How to Create Your Loyalty Program and Keep Buyers Coming Back

Sep 13, 2016 | Ecommerce

The main use of a loyalty program is to provide an incentive to spend more, it results in repeat purchases and can build a relationship between you and your customers, making them feel happy to pay visits to your site.

Providing as many incentives as possible to your audience will add value to what you’re supplying. Loyalty programs will let the customer know that the merchant wants to build a relationship with them and make them an integral part of their business.

A reward scheme is a sure way to entice a customer to return as they are aware that their past purchases will have earned points to make a discount for their next purchase.

Fee

Create an advertisement for your loyalty scheme or membership, listing all the benefits the program provides. When the customer follows the link, charge the customer upfront with a one-time payment or a less expensive monthly payment.

Tailor Made

A great idea is to tailor a customer’s loyalty program based on information such as a customer’s buying patterns.

What to include in a loyalty program:

  • Introductory discounts

  • Discounts for buying before an item is in stock

  • Purchase level rewards (spend over £40 get £2.50 off)

  • Ebate cashback rewards for different spending levels

  • Upgrades or special advantages

  • Using information that is not-for-profit, so that a customer isn’t constantly confronted with products.

 

Loyalty Cards

If you don’t want to get too overloaded with different loyalty schemes, stamps are a simple yet lucrative method to use with a loyalty card.

A recent breakthrough study conducted by professors Joseph Nunes and Xavier Dreze showed that we are more inclined to fill up our stamp card when we are given a head start. The study was titled ‘The Endowed Progress Effect’, it involved giving 300 customers loyalty cards at a car wash, if they filled up their stamps, they got a free car wash. Each half were given two different stamp cards, one with 8 stamps and the other with 10 stamps but two had already been marked off for them.

After a certain amount of time, the results showed that 19% of the 8 stamp group returned however 34% of the 10 stamp group filled their stamp card. This shows that even though the amount of stamps to be filled were the same, people preferred getting a seemingly large head start whereas the 8 stamp group may have thought they had to make more efforts to fill the loyalty card.

If you don’t have the experience working with graphics, there are softwares that can do this for you. For example the Easy Graphics App creates attractive loyalty cards, coupons, flyers, business cards and more from scratch.

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