Why You Need a Loyalty Program

Establishing a reward points program is one of the easiest ways to forge and secure lifelong relationships with customers. Thousands of merchants rely on a reward points system to lure new shoppers and incite existing customers to return to their stores.

In today’s competitive market, shoppers have more options than ever before. Consequently, more and more merchants are discovering that low prices aren’t enough to secure a customer’s interest. Shoppers are on the hunt for stores that will reward them for their continued loyalty, whether in the form of an exclusive discount/wholesale club or reward points, which for many shoppers, are just as good or synonymous as free money. Failing to offer a reward points incentive can lead to an untold number of lost sales, regardless of product pricing, quality or reputation.

How does it Work

A reward points program offers a specified number of points for every dollar spent at a merchant’s store (i.e., one point for every dollar spent). After accruing a number of points, a shopper can choose to redeem their points on an eligible product of their choosing.

As the store owner, you’ll be able to specify not only how many points are awarded for every product and how much each product cost to redeem, but whether certain products are ineligible for points and/or redemption. You can also choose to offer bonus points for high-value products, extra points for specially selected products as part of a marketing campaign, or even offer a set number of free points to incite inactive customers to return to your store.

Conclusion

 A reward points program is one of the easiest ways to attract and appeal to today’s demanding shoppers. Customers are looking for brands that not only value and acknowledge their opinions and needs, but their invaluable loyalty, too. Implementing a loyalty program will show shoppers that your brand is dedicated first and foremost to their satisfaction, and can lead to an untold number of sales for your online store.

Best of all, as a 3dcart merchant, you have access to a built-in Reward Points Program, which you can incorporate into your marketing effort at no additional cost.

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As the eCommerce landscape continues to develop and evolve, countless marketing tools are emerging to help merchants remain competitive. Yet despite the influx of available apps and tools, few marketing tactics have proven as effective or powerful as a loyalty program.

Implementing a loyalty program for your online store can dramatically increase sales with the following benefits.

Stand Out from Your Competitors

 The eCommerce market is as competitive as it gets, and as more stores emerge on a daily basis, customers are finding themselves inundated with more options than they can handle. A loyalty/reward points program will help your business stand head and shoulders above the rest, and will provide customers with an extra incentive to choose your store over your competitors. Lacking this feature, on the other hand, may be the deciding factor that results in countless abandoned carts.

 Point Collectors Spend More Money

 Research shows that not only are 75% of shoppers a member of up to 10 loyalty programs, but they also spend up to 13% more than non-loyalty members. Tapping into this customer demand can yield major sales for your online store, especially if you’re able to offer a competitive rewards.

An important statistic to keep in mind is that 62% of consumers feel the brands they’re most loyal to have failed to fairly reward them. If you’re aiming for shoppers to spend more at your online store, you need to take proper steps to ensure they’re not only enticed, but that they’re properly rewarded and showered with appreciation.

 Loyalty Programs Encourage Repeat Traffic

 Your existing customers are the heart and backbone of your eCommerce store. Not only are they cheaper to maintain than acquiring new customers, but they also generate the majority of your store’s sales.

A loyalty program will encourage customers to return to your store not only to acquire more points, but to also spend those that they’ve acquired. If you offer a generous reward points program, customers will feel compelled to continually return to your store in order to maximize on the benefits of your rewards program.

 Boost Your Reputation

 A business’s reputation is fluid and ever-evolving, with small and large events, products and news playing a critical role in any customer’s perception. Implementing a loyalty program can instill a number of positive emotions in customers, such as trust, loyalty and confidence. Happy customers are customers that are more likely to spread positive reviews and recommendations for your products, and will inadvertently become your personal brand advocates.

Loyalty Programs Promote Positive Word-of-Mouth Advertising

 Offering a competitive reward points program will encourage customers to share and recommend your brand with their family, friends and social network, and lead to an overall increase in your store’s profits. Customers trust and value business recommendations from friends and family more than any other source of information, including online reviews and recommendations from media and figures of authority. The more satisfied customers you’re able to acquire, the more free word-of-mouth advertising you’ll generate for your store.

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A loyalty program is a proven tactic for increasing the lifetime value of customers, driving sales, and reducing cart abandonment. But in order to capitalize on the numerous benefits provided by a loyalty program, you need to strategize a plan that yields tangible benefits for both their business and customers.

Before you launch your very own loyalty program, here are some important tips that can help you maximize your profits and chances of success.

Make the Program Simple

 Shoppers are attracted to simple loyalty programs that provide big rewards for simple, easy-to-complete tasks. Incorporating a complicated rewards program that’s difficult to understand or utilize can result in customer frustration, mistrust toward your brand, and a low sign-up rate that will ultimately lead to your program’s downfall.

Ideally, the benefits and perks of your program should be plainly evident, with simple, easy to follow rules. A quick overview of how your program works should entice and compel shoppers to sign up without delay – an action that’s near impossible if your customer is left stumped or aggravated by the complexity or vagueness of your program’s rules and benefits.

 Require Easy Signup

 More often than not, customers reading the details of your rewards program are looking to take immediate advantage of its perks. Requiring a complex, long signup form or approval process will discourage customers from signing up, and instead encourage them to further contemplate whether your program is worth the time and hassle. An email entry option, however, is an incredibly fast sign-up method that allows customers to sign up without a second thought.

 Provide Real Rewards

A loyalty program’s intent shouldn’t be geared toward offering perceived deals and rewards. Today’s shoppers are looking for brands than offer more than just low prices; they want to be rewarded for their continued loyalty and future purchases. Offering measly, cheap rewards or a limited selection of eligible products will lead to customers feeling cheated and neglected, and will consequently result in them taking their business elsewhere.

Thousands of programs exist to lure and entice customers. Take steps to ensure your loyalty program can match or beat your competitors.

 Communicate Regularly

Customers taking advantage of your loyalty program are likely members of a half-dozen+ other programs as well. To bring traffic to your online store, it’s important that you keep in touch with your loyalty members. Communicate with them via email campaigns, social media, your blog, or any other marketing channel of your preference to remind them of their accrued points, the advantages of your program, and other special promotions or events tied to their membership.

Market and Publicize

 Your loyalty program can be a major selling point for your store, but without smart and sufficient marketing, few shoppers will get a chance to learn of your program’s existence. Take to your social media accounts, send out newsblasts, create banners, PPC ads, or opt for other channels to market and publicize the many perks and advantages of your store’s loyalty program. Moreover, ensure your program is clearly visible on your website’s homepage – don’t make customers scour through your site to find the sign up form.

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