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Let's Talk Loyalty Programmes

Do you know how to leverage more customers just by utilising loyalty programmes more effectively? If the answer is ‘no’, we’ve got you covered…

An eCommerce loyalty programme is the tool to use if you have the dream of engaging more with your existing customers, wanting them to buy in higher quantities, shop more often, or even just interact with your brand more frequently. The best programmes should be easy enough to follow, demonstrate a clear path to higher tiers and rewards, as well as offering a gratifying experience!

The world of eCommerce is generally renowned for high purchase frequency and equally high churn rates. Whilst there are some companies that believe customer loyalty is no longer, and use heavy discounts in an attempt to set themselves apart, this constant price war has conditioned customers to hunt for the best markdowns, making retention even harder to achieve.

of consumers will favour a brand if there is a loyalty program
of consumers spend more on brands to which they are loyal
Increasing customer retention by just 5% boosts profits by 25% to 95%

Loyalty programmes are great for creating dedicated communities around your brand, by helping you stand out from the crowd in the following ways:


  • A buying process designed to make online shopping feel seamless

  • Incentivised customer profiling, producing richer data that can be used for more personalised marketing

  • Experiential rewards and exclusive benefits, to increase the overall life time value of a customer

  • Sustaining viral social media contests, encouraging word of mouth and building trust within your community


Specifically within eCommerce, loyalty programmes are now more important than ever. This means you need to offer not only good prices and great products, but also a seamless buyer journey and tons of engagement points that keep customers coming back for more.


Here's some examples of online loyalty programmes to really get you inspired:


1. Earn & Burn


Earning & burning is all about earning points, and then using them. More recent strategies encourage customers to earn points for multiple different types of interactions, not just purchase transactions, for example sharing a product page on their social media or even subscribing to a newsletter.


2. Perk Programmes


Perk programmes completely abandon the concept of earning points, giving all parties benefits, unconditionally. This technique is a particularly great approach to take advantage of if you have a unique service aiming to make the shopping experience more enjoyable or generate brand awareness.


3. A Tiered Approach


Tiered programmes are hugely popular amongst shoppers since programmes allow them to progress through a system that earns them a sense of status and exclusivity within the brand. Higher tiers can often be associated with more unique benefits and brand experiences, so the more the customer is willing to spend the more they get rewarded as a result.

Most commonly, eCommerce retailers choose a hybrid-type loyalty approach, mixing elements from different programme types to maximise its effectiveness and drive specific KPIs.

It doesn’t matter whether you are experiencing a buying boom or a downturn in customer interest. Why? Because eCommerce loyalty programmes can be essential to keeping the customer returning.

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