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What is a customer loyalty program for an online business?
To effectively build and maintain a strong relationship with your customers, a well-designed and structured customer loyalty program is an indispensable tool in any form of business or product.
Especially with online businesses, where most purchases or customer service activities are performed in the absence of physical interaction, a decent loyalty program is even more crucial in order to automatically reward customers and nurture the relationship.The Shopify Loyalty apps are the game changers that allow online merchants to provide the best service to their customers via small widgets or simple landing pages on their virtual stores.
Why do we need a loyalty program? Let’s consult some of the most obvious advantages of a good reward system!
Benefits of loyalty programs
1. Increased customer retention
The success of a business strongly depends on the number of regular customers rather than on new customers acquired. This idea is also the purpose of most loyalty programs run by online businesses: to maximize the customer retention rate.
By offering generous perks for customers’ purchases via loyalty programs, businesses will be able to turn their one-time buyers into frequent customers, therefore building a bigger customer base. Taking care of loyal customers is a lucrative activity as two-thirds of consumers adjust their spending habits to benefit from loyalty programs
Check out the top 5 loyalty apps on Shopify to help you build and nurture your customers’ relationships.
2. Improved customer purchasing frequency
Not only do loyalty programs with special rewards motivate repeated purchases, but also do they increase the customer commitment to your brand, thereby increasing purchasing frequency. In order to encourage a higher rate of frequent sales, your rewards should be appealing and easy to achieve gradually.
Try balancing the required purchasing amount and the rewarded value until you find an equilibrium point where both your profits and customers’ benefits are guaranteed. Then, there’s no reason to stop customers from frequently shopping in your stores.
3. Effective customer acquisition
More than a customer retention builder, loyalty programs can even excel in getting more customers for your business. It’s much easier than you think! Try offering your customers monetary rewards or special perks for just signing up for your online stores.
An upfront reward for just becoming a loyalty program member can triple the chance of customers signing up for your store, therefore you are halfway to building a strong customer relationship.Rewarding for signing up an account is a basic feature in Shopify loyalty apps like BON Loyalty Rewards Referrals.
4. Boost customers’ lifetime value
CLA is a term that refers to a customer’s gross spending in your business over an entire period of the relationship. In real business, it is much more challenging to earn new customers than take care of the existing ones. Additionally, the existing customers are 50% more likely to purchase from you compared to the ones who never bought from you before.
The conclusion is that to thrive in the market in the long term, online businesses are better off trying to raise the existing customers’ value for greater CLA. The loyalty program app is definitely a helpful assistant to help merchants maximize customers’ lifetime value.
It’s not everything!
The benefits of loyalty programs are endless. With the assistance of Shopify loyalty apps, it has never been simpler to design a rewards program and tailor it to your own preferences. Such applications like BON Loyalty Rewards and Referrals are so highly customizable that you can set up rewarding rules, targeted products, and the special bonus or decide how the loyalty program appears on your online store.
