How To Set Up A Loyalty Program On Your Shopify Store

Loyalty and rewards programs have proven themselves as one of the most effective strategies for increasing your online shop’s revenue and inspiring customer loyalty. A study shows that 84% of customers said that they are more likely to stick with a brand that offers a loyalty program. And 66% of customers said that the ability to earn rewards and spend them later actually changes their spending behavior.

It’s well known that it’s much cheaper to promote and sell to your existing customers rather than acquiring new customers. And not only new customers cost much more to acquire, but they also don’t generate as much money as loyal customers do. That’s why a lot of brands invest in loyalty and rewards programs.

Customer loyalty and rewards programs are nothing new but yet they can be so effective. Most of the programs fall into one of four categories: points, tiers, social media, and paid programs. But some merchants are still finding innovative new ways to build rewards programs and inspire customer loyalty.

First of all, in order to build a loyalty program on your Shopify store, you need to find an app on the Shopify App Store to help you create your first customer rewards program. One of the best apps is Growave, with average 5-star rating. Growave is the all-in-one marketing platform that can help you reach your audience, engage users, and increase conversions with ease. You get all tools for reaching, engaging, and converting your customers like Reviews, Wishlists, Rewards and Loyalty, Instagram galleries, Automated emails, Social Sharing and Social login for a great price, all under one dashboard. 

After choosing and app you need to choose the type of loyalty programs. There are tons of different types of programs you could offer. Two of the most common ones are:

  • Giving out points through sales is the most common loyalty program out there. Customers earn points on every purchase or action they make at your store, and later they can redeem those points for free products, discounts or coupons.
Source: Uniqso (Loyalty and Rewards app by Growave)
  • Creating a VIP experience for your customers by revolving your program around tiered memberships, giving them the option to earn or redeem points at different ratios. For example, Gold members earn 20 points for every dollar spent, while Silver members earn 10 points for every dollar.
Source: Uniqso (Loyalty and Rewards app by Growave)

No matter which type you are going to choose, your program needs to be easy to understand.

And after you’ve chosen what you’re going to offer, what your points system will look like, it’s time to put the final steps in place for launch. Here are some basic steps in order to build and launch a loyalty program:

1. Choose An Awesome Name

The first step to setting up a successful customer loyalty program is choosing an awesome name. The name of your program needs to incite interest to urge the customers to participate. It should also not only mean that your customers will be getting a discount but also needs to be catchy and make people feel excited to be a part of it.

2. Create A Meaning

Some customers lately became cynical about customer loyalty programs and think they’re just here to get them to spend more money online, so it’s your job to make your program about more than the money and discounts — make it about the values — to make sure your customers are excited about it.

3. Reward A Variety Of Customer Actions

Another way to show your customers your love and value is to reward other customer actions. Whether they are logging in and adding their email address, sharing reviews, mentioning your brand on social media, watching product videos, and subscribing to your blog, all of these actions show that a customer is engaging with your online brand, so you should reward them for it. The survey shows that this is what 75% of customers involved in loyalty programs want and expect from an online store.

Source: Mantraband (Loyalty and Rewards app by Growave)

4. Offer A Variety Of Rewards

Also, in order to provide more value to your best customers rather than just discounts at the checkout is to offer them different rewards. For example, customers who spend a certain amount of money or earn a certain amount of points on your loyalty program could exchange them in for free package subscriptions, backstage events, or exclusive products from your brand. 

Source: Sephora

And remember, customer loyalty programs are crucial to building customer loyalty no matter how big or small your business is. Following the steps above should help any business develop an effective loyalty program regardless of its size.

We here at Growave are ready to help you anytime to build your own Shopify store and make your brand go viral by encouraging users to share your brand on social media and email, build strong customer relationships using your loyalty program, comments, and reviews, and drive inspiration and increase conversion rates using customer reviews and user-generated content.