3 Ways to Increase Customer Loyalty

Each retailer would certainly like to retain customers and keep them happy with his brand as long as possible.

Today marketers have a chance to use multiple ways and approaches to implement this willing into life, but among those innovative and sometimes extraordinary methods we should not forget about traditional loyalty and reward programs.

Loyalty

These programs are usually closer to customers as they mostly offer discounts and other tangible benefits useful for all customer categories.

Loyalty Programs

Loyalty programs are effective and profitable for most merchants.

Retailers with a loyalty program, on average, are 88% more profitable than competitors who do not.” Source: Deloitte Research study: “Serving the Networked Customer.”

Today most retailers combine the pure idea of reward points with the multi-level membership granting customers special benefits, including better prices and discounts, exclusive offers and other special terms.

Searching for successful examples of effective loyalty programs used by some outstanding companies we stumbled upon a fashionable makeup boutique established by Petra Strand – Pixi by Petra.

Its Reward Policy is simple enough to be taken and appreciated at seconds and pretty beneficial to be involved to. It has tree levels depending on the number of customer orders, which provide 2, 3, or 5 points (pixi dust) for each spent $ accordingly. So it’s just simple and obviously beneficial. Great!

They also engage customers thru special offers and valuable tips and tricks.

Points & Rewards

The Points and Rewards Magento extensionHowever, being an obviously advantageous marketing tactic loyalty programs are not so easy for implementing on Magneto. In this case, you can take advantage of Magento functionality extensions and in particular use our Points and Rewards Magento module.

This extension allows Magento merchants to create sophisticated reward programs and show their gratitude for registrations, newsletter signups, product reviews, poll participations, testimonials, and purchases, of course.

The module has a powerful notification system via emails and provides advanced control over earned and charged points for both customers and merchants.

Referral Programs

Furthermore, effective loyalty programs create great preconditions for even more abundant sales, as loyal customers gladly take on the role of brand ambassadors and leverage the word of mouth effect.

Reward program members are 70% more likely to be WOM champions (defined as those who are “actively recommending” a product, service or brand) than the general population. Source: Colloquy.

So, referral programs are especially effective in those stores, which have a lot of loyal customers inspired by the internal loyalty program.

An excellent example of a referral program is demonstrated by one of the fastest growing US-based companies, diamonds and fine jewelry seller – Allures.

Equally beneficial for customers and their friends their program allows savings up to $200 on each order:

Refer a Friend to Allurez and both you and your friend will save:

  • $20 on an order of $200 or more
  • $50 on an order of $500 or more
  • $100 on an order of $1000 or more
  • $200 on an order of $2000 or more

Again simple and again beneficial, this referral program is the element and contributor to the general success of the brand.

Refer a Friend

The Refer a Friend Magento extensionThis type of sales motivation can be easily launched on Magento stores using the Refer a Friend extension. With this module you can allow customers and their friends to earn fixed or % discounts on new orders with extremely flexible rules, track their earnings, broadcast referral links, personalize their referral message to boost conversions, etc.

Magento admins are able to add additional discounts, limit discounts usage, prioritize rules, set up special conditions for individual referrals, etc.

Exclusive Rewards

Sometimes promotions do not mention any points, but still remain to be reward programs, as is true for the Adore Me reward program, which rewards its VIP members with free lingerie set for each 5 ones purchased before.

This promotion exploits the power of free items, which usually produce a magical effect on customers. Free items surprisingly discovered in shopping carts are the greatest loyalty drivers and should be certainly used more often.

The principle of a free item can be extended to item discounts, advantageous shipping terms, and other perks.

Add Free Products to Cart

The Add Free Product to Cart extension for MagentoThe Add Free Products to Cart extension is specially designed for Magento stores and improves the native Magento functionality with the opportunity to automatically add products to cart, either free or discounted.

The module exploits the rules able to trigger automated cart additives under numerous and versatile conditions, including order subtotals, items quantity or weight, shipping address peculiarities, payment and shipping methods, and above condition combinations.

Conclusion

Loyalty promotions are most advantageous marketing activities of any online store. Of course, we highlighted only several ways to improve it, but we believe that reward and referral programs are the must-have functionality for any Magento store.

Apart from their actual formats, they set up most basic prerequisites for brand devotion and successful interactions between customers and sellers.

Magento store owners are able to leverage their benefits and use them simultaneously for the better effect and higher sales.

Please, visit the product pages of the mentioned above extensions in our store and get more information about their functionality.

2 Comments

Coding Basics

about 2 years ago

Great tips! We'll be looking to integrate some of them in our client's Magento sites & Ecommerce strategy soon. I'm especially interested in how the referral program will pan out for smaller Ecommerce players who are just starting out. It seems that getting affiliates to trust you and to promote you is a lot harder when you are a "small fish", instead one of the big brands. What are your thoughts on this?

Reply

Dmitry Shatkov

about 2 years ago

You are certainly right. Starting brands have just a low brand power and few POM opportunities. Still, really profitable offers will be noticed sooner or later and sooner or later will be widely spread.

Reply

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