Boosting Sales and Revenue After BFCM: How BON Loyalty Can Help

In the competitive landscape of e-commerce, driving sales during peak shopping events like Black Friday and Cyber Monday (BFCM) is crucial. However, research indicates that up to 80% of consumers who make a purchase during these events do not return to buy again in the following months. This phenomenon is primarily due to a lack of effective post-purchase engagement and retention strategies.

At BON, we understand the importance of turning one-time buyers into loyal customers. Studies show that loyal customers are worth up to 10 times as much as their first purchase, emphasizing the need for a strategic focus on customer retention. BON Loyalty provides a comprehensive suite of tools designed to enhance customer engagement, increase repeat purchases, and ultimately boost revenue. This document serves as a guide for merchants on how to utilize the features of BON Loyalty to transform the post-purchase experience and ensure sustained success beyond the holiday shopping season.

By implementing the strategies outlined here, you can harness the power of loyalty programs to retain customers and maximize their lifetime value. Research shows that retained customers have a 65% higher probability of making a repeat purchase compared to new customers. Let’s dive deeper into the customer journey and explore how BON Loyalty can play a pivotal role in your business’s growth.

Understanding the Customer Journey

The customer journey shows the steps customers take when interacting with your brand, from first hearing about it to making a purchase and beyond. Traditionally, this journey includes four main stages: awareness, consideration, conversion, and retention. Each stage is important for shaping how customers see your brand and whether they will come back to buy again.

1. Awareness: This is when potential customers learn about your brand through ads, social media, or word-of-mouth.
2. Consideration: Customers look into your products and compare them with competitors.
3. Conversion: This is the crucial moment when customers decide to make a purchase, often influenced by effective marketing and easy navigation.
4. Retention: After a purchase, the focus shifts to keeping customers coming back—a stage where many businesses struggle.

The main challenge is moving customers from the conversion stage to retention. This is especially important after busy shopping events like Black Friday and Cyber Monday (BFCM), where many new customers might only be motivated by discounts. These customers often have a lower lifetime value unless you actively engage them after their first purchase.

To address this, businesses should use a reverse marketing funnel, which prioritizes retaining and building loyalty with customers. This approach is important because it helps you keep the customers you’ve worked hard to attract. By using BON Loyalty’s features, you can connect with customers right after they make their first purchase, encourage them to shop again, and create a sense of community through loyalty rewards. Focusing on retention not only increases customer satisfaction but also boosts long-term sales, making it a key strategy for success.

Key Features of BON Loyalty

BON Loyalty is equipped with powerful features designed to enhance customer engagement and foster loyalty, ultimately contributing to increased sales and customer retention. Here are the key features and how they can help you:

Make use of exceptional offerings
BON Loyalty’s comprehensive points program allows merchants to implement exceptional offerings that significantly enhance customer retention. This feature enables businesses to create a variety of ways for customers to earn points, such as through percentage discounts, fixed amount discounts, and product-specific discounts.

The primary benefit of this program is that it provides customers with multiple avenues to accumulate rewards, making them more likely to return to your brand to take advantage of these enticing deals. For instance, customers might earn points by purchasing a specific product (a new collection the merchant just released) to earn more points.

Strategy: To maximize the effectiveness of this feature, merchants should implement a strategy that includes promoting these earning opportunities through targeted marketing campaigns. This can involve personalized emails that highlight available discounts and rewards. 

Additionally, offering customized points for milestones like birthdays or for repeat purchases creates a more personalized experience. This approach reinforces the feeling of value and engagement with the brand. By implementing these strategies, merchants can boost customer loyalty and encourage repeat business, ultimately driving overall revenue growth.

Post-Purchase Engagement 

Maintaining communication after a customer makes a purchase is vital. BON Loyalty enables merchants to automate post-purchase emails that inform customers of their points balance and available rewards. This immediate engagement keeps your brand top-of-mind and encourages repeat visits.

Strategy: To effectively engage customers post-purchase, implement the following strategies using BON Loyalty’s email feature:

1. Automated Thank-You Emails: Immediately after a customer makes a purchase, send a thank-you email that expresses appreciation. Include their earned loyalty points and any applicable rewards. For instance, “Thank you for your purchase! You have earned 100 loyalty points. Use them on your next order for a discount!”
2. Points Balance Updates: Regularly update customers on their points balance through automated emails. This keeps them informed and encourages them to return to your store to redeem their rewards. For example, “You currently have 250 points available! Don’t forget, you can use them on your next purchase for a special discount.”
3. Limited-Time Point Offers: Create urgency by promoting a limited-time offer where customers can earn double points for making a purchase during a specific time period. For example, “For the next 48 hours, earn 2x points on every purchase! Don’t miss out on this exclusive opportunity to boost your rewards!”

