Why do you need to build a loyalty program for your Magento store?

Over half of American customers join new loyalty rewards programs each year, according to Colloquy. Additionally, about half agree that they spend more after joining than they did before, according to another survey from Bond Brand Loyalty. This is the evidence proving that customers are openly seeking loyalty rewards programs AND are willing to spend more once they are attended. In this article, we’ll show you how to create a loyalty rewards program that increases sales and repeat visits for your Magento store. And we will do it with a Magento extension. And it is Magento 2 Reward Points extension - our latest product.

You may asking “Why the hell should I have a loyalty program in my shop?” Well, if you are asking, there are several reasons for that. Implementing a loyalty program may require resources you have allocated elsewhere in your marketing, but in the long run, it can have several benefits, and here are just some of them.

the need to build loyalty program

1. It strengthens the relationship with existing customers

Many people carry in their head the thought that loyal program must be expensive and elaborate. But what is the truth? Chasing after new customers and compete with other companies instead of keeping existing ones can be crazily expensive. According to Forbes, keeping an existing customer is seven times less expensive than acquiring a new one. That is a huge save if you want to cut down budget as much as you can.

Loyal programs quite simply enhance customer loyalty, and everyone want to save money. That’s why the whole spend-a-dollar, earn-a-point tactic works amazing, especially when customers see the achievable reward after a reasonable amount of like (aka they don’t have to collect for 12 years to get one $5 thing free). Loyalty extension on Magento with reward points can be much more than that and believe me, read on, it will impress you. Technology married to traditional shopping. A huge event ...

2. It helps increase sales

Believe it or not, after bought this extension, some of my customer report with 50% increase in conversion rate. It also works wonderful as a role of sales motivation. If you’re giving your reoccurring customers incentives that are in tune with what they want, you’ll be drawing them in and encouraging them to keep coming back and of course, spending money.

One research showed that only 10-12% of your loyal customer contribute 55-70% to total sales. This means that over half of your sales are coming from a small percentage of your customers, so nurturing these relationships is unquestionably important. Reward points extension can help do this by increasing that number of repeat customers visit your online store and also increasing the number of repeat purchases.

3. It attracts new customers

Tell me how much money you spend to acquire a new customer. Although traditional marketing tactics aren’t obsolete, it’s important to think about what would happen if you took even a small portion of what you spend on the traditional media and put it towards this Magento exntension. Just a small amount of what you spend to get new customers, you are able to keep hundred of existing customers.

62% of consumers don’t believe that brands are doing enough to reward them for their loyalty, which increases the chances of these consumers to change their customers activities. Give customers a reason to stay and make them feel like you care! New customers will look at how you treat with the customers that you already have. And with that, we’ll all be happy, right?

Loyalty programs can be one of your most beneficial marketing tactics and will not only help increase sale, but also help develop a brand image for yourself that will feel more like a community and less like a corporation who only goes after money.

Our Magento 2 Reward Points module provides you a complete business kit to establish a strong, reliable and effective affiliate program. You can do various things with the built-in features of our points extension. Choose where to apply reward, how to applying reward through reward points rules, cart rules. Rules set (earning rules and spending rules) can be very simple yet effective for targeting different customer segments.

Customers can earn reward points after completing pre-determined task (quite like quests in video games). For example, they can be refunded by points, engage on social media through social sharing, balance updates, use a specific payment method. This will definitely enhance your customers experiences, encourage them to earn and spend customer points. This marketplace addons also helps you manage your loyalty program with point transactions tab. You can see transaction history, perform transaction management and import/export points via CSV file. On top of that, you can set an expiration date for points to encourage customer earning points even more.

This reward points system is everything you need for building a top tier program to attract loyal customers.