According to Inc., It Costs a Business about 5-10 times more to Gain a New Customer than it does to Sell to a Present one. 
On an Average the Present Customers spend 67% More than a New One.
An Ecommerce Loyalty Programs provides Online Retailers with the below benefits
1. Boosts the Chance of Turning a Second Sale From a First-Time Buyer
2. Bump an Existing Customer into a Higher Paying Bracket
3. Collect Feedback to Improve your Branding & Marketing Efforts.
Customer Loyalty Program Types for Your Business
Ecommerce Loyalty programs give Online Owners much richer data sets to work with.
This allows them to complement the traditional “offers for people” system with a customer-centric ability to Match People to Offers most relevant to them.
Below are two hints to base your Start-up Reward system on:-
(1) Use a Simple Points System:
This is actually as simple as it sounds.Frequent customers earn points, this translates into some or the other type of reward.
It could be a discount, a freebie, or special customer treatment, customers ideally aim to gain a certain amount of points to redeem their reward.
(2) Use a Tier System :
Reward Initial Loyalty and Encourage More Purchases!
Yes, Tier Ecommerce Loyalty Schemes have by far been the most successful.
By offering SmallRewards as a Base Offering for being a part of the program, and encouraging repeat customers by Increasing the Value of the Rewards as the customer moves–up the loyalty ladder.
The difference between points and tiered systems is that customers extract short-term versus long-term value from the Ecommerce loyalty program.You may find tiered programs work better for high commitment, higher price-point businesses!
Measuring the Effectiveness of Your Loyalty Program
Once you cross the minimum of 250 and above members , you will need an executive support at the highest level. There will be lots of members, key metrics and measurement, and a need to focus on continuous improvement.
Why? Because you’re not just Building a Rewards Program, you’re establishing How Your Brand Interacts With Its Customers.
(1) Customer Retention Rate:
This is an indication of how long customers stay with you.
This number should ideally increase over time as the number of loyalty program members grow.
According to Fred Reichheld, author of the Loyalty Effect, a 5% increase in customer retention can lead to a 25-100% increase in profit for your company.
(2) Negative Churn:
Churn is the rate at which customers leave your company. Hence Negative Churn, measure number of customers who do the opposite . This means, the number of customers that Upgrade, or Purchase Additional Services.
(3) Net Promoter Score:
NPS is a customer satisfaction metric that measures, on a scale of 1-10 the degree to which people would recommend your company to others.
Conclusion:
A Good Ecommerce Loyalty Program provides you with all your Required Features & Brings Value to Your Customers. It is Crucial that it provides users with Ample Reward For Their Commitment.
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Kalpana Dogra
Digital Marketing & Communications for AvactisNext
