In 1929, Betty Crocker issued coupons that could be used to redeem for premiums like free flatware. In 1937 the coupons were printed on the outside of packages, and later the Betty Crocker points program produced a popular reward catalog from which customers could pick rewards using their points. In 2006, it was announced that the Betty Crocker Catalog was going out of business and that all points needed to be redeemed by December 15, 2006. With it, one of the longest loyalty programs ended a 77-year tradition.[9] (Wikipedia)
The rest is history.
Did you know…
69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards programs. (invespcro.com)
57.4% of consumers join loyalty programs to save money, 37.5% to receive rewards. (invespcro.com)
Loyalty or reward programs can be a tremendous way of not only increasing repeat sales for your brand, but increasing the likelihood of a customer purchasing from your Shopify store. With nearly 70% of customers deciding where they shop based on rewards programs clearly there is a strong argument for implementing one on your Shopify store.
Here are some tips on how to properly implement a rewards program to grow your Shopify:
Clear on Value
Be incredibly clear on how the program works. Explain what users can expect when reaching certain milestones. A great example of how not to handle loyalty and reward programs are credit card companies. The amount of confusion on how many points you earn per dollar spent or conversely how many of those points equates to air miles is intentional. This leads to the inability to truly compare cards.
Your system will vary based on your brand but always try to focus on straight forward points for dollars. (or your currency). This clear delineation should increase the chances of users understanding the benefits of the program leading to an increase in customers signing up. Rule of thumb, make it so simple that a typical customer will be able to do the math in their head.
“If I purchase 3 units a month, I should get a free unit every 6 months!”
Engagement
One of the biggest issues associated with rewards programs is engagement. We want to be sure that customers are actively aware of the program, how many points they’re earning, and what they can be used for.
65% of consumers engage with less than half of the loyalty programs to which they belong. (Code Broker)
A great way to implement this on your Shopify store is to show this data in multiple places on your storefront. Most apps will allow you to include this in places like the cart, as a bar on the top or bottom of the site, or in post-purchase pages.
Additionally, make sure you make it super simple for them to redeem their points. Redeeming should be as simple as paying with any other form of payment. Not doing so will be the quickest way to lose loyalty subscribers.
Rewards for Referrals
Best way to increase overall revenue is to not only increase customer lifetime value (CLV) through rewards programs but to increase top line growth through increasing the number of customers.
Offer those in your rewards program the opportunity to increase the number of points they have by referring friends and family. For every referral sent to your Shopify store provide them a significant number of points. You can increase the success rate of this program by also including a discount for each referred customer. For example “Give $5 off, get $5 off”.
Increase Ways to Earn
Following On Social Media: Offer a certain number of points for users that follow you on specific social media platforms. Trying to increase your TikTok followers? Make it worth double the points of Instagram.
Reviews: Trying to increase the number of reviews on your newest product? Offer points for reviews. Again, increase the number of points offered based on certain products to increase their likelihood of leaving a review on that specific product.
Submitting Content: Lacking content on your site? Photos? Videos? Offer rewards for content. This again, can be a great way to increase user engagement while also providing you with content for advertising, building out landing pages, or having content for social media.
These are just some of the ways to grow your rewards program on Shopify, but you can start simple and for free. See app recommendation below.
Now go and grow.
-J
Recommended Apps:
Yotpo provides one of the best loyalty and rewards programs on Shopify. With tiered systems along with fully customizable reward systems, Yotpo should be the first app to look at.
Another great option for getting started quickly with loyalty and rewards is Smile.io. An affordable option on the Shopify App Store, Smile is user friendly on both the front and backend. Check it out.
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