In the busy world we live in now, buyers want a smooth experience with your brand everywhere they go. Omni-channel loyalty best practices can help you deliver that. In this post, we’ll share 10 customer loyalty strategies to help you create effective loyalty programs.

Understanding Omni-channel loyalty programs 

Before going into omni-channel loyalty program tips, we need to understand the most basic concepts of omni-channel.

What is an omni-channel loyalty program?

You can think of a multichannel loyalty program as a reward system that works across all of a brand’s platforms. When people shop in-store, online, or on their phones, they get points or benefits. This helps companies give each customer a uniform and personalized experience.

The benefits of an omni-channel loyalty programs

Omni-channel loyalty programs boost your business. Here’s how:

• Personalized experiences to each customer’s preferences by using loyalty cards and other tools.
• Automatic card linkage and customized alerts boost customer engagement. We make buying easy and fun. 
• Higher retention rates by offering gamification, contests, and exclusive rewards. It can keep customers coming back for more.

We have an article that analyzes more clearly the benefits of Omni-Channel Loyalty vs. Traditional Loyalty Programs.

10 omnichannel loyalty program best practices for e-commerce

You can make a successful digital loyalty program for your small business with these 10 tips. They will also help you with the application process.

1. Align with business objectives

The first omni-channel loyalty best practice is to reach your overall business goals so that you can get the most out of it and see long-term growth.

To do this, it is essential to determine your main company goals prior to implementing or redesigning a loyalty program. Do you want to: 

• Increase customer lifetime value (CLTV)?
• Boost sales and revenue?
• Enhance brand loyalty and advocacy?
• Drive customer acquisition?

Once you’ve defined your goals, you can tailor your loyalty program accordingly.

For instance, if your goal is to raise CLTV, you should start a tiered reward program that gives special benefits to your most valuable customers. A tiered loyalty program encourages customers to spend more and unlock higher tier, as well as offer exclusive rewards based on tiers. You should offer personalized incentives like early access to bargains, first looks at new items, or tailored birthday presents.

Meanwhile, enhancing brand loyalty and advocacy is your business goal. Let’s create a strong sense of community among your loyal customers. We recommend hosting exclusive events, running exciting social media contests, or incentivizing referrals. Take inspiration from the successful Beauty Insider Community at Sephora. Through tier-based rewards, personalized experiences, and an active online community, they have built a loyal customer base.

You can refer to the article guide to building a successful loyalty program community.

2. Personalize customer experiences

Epsilon study from 2018 says that 80% of people will buy more when brands offer unique encounters. That also means that personalization is a great way to build strong ties with customers across all channels.

Here are some personalization strategies we recommend for you:

• Tailored recommendations just like Sephora. You can analyze customers’ buying history and preferences to suggest relevant products.

Targeted promotions by offering exclusive perks and rewards. Such as early access to sales or birthday gifts to enhance the value of your loyalty program.

• Real-time interactions by leveraging technology to deliver timely and relevant offers. For example, there are omni-channel loyalty programs that can send customers an email or text message with a deal if they leave something in their online shopping cart.

• Omnichannel consistency across all channels, like Starbucks. They allow customers to start a buy online and finish it in-store, or vice versa.

3. Ensure seamless integration across channels

We have a post that shows you how to set up a Shopify points reward system that works well. But in this post, we will dive into an example of how to integrate an online and offline loyalty program in the image below:

We can see:

Unified customer journey:

To begin, you will need a central place to store all your customer info. Keep a single profile for each customer that holds all the essential details, like their buy history, preferences, and loyalty points.

Make sure that all channels share real-time info so that you always have the same picture of the customer.

Consistent loyalty program rules:

We recommend you offer consistent rewards and benefits, whether customers are shopping online, in-store, or through a mobile app. Clearly communicate the reward rules and other terms and conditions of the loyalty program across all channels.

This encourages customers to engage with the brand across multiple channels. It fosters a seamless experience.

Omnichannel loyalty card:

Omni-channel loyalty best practices will need you to provide both digital and physical loyalty cards to cater to different customer preferences.

However, you need to ensure that loyalty points and rewards are updated in real-time across all channels.

Seamless transitions:

It would be best if you also allowed customers to buy online and pick up in-store, or vice versa.

For instance, a customer might scan an in-store product integration and then receive relevant content or offers on their mobile app.

Real-time interactions:

The picture above shows trades that happen in real time, such as push notifications for deals or custom ideas. The customer will have a better time and be more likely to get involved right away. 

4. Leverage data analytics

By knowing how your customers act and what they like, you can find problems and ways to make their experience better. The customer will be happier and less likely to leave because of this.

Customer behavior and preferences can be analyzed using data analytics. To gain valuable insights, you can leverage various data sources:

First-party data:

• CRM systems: Tap into customer interactions, buy history, and demographics.
• Point-of-sale (POS) data in-store purchases to understand product preferences and spending habits.
• E-commerce data offers features to track website traffic, product views, and cart abandonment rates.
• Mobile app data to track user behavior, preferences, and location data.

