Our Community Manager, Chris Craigman, co-hosted a webinar with Elaine Sloboda from Smile.io to discuss the benefits of loyalty programs, and what to keep in mind when planning one.
We’re huge fans of loyalty programs, as they’re a great way to increase retention, boost customer lifetime value, and can be customized for many different types of business. For example, in our loyalty program for Gongshow Gear we were able to help them increase average order size by 8.9%, increase new accounts by 77%, and drive conversion rates up by 24%.
Interested in leveraging a loyalty program for your own business? Check out these 5 important takeaways from the webinar:
Focus on retention marketing instead of acquisition marketing.
Determine how much customers normally spend.
Use design elements to strategically promote the loyalty program.
Integrate program throughout the entire shopping experience.
Create the program with specific goals in mind.
By focusing on retention over acquisition, you’ll create customer experiences that make people want to stay engaged, thereby increasing the lifetime value of each customer. Not only that, but your customers will be more likely to refer their own friends to your brand – thereby increasing your customer acquisition as a bonus.
When creating your loyalty program, make sure to consider which order values are most common among your customers. By knowing how much customers normally spend, you will be able to give bonus points for orders that are slightly higher than those average orders.
A loyalty program must be displayed clearly on your website. Customers should easily understand how many points they will receive for each product, and how they can redeem those points. Gongshow used design elements to display their points slider, so customers can clearly see how many points they have and when they can redeem.
Each loyalty program should follow the customer from the start of their shopping journey to the very end. By integrating the loyalty program throughout the entire shopping experience the customer is more aware of how the program works, and is more likely to follow through. One way is to show customers how many points they could earn on the product page, and then be reminded of those points at checkout.
A loyalty program must be created with specific goals in mind, e.g. to increase average order value. Before deciding which actions to incentivize it is important to determine what goals are most valuable to your business.
Interested in learning more? Watch the full webinar here and learn how leveraging a loyalty program can have amazing results for your business!