7 min read

Step-by-Step Guide for Crafting Loyalty Programs for eCommerce Businesses

🕒 July 24, 2022 by Reham Omar - 7 min read

Customer loyalty is not easily obtained. Customers are driven by their objectives and will be loyal to the firm that can assist them in achieving those objectives. It makes no difference if they have a good history with your brand; if a rival makes a better deal, the consumer will accept it. Unsurprisingly, 84% of customers say they’re more inclined to connect with a business that offers attractive incentives, discounts, tailored offers, and exclusive deals.

A customer loyalty program is a consumer-facing marketing approach that incentivizes customers to continue to pick and connect with your shop, resulting in brand loyalty. The measures outlined below can assist your organization in staying up to date and establishing a loyal consumer base.

Factors That Influence the Success of an E-Commerce Loyalty Program

  • A compelling customer loyalty program is best defined as ‘irresistible,’ The incentives for purchases make consumers’ purchasing habits seem worthwhile and practical in most circumstances.
  • Some of the common eCommerce loyalty programs that assist online retail firms in developing a community are points earned, sign-up discount coupons and loyalty incentive programs, surprise upgrades, discount vouchers, and gifts.
  • These programs are well-planned strategies that build the brand-customer relationship while preventing client churn. A regular consumer will gradually realize that the company is aware of his goods preferences and will promote similar things by giving attractive discounts.

This is mostly because loyalty programs evaluate customers’ psychology, economics, and current trends to determine the best method to keep a client satisfied and wanting more.According to research data, rewards and loyalty incentive programs are the most powerful motivators encouraging customers to associate with other consumers. Almost 7 out of 10 customers remain loyal to a business because of its unexpected offerings, prizes, and discounts.

Impact of Loyalty Program On Your Business

Enhanced Customer Engagement

 Customer involvement is a critical factor that has a direct influence on brand sustainability, particularly in the long run. A brand not connecting with its target audience has a low recall value and fails to establish a trustworthy brand image.

The Influence of Best Brands and Loyalty

Consistent brand interaction may aid in developing brand affinity, bolstered further by a loyalty program.

Improves Customer Experience

 Customer experience is the sum of a customer’s interactions with a brand from pre-sale to post-sale procedures.

 Customer experience is the sum of a customer’s interactions with a brand from pre-sale to post-sale procedures.

Increased Customer Retention

According to data, 84% of consumers are more inclined to remain with a business that provides a loyalty program, and 66% of customers think the chance to earn incentives genuinely alters their buying behavior.

Steps to Develop Effective Loyalty Programs

Recognize Your Target Audience

When developing a program to reward potential clients, you must first learn what they desire. Who doesn’t appreciate getting free perks and rewards? However, if you know exactly what your clients want, you may provide additional incentives to improve sales. Before launching the program, conduct research to determine what your clients would want to receive as a free gift. For example, when you supply what clients want, you receive more revenue and establish solid relationships with them.

Calculate the Success Rate

To measure success rates, the initial stage in developing an appealing e-commerce loyalty program entails the extensive study of existing bandwidth, consumer expectations, external variables such as market trends, rivals’ marketing, promotional strategies, and so on. To avoid risks, it is necessary to consider the ideas that consumers love about the brand, such as the availability of workable and responsive E-commerce apps or sites for online purchasing, pricing, the availability of the latest goods and services, customer care, gifts and prizes, recognizing buyers’ behaviour with price reductions, and more. According to a 2017 COLLOQUY study on loyalty programs, easy use, discounts, and comprehension are the top three factors determining whether a reward program is effective.

Provide a Specific Value

Make a loyalty program that provides exclusivity. By delivering awards, you encourage sales while providing unique value to your consumers. As a general rule, humans like to repeat behaviors with value. You know your consumers, goods, and services better than anyone else; therefore, use that expertise to provide exceptional value to your customers. Furthermore, most successful firms provide a distinct value to their clients, which is why they are successful.

Strive For a Variety of Rewards

Another strategy to increase your loyalty program’s value is combining incentive programs. It would help if you employed several incentive choices, such as free advance tickets or movies, organizing a contest, free membership to products and services, and so on, in addition to a discount.

Considering the nature of your business and industry sector, consider implementing numerous customer loyalty programs to increase brand loyalty.

Create Customer Interaction Plans

You must inform your consumers about the loyalty programs as a service you provide. As a result, you should devise several methods to keep them updated about the program. Through numerous channels, including email, direct mail, SMS, social media postings, advertisements, and more, you may let your consumers know about the budget loyalty program. Furthermore, clients frequently forget about their earned points, so encourage them to use the programs. You can utilize any strategy that is appropriate for your business. The most crucial component of any process is execution, which establishes and defines the loyalty program tactics.

Loyalty Programs for Branding and Marketing

The company must sell its attractive loyalty program to its consumers after managing to avoid the dangers and elements that might lower the success rate of loyalty programs as a service. Marketing helps to generate admirers, who eventually become customers. Branding and marketing strategies used to promote loyalty programs must be distinctive, individualized, and in tune with both the wants and expectations of the target audience for the brand and their purchasing power.

Increase Your Social Contacts

Adding a social component to your loyalty program is one of the most effective methods to keep consumers returning. Customers will be able to connect with your firm if you build a significant community around your brand, whether it is monetary advantages or presents. You can always gauge what your customers enjoy and think about your business using chat rooms and forums. Additionally, it provides you with the immense benefits of word-of-mouth publicity. This is an excellent stage for a loyalty program and may result in genuine understanding and longevity.

Frequent & Timely Communication

Aside from promoting the reward and loyalty schemes, e-commerce firms must routinely design email campaigns and send SMS and message updates on plans, impending modifications, upgrades, and more. The timely dissemination of information enables customers to sign up for programs that meet their needs and requirements, increasing their faith in the brand.

Encourage Customers To Share Their Thoughts And Experiences

When businesses are certain that their clients are pleased, they may encourage them to post ratings and reviews on social networks and other appropriate channels. Customers may help brands get more exposure by sharing, liking, and tweeting user-generated content and actions.


AliExpress eCommerce Company In Saudi Arabia

Global marketplace Aliexpress brings together customers and sellers from all over the world. When the website was originally introduced in 2009, it quickly rose to become the most well-liked marketplace for entrepreneurs and small enterprises to sell their goods. Aliexpress’s success may be ascribed to its dedication to openness, simplicity, and cheap costs. Due to the large selection of goods it offers at reasonable rates, Aliexpress has become a popular destination for many consumers.


There is no one-size-fits-all solution to developing an e-commerce loyalty program that increases revenue. Adapting your loyalty program to the demands of your consumers is critical to providing unique experiences that entice them to return for repeat purchases. It is also necessary to keep your current consumer base.

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