10 Effective Loyalty Programs to Drive Repeat Purchases

Loyalty programs are the secret sauce for any business, as they have the power to transform

one-time shoppers into lifelong fans. What is a loyalty program?An incentive program rewards customers who remain loyal to your business by offering discounts, free products, coupons or special offers. These rewards can be redeemed by customers after they have made several purchases in your store. It is a great strategy to increase customer retention.

There are various types of loyalty programs that you can choose from and implement as soon as possible. Continue reading to find out which is ideal for your store.

Do Loyalty Programs Work?

Loyalty program members generate

12-18%

more revenue growth each year than

non-members if properly executed! The key to creating an effective loyalty program is making it valuable and personal for your customers. There are a few elements to consider when creating a loyalty program, such as what type of rewards and perks you’ll offer and how customers can earn them.But don’t worry, there’s no need to reinvent the wheel–there are plenty of successful loyalty programs out there that you can draw inspiration from and start generating more sales.

Here are some examples:

The Points Program

The points program is one of the simplest loyalty programs out there. The points program is one of the easiest loyalty programs out there. Customers can earn 1 point per $1 or $2 spent in your store. Points can be made for purchases and engagement, such as a like on Facebook or a subscription to a newsletter.It’s also important to make your points program easy to use. You can give clients a physical card that they can carry around, and you can also let them access their points through an app or account on their phone. That way, if they forget or lose their card (as we all do from time to time), their points remain stored in their phone and can be retrieved.Short-term

and frequent purchases benefit from this kind of reward program the most.

Let’s take Starbucks Loyalty Program as an example:

Starbucks is

well-known

for its rewards system. Customers get one star for each dollar they spend using their credit or debit cards, and two stars if the money is preloaded into the app. Some people drink coffee every morning, so they might as well get rewarded for it!

Fun fact: Starbucks is one of the most popular rewards programs with an average of nearly 29 million members in 2022.

Note:

The Gratisfaction app from the Ecwid App Market can help you run a points loyalty program just as easily as Starbucks! Some people drink coffee every morning, so they might as well get rewarded for it!Fun fact:

Starbucks is one of the most popular rewards programs, averaging nearly 29 million members in 2022.

Note: the Gratisfaction app from the Ecwid App Market can help you run a points loyalty program just as easily as Starbucks!

Listen to the founder of the Gratisfaction app share his insights and tactics on developing loyalty programs.The Tier Program

With a tier program, the size of the rewards increases with time. The bigger the reward, the more the customer purchases. This program gives customers a feeling of exclusivity and high status. It also makes them want to shop at your store. This program gives customers a feeling of exclusivity and high status and excites them about shopping at your store.

This system works best for

long-term

customers and

high-priced businesses.For example, the Sephora Beauty Insider Program offers a variety of rewards depending on how much you spent on their products in the past year. This program offers exclusive invitations, discounts and free shipping. Pro tip: Send a customized offer by email to customers who spend more than a certain amount at your store. You can achieve this in Ecwid by synchronizing your Ecwid store to Mailchimp. You can, for example, set up an automatic email to send customers who spend more than $2,000 at your store. The email can congratulate them on joining a new tier and list all the benefits they have now accumulated.Or, use Order Export on Ecwid to find out how much your customers spent last year. Click Export Orders on your Sales list and download the CSV file. You’ll be able to work with it in Google Sheets to filter customers that ordered over a certain sum from you–then

you can offer rewards based on the amount!

The Fee-Based

ProgramCustomers who join this loyalty program pay a fee to get a VIP membership. It offers perks that regular customers can’t access, such as free shipping, more significant discounts, or exclusive products.Remember that this is most effective for repeat purchases and may not be as interesting for new customers.

For example, Amazon Prime membership provides access to video streaming, prime rewards, or early access to select deals. And they seal the deal with free, one-day shipping. They are willing to pay for speed! They are willing to pay for speed!

Fun fact:

Amazon Prime members spend more than twice as much as

non-Prime members.Note:

You can sell access to a membership program right in your Ecwid store! All you need to do is create a product that doesn’t require shipping and name it something like Access to a membership program. If you’d like to receive a recurring payment for the membership (say, $2 per month), you’ll find Ecwid’s subscription tool particularly helpful.The Reward PartnershipWith this loyalty program, you partner with one or more companies and offer rewards that can be redeemed at participating stores. It is crucial to partner with brands that are relevant to yours and will interest your customers. You can offer special co-branded

deals or discounts in your partners’ stores. You can offer special co-branded

deals or discounts in your partners’ stores.

