Does free shipping on loyalty program work?
Free shipping included in loyalty programs is an alternative that generates benefits for the e-commerce market . It makes it possible to transform regular customers into repeat customers. But ultimately, is this good for the retailer or for the consumer?
What is e-commerce loyalty program with free shipping?
In e-commerce, a loyalty program is a plan created by an online retailer like you that can be subscribed to by consumers in general. This program provides numerous benefits to those who adhere to it. Check out some of these benefits below:
• Free shipping;
• Faster deliveries than for non-subscribers;
• Free access to videos and TV programs inaccessible to ordinary customers;
• Free access to certain films;
• Access to certain exclusive products;
• Exclusive discounts on some products.
By subscribing to this type of plan, the consumer commits to pay a fixed monthly fee to the virtual store. With this, he will be able to continue in the program and receive his benefits.
• Also access and read the post “ Sales in e-commerce ” and learn how to set goals correctly.
These are loyalty programs, for example:
• Amazon Prime;
• Shoptime Prime;
• The Prime Submarine.
If well managed, these programs can improve services for consumers while simultaneously increasing the revenue of the e-commerce business.
Is free shipping in a loyalty program good for the consumer?
For this type of service to be worthwhile for the consumer, it must have a high monthly purchase volume. Therefore, the value of free deliveries exceeds the value of the subscription.
As an example, Shoptime Prime has a subscription of BRL 79,90 per month, which is not an advantage for consumers who only make a monthly purchase, as they would be paying too much for just one delivery.
On the other hand, the sum of the values of the other benefits of the plan may alone exceed the subscription price, which can also be good for the consumer.
Advantages of the Loyalty Program for the Virtual Merchant
When you get subscribers to the loyalty program, you can count on a fixed monthly payment that, in turn, can be invested in different other businesses or as you wish.
In addition, subscribed consumers become frequent customers who buy much more than regular customers, as the loyalty program is only beneficial to them if there is a frequency of purchase.
Conclusion
E-commerce shipping in a loyalty program is good both for consumers who buy frequently and for the online store.
The first has access to faster and free deliveries, among other benefits.
And the second gets a more engaged audience made up of regular customers, which allows it to earn money from the sale of subscriptions and products.
