Finding new customers is only part of the sales process for savvy business people. Retaining customers and their continued loyalty offer the most value for anyone in the world of online sales.
By offering a points and reward scheme to your customers, you can help to increase sales and retain your customers.
How effective are customer rewards?
Customer reward schemes are used everywhere offline and are becoming increasingly popular online as well. With lots of competition in the world of online retailing, it’s a great way to nudge yourself ahead of your competitors.
You need to ensure that you are offering rewards that are both valuable and original. This can come from either exclusivity or from a unique approach to the loyalty scheme, helping to make customers feel appreciative and demonstrating your high-quality customer care.
Retailers should ensure that their reward scheme is clear and precise, with access to information regarding it available easily to all members and non-members. Having a main page or landing page dedicated to it helps customers to be aware of any benefits, promoting the reward program and also allowing people to access it easily.
Always ensure that you promote your loyalty scheme to everyone in any way possible. This could be through the site itself, when the customer is going through the sales and checkout process, and also via emails. Discuss benefits and rewards and encourage them to get involved. After all, it is much easier to sell to existing customers than it is to find new prospects. According to Marketing Metrics, the chances of selling to an existing customer is 60-70%, whereas to a prospect is just 5-20%. Your marketing strategy should have processes aimed not just at finding new leads but also retaining your old ones.
Getting Customers Started with a Loyalty Programme
To get customers to sign up, you need to remove the psychological barriers. One way to do this is to offer instant rewards. However, you must also ensure that rewards aren’t too easy to get – or people won’t endeavour to try harder to achieve more.
Types of Reward Systems
Reward point schemes are the most common type of loyalty programme. You can reward customers for useful activities including sales, signing up for newsletters, entering polls and competitions registration, reviews and more. Points can be used as a way of reducing purchase costs by being spent as money tokens.
Tiered Reward Programmes
One way to get more from your points system is through having a tier system. When customers reach a certain number of points, they reach a higher tier where points go further. Tier systems place customers with a certain number of points into a special category, offering more for their points, higher discounts and more substantial offers.
Either system works to help get and maintain customer loyalty.
There are a number of extensions available in the Magento Connect marketplace that can be used to create loyalty schemes. Do you use one? Tell us about it below!