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Does Loyalty Program work in e-commerce?

By Tiago Moraes 2 minutes reading
Does Loyalty Program work in e-commerce?
Man writing Happy Client on a virtual screen conceptual of feedback, support and quality service and products.

A Loyalty Program is a marketing tool that – like the Sales Funnel – aims to acquire and retain customers, motivating them to remain active for a long period.

When I say “active customer”, I am referring to that type of consumer who periodically makes purchases in your virtual store, which provides you with more profit, because loyalty is cheaper than winning a new customer.

Although the concept is the same, Sales Funnel and Loyalty Program are different features. While the first focuses on loyalty through content, the second offers a constant reward for those who continue in the relationship.

You might think that in the Sales Funnel, there's a Digital Bait that's also a reward. However, this is distributed only once (at the beginning of the customer acquisition process). In a Loyalty Program, on the other hand, the reward is constantly and continuously offered to active customers, motivating them to continue buying indefinitely.

In this process, it is possible to choose several ways to reward active e-consumers. Here are some of them below:

– The customer earns a bonus whenever he makes a purchase, which he can exchange for other products in the future;
– The consumer gets a gift physical or virtual whenever you accumulate a certain number of purchases;
– The customer gets an official product or service from your online store for free after reaching a purchase goal in one month.

In addition to these rewards, you can also work with others like airlines with their frequent flyer system or cell phone companies, which offer credits and benefits to regular customers.

To work well, your e-commerce Loyalty Program must offer prizes that are very dear to the people who make up your target audience, otherwise it will not arouse interest. If the rewards are really good, your customers will stay active for a long time. 

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