance the customer-brand relationship, build trust, attract new customers by their feedback, and bring them the most joyful customer experience.
VIP member club
VIP member club is a paid loyalty program provided by the brand for those willing to pay a membership fee monthly or annually. Brands should market them to their regular or existing customers to make this program effective.
Customers can use their membership to gain access to exclusive opportunities, discounts, and special services. Remember to create exclusive membership benefits, or else your customers will drop this program.
If a business can design a loyalty program that aligns with your customers’ values, they are more likely to boost their trust with your brand and probably become your ambassadors without hiring cost.
However, store owners need to define your brand’s value and research whether this value parallels with your customers’. For example, you own an online pet store and realize how important animal welfare is to your customers.
Utilizing this insight, you can create a value-based program for your customer, such as you will donate 10% cart value to animal rescue organizations for every at least 100$ purchase made by your customers. With this approach, you can develop an ethical and robust relationship with the buyers.
In this method, the companies will give members physical cards or digital cards that were “punched” when purchasing goods or services. And if the customers fill all the blank shapes in the cards, they will redeem them for a reward.
For instance, when customers purchase nine times with a bill’s value of at least 50$, they will get a coupon of 50$ to buy free. This program will urge customers to purchase more and more to reach the punched-card target.
Implementing a tiered loyalty program, which rewards initial loyalty and encourages more purchases, is one way to strike the right balance between attainable and desirable rewards.
The tier program, in a nutshell, is based on levels of loyalty. Customers earn points for every purchase they make. The more points they earn, the higher their loyalty level will be. And the higher their status, the greater the rewards.
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Potent 04 Magento 2 Addons To Enhance Loyalty Program
The most outstanding extension we want to recommend to you in this elected list is Magento 2 Reward Points Extension which was developed by the BSSCommerce team.
Magento 2 Reward Point is a compelling feature that entices customers to buy more and spend more by offering a loyalty reward program to new and returning customers. As a result, our customers will receive reward points that can be redeemed on their next purchase.
Furthermore, installing this extension increases your chances of converting your buyers into loyal customers and increasing your online store’s retention rate as well as revenue.
Take a look at the core features:
- Reward customers with points for orders, registration, review submission, and other customer behaviors
- Allow customers to use reward points to pay for orders
- Keep money stay on the store by refunding customers by points
- Conveniently manage reward point balance and transactions on customer accounts
- Manually add or deduct reward points to customer accounts from the backend
- Send customers emails to notify them about the expiry date of reward points
- Import/export reward points and transactions
- Build a Magento 2 loyalty program for your business
Another Magento 2 addon that can boost your loyalty program is Magento 2 Gift Card. With this module, store owners can generate gift cards for consumers to purchase and also give to their friends and family on special occasions.
Besides, this extension also allows buyers to send the gift card to others by email or postal service, along with customized messages inserted during the buying process. Store owners are given the tools to keep track of gift card purchases and even gift code usage.
Store owners can apply this Magento 2 addon in the loyalty program for rewarding customers when purchasing the products or giving these gift cards when celebrating members’ birthdays or anniversaries.
- Use it as a new product type with flexible prices and values
- Be able to upload various templates
- Easily generate or import gift code patterns
- Send gift voucher via email, post office and even both
- Ability to apply gift code on the shopping cart and checkout page
The third one is the Magento 2 Loyalty Program by Amasty. This extension allows you to reward repeat customers with additional discounts by using flexible conditions based on order and customer attributes as well as purchase history. Use multiple cart price rules actions to quickly create hot deals for different loyalty program levels.
Check out the key features of this Magento 2 Addon:
- Provide discounts based on cart and customer attribute
- Create promotions based on previous purchases.
- Use 16 additional actions to create unique propositions.
- Show program information and purchase statistics in customers’ accounts.
- Encourage store visitors to register and spend more money.
The last one is a Magento 2 addon built by Lanofcoder – Reward Point Extension. Magento 2 Reward Points creates a system for automatically earning and spending points. It’s a comprehensive solution for increasing customer loyalty.
Let’s engage shoppers, keep old customers returning to your store, and increase sales. But, firstly, let’s take a glance at the outstanding features of this module:
- Reward customers who come to your store in various ways
- Apply pre-made events accordingly to customer’s behaviors
- Set up specific and easy-to-apply as well as easy-to-follow rules for earning points
- The professional and customer-oriented design makes Magento 2 Reward Points a perfect option
- Facilitate Magento 2 store admin in managing and keeping the point rewarding system intact
- Help customers to engage in Magento store’s activities by providing convenient and optimized features
- Import and export customers’ reward points via CSV file
Hopely that after reading this whole article, you can have a basic understanding of the loyalty programs, the advantages of applying them to your store, and the most efficient practices of this reward program.
As always, we also provide you with the most helpful list of Magento 2 Addons that can assist you in boosting your loyalty program and increasing your brand’s retention rate! Take a look and choose the best one that fits your store’s demand!
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