Ecommerce Loyalty Program

In this web age, millions of loyalty program memberships exist. It has been proved to be one of the best ways to keep hold of existing customers and earn new ones. Companies have been using this trick since 1980s. With the increase in time, it has been advancing and today, in this global selling world, it has become easier than ever to start an eCommerce loyalty program.


On creating a loyalty program, you can easily gain one or all of these benefits:

    • Keeping hold of maximum of the existing customers

    • Gaining new customers

    • Directing customers towards higher margin products

    • Increasing the sales of existing customers


STEP 1: Checking if eCommerce customer loyalty program will work for me

Before creating a loyalty program, you might want to know if your business needs it or if you should create it. Well, a loyalty program will create a huge positive impact on your business if:

    • You are selling something that people use on regular basis and they are going to come back to purchase it.

    • You have got competitors who are selling products. (You will get an incentive for customers which will differentiate you from your competitors)


STEP 2: Customer Segmentation

It is different for every consumer – Let the consumer segmentation begin!

The best loyalty program creators know that customers are divided into segments, as right rewards and services should be provided to the right people. The 80/20 rule gets applied here; 20 percent of consumers will bring you 80 percent of your total revenue. So, quickly take a look at your current client base and being with a quick consumer analysis.

  • There is one group of users who will cost more money to you, so there is no need to waste time on them.

  • Another group of users are the ones who buy infrequently from your store and they are cost conscious. Though they do not make you cost more money, they are not worth paying a lot of attention to.

  • Third category is the one that makes frequent purchases from you and they are less price-sensitive. They bring you the most revenue. So, all the attention has to be given to this category.

  • People in this group are frequent purchasers too and they are too realistic when it comes to pricing. However, there are few people in this category, so they do not bring you major revenue.


STEP 3: Picking components of your loyalty program – Choose your strategy

There are a lot of options; however, some of the most popular ones are:

    • ‘Buy x Get y free’ schemes

    • Flat discounts to all the customers

    • Personalized offers on the basis of their shopping habits

If you are planning to develop an eCommerce store that provides the best customer experience, you can speak to us. We provide the best solution for eCommerce development, wherein we focus the most on user experience and engagement.

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