Starting a loyalty program for your ecommerce store has numerous benefits, but the key reasons for doing so are to enhance customer retention, engagement, and compliance with GDPR regulations, as well as to drive repeat purchases and differentiate your brand from competitors.
5 good reasons to start a loyalty and rewards program on your Shopify store
There are five main reasons why you should start a loyalty program on your ecommerce store. In fact, we would say that you cannot afford to wait, and that you’d better start as soon as possible – whether it is with Diller® or not.
1. Increase customer retention
A customer loyalty program makes it easier to turn one-time shoppers into loyal customers, which in turn leads to increased revenue and overall growth of your ecommerce business. As digital marketing and targeting ads has become much harder, it has also become much more expensive over the last year (Digital Information World, 2022). With a loyalty program you can directly communicate with your customers through SMS and email communication. In fact, the success rate of selling to a customer you already have is 60-70%, compared to only 5-20% for new customers (Marketing Metrics). Therefore, the most effective marketing strategy to date is to offer rewards, incentives, activities and much more, to help get customers back to your store – again and again.
2. Boost customer engagement
With a customer loyalty program through Diller, you can easily review and analyze customers interests, purchase patterns and habits, as well as their preferances. This gives you the opportunity to tailor your marketing efforts and products offerings by running targeted, personalized, and relevant campaigns. Research shows that 75% of online shoppers have taken action after seeing a message that they consider to be relevant to them (ThinkwithGoogle). You should therefore create a loyalty program to start collecting data on your customers – which in turn will make it easy and affordable to form a relevant dialogue to your customers.
3. Ensure a GDPR compliant communication
You CANNOT communicate with your customers without consent. With a loyalty program through Diller, a member gives their consent. This means that you have the right to have direct and recurring dialogue with them. In other words, you get access to your very own marketing channel and customer base, in which you can have direct SMS and email communication with each and every one of your members.
4. Drive repeat purchases
With rewards and incentives, it is easy to give your customers a reason to come back to your store. You can also use SMS and email marketing to help get them back to your store. In fact, the probability of selling to an existing customer is between 60-70%, while that of a new customer is only between 5-20%? (Marketing Metrics). A loyalty program is therefore one of the strongest marketing strategies to drive repeat purchases, as it gives several different opportunities to bring your customers back.
5. Stand out from the competition
In a crowded ecommerce market, a loyalty program can help you differentiate your brand and attract new customers who are looking for added value and incentives. Be creative when creating and launching a loyalty program. Think about what can set your store and loyalty program apart from your competition! At Diller, we have onboarding experts that will help you with this – free of charge!
