For every business, creating the most satisfying experience for the user is the priority task. User experience (UX) will decide the success or failure of a brand, so retailers eagerly look for new ways to improve the journey.
And now they have found the ultimate strategy: Loyalty programs.
What is a loyalty program?
Loyalty program is a famous marketing technique that encourages consumers to interact regularly with the brand. It has become more and more popular recently thanks to the advance of technology when store owners have more options in giving rewards to their visitors.
In general, loyalty programs provide some kinds of reward for customers who purchase or share information about the brands. It can be a discount code, special promotion, free benefits such as free shipping, rewards points that can be used for the next shopping.
All these advantages make customers active members of the business as well as the community who shares the same interest. Maybe you haven’t bought anything from the stores but you still can join the loyalty program to spread the brand images further.
This practice has become one of the best allies for stores to bring visitors closer to the brands. There’s no limitation in the range of industry or the size of the business, everyone can apply loyalty programs into their system. Giants like Starbucks (in F&B) or Sephora (in cosmetics) have gained lots of profits with their effective loyalty programs. A local small store in your neighborhood can also give coupons for regular customers to keep them coming back.
Both merchants and customers fall in love with loyalty programs for a really simple reason: They increase UX easily! But how exactly can loyalty programs boost UX?
How loyalty programs effectively increase UX
- They’re inexpensive for both sellers and buyers
According to research, you may cost 16 times more of the resources to attract new customers. It’s a smart financial move to invest in better customer services and maintaining loyal buyers.
With a loyalty program, you can balance between brand promotion and UX. Rewards make customers come back for more purchases while giving credits for visitors who introduce the store to friends and family. Even if they haven’t registered for your brand yet, they still can benefit from your loyalty policies.
- They boost sales easily
There’s no doubt to say that loyalty programs increase your conversion rate. With the rewards customers got, they can have advantages for the next deals, such as free shipping, discount or special gift.
Customers are more willing to shop when they see they can catch a bargain. Rewards can give them this confidence and at the same time create a sense of urgency for people to make a purchase before the rewards expire.
- They improve customers’ satisfaction
It’s important to create the most satisfying journey for the customers. It’s understandable that buyers will definitely walk away if they receive bad services. Loyalty programs are one way to make sure that you can bring the best UX.
These programs are an effective way to say ‘Thank you’ to your loyal customers. The more interaction with the brand, the higher the chance of getting valuable gifts. Rewards can be given on many occasions such as buying in-store, signing up as a new member, referring a friend or sharing the store on social networks.
- They allow customers to be a part of the business
With a loyalty program, buyers can follow the progress of how many rewards they have earned and try to engage with the brands for higher prizes. As they continue to shop, the account will add up, which makes them stay with the brands while the stores gain more revenue.
Each stage has a goal so customers can aim for a higher rank within the system. They can be more active on when and how to use the rewards they get.
- They have various ways to give reward
There are numerous types of loyalty programs for retailers to choose from, based on their needs and resources. Some common forms are points loyalty program, tier loyalty program and fee-based loyalty program. Each has its own strong points, however, rewards points are the most effective program you can take advantage of.
For Magento-based websites, retailers can easily manage Magento loyalty program, customer reward point, gift card, and store credit with Magento 2 Loyalty Program by Magestore, Magento 2 Reward Points by Magenest and Magento 2 Reward Points by Mageplaza.
Magento 2 Reward Points is the best extension to create customers’ loyalty. Admin can set up different rules and design the points system, from that, attract more potential buyers to visit your store. With simple configuration, this product will maximize your sales and build up a flawless UX!
- They help stores understand customer behaviour
Loyalty programs help retailers have a quick look at the ways customers behave at the store, such as how frequently they spend the rewards, which products are trending right now or which rewards programs are favorited. All of this information helps the owners to create an effective sales strategy and marketing campaign.
- They expand the influence of the brands
As we have mentioned before, loyalty programs make the customers a part of the business. When they start to trust the brand, they will spread good words about your stores. Jeff Bezos, the co-founder of Amazon has said: If you do build a great experience, customers tell each other about that. Word of mouth is very powerful.
Usually, stores give credit to customers who share the info to SNS platforms or refer friends and relatives about the brand. Besides, an effective loyalty program can also attract new visitors to explore the business and become a new member of the community.
Conclusion
Loyalty programs are a new trend in online shopping. It has quickly proved its efficiency in increasing UX; that’s how it gained rising popularity. Simple and user-friendly, the loyalty program can be your secret weapon to attract the most customers. Implement your chosen loyalty program now and prepare for the new development of your business from today!
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