Should you have a customer loyalty program?

23 January 2017

Should you have a customer loyalty program?

Short answer, yes. Why? Read on.


So, you might be running a successful online store, awesome, well done! BUT, how are you going to keep your customers returning? A customer loyalty program is one of the best ways to achieve this.

If you reward your customers for being loyal and shopping at your store they will be way more tempted to return in the future, further increasing your sales. This also has the opportunity of turning them into a brand ambassador, instead of just a normal customer - this means they will start to rave about your store to their social circles!


How to run a successful loyalty program

Most loyalty programs are points based, your customers get points for spending and they can then use this to get discounts, access to exclusive events, free shipping, early access to products and more (be creative!).

Another thing you could (and should) do for your top customers is send them little gifts, be it with the purchase they just made, on their birthday or maybe just when they haven't purchased anything in a while to remind them how much you appreciate them!


Whats the point in all this?

The point behind having a loyalty program is to increase customer retention. Rather than getting many one time buyers, they turn in to repeat buyers and eventually brand ambassadors.

Still, you might be asking why that is so important? It's important because it costs a lot more money for you to get new customers than it would be to retain past ones. Also, the conversion chance of repeat customers is 10x that of first timers. Both extremely important factors to consider.

Creating a loyalty program also helps to keep customers away from competitors. Customers will want to use the reward points they have in your store, keeping them returning to you rather than going to your competitor.


Would a loyalty program work for your business?

Loyalty programs don't work in all business scenarios, they tend to work best in industries that sell many cheaper products rather than say a vehicle store. Clothing, cosmetics and food & drink industries are some of the best examples where a loyalty program would be perfect.


So, now you know how beneficial a loyalty program can be, think about if and how it could be implemented into your store and you could be seeing the benefit in no time.

Online store tips and ideas

Jordan Mann

About the author

Jordan is the owner and founder of Uncoated Website Design. He has a background in marketing for nationwide businesses and startups. Uncoated create uniquely beautiful yet functional websites for creative businesses.

Blog categories

Online store tips and ideas

Professional advice on how to increase your online stores income.

Improve your marketing

Ideas and proven methods to help increase your brands awareness.

Web design inspiration

Examples of smart and elegant website design.

Learn photography

Guides on taking great photos, from hobby to product photography.

Uncoated news

News regarding Uncoated Website Design.