Nowadays, the perfect measure of success in e-commerce market is how many loyal customers who frequently place orders you have instead of those who create single purchase at your store. So how to increase the interaction between customers and store owners and establish the great consumption cycle on your website?
Magento 2 Reward Points extension will allow earning unlimited reward points as well as use them flexibly as payment methods if need. The customers will get points by signing up, buying any product, or sharing via social channels, etc. By this way, it is not complicated to build the loyal customer network supplying the number of leads for the merchants.
The following are the helpful features which should be contained in the effect Loyalty Program. Check it out!
With any types of sales or types of business, you must originate a customer loyalty program because of its benefits:
A program makes attractive to customers when providing considerable benefits. Potential customers can perceive your business readily if you have an effective loyalty program. Beside, quality of customers is raise.
According to Marketing Metrics: the probability of selling to an existing customer is 60 – 70% while the probability of selling to a new prospect is 5-20%. A customer loyalty program is designed to encourage your customers in returning more times to do actions (purchase, sharing, refer friends, etc) which promote your business most effectively.
Customer want to be recognized, offered better value and kept in the knowledge of best offerings. Your program immediately use human attributes to build strong connections. Having steady relationships is a widely supported your Brand awareness through ‘Word of Mouth’. People will have great trust in your business.
According to Lee Resources 2010, attracting a new customer that costs five times as much as keeping an existing one. This great program can help you do better marketing by increasing brand awareness, website traffic, etc with low cost.
It is time for eCommerce stores to need a loyalty program for own. First, find 3 important keys of the loyalty program, because they will affect on how to create right program.
The bonus system is the first thing customers are curious about your loyalty program. A program is successful when its bonus system is simple enough to understand, worthy enough for customers to agree to join in.
The number of people who know as well as go together with your program have a great influence on your success.
Be active to make your loyalty program more friendly when any person approaches to learn it. Your creation can determine your customer’s emotion about the loyalty program. Basing on 3 major points, ready for 3 useful tips to develop your loyalty program effectively.
It is necessary to update your special rewards frequently and keep the loyalty program fresh instead of activating the same program boringly in a long time. For example, you will give a number of points for those who reach a milestone of sales or referrals to your site in this month while in next month, you will give double points if customers promote your business via popular social networks as Facebook, Twitter or LinkedIn. By this way, the loyalty program is more attracted to your targeted audience.
If you are running a promotion program, you really want the more people know, the more profits you can earn. If you have a reward program, why don’t you focus on that? Remember that the more people you call, the more repeat customers you will get, the more effectiveness your loyalty program can gain. Seriously, you need to promote your program via email newsletter or social channels, simultaneously, generate a good explainer page for the program, which shows simply that how the loyalty program works, and how members will earn and spend points. All of them need to be visible to your shoppers. In summary, the explainer page is the must-have point to own the successful loyalty program.
Like some big businesses, Magento Reward Points system is become more exciting by making it fun as a racing game. “Everyone is competitive at heart,” says Web Sun, thus, you can let them race together whether who is the winner with the highest points. For a particular example, Mr. Green Bubble, another tea and tapioca shop in Oakland, Calif., placed a small whiteboard near the cash register that acts as a leaderboard for keeping track of the customers who’ve earned the most points. This is the great idea for your loyalty program in the feature.
You can satisfy your customer’s needs by understanding elements driving them. Furthermore, understanding your business to make a wise decision about twin goals of customer loyalty program and long-term strategy of business. First of all, every company should be fully evaluated the product. Some question as suggestions:
Next, studying your customer is the important step to succeed. Your customer’s value can be viewed as not only the value they receive from some attributes of product but also emotional payoff and achievement of a goal or desire. Analyzing customers’ data to determine purchasers who are the most valuable to their business:
The way you could have improve business relationship with them, etc.
Assess customers’ loyal level through analyzing database like the amount of money they spend for stores, the number of prospects they refer to you, the length of time they’ve been with you, etc. Example below is about Food4U identified its customers based on data and separate them in some groups:
You are recommended some common analytical techniques for using in your loyalty program. They also are most highly capable.
Additionally, your loyalty customer program can deselect unprofitable customers. Losing a bad customer can gain more profitable than to gaining a new one.
Set your goals, then assign a real number to them. With each of goals, you should focus on the choice of target groups. Mainly, the last purpose is to build a relationship with customers that turn them into long-term loyal customer. Goals can be divided into core, primary and secondary loyalty program goals
Refer to below example, if your customers purchase on average 3 times per year, set a goal of 3.3 times a year, this will increase your sales by 10% without few additional expenses.
The cost of your program will be different from case to case, depended on the industry, the customer structure, the competitive situation, the setup of the program, etc.
On average you can estimate the cost per member per year in the range of US$20-60 for B2C loyalty programs and US$100-300 for B2B loyalty programs (Barlow, 1992; Wiencke and Tribaian, 1996)
There are many industries or customer-types in the world, which have different motivations for choosing to remain loyal to a business. Benefits aren’t benefits if your customers don’t see them by your way and they must meet the expectations of the target groups. For instance, if you’re a food online store, you might consider creating program whereby your customers have many points for each food, they can be got free shipping and free food in their birthday or big order, etc. Using your analytics to make your customers be satisfied. Some features that will set your program special:
Research technology to choose one which allows you to extend your reach perfectly, take some times to explore the full range technology and app. Almost Magento 2 retailer choose Reward point extensionwhich easy to use and gain a good result.
Set up rules and guidelines for your customer loyalty program
Rules should focus on customer’s benefit over company sales and be matched with your goals. You can use your analytics before to choose right target customer groups for each rule in campaign. For example, you can create a promotional campaign that: ‘Get 100 points if subtotal is $500’ during 2 weeks from 1st May to 15th May 2015.
Discount based on customer behaviors
Deliver discounts based on analyzing customer behaviors which can be purchasing habits or buying behavior. Focus on some ways that relevant to your goals. Example you can reward 5 points instead of 3 points to encourage customer to refer friends or use social actions. Behaviors can be registering on website, Facebook like or share, signing up newsletter, inviting friends via email, posting a new product review, sharing a referral link on a forum or blog, sharing you store with friends via social network (facebook, twitter), etc Example, if you are focusing on optimizing your site on Google (SEO, SEM), you should encourage customer to do action which is +1’s a page with Google+ by reward 10 points to this customer’s action.
In many case, creating opportunities to communicate that is one of the main goals of customer loyalty program because it is the key to any relationship. Be sure that your customer is easy for sharing their thoughts about your loyalty program. You can allow them to leave feedback by having a link or support email, another way that allow customers to share their feedback in a section.
This step has responsibility to make sure that your process works smoothly, therefore you can achieve the maximum profitability. You will be able to adapt your program by tracking its ROI which compare the investment gain to investment cost to shows the benefits from your investment. Nurturing the communication between you and your customers by adjusting some rules of program or making special something for your customers.