Read more: How to set up a limited-time points offer​

VIP Tiers and Exclusive Offers

BON Loyalty features a VIP tier system designed to cultivate long-term customer loyalty by rewarding members based on their spending levels. This tiered structure offers increasing benefits, encouraging customers to strive for higher tiers to unlock greater rewards and opportunities.

One of the key benefits of upgrading to a higher tier is the enhanced points earning potential associated with each purchase. For instance, customers in the Gold tier earn double points on every completed order, while those in the Diamond tier can earn an impressive 2.5 times the points. This means that customers can significantly increase their point accumulation with each purchase, making it more advantageous to reach and maintain higher tiers.

Additionally, achieving a higher tier unlocks entry rewards that provide reusable discounts. These discounts incentivize customers to spend more, as they can leverage their earned points for savings on future purchases. By clearly communicating these benefits, customers are more likely to see the value in striving for higher tiers within the loyalty program.

Strategy: To maximize engagement, use email marketing campaigns and website banners to highlight the exclusive advantages of each VIP tier. Emphasize the increased point earnings and reusable discounts available at higher tiers. For example, a promotional email could state, “Upgrade to the Diamond tier and enjoy 2.5x points on every order! Plus, unlock exclusive discounts that can be reused on future purchases.” This clear communication reinforces the value of the loyalty program and motivates customers to engage more deeply with your brand, driving both retention and revenue growth.

Here is a helpful guideline:
Here’s how to leverage VIP tiers effectively:

1. Structure Your VIP Tiers: Define clear criteria for each tier, such as spending thresholds or points earned. For example, customers could move from a basic tier to a VIP tier after spending $500 or accumulating 500 loyalty points.
2. Communicate the Benefits: Clearly communicate the advantages of being in a VIP tier. Use email marketing campaigns and website banners to highlight the exclusive discounts or special gifts available to VIP members.
3. Celebrate Milestones: Acknowledge when customers reach new VIP tiers with personalized emails. Celebrate their achievement with a special reward or exclusive offer, making them feel valued.
4. Exclusive Events and Promotions: Consider hosting exclusive events for VIP members. This could include sneak peeks of new products or loyalty member-only sales, providing unique experiences that enhance customer loyalty.
5. Gather Feedback: Regularly seek feedback from your VIP members to understand their preferences. This not only shows that you value their opinions but also allows you to refine your loyalty program to better meet their needs.

Maximizing Customer Lifetime Value

Customer Lifetime Value (CLV) reflects the total revenue a customer is expected to generate throughout their relationship with your business. Enhancing CLV is vital for sustaining growth and profitability. Here are strategies to maximize CLV using BON Loyalty:

1. Create Multiple Earning Rules: Offering diverse earning opportunities for loyalty points can engage customers at various interaction points. For instance, create rules that allow customers to earn points for actions like signing up for an account or writing product reviews.
2. Attractive Discounts and Promotions: Implement attractive discounts tied to loyalty points to incentivize repeat purchases. Consider limited-time promotions, such as double points during special events or holidays, to create urgency.
3. Referral Programs: A referral program can broaden your customer base while rewarding existing customers. Incentivize customers to refer friends or family, creating a win-win situation where new customers are introduced to your brand, and existing customers earn rewards.
4. Tiered Rewards System: A tiered rewards system encourages customers to increase their spending to unlock higher tiers and more attractive benefits. Clearly communicate the benefits of advancing to higher tiers to motivate customers.
5. Customer Engagement Initiatives: Regular engagement with customers is essential for enhancing CLV. Use BON Loyalty’s built-in email feature to send personalized communications, such as birthday rewards and reminders about unredeemed points.

By focusing on these strategies, you can effectively enhance Customer Lifetime Value and build a loyal customer base. BON Loyalty provides the tools necessary to implement these strategies, ensuring that your customers feel valued and motivated to continue shopping with your brand.

Conclusion

In today’s competitive e-commerce environment, building and maintaining customer loyalty is more important than ever. By utilizing BON Loyalty’s comprehensive suite of features, you can transform one-time buyers into repeat customers, maximizing their lifetime value and ensuring sustained sales growth.

From engaging post-purchase communications to creating attractive incentives and implementing a tiered loyalty system, BON Loyalty provides the tools you need to enhance customer engagement and retention. The addition of email campaigns and referral programs can further amplify your efforts, broadening your customer base and reinforcing brand loyalty.

We encourage you to explore the features of BON Loyalty and start implementing the strategies outlined in this document. Take the first step towards enhancing your customer relationships and boosting your sales today. If you have any questions or need assistance getting started, our support team is here to help you every step of the way.