Company, : Customer Loyalty Program to enhance your E-commerce Business: How to implement it for your own customer loyalty program?
May 3, 2018

With the development of internet and technology, it becomes much easier for ecommerce companies and other online businesses to reach out their audience. To acquire customers, sell a product or service and to increase retention ratio of users different technique and strategies are required. If you are new in your business, then grow your business through E-commerce Features for Acquiring, Selling & Retaining Customers.

While getting a new business is not always an easy task, similarly growing the same business requires immense dedication and spectacular ideas along with fewer resources and time.
In this blog, we came up with the easiest solution to you known as ‘Customer Loyalty Program’.

What is a Customer Loyalty Program?

The term ‘Customer Loyalty’ means the intense desire of the customer to continue to go with a particular brand on account of their positive experience, satisfaction, and the value they get during the transaction with the same.

A customer loyalty program is the best way to encourage the loyalty of customer by offering rewards and other advantages in order to patronize the products and services of the business.
The customer can avail the following facility with this program:

  • Discounts & Rebates
  • Rewards & Prize money
  • Coupons & Free vouchers

A Need for an E-commerce Loyalty Program

The greatest benefit of the loyalty program is that it has the capability to turn your whole business towards the most successful and commercial section of your customer foundation.

This implies that your business will start serving more to those customers who have continuous purchases- considering on your implemented loyalty program.

With the time, using the collected data from a loyalty program, you can find out the means to make your least profitable customer into more profitable, raising lifetime value of your customer, decrease accession cost and build a true growth by increasing the revenue of the company and overall profitability.

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What are the types of Customer Loyalty Program?

Let’s discuss them in the following section.

  • Points System
    A Points system act as a fundamental and basic type of loyalty program that works on the principle of expending more to earn more points. In this, Points should be reversible in rewards form, like Discounts, Freebies, and Special Items. For Online stores, it is one of the most popular program cases. Also, this is preferable for the shop that promotes non-stop and inexpensive purchases.

    Note: build it straightforward and simplified

    For example-Grow and Behold. is used to supervise straightforward rewards program by this brand. InnerEgo also used for the setup based on order value. Another example is of S-Loyalty which is used by Sitara Collections and Sophie & Toffee as well to carry out a point based system.

  • Tier System
    A Tier system functions on the degree of loyalty based upon the principle of more a customer purchases, more the rewards tier they can roam.

    This type is basically used in that business where customer purchases big-ticket that happens sometimes only, like in travel industry. This system is mostly acquired by many airlines with an aim to keep members attach for the long term. Apart from the travel industry, this plays an important role in E-commerce industry as well.

    Note: For being part of the program, first initiate with a small base reward and then move the next level easily without negligence of program.

    Like uses Reward Camp for doing the similar setup.

  • Partnership program
    As per the survey of COLLOQUY, about 68% of millennials will stick loyally to the most rewardable businesses. Also 82% of consumers expected for the loyalty programs with offer more choices. And Partnership program is an outstanding way to point millennials along with forming partnerships with other businesses. There is a famous meet up group in Austin, known as Boss Babes which makes a partnership with brands, local hotels and spas etc. to propose rewards and various discounted choices to their registered members.

    You can also find something same in your era to encourage awareness with brands and themes that are on the climb.

  • VIP (paid) program
    VIP program is the proposal which is offered by some companies and the customers can enjoy its luxurious perks like discounts, freebies, and other specific alternatives by joining a paid membership.
    Amazon Prime is an example for this which bills a direct fee for VIP services like free and quicken shipping. This also makes customers feel more satisfied.
  • Other reward programs
    There are other rewards that can opt are mentioned below:
    To donate other companies- This is the best way if it is associated with your own company tradition.
    Online Contests or Games which constantly runs through the company that offers winners gadgets such as Macbook Pros, Fitbits, and other software programs. This makes them able to collect hundreds and thousands of subscribers to their email database and social sites.
    Note: Must ensure that the chances of winning the game should not be more than 25% and the members must attain it so that they also feel that they don’t cod.
  • Hybrid Programs
    This program is an amalgamation of any of the aforesaid loyalty program. This stratagem is to get ingredients from various programs that combine well together.

    For example of Kiehl’s Rewards, this offers you a guaranteed free birthday gift along with $10 reward with every purchase of $100. Using Zinrelo, Oxygen4Life carried out a hybrid program that offers Points-based, Tiers via account creation, Birthday bonuses and many more.

  • No loyalty program
    There are few brands which do not have loyalty programs but still, they have loyal customers and the reason behind that is their irresistible product such as Apple or iPhone product.
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How to Measure Effectiveness of Customer Loyalty Program?

Its effect can be measured by following ways:

  • Customer Retention Rate- It measures the number of customers retained over a given time period i.e. a year, a quarter, etc. and can be increased by implementing this program.
  • Net Promoter Score (NPS) – By this tool, the customer can score your business on a scale of 1-10 that gives you the proper feedback for your business growth.
  • Negative Churn- This indicates the number of customers that discontinue their interaction with your business by a certain period of time.


Though several choices are available in the industry still it’s difficult to win customer’s heart but with the proper plan & strategy, an E-commerce Customer Loyalty Program can turn the things towards your company’s benevolence.
At JaySocial, we have influential digital marketing tactics and techniques to drive more traffic by building strong presence of your online business.

Stay Aware with Innovative Strategies to Win the Ecommerce Battle in 2018

[…] Implementation of a solid loyalty program has prime role to bring people back to your ecommerce store and let them as feeling appreciated for spending their money on your product offers. An effective customer loyalty program helps in pushing the customer loyalty by simply providing valuable rewards to customers to patronize both products and services offers associated with your business. You can conduct loyalty programs by providing customers with rebates and discounts, free merchandises, rewards, access to unreleased products, coupons and many more. […]

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