A robust digital marketplace strategy leverages loyalty to incentivize buyers and sellers alike. But a scalable loyalty program needs more than an idea – it requires the right technology platform. The right platform enables loyalty teams to experiment with ideas that scale based on the data they collect.
To drive engagement, the most successful loyalty programs are built around a clear value proposition that provides exciting rewards and unique customer benefits. Loyalty programs are also an effective way of supporting business growth. Research has shown that loyal customers spend 60-70% more annually than new customers, requiring significantly less marketing effort to attract and convert.
Creating a successful digital marketplace loyalty program requires careful consideration and planning. A good starting point is to understand what you want to achieve from the program – for example, do you want to increase sales, boost customer retention, or collect more data? Once you have identified your goals, you can create a strategy and build a digital marketplace to deliver them.
The right digital marketplace partner will provide a powerful loyalty platform that complements (not replaces) your existing strategies, bringing scalable rewards personalized in real-time to thousands of customers around your stores. It offers an easy-to-use, cost-effective solution for e-commerce businesses of any size to develop and run a profitable loyalty program that drives engagement with new and existing customers.
Customer loyalty programs offer businesses various benefits, including boosting conversions. They can help businesses meet or exceed their online sales goals by fostering loyalty and encouraging repeat purchases. Loyalty programs can also help businesses improve the customer experience by personalizing marketing and increasing engagement. They can even help businesses reduce churn by encouraging loyal customers to refer new business to their brand.
Loyalty programs can be designed to suit each business’s needs and goals. They can include tier-based rewards, cash back, or membership programs.
Businesses can use a variety of channels to promote their loyalty programs, including website promotions, email marketing, social media posts, and more. Using automation tools, e-commerce marketers can create personalized campaigns encouraging customer participation in loyalty programs. This will help boost conversions and increase customer lifetime value (CLV). To make the most of their loyalty programs, e-commerce brands should keep an eye on their data and customer feedback and continually update their programs. They should also look for new ways to enhance the user experience. This will help them increase engagement, boost conversions, and build a stronger sense of community.
Increasing Customer Loyalty
Whether you’re a brick-and-mortar small business or a global e-commerce platform, customer loyalty programs are one of the most effective ways to grow your business. That’s because it’s cheaper to market to current customers than to find new ones. And research shows that loyal customers spend 27% more than non-loyal customers.
Marketplace loyalty programs make offering perks that drive desired behavior easy, such as encouraging shoppers to purchase more frequently or allowing them to earn and redeem points for complimentary products or services. These rewards can also help you build deeper connections with your shoppers. For example, makeup and skincare brand rewards their VIP members with exclusive discounts and early sales access, making them feel like valued customers.
Another way to boost customer loyalty is by celebrating essential events with your clientele. For example, you can reward loyal buyers with unique offers on their birthdays or anniversaries, such as free shipping on orders, extra points, or unique gifts. You can also encourage them to provide feedback on your products or services and then take action on that feedback, proving that you genuinely care about their concerns and interests.
Using data to personalize the experience for your shoppers is critical to increasing loyalty. By leveraging the power of personalization, your shoppers will feel like you’re having a one-to-one conversation with them, which can significantly increase your conversion and customer loyalty rates.
To get the most out of an e-commerce loyalty program, retailers should implement an enticing rewards structure and communicate its benefits. They should also consider tier-based programs, personalization, and gamification to drive engagement and increase sales.
Loyal customers spend more annually and have a higher lifetime value than non-loyal shoppers. Moreover, loyal customers typically only require a little marketing or promotional effort as they advertise for the brand through word-of-mouth and social media.
Moreover, marketers can encourage repeat purchases and build customer loyalty by displaying reviews prominently on product pages. They can also entice customers to share their experiences with the brand via email and web push notifications.
Some rewards programs use a tier-based system that provides exclusive perks to those who spend more with the brand. These perks include early access to sales, free shipping, premium support, and other rewards that make the customer feel valued.
Marketers should deliver personalized offers based on browsing and purchasing history to keep customers engaged. This can be done by implementing loyalty rewards software that automates the reward process. Additionally, the UI of a mobile app can display how many points a user has earned and provide them with easy options to redeem them. This makes it easy for users to engage in micro-moments, such as between meetings or waiting for their child’s school pickup.