Best Loyalty Program Practices for eCommerce Business
Rohit Singh VP of Customer Engagement Schedule Free Consultation
  • E-commerce business is expanding from all corners and is becoming bigger and bigger now and then. 

    Even though most customers are attracted to big eCommerce brands – namely, Amazon, eBay, Microsoft, Intel, and more, smaller businesses enjoy their territory of market share courtesy to their loyalty program’s success.

    Before moving ahead with “Loyalty Program Examples for Ecommerce Business,” let’s go through essential Stats and Market Data for eCommerce as published on Statista: 

    • Revenue generated through B2C eCommerce sales amounts to a staggering USD 1.2 trillion in the year 2013.
    • According to recent stats, 40% of worldwide internet users have purchased at least one product through online shopping websites.
    • Presently, over 1 billion online buyers purchase items from eCommerce websites, and projected data hint towards continuous growth.
    • In 2013, over USD 38 million was generated in the US’s shape of mobile commerce revenue.

    This statistical data can blind any prominent eCommerce business owner with pride. But, for small merchants, getting and keeping customers is no less than a surgical operation.

    Nevertheless, the scope for customer acquisition increases manifold for any business with loyalty programs. Finally, let’s understand why loyalty marketing is essential and what best practices can bring you quick results.

    Why is the Loyalty Program Important for your eCommerce Store?

    Most experienced marketers recommend a customer-friendly loyalty program model. 

    In another statistical survey conducted by Statista, it is clear why the loyalty program is the Gen Next solution for online marketing. Here is a brief account of the facts.

    • According to a survey conducted in May 2014, 70 percent of digital coupon users agreed to have used one to five coupons in the last quarter.
    • In another survey, it is found that 14 percent of users who received promotional coupons and offers have used it online once or more.
    • Amazon has scored 86 points on the American Customer Satisfaction Index (ACSI) points in 2014. It indicates that companies, who establish better customer experience, gain significantly from loyalty programs. However, Amazon had 88 ACSI points in 2013, and this two-point deficit in the fiscal year 2014 is a mild alarm bell for the American eCommerce giant.
    • The Word-of-mouth marketing technique still is considered to be a significant brand loyalty program feature. eCommerce businesses can screen their brand promotion activities through customer engagement on multiple online platforms.

    Useful Loyalty Marketing Program Practices for eCommerce Business

    Companies trust loyalty programs for marketing their brand. Therefore, here are some distinct practices that are helpful to create effective and compelling eCommerce loyalty campaigns. 

    Sketch Proper Lines – Reward Options for eCommerce

    In most companies, marketing staff needs to struggle for complex calculations of what, how much, and how to offer rewards. Wise mind says if you don’t have products that are consumed as regularly, maintaining a loyalty program may be a setback for your business. However, in online shopping eCommerce portals, users usually don’t confine to one-time purchases.

    A points-based rewards system is best tailored for online shopping eCommerce business loyalty campaigns, as customers earn equal points for each dollar they spend on their products. 

    Redeeming rewards points is as simplified as solving simple mathematical division questions.

    Multiple Touchpoints – Special Reference to Smartphones and Mobile Apps

    Today, smartphones are much more than calling and messaging devices. Online shopping boomed vigorously after the recent evolution in mobile phone technology. 

    Nowadays, customers prefer shopping through smartphones and tabs, as these devices are portable – yet, support features such as online cart systems, payment gateways, etc., available on eCommerce websites. 

    According to a survey conducted by Statista in November 2014, some very unusual facts about mobile app payments are revealed:

    • Thirty-five percent of people worldwide believe mobile payment is a convenient way to pay.
    • Thirty percent think it’s much faster to make their payments with smartphones or tablets.
    • As much as 21 percent of people assume mobile payments to be much more comfortable than cards or cash payments.
    • Similarly, 21 percent believe they don’t have to grab a physical wallet to make payments when their cards or banking details are available online.

    Segment Your Customers – Draw that Fine Line

    If you are experiencing meager looking customer retention rate – like, somewhere around 4-5 percent, take a shy of relief, its best at par norm. This small number of repeating customers bills for above 70 percent of your total sales volume.

    Segmentation of customers improves your targeted marketing campaigns by exerting the required effort for each user segment group. 

    As reported by Statista, in August 2014, a survey portrays 63 percent of respondents agreed to improve their customer segmentation strategy and relevant targeting approach.

    Customer Experience – Boon for Web Stores

    Pull your customers back to your eCommerce store by employing methodical tactics of customer experience. Ensure to compensate added value to customers for their time, money, and efforts. Positive customer experience reinforces your marketing techniques and guarantees repeat sales.

    According to global consumer satisfaction reports published by Statista in Oct 2014, 83 percent of online consumers confirm their satisfaction with online services; whereas, the in-store customer satisfaction percentage is 63.

    Similarly, in Europe, 80 percent of online consumers consent to online shopping services, which for in-store customers is 64 percent. 

    Conclusive Outcome

    eCommerce business can develop effective loyalty marketing campaigns by applying an appropriate mix of each of these features. This blog includes significant loyalty campaign practices, and before you leave, here are one-liners to sum up.

    • Wisely layout your rewards options – be it tier rewards points, cards system, etc.
    • Optimize your loyalty program for mobile and tablet devices.
    • Segment customers based on the revenue they bring to your store and develop target marketing.
    • Customer experience governs your future sales and repeats visits from existing ones.

    So, now you have a reasonable idea of loyalty program best practices for eCommerce business, it’s time to get going.

    At NextBee, we would love to help you develop a quality loyalty program for your eCommerce business and feels pride in watching your growth.

     Suggested Readings for Loyalty Programs:

    1. Top 8 Best Practices for any meaningful Loyalty Program
    2. Looking to Increase Sales? Choose a Customized Loyalty Program!
    3. Should My Business Have a Loyalty Program?

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