Running an ecommerce store is cool when you’re reeling in new customers. But true success is when you can retain the acquired customers and have them coming back to you. Implementing reward programs stands out among the array of effective techniques that Shopify store owners use to boost sales. A loyalty program is an asset to your store , but it comes with its own set of challenges.
This guide will provide a step by step on how to set up a Shopify loyalty program and why you should have one.
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Why you should have a loyalty program for your Shopify store?
Shopify's loyalty program helps to not only build strong connections with customers but also significantly boost sales and also retain long term relationships with the customers. Long-term relationships with customers lead to several benefits:
Customer retention: It helps enhance customer retention by providing incentives such as points, bonuses, and exclusive rewards, encouraging repeat purchases and long-term engagement.
Boost customer engagement: It helps engage customers actively by fostering a strong connection with your brand and increasing their interaction with your store.
Improve brand reputation: It contributes to a positive brand image, showing customers that you appreciate their loyalty, ultimately enhancing your brand reputation.
Increase sales: Customers are more likely to purchase from you if they get rewards or points in return, which entices them to make more purchases to get better rewards.
How to set up a loyalty program on Shopify?
Recently, we could see that loyalty programs are gaining popularity as they offer customers additional rewards over the usual discount. To design a loyalty program for your Shopify store, you need to follow the following steps:
1. Define your objectives
Before setting up a loyalty program for your Shopify store, it is crucial to define clear objectives to ensure its effectiveness. Whether it's increasing customer retention, boosting sales, or enhancing brand loyalty, set specific, measurable, achievable, relevant, and time-bound objectives.
2. Choose the structure of your loyalty program
Choosing the structure of a loyalty program for your Shopify store involves considering the business goals you want to achieve in the process. Decide on the rewards structure and points system. Determine how customers earn points and what rewards they can redeem. This creates a clear framework for engagement.
Here are some popular loyalty program structures:
Point system: Grants points for specific actions, redeemable for discounts, gifts, or perks. Often considered easy to implement and widely used.
Tier-based loyalty program: An expanded point system with levels increasing in value as members progress, conveying exclusivity.
Subscription programs: Members pay for exclusive perks, fostering a sense of belonging with early access to products or events.
Value-based loyalty program: Purchases contribute to charity, aligning with customer values; a hybrid approach blends societal benefits with traditional rewards.
Hybrid loyalty programs: Combine various loyalty elements, like tier system, with games, providing a multifaceted and engaging customer experience.
Choosing the appropriate structure enhances the effectiveness of your loyalty program and aligns with your brand's identity.
💡Related guide: What Is a Customer Loyalty Program and How to Set It Up?
3. Define your rewards
Defining an effective rewards system for your Shopify store involves strategic planning to incentivize customer loyalty. Provide a variety of reward options to cater to different customer preferences. Utilize customer data to personalize rewards. Analyze purchase history, preferences, and behaviors to offer targeted and meaningful incentives, increasing the effectiveness of your rewards system.
Here are a few examples of actions that will fetch you reward types:
Leaving positive review
Buy X to get Y
Reward for a purchase of 100 points for every $100
Social media share to gain 100 points
4. Select a Shopify loyalty app
Choosing the right loyalty app for your Shopify store involves considering an app that helps your store scale. Also, make sure your pick is user-friendly and easy to navigate both for you and your customer. You need to consider the following features when picking a loyalty app:
Compatibility: Ensure the app is compatible with your Shopify store version. Verify its compatibility with other apps you may already be using to prevent conflicts.
Reviews and ratings: Check reviews and ratings from other merchants who have used the app. Positive feedback and high ratings indicate the app's reliability and effectiveness.
Support and documentation: Look for apps that offer excellent customer support and comprehensive documentation. Responsive support ensures assistance when needed, and detailed documentation facilitates smooth implementation and troubleshooting.
Functionality and features: Evaluate the features provided by the app and ensure they align with your specific business needs. Look for customization options and scalability to accommodate future growth.
Cost structure: Understand the app's pricing model, including hidden fees or additional charges. Consider your budget and choose an app that provides value for the investment.
Updates and maintenance: Select apps that receive regular updates and maintenance. This ensures compatibility with the latest Shopify features and security patches, reducing the risk of technical issues.
Ensuring your chosen loyalty app incorporates these features maximizes its potential effectiveness for your Shopify store.
5. Set up the loyalty program
We’ve taken Smile.io as an example and given you a step-by-step guide on how to set up a loyalty program for your Shopify store.
- Head to the Shopify app store and search for loyalty programs.
- You will see a list of loyalty program apps. Pick your favorite app from this list. We have picked Smile.io and shown you the steps for it.
- Install the app.
- Create an account with your email ID and password.
- Pick your brand color.
- Choose your average order value.
- Select the program type.
- Here the points program showcases how to earn and redeem. You can define how many points the customer gets for every dollar spent and how many points can be redeemed in this purchase.
- Launch the program and test.
Incorporating customer loyalty programs into your Shopify strategy is a savvy move to foster lasting customer loyalty. It's crucial to uphold alignment with your brand identity and cater to the preferences of your target audience.
Whether you choose a traditional points-based or tiered earnings system, your loyalty program should be creatively designed. This creative touch ensures your program shines amid the competition. Customizing the structure of your loyalty and Shopify rewards program is paramount to ensuring it resonates seamlessly with your business objectives and meets the expectations of your valued customers.