2/3/20 1:44 PM

The Secrets Behind a Knockout Customer Loyalty Program


When the experience feels personal, 80% of customers are more likely to spend with a brand that prioritizes ecommerce personalization. Are you effectively utilizing personalization in your marketing and loyalty strategy?

Let’s think about the various ways to woo your customers. As an ecommerce brand, you want to treat them the same you would in any long-term and valued relationship. With sincerity and by creating a personal connection. 

Highlights of the article: 

  • 87% of shoppers reported that they want brands to have loyalty programs
  • Review reward redemption data, see what has the highest redemption rate, and recalibrate accordingly
  • Offer something related to keep traffic on your site
  • The more compelling you keep the content, the more likely your customers are to keep coming back

To help you better engage and personally connect with your audience in 2020, here are some tried and true methods from our friends at Annex Cloud

Create a Loyalty Program Yesterday

If you have not developed a loyalty program, now is the time. According to Forrester, 87% of shoppers reported that they want brands to have loyalty programs. That’s a pretty high number. Creating a loyalty program that gives customers a unique and personalized experience encourages them to stay with your brand at the expense of your competition and invite others to do the same. The referral aspect of a fully integrated loyalty program can have a significant impact on new customer acquisition and conversion.  

If you do have a loyalty program, ensure that you are consistently reaching out to your members to make sure they are seeing real value from the program. After all, these are your most profitable customers who have earned the red carpet treatment based on their desired behavior. You must do everything possible to retain them. Review reward redemption data, see what has the highest redemption rate, and recalibrate accordingly. You must continue to evolve your loyalty program as needed - do not set it and forget it. 

For example, Starbucks recently switched their rewards program from the standard free drink after a set amount of points to a tiered system to allow customers the chance to cash out at various stages based on what is important to them. Similarly, e.l.f. Cosmetics offers customers different ways to earn points in their loyalty program based on each member’s willingness to engage with the brand.  

Consider how your members are different and how they are using your loyalty program so you can make them feel valued.


Offer something related 

Amazon and Netflix are great at this. You recently purchased something or watched a movie and the brand has now offered you something similar you may enjoy. This is a great way to keep traffic on your site and giving the customer more of something they would enjoy.

If you sell a product that is a frequent purchase like hair care, you may want to set up auto-reminder emails before the product runs out or suggest products that are relevant. If the customer purchased hair dye, your company may suggest shampoo and conditioner for someone with color treated hair. 

However, if you sell cars, your product suggestions may include new car mats, discounts on oil changes, preferred appointments, free rental cars, etc. This is not limited to those in the product based industry either. You can also link relevant blog posts or services.  

When thinking about your customers this year, take the time to consider how you will make them feel valued and they will think of your brand first. This applies to every sales channel. Give these customers a reason to spend more and buy more frequently with your brand. A good loyalty program is designed to do just this and much more.    


Omni-channel marketing

Omni-channel provides a way for you to deliver messaging and experiences that feel exciting and fresh across every touch point in the customer journey. The more compelling you keep the content, the more likely your customers are to keep coming back. 


Inboxes are still king 

We know social media gets all the headlines but nothing is more personal than an inbox. If your customer is willing to hand over their email address, they’ve given you permission to contact them. Treat this with great care and be sure to nurture these contacts with a high degree of personalization. Mass emails can be useful under the right circumstances, but what is even better is sending bulk emails that don’t feel like mass emails. Segment your list based on specific intelligence such as geographic locations, birthdays, anniversaries, psychographics, buying behavior, etc. You can send an email to your list that addresses contacts by name and that highlights something personal about them using merge tags. The email will feel like it was meant just for them and that email will yield higher results if done correctly.


Jeff Herrera_Annex_Cloud


Jeff Herrera, CMO, Annex Cloud
Prior to joining Annex Cloud as Chief Marketing Officer, Jeff Herrera was most recently the Chief Marketing Officer and SVP, Partnerships at Guidance.


Guest Contributor