Have you heard of the phrase “pouring fuel on the fire”?
Well, loyalty programs are a bit like that.
They’re a wonderful, low-cost way to incentivize your customers and in more ways than you might think.
The thing is, retail stores have known this for a LONG time.
It’s evidenced in just about every single coffee shop around the world when they hand out cards giving your 5th coffee free. This is a basic loyalty program in action.
Fortunately for us online store owners, we get to be a bit more sophisticated than hole punches and cards.
Today I want to talk to you about loyalty programs and why I think you should consider starting one for your store.
1. You Can Incentivize Customers To Shop
If you’ve been in business for any length of time you’ll know that customers generally need a good bit of prodding to get them to do something.
Loyalty Programs can provide this incentive on a very base level and in a way that is easy for them to understand; earning points for spending money which can then be used later.
The core concept is, you’re basically incentivizing people to shop. Who doesn’t want that, right?!
The most basic loyalty program online would be for a customer to earn points for making an order.
They can then put these points to use towards other future purchases.
2. It’s A Non-Discounting Type Of Promotion
What I really like about loyalty programs though is that its not your typical discount promotion.
So much marketing these days is based on ramming % based offers down people’s throats in the hope that this will get them to buy.
Be honest, how many of these crappy offers do you receive in your email inbox each day? How many do you actually accept?
And store owners wonder why they’re only getting a 1% response rate on their offers…
A loyalty program, on the other hand, is a different type of promotion.
It’s unusual. It’s attention-grabbing. It’s not the “normal” thing that stores send so customers pay attention.
If you can be different, you’ll stand out.
3. Encourage People To Spend More
As mentioned the basic version of a loyalty program is to give points for money spent.
But it doesn’t have to stop there, you can also encourage people to spend more with your loyalty program in a couple of ways.
Set A Threshold Before They Earn Points
By setting a threshold you’ll be ensuring your profit margin before “giving away” any points to customers.
This has the double effect of encouraging people to spend over the threshold. It’s a similar concept to cart subtotal coupon offers or free shipping offers over a spend amount.
Bonus Points Over A Threshold
You could also give bonus points for spending over a certain amount on top of what they would normally earn in points.
These bonus points are excellent for boosting the order size or getting them to add just a little bit more to their cart to claim the bonus.
Bonus Point Offers During A Specific Period
If you want to run a promotion but you don’t want to run a discount using bonus points to incentivize customers during a period is another new way you can incentivize people to order. They might even make multiple orders if you remind them again when the bonus period is ending.
Give People Points For Completing Tasks
As a store owner, there are lots of subtle ways you can use reward program points to further the relationship and build loyalty.
Giving people points for completing a specific task is a non-purchase event type of way that people can earn points.
Examples of this might include:
- Leaving a blog comment
- Leaving a product review for something they’ve bought
- Registering for an account
- Making their first order
4. It’s The Trifecta Of Marketing Initiatives
Lastly, the good thing about loyalty programs is that it’s the trifecta for marketing:
- It’s hands-free and doesn’t require much maintenance from a store owner’s perspective
- It’s great from a customers perspective and is the type of thing they’ll actively try to take advantage of
- And it’s a more interesting way to engage your customers without just giving them more special % offs
There’s something special about loyalty programs and I believe that these three points are why they’re so effective.
If you want to start a loyalty program for your WooCommerce store, Advanced Coupons can help you do that (and a whole lot more too).