Shopify has grown into an e-commerce platform that hosts over a million businesses around the globe. With its ease of use, extensive ecommerce capabilities, and scalability, Shopify has become a popular choice for businesses looking to sell online. Additionally, with a loyalty program in place, Shopify merchants can enhance their customer loyalty, enhance repeat business and build sustainable and profitable relationships with their customers. This article will provide insights and guidelines on creating a loyalty program on Shopify.

Why is a Loyalty Program Important on Shopify?

A loyalty program offers incentives to customers to encourage them to return and purchase more frequently, leading to increased revenue along with an increase in customer loyalty. With a loyalty program, businesses can offer reward points, gift cards, and other incentives that will encourage customers to engage more frequently, increase their average order value, and generate numerous loyal customers. Loyalty programs help businesses to engage deeper customer relationships and heighten customer retention by creating a sense of belonging to the community.

Steps in Creating a Loyalty Program on Shopify

Creating a loyalty program on Shopify can be accomplished in a matter of minutes, and this section outlines the steps involved.

Step 1: Installing the Loyalty App

Shopify offers several loyalty program applications on their app store. Merchants can choose from a wide variety of loyalty program providers suited to their business needs. Once selected, the app can easily be integrated with the Shopify store, allowing the business to offer their loyalty program rewards in real-time.

Step 2: Setting program goals and rewards

After installing the app, the merchant can tailor the loyalty program to their business requirements, then set specific program goals and rewards for the customers. An effective loyalty program aims to incentivize customers with rewards that align with their demonstrated preferences and behaviours, as they are more likely to engage and make a purchase.

Step 3: Launching the Program

Once in place, businesses can launch their loyalty program by making it visible to customers on the e-commerce website. Merchants can leverage the program to compel customers to make a purchase as incentive points are earned, aligning with program goals and rewards.

Step 4: Monitoring Program Performance

After launching, it is essential to monitor program metrics and performance. Reviewing reports and analytics monthly and frequently checking support forums can help to identify and address any issues, allowing businesses to make data-driven decisions based on customer behaviour.

Recommended Loyalty Program Features

Shopify’s loyalty app offers several features that can be incorporated to help create a successful loyalty program.

Point System

A points-based system is an effective way of rewarding customers for loyalty. Rewards points can be earned for behavior such as signing up, sharing on social media, or making a desired purchase. Points can then be redeemed for various offerings such as discounts, free products or free shipping on their next order.

Referral Program

Incentivising existing customers to refer their friends to the store can boost the number of visitors and increase the potential for new customers. Referral program promotions show appreciation to the existing client whilst offering incentives for customer acquisition through a points-based system.

Tiered Programs

A tiered program encourages customers to continue their loyalty by graduation from lower to a higher tier to receive increased perks and benefits. Higher tiers reward more significant loyalty, creating a sense of exclusivity associated with being a premium customer.

Early Access to Products

Providing customers with preferred access to new products can help generate excitement, increase loyalty and boost sales, making it easier for merchants to stand out in today’s competitive online market space.

Conclusion

A loyalty program in combination with an e-commerce store is a perfect match. A well-designed loyalty program can help generate repeat customers who consistently purchase goods and services through the business. Incentives, referrals, and early access to products are crucial elements of reward-based programs and keep customers excited and engaged. As Shopify offers numerous loyalty applications that integrate seamlessly with Shopify stores, there has never been a better time to get started with customer loyalty programs.