Steps To Retain Customers Using Membership And Loyalty Rewards In E-commerce Sites And POS
Businesses swear by this quote as it is true to the point. Customers are the most important treasure for any business and it is very much important not to lose them. In today’s times, loyalty rewards and membership programs have brought a storm into the e-commerce world as they are the mantra to retaining customers, and here, we have some of the best ways in which any business can be benefitted by taking care of their customers.
What To Do ?
1. Creating a Basic Point System
Points’ counting is one of the basic and important parts of a loyalty program. It provides an easy way to monitor and know the customer’s loyalty who would be getting a point per dollar/rupee spent, or more to make the customers happy. These points can be accumulated and then redeemed with an excellent offer. This would not only make the customers happy, but also would help the business know the loyalty of their customers, and encourage customers to buy from the same business due to the point benefit.
For example, Sephora offers an excellent point based system. Customers swipe their card and their points get collected each time. Every dollar they spent, gives them a point which can be then collected and redeemed for beauty supply items when they want.
It comes one step above the points based system as it provides customised rewards depending on the individual’s purchasing capacity. This system would be much useful for large businesses that can provide the customers rewards and loyalty points based on the amount of purchase they do. The more they shop, the more points they get. Particularly, it can be kept for high priced products, in which by purchasing the particular value of products, would qualify one to that tier. The said tier, would be having its own benefits which would be useful to the customer as he would be getting a lot in return like early delivery, gifts, shopping for relatives/friends, some products for the elite members in the program only etc.This system can be used by big businesses and rewards in the form of some items from the website itself to the customers can be given to engage and make customers satisfied.
Loyalty cards with the member’s details are also a great method as it can be swiped at the POS terminal.
This card would help the customers at a particular demographic. Loyal customers are also rewarded with discounts, coupons and any other incentive that is not offered to non-participating customer. Gift cards are also another method in which customers can be retained and rewarded thereafter. Gift cards, carry the brand name and they can be given the redeemed facility, anywhere, so that it can be accessed by, not only the owner, but by their family members and friends. Nothing is better than word of mouth.
If a business mutually done, benefits everyone, then it’s for the best. One might have the loyalty program and its features, but once it spreads to everyone, it will start showing results. Working with other brands, to sell products, will not only help the existing customers but also help in getting new ones, as the customers would be able to trust the business more and it would help in gaining more new customers.
For example, banks work with credit card companies for various types of people as per the requirement. They keep such offers which are useful to the customers; they can gain more points and also get some rewards.
For example, Nike has a loyalty program which offers additional discounts on the products bought and includes partnership with companies like Apple and Headspace, which is a win-win for both.
Amazon brought a revolution in the E-commerce with its ‘Prime’ membership in which an annual fees need to be paid and thus, the members would be getting facilities like free deliveries and one or two day delivery. When customers are mostly looking for ways in which they can get discounted prices for their products and faster delivery, Amazon has found the perfect solution for it. In addition to it, it offers the entertainment feature of Amazon Prime video in which people can enjoy movies, TV shows etc. without any extra fees. If a business follows this example, and adds its own benefits and facilities to offer, it would definitely help in its development and increase sales, for sure.
Sometimes it’s good to offer some rewards and gifts for the loyalty of the customers. It is one of the best ways to show importance to the customers and respecting their value. Customers can be given rewards and gifts like a gift parcel, or a special discount, or a visit to a place with facilities etc. This instils the faith and trust in the business and motivates the customer to be a part of the business for a long time. This is referred by them to their friends, relatives and other known people and the marketing is done, which can get the business more customers and help in increasing sales.
Business always need not be, gaining profits but giving back to the society sometimes, which can be achieved through charity. Businesses look up to charitable institutions to build stronger relations with their customers as well as to build some business values for their programs. It is a part of their CSR activities which should be done, for people’s benefits. It helps in building a stronger and positive relation with the customers, which build mutual values as well as goodwill for the business.
For example, The Body Shop has animal welfare and forest and bio-diversity protection a part of their program, which rewards the customers as well as donates to the animal welfare program too.
2. Tier Loyalty Programs
3. Loyalty Cards & Gift Cards
4. Working with other brands
5. Paid Membership with Additional Benefits
6. Non-Monetary Benefits and Rewards
7. Charity is Always Good
Customer retention is one of the best ways to improve profitability, increase brand awareness, and create loyal brand advocates. By following the strategies mentioned in this guide, you’ll be able to bring about considerable improvements in your customer retention rate. Remember that simply focusing on one of these strategies would not yield you the best results. When you start working on multiple techniques together, you’ll see a great improvement in all your metrics.