What is a Loyalty Program? | 3dCart

What is a Loyalty Program?

A loyalty program, also known as a reward points program, is one of the most powerful tools available to merchants for building customer relationships and increasing conversions. Available in a variety of forms with varying rules and restrictions, most loyalty programs revolve around a points system, wherein a specified number of points are awarded for every dollar spent at a merchant’s store.

Why You Need a Loyalty Program

Establishing a reward points program is one of the easiest ways to forge and secure lifelong relationships with customers. Thousands of merchants rely on a reward points system to lure new shoppers and incite existing customers to return to their stores.

In today’s competitive market, shoppers have more options than ever before. Consequently, more and more merchants are discovering that low prices aren’t enough to secure a customer’s interest. Shoppers are on the hunt for stores that will reward them for their continued loyalty, whether in the form of an exclusive discount/wholesale club or reward points, which for many shoppers, are just as good or synonymous as free money. Failing to offer a reward points incentive can lead to an untold number of lost sales, regardless of product pricing, quality or reputation.

How does it Work

A reward points program offers a specified number of points for every dollar spent at a merchant’s store (i.e., one point for every dollar spent). After accruing a number of points, a shopper can choose to redeem their points on an eligible product of their choosing.

As the store owner, you’ll be able to specify not only how many points are awarded for every product and how much each product cost to redeem, but whether certain products are ineligible for points and/or redemption. You can also choose to offer bonus points for high-value products, extra points for specially selected products as part of a marketing campaign, or even offer a set number of free points to incite inactive customers to return to your store.

Conclusion

 A reward points program is one of the easiest ways to attract and appeal to today’s demanding shoppers. Customers are looking for brands that not only value and acknowledge their opinions and needs, but their invaluable loyalty, too. Implementing a loyalty program will show shoppers that your brand is dedicated first and foremost to their satisfaction, and can lead to an untold number of sales for your online store.

 

Best of all, as a 3dcart merchant, you have access to a built-in Reward Points Program, which you can incorporate into your marketing effort at no additional cost.

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