If there is anything that the “new normal” has up-skilled eCommerce sites on it is the fact that customers are finite and competition for their purchase is fierce. As companies learn long term survival is not viable from one-time-purchases alone, many have shifted their focus to customer relationships built on technology and strategy, to build a loyalty program. Today we are sharing our top 3 reasons why this is a smart investment for eCommerce sites and what the benefits of making a first-time purchase a repeat customer are.
1. You can build up your reputation
Studies have shown that customer reviews are a primary factor in the purchase decision of new customers. Why? Because faced with new and uncertain options customers want to hear that the experience with your brand will be a positive one. That’s where the loyalty program comes in. By building a program where your customers can feel acknowledged and incentivized to engage with your brand, you build a satisfaction that drives them to view your brand in a positive light. You can do things like offer a repeat purchase discount in exchange for an honest review or create a refer-your-friend reward system that rewards both the customer and the referral.
As an eCommerce site you should always be working to improve your SEO. Reviews from unique customers will help improve the visibility of your site on Google. Consistent reviews will make your site’s content more competitive, driving more traffic and sales to your site.
2. You can focus on the experience
The magic of a loyalty program is the ability to take your customers’ eyes off the price. In our highly competitive industry, it will allow you to create a value proposition based on the experience with your brand rather than your pricing. You will benefit from helping customers maintain their loyalty with exclusive content, special offering, and personalized rewards, that will in turn continue to engage them with your brand. The data that you receive from this engagement will speak to the right segments for your brand and it’s special offerings and help you understand their needs, interest, and purchase behavior. You can use this data to your benefit by planning a more cost-effective inventory, product catalogue, and promotion calendar.
As an eCommerce site you should always be working to optimize your marketing campaigns. Creating a loyal customer program will allow you to further gain insight into your niche and correctly target them. This will allow you to create smarter pieces of content and build better audiences for your new campaigns.
3. You can leverage profitability:
By gaining access to a unique database of customers in your niche, increasing the visibility of your site, building a unique reputation, targeting the right segments, engaging with your audience, etc. you are increasing the volume of customer retention for your site. . Studies have shown that loyal customers purchase more than first-time customers, they engage more often with your brand and shop more frequently. Knowing the niche where your profitable and unprofitable customers are you will benefit from an increase in revenue and a smart spend on your marketing budget.
Building customer retention will help your site approach new customers in the right way. You will be able to come in strong, with a unique value proposition of rewards, content, and inventory that can easily attract them to sign-up, create a profile and start engaging with your brand.
A loyalty program represents a direct line of communication with the right customers for your site. Exclusivity, notoriety, and reputation are pillars upon which you can address any issues that your customers come across, without the fear of losing out on that sale. If this sounds like something your site could benefit from or you have an idea you need help building out for your brand, feel free to reach out to us today.
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