For example, Air Canada’s Aeroplan members can earn points at various retailers and use them on flights, hotels, and stores — anything a customer might need for a trip.Pro tip: The easiest way to offer a discount at a partner store is via discount coupons.

The

Non-Monetary Program

This program does not offer a monetary incentive but rather a value-based one. The purchasers won’t receive any rewards directly, but they will be helping to support an organization of your choosing. In this case, it is crucial to choose a fund that represents your values and your audience’s.

You can donate some of your sales to animal rights organizations, art efforts, educational programs, etc. The choice of fund is determined by the uniqueness of your brand and the values of your customers. They’ve awarded over $140 million to domestic and international environmental groups.Note: There are several ways to collect donations in your Ecwid store, both recurring and

one-time.

Customers will be able to see a donation option on the storefront and/or at checkout.

The Game Program

Why not entertain customers and offer them something special at the same time?Create a loyalty program based on a game and offer your buyers gifts, discounts, or exclusive deals when they win. Create a loyalty program based on a game that is easy to play and offers something your customers will enjoy. You can choose a Spin the Wheel or quiz game. Starbucks launches its summer games every year. Members can play a puzzle, earn points and receive rewards. Prizes include gift cards, free food, drinks, and accessories. They also offer trips. It’s addicting!Pro tip: You can set up a gamified loyalty program in your Ecwid store using the Gratisfaction app. The Cashback Program

This loyalty program is simple. Customers spend a certain amount and get a percentage back. It helps increase transactions and is easy for a customer to understand.

As this loyalty program does not provide an immediate reward, keeping customers engaged with your brand is critical. The results are only seen after a specific amount of time and repurchases.

For example, The CVS Extra Care program allows you to get 2% back of all your purchases.
Read more: Three Pricing Models You Can Implement in Your Online Store

The Hybrid Program

This is a combination of different types of loyalty programs.But don’t try too hard here: if you combine too many types, it may confuse your customers. Points and tier systems work well together, unlike the mix of cashback, game, and

fee-based

programs.

For example: When you register for Kiehl’s Rewards, a free birthday gift is guaranteed, as well as a $10 reward for every $100 spent.

The Ambassador Program

How about rewarding your fans by putting them on your ambassador list? Give them freebies or VIP access to your services in exchange for spreading the word about your store on social media, review websites and

in-person

events.

This loyalty program is excellent for increasing social proof and brand awareness. After seeing an ambassador using the product and giving a positive review, potential customers are more likely to buy it. The ambassadors get to test out their products, connect with other ambassadors, and host company events such as yoga classes (while wearing their clothes). They get to test out their products, connect with other ambassadors, and host company events such as yoga classes (while wearing their clothes).This way, Lululemon’s ambassador program promotes the brand, demonstrates its products in action, and creates a community around them.Birthday Gifts

This one is easy: you present your buyers with gifts on their birthdays. This works for any company with a database of customers. If you give a gift to sign up for your newsletter and subscribe to it, this helps build an email list. Who doesn’t love a gift on their birthday?

For example, World Market offers a free reward — and it’s a surprise!

Pro tip: Add a custom field to your checkout to ask customers for their birthday. Pro tip: You can add a custom field at the checkout for customers to enter their birthday. Don’t forget to explain why you are asking for it.

Alternatively, celebrate a customer’s purchase anniversary by sending them an automated email with a discount coupon. This is a much easier option, as you don’t need to keep track of all the birthdays of your customers. You can enable the One Year After Purchase Email, specify the amount of the discount, and all eligible customers will receive the email automatically. It’s important to inform your customers about this benefit to increase loyalty. )

Learn more: Ecommerce Email Marketing Best Practices to 3x Sales

Best Practices for Loyalty Programs

To maximize the effectiveness of your loyalty program, remember these key guidelines:

Keep the terms simple and straightforward, ensuring clarity for your customers.

Simplify the

sign-up process, making it quick and easy for them to join.

Offer valuable rewards that make their loyalty worthwhile and exciting.

Encourage ongoing engagement to promote

long-term

participation.

• Provide additional value for each action taken, incentivizing customers to stay active.
• Don’t forget to express gratitude and appreciation for their participation throughout the program.By following these principles, you can create a loyalty program that truly captivates your customers and keeps them coming back for more.