How a Loyalty Program Can Increase Your eCommerce Sales

Thousands of merchants across the globe rely on a loyalty program to bolster their marketing efforts and secure lifelong customer relationships. Aside from its minimal to zero cost and self-sustaining operations, a loyalty program can provide a number of benefits that can lead to a direct increase in overall sales.

As the eCommerce landscape continues to develop and evolve, countless marketing tools are emerging to help merchants remain competitive. Yet despite the influx of available apps and tools, few marketing tactics have proven as effective or powerful as a loyalty program.

Implementing a loyalty program for your online store can dramatically increase sales with the following benefits.

Stand Out from Your Competitors

 The eCommerce market is as competitive as it gets, and as more stores emerge on a daily basis, customers are finding themselves inundated with more options than they can handle. A loyalty/reward points program will help your business stand head and shoulders above the rest, and will provide customers with an extra incentive to choose your store over your competitors. Lacking this feature, on the other hand, may be the deciding factor that results in countless abandoned carts.

 Point Collectors Spend More Money

 Research shows that not only are 75% of shoppers a member of up to 10 loyalty programs, but they also spend up to 13% more than non-loyalty members. Tapping into this customer demand can yield major sales for your online store, especially if you’re able to offer a competitive rewards.

An important statistic to keep in mind is that 62% of consumers feel the brands they’re most loyal to have failed to fairly reward them. If you’re aiming for shoppers to spend more at your online store, you need to take proper steps to ensure they’re not only enticed, but that they’re properly rewarded and showered with appreciation.

 Loyalty Programs Encourage Repeat Traffic

 Your existing customers are the heart and backbone of your eCommerce store. Not only are they cheaper to maintain than acquiring new customers, but they also generate the majority of your store’s sales.

A loyalty program will encourage customers to return to your store not only to acquire more points, but to also spend those that they’ve acquired. If you offer a generous reward points program, customers will feel compelled to continually return to your store in order to maximize on the benefits of your rewards program.

 Boost Your Reputation

 A business’s reputation is fluid and ever-evolving, with small and large events, products and news playing a critical role in any customer’s perception. Implementing a loyalty program can instill a number of positive emotions in customers, such as trust, loyalty and confidence. Happy customers are customers that are more likely to spread positive reviews and recommendations for your products, and will inadvertently become your personal brand advocates.

Loyalty Programs Promote Positive Word-of-Mouth Advertising

 Offering a competitive reward points program will encourage customers to share and recommend your brand with their family, friends and social network, and lead to an overall increase in your store’s profits. Customers trust and value business recommendations from friends and family more than any other source of information, including online reviews and recommendations from media and figures of authority. The more satisfied customers you’re able to acquire, the more free word-of-mouth advertising you’ll generate for your store.

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