A typical case study to reflect how powerful a loyalty program is!
Starbucks - a well-known global coffee brand has been running their loyalty program for many years and won incredible figures (according to Business Insider 2019):
- 16.3 million active U.S. rewards program members
- 40% of the entire sales are derived from rewards program members
By giving customers stars for every dollar they spend and many types of other rewards (registration, birthday, referral,...), Starbucks successfully knocks down customers’ mind, induces them to purchase drinks and come back to spend more and more. Those figures are exact evidence for the big power of a reward program for a business, playing an important role in growing customers and earn money.
What benefits does a reward program really bring to a business?
You reward customers, then they fall in love with you and spend more money on your store: a win-win relationship, right? However, in terms of business, you surely gain more than that. Like the way Starbucks stole their customers’ hearts, you can make such a big success to:
- Increase customer loyalty
- Attract new customers
- Create better brand awareness
- Boost up sales
⇒ In a nutshell, as long as you smartly keep your money flow inside your store, you make one step to success!
Address your customer with the reward point now!
Use reward points to appeal customers to interact with your shop and drag traffic onsite
To an ecommerce shop, customer interaction is the key to prove how visitors are communicating with websites. Some are always energetic to talk, perform whatever they want but someone not. Hence, giving them points on each profitable action to trigger them boldly now pushes more encouragement on visitors to become real customers. This Magento 2 Reward Points extension rewards customers by points in the following cases:
- On product purchase: Grant customers a number of points to lift up their shopping blood.
- Cart Quantity: Never underestimate the power of bulk quantity purchase! You can give points to increase the number of orders.
- Registration: Of pass by visitors, give them some points to turn them into your customers and let them discover your appealing product catalog.
- First Order: Grant generously after the first order is completed is an exciting way to stimulate next time purchase to happen sooner.
- Review Submission: Points let you get reviews from your customers more easily.
- Newsletter Subscription: Give points for each subscription to have a list of customers for your marketing campaigns.
- Birthday: Put more caring to customers in terms of individuals to enhance your brand awareness and your image in customer's minds. A customer is a friend!
Besides, there are a lot of actions helping customers to get point earning based on the store owner's decisions.
Encourage customers to spend points on buying products
Look back at the reason why you run a loyalty program, not only give visitors points to increase customer interaction but also encourage them to use these points for purchase in the shopping cart and checkout page. This benefits 2 sides of both business and customers: the more customers place orders, the more points they get and the more money store owners earn, for example. Customers redeem points for discounts on ordered items, the business gets more sales from the higher quantity of sold products.
Urge customers to use up their points for product and service purchases
Furthermore, limiting the valid period of time to redeem reward points is an essential strategy which shouldn't be missed during the loyalty program operation process. You don't let customer's points free without turning into sales. Magento 2 Reward Points extension stays here to help you give them a deadline to use reward points (Expiry period)! You can attract them to come back to your stores and continue to buy products.
In short, the key here is you mustn't LOSE any potential customers and any money!
Keep money stay on the store by refunding customers by points
Like Store Credit, Magento 2 Rewards Points are born to add more options for business to refund customers in a smart way. Instead of returning money back to buyers, store owners now can return them with points for later purchases. This makes customers stay with your business and keeps money flow inside your store without losing anything. Customers are encouraged to come back to the site to use refunded points, increasing the possibility of other product purchases.
Allow customers to track reward points info in one place
Receive notification emails about reward points updates/balances/expiration
Customers are always in the control of reward points via timely emails whenever they make any actions to earn points or use points to purchase products. Also, in case the points are about to expire, they are notified about the remaining number of points and expiry date so that points can be timely spent.
It's time to explore how to build your own reward point program!
- Establish a complete reward program with flexible earning and spending rules
- Select websites and customer groups to apply earning and spending rules
- Assign points customers can earn to each product
- Manage all transactions in one place on the backend
- Import and export transactions
- Import and export reward points to products
- Set up the maximum number of points to earn per order and review
- Set up the maximum number of points to spend on orders
- Refund customers by points
- Specify expiry days to use reward points
- Allow customers to earn points from tax and shipping fees
- Allow customers to spend points for tax and shipping fees
- Let buyers select the number of points to redeem via a slider
- Upload an icon to symbolize for reward points
- Display point balance in the header of the website
- Show message of earning points in various positions: account page, subscription block, cart & summary blocks, review tab on the product page, product page, and catalog page.
- Send customers emails to notify about earned points and spent points
- Send customers emails to warning about the expiry points soon