The customer loyalty program

Written by Secure Net Shop

There are so many elements that need to be in place for a successful eCommerce operation. A good user experience, good commerce shopping cart is just two of them. These are all components that need to be in place to convert visitors into customers. However, once that is done, the job is still not done. In order to motivate the customer to continue using the store and continue buying more products, a relationship needs to be established to incentivize their return. This is what a good customer loyalty program will do. A customer loyalty program is at its most basic, the relationship between the customer and the brand. The goal is to attract the right customers and form a long-term profitable bond. There are several types of loyalty programs to consider, here are the most popular:

Points-based programs

This is the most common type and works by granting points per transaction or dollar value of the transaction. The customer can then redeem those points for rewards or discounts. The level of the reward will depend on a structured point-to-reward ratio. The vast majority of shopping carts support this type of program.

Tiered programs

Much like the above point-to-reward ratio, the customer is promoted from one tier to another based on the level of spending. Higher tiers have better rewards or gifts. Some brands create insider programs or inner circles for different levels of customer. The motivation for the customer to spend more is to gain access to the higher tier. In many cases, it is purely aspirational and the gifts and rewards are not the motivation.

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