Third-party data:

• Market research industry insights from firms like Nielsen and Forrester.
• Social media analytics data to gauge sentiment and engagement.
• Web analytics like Google Analytics to track website traffic and user behavior.

By putting together data from these different sources, you can make smart choices about how to improve your omni-channel loyalty best practices.

5. Offer valuable and relevant rewards

Customers are most likely to join a loyalty program if they can get discount codes as a prize. By giving them valuable perks, you’ll get them to interact with your business in all of its forms.

We will recommend some types of rewards that resonate with customers:

Product-based rewards:

• Discounts on future purchases, either a percentage off or an amount off discount.
• Free products or samples, especially when they reach a certain loyalty tier.

Experiential rewards:

• Exclusive events invite loyal customers, such as product launches, workshops, or meet-and-greets with brand ambassadors.
• Early access to new products, sales, or limited-edition items.
• Personalized experiences, such as one-on-one consultations or custom product recommendations.

Status-based rewards:

• Create a tiered loyalty program with different levels of rewards and benefits. Higher tiers can offer exclusive perks, such as priority customer service or personalized concierge services.
• Treat top-tier members like VIPs, such as expedited shipping, complimentary gifts, or invitations to exclusive events.

If you want your rewards program to work as well as possible, you need to make sure the benefits are related to your customers’ wants and needs.

6. Seamless customer experience

A user interface, or UI, connects you to your technology. The way your web store looks and works is what lets you connect with it. Creating a smooth and easy-to-use experience for your loyalty program, whether on your website or on the mobile app, is more than just adding buttons and options.

Designing a good UI involves careful consideration of how people use technology. It should be easy to navigate, accessible to everyone, and visually appealing.

To make your loyalty program as user-friendly as possible, consider these tips:

• Automatically filling in information like email addresses and phone numbers.
• Multiple redemption channel options, such as online, in-store, or through a mobile app.
• Instant gratification allows customers to redeem rewards immediately, without any delays or complex procedures.
• One-click sign-up to let customers sign up quickly and easily using their social media accounts or email addresses.

By streamlining the process, you can make it easier for customers to join your loyalty program and start reaping the rewards.

7. Communicate effectively with customers

Effective customer communication is key to building loyalty. Here are some essential strategies to consider:

• Consistency across channels by delivering consistent messages and information across all touchpoints (email, social media, in-app notifications, etc.).
• Personalization is achieved by sending personalized emails based on customer preferences and loyalty tiers. Also, targeted notifications to deliver timely and relevant offers. Such as birthday discounts or exclusive offers.
• Respond promptly to customer inquiries and feedback. We recommend using automated email replies during off-hours to keep customers informed.
• Transparency by being clear, honest, and upfront in all your communications.

By following these rules, you can build strong ties with your customers and get them to stick with you. 

8. Train staff thoroughly

A great loyalty program needs a great team. Your staff is the key to making it work. By training them well, you’ll ensure they can promote and manage the program effectively across all channels.

Here’s what to focus on:

• Teach the basics to make sure your team knows the ins and outs of the program, from how to sign up new members to helping them redeem rewards.
• Equip your staff to handle customer questions and concerns with patience and expertise.
• Train them on how to use the tools and technology to manage the program efficiently.

9. Monitor performance and solicit feedback

A study by Salesforce found that 57% of customers have stopped buying from a business because they had a better experience with a rival. This feedback is like gold. It gives us the information we need to improve our products and services and fix problems before they make customers less loyal.

It’s possible to get both numeric and personal feedback with survey tools like SurveyMonkey or Google Forms. 

Also, social media integration tools can be utilized to monitor brand mentions and customer sentiment.

10. Comply with data privacy regulations

It’s more important than ever to keep your customers’ personal information safe in this digital world. Data protection rules, such as GDPR and CCPA, help build trust and make sure that your business acts honestly.

Customers will know that you value their trust if you put data protection first. This can help build better connections with customers, make them more loyal, and improve the brand’s image.

Frequently Asked Questions (FAQs)

How can we measure the ROI of an omnichannel loyalty program?

Loyalty program metrics to track include customer retention rates, purchase frequency, average order value, and customer lifetime value.

What are the initial costs of implementing an omni-channel loyalty program?

Based on how hard the program is to understand and the technology chosen, the start-up costs may be different. Some examples are licensing fees for software, gear costs, integration costs, and marketing costs.

Conclusion

If you follow our 10 omni-channel loyalty best practices, you can make a program that will involve customers and increase sales. If you run a Shopify store and find a loyalty program software solution, we recommend BON Loyalty. This powerful app helps you create seamless loyalty programs that reward customers across all channels.