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If your clothing e-commerce website or app lacks a loyalty program, you’re missing out. Loyalty programs provide a unique opportunity for e-commerce stores to build deep and intimate relationships with their customers by rewarding their customers.

Read on to learn all about loyalty programs, their best practices, and more, so your online store can start profiting today.

What is an e-commerce store loyalty program?

Loyalty programs for e-commerce stores are customer retention tools to keep customers engaged and loyal to your store. This leads to loyal customers who shop on your site again and again and buy in larger quantities.

Many loyalty programs award points for every dollar spent. Once enough items are earned, customers can use the points to save money on another purchase or redeem them for rewards. In physical stores, loyalty programs are usually loaded through the card you scan at checkout. For e-commerce stores, however, the merchant often asks customers to sign in, which allows their loyalty message to be published and updated based on each new purchase.

How popular are loyalty programs?

According to research by Synchrony Financial, 80% of American adults participate in loyalty programs, the most popular of which are grocery stores and drugstores. However, apparel and accessories brand loyalty is on the rise: 65% of consumers surveyed in the survey above said they have apparel loyalty programs.

What are the benefits of a loyalty program?

When building an e-commerce store loyalty program, keep these five tips in mind:

Use the layout. Today’s customers don’t want content. They value their personal brand which gives them a sense of brand involvement. Creating a loyalty program that shows your customers what clothes and accessories they like, and provides personalized and relevant recommendations and offers goes a long way. Madewell allows Insider Club members to track their purchases – and therefore their points – and offers them a free design of denim and leather products through stamping and cutting.

Focus on loyalty programs with your existing customers, not on bringing in new customers. When it comes to loyalty programs, 80% of revenue comes from 20% of loyal customers. That’s why it’s important to keep your existing customers happy with your rewards program. Review your research and analysis to find products and offers that resonate with your audience, and continue to reap those rewards.

Introduce Progressive Web Apps (PWA) instead of plastic loyalty cards. The days of plastic loyalty cards are over as people store more information on their phones than in their wallets. Therefore, it is good to have a loyalty program of online stores in a digital way. This way, customers can see their status, rewards and more with a quick click on their phone. For more information, see our blog post on mobile overclocking and PWA.

Give customers the ability to add more to their carts. A good loyalty program should encourage its members to spend more on their car than they originally intended. Do this by offering “double-level promotions” (like: “Add this to your cart today and you’ll get two points on every purchase!”) and other targeted offers. Nordstrom’s loyalty program “The Nordy Club” offers two personal dates for its customers who have achieved “Insider Status”.

Organize competitions on social networks. Successful loyalty programs encourage their members to interact with their brand on social media. Give your members points if they link their Facebook, Instagram and Twitter accounts. Then, offer rewards in the form of points and prizes for participating in social media contests.

What are the benefits of loyalty programs?

There are three benefits to creating a loyalty program for your affiliate e-commerce site:

Brand awareness has increased. Loyalty programs are an easy way to increase awareness of your brand of clothing or accessories in your store. Naturally, this awareness leads to commitment and loyalty. This helps e-commerce stores maintain and build long-term customer relationships.

Don’t follow buying habits. With a loyalty program, it’s easy to track what your customers are buying. This helps you manage inventory more effectively, generate sales and promotions, and improve your CRM database.

Other brand advocates. As people return to your store more often and engage more, they become brand advocates within their networks of family and friends. This word-of-mouth marketing is valuable – and is sometimes shown to be more reliable than a doctor’s recommendation. But remember: once these brand advocates have expressed their loyalty to your store, they should feel grateful. You can do this by offering special offers just for them, such as members of the H&M Loyalty Program-only “buy now, pay later”.

 

How has COVID-19 changed loyalty programs?

Even before the global pandemic, consumer buying habits were increasingly online, but COVID-19 has accelerated this change. People start getting involved in different ways. They want to connect with their favorite brands and they want benefits they can’t find anywhere else. For many companies, the answer to this is a unique loyalty program. Giving customers access to personal information, offers and rewards goes a long way.

Are you ready to start – or improve – an online store loyalty program?

At BMBMatrix, this is one of our specialties. As a top Magento partner, we know about Magento’s loyalty features. Additionally, we partner with e-commerce loyalty program companies, such as Nosto and Yotpo.

 

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