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March 14, 2023

How Effective Are E-commerce Loyalty Programs?

How Effective are E-commerce Loyalty Programs?

What do customers actually want? That’s the question every business leader needs to answer. Research shows 80% of frequent shoppers buy only from brands that personalize the shopping experience. They want brands that recognize their individuality, provide recommendations and offer relevant to their needs. An e-commerce loyalty program helps you attract and retain these frequent shoppers.

E-commerce Loyalty Programs

When it comes to getting current customers to make repeat purchases at your online store or attracting new customers, e-commerce loyalty programs are the way to go. These programs allow your customers to make that critical emotional connection between themselves and your brand.

These days, there are countless ways to shop. Each customer decides the best way for them to make purchases at a particular time or for a particular item. Between online shopping, ordering via a gaming app, or heading to the store, it’s a solid rewards program that is often the deciding factor about where people spend their money. Without an attractive e-commerce loyalty program in place, you simply aren’t competitive.

Creating a Successful E-commerce Loyalty Program

What makes for a good e-commerce loyalty program? Besides genuine rewards, the program must prove simple for customers to grasp. If people have trouble figuring out how the program works or what they must do to earn points, it won’t succeed.

As a business owner, you must make decisions about how customers access your loyalty program. Is a phone number or email address sufficient to join? Is a physical card necessary? To date, Americans express a preference for loyalty programs that simply require a name and phone number. What don’t they like? A program that collects a lot of personal information is out, as is one requiring an app.

E-commerce Loyalty Program Goals  

The goals of an e-commerce loyalty program include:

  • Driving sales
  • Increasing brand advocacy
  • Boosting customer retention
  • Revamping the customer buying process
  • Building a community

Reach these goals by offering the perks that matter to your customer demographic. Maybe that’s free shipping, special and new product access, members-only sales–the list is long and it’s not one-size-fits-all. When done right, and it may take some time and tweaks, an e-commerce loyalty program is among the most effective ways to boost sales.

Which Businesses Benefit Most From E-commerce Loyalty Programs?  

An e-commerce loyalty program benefits certain businesses more than others. The key word here is “loyalty.” Businesses that benefit most from such programs sell wares bought regularly by the public, as compared to those focusing on big-ticket items that the average person buys infrequently.

Retailers and those in the hospitality industry are the main beneficiaries of e-commerce loyalty programs. Think about where you shop most often. Everyone needs to purchase food, clothing, and personal products such as those found in drugstores. Maybe your food shopping takes place primarily in a brick-and-mortar store and not online, but a loyalty program and its discounts can make the difference in where you decide to shop.

Every business has its own customer base. You want these people as brand advocates. You can build brand loyalty by knowing what your customers value. It isn’t always about sales. Reward customers in your community by offering discounts for performing community service, such as donating blood. That’s the kind of gesture that builds community and pays it forward.

When customers follow your brand on social media, encourage friends to join the loyalty program, or take other brand advocacy measures besides purchasing, they should also receive a certain number of points in the program.  

Store Cards and Customer Loyalty

Store cards play an important role in establishing e-commerce loyalty programs. Store cards, also known as private-label credit cards, are designed for use at designated brands, creating a credit line for customers specific to that retailer.

Store cards also encourage deeper customer relationships. When the customer uses the store card to shop, they receive rewards discounting future purchases. Since customers can’t use a store brand card at any other retailer, they can increase customer purchasing power when it comes to your goods and services. Nothing boosts loyalty like ongoing good deals.  

Boost Your Loyalty Program with Tandym

All businesses want to drive sales and boost customer retention. That’s where an e-commerce loyalty program comes in.

Let Tandym help you reach your e-commerce goals. Learn more and start for free today!


Wunderkind Co: The SmarterHQ offering is now Wunderkind Audiences

Forbes: The Perks Of A Great Loyalty Program (forbes.com)

PR Web: Most Americans Less Likely to Join Customer Loyalty Program that Collects Personal Information (71%) or Requires an App (58%), According to Survey on Behalf of Wilbur (prweb.com)

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