Today, the market has been becoming more competitive, and it is getting more difficult to satisfy customers.
Businesses, whether big or small, all expect to both gain profit and satisfy customers with their product prices. However, when price can not be a differentiator, companies have to look for another more effective option.
We know that customers love to be rewarded and get extra benefits to be committed with a brand through their shopping journey. Therefore, there is no solution that can acquire new customers aimed at long-lasting relationships and stimulate them to make repeat purchases rather than a loyalty program does.
When appropriately managed, a loyalty program can generate up to 20% of a company’s profit. No wonder US companies spend around $25 billion every year on these programs.
Truly understanding the vital role of a loyalty program toward the effectiveness of modern marketing, Mageplaza specially develops Reward Points extension for Magento 2. We believe that this module can significantly contribute to a successful loyalty program, promote seamless interaction between customers and store owners, and establish a great consumption cycle on your website.
Now, we will help you understand the vital role of reward points and introduce you to a comprehensive solution for your loyalty campaign.
Six convincing reasons why you should immediately implement a reward point tool in your online store
Cultivate customer loyalty
Customer loyalty is a measure of a customer’s possibility to repeat business with a company or brand, which is the result of satisfaction, positive experience, and overall value of goods or services that customers receive. When a customer is loyal to a specific brand, they are willing to pay more as long as they get the same quality product or service they have been familiar with and loved.
A reward system for the most loyal customers is a great way to keep customers committed to your store instead of switching to others. Ideally, when customers are rewarded for performing certain actions such as repurchasing, subscribing, rating, reviewing, etc., it makes them feel connected with your brand. As a result, in future purchasing, they are not easily influenced by the availability or pricing. They are excited to come back with your brand since the sense of belonging and rewarded experience previously.
Boost conversion rate and sale
Customers can be hesitant to place some orders in your store due to many reasons. However, with a reward points module, you can easily erase their hesitation and speed up order completion by letting them feel that buying is beneficial. The more purchases they make, the more rewards they get. Because reward points can be redeemed flexibly like lifetime sales, customers will be enlightened to buy more with such a good bargain.
The amazing results of reward points with loyalty programs have been proven. Research shows that business profits go up by 25% to 95% when customer retention rates are increased by only 5%.
Retain current customers and attract more new purchasers
Maintaining a relationship with an existing customer is seven times less expensive than investing in acquiring a new one.
With a reward point system, you can reward customers who have been inactive for a long time with points, invite them to visit your store and spend the rewards earned.
As mentioned above, it’s not easy to convert visitors into customers. However, if you offer points or discounts for their signup, you will be able to gain active and engaged users from the outset because customers normally want to take advantage of discounts. Meanwhile, if a customer sees a good loyalty program in rewards are within their reach, they are more likely to try your brand simply because the rewards are easily accessible.
Wider your brand recognition
By rewarding customers for sharing and reviewing, you can enhance your brand consistency and reach more potential audiences at a much lower cost. Since modern consumers trust peers over advertising, fostering loyal customers who will then speak out on your behalf is simply a smart business move. Statistics show that 61% of customers read reviews, and 63% of shoppers are more likely to make purchases from the stores with product reviews.
Improve customer’s satisfaction
Giving customers loyalty points for their purchases seems to be an ordinary way, which is not strong enough to impress customers. They expect to be regarded as a special person and receive personalized rewards. That is the reason why you should use an advanced reward points tool to delight customers. For example, you can offer them bonuses on some special occasions such as customer’s birthdays, major holidays, or promotional campaigns.
Enhance customer’s shopping experience
With smart reward point software, customers can see reward points calculated for specific behaviors everywhere in your store. That not only helps to remind them of the extra benefits that they get for every interaction but also creates convenience. Perhaps, for a major part of consumers, convenience is the number one factor determining how happy they are with a brand.
How does the Mageplaza Reward Point extension for Magento 2 benefit your business?
Among the powerful Magento extensions, Mageplaza Reward Point can help to build a firm customer base for your business. The details will be discussed in the following lines.
Boost customer’s interest in your reward points program with customizable points label
Getting loyalty points and rewards is no longer boring as it goes with the Mageplaza Reward Points label. Depending on personal intention, online merchants can make earning points more enjoyable and playful by naming their reward points with eye-catching labels such as coin, flower, heart, and so on.
With some simple configurations at the backend, you can easily win customers’ hearts and make them fascinated with your store site.
Generate more sales and lower cart abandonment by useful points spending slider
One of the most outstanding features of the Mageplaza Reward Points extension for Magento 2 is the points spending slider, which can be used to indicate the number of spending points. Store admin can display point spending indicators on the Cart page and the Checkout page to help customers decide the number of points that they want to redeem for purchasing an item. This not only increases their shopping experience but also encourages them to buy more by showing the sweet deal they have earned.
Turn an ordinary client into loyal ones with a flexible reward point system
Reward Points by Mageplaza provides the store admins flexibility to set up different reward levels through a system of conditions and respective actions. Besides, they can also make adjustments to many points rules such as:
- Minimum spending points per order
- Maximum spending points per order
- Points spending from tax
- Spending points on shipping
- Restore spent points after the order returned
- Use max point by default
Mageplaza Reward Points provides a helping hand to simplify the complications of managing the reward points system to the success of any loyalty program.
Effortlessly advertise products with social sharing and referring friend function
Rewarding customers for sharing products on social channels is a great function that the Mageplaza Reward Point module supports. This low-cost and useful feature encourages online shoppers to spread their online stores on Facebook, Google +, Twitter, etc.
Moreover, store owners can introduce products to a wider audience base by starting a Magento affiliate program and letting existing customers refer items to their friends. You can reward them with loyalty points, and at the same time, referred friends can also earn points or get a discount when shopping at your store.
Increase customer engagement by rewarding them for their behaviors
Besides rewards for purchasing, Reward Points extension for Magento 2 actively supports online merchants to keep track and reward customers according to their specific activities, including reviewing, rating, sharing, and others. With such a wide range of reward points categories, you can nurture customer engagement and make them feel like they are a part of your business.
Get insights into customers’ behavior with the advanced report
With the advanced report, the admin can see all of the actions leading to customers being added to the point. These accurate statistics can be a direct indicator of your reward point program’s performance, which will be improved by proper adjustments.
Together with the Mageplaza Advanced Report, the report dashboard of Reward Points will display a graph showing the ratio between spending points and earning points.
Speed up the order completion by allowing customers to apply points at the checkout
Customers can use their reward points to purchase products at your store by applying them at the checkout page. These points can be accepted as a kind of payment method. For customers, there is nothing more convenient than exchanging loyalty points for their wanted items.
Keep customers informed of any new rewards with API support
With the Reward Points extension for Magento 2, it is possible to integrate third-party modules or apps into the reward system. The API function allows users to get a list of all their offers in the selected format (JSON) with the payout presented in the selected currency. They can also filter rewards by status (pending, approved, or canceled), order, account affiliate, transaction, etc. As a result, customers will not miss any rewards from your store.
Reduce the reward management workload
Among appealing functions in this extension, importing and exporting points are widely favored by lots of business doers. Thanks to these features, admins can get rid of a huge amount of manual and complex workload by importing or exporting customers’ reward points transactions. For example, they can backup customer’s reward data easily when switching systems.
Mageplaza Reward Points full feature list
General configuration
- Enable/Disable the module
- Customize reward points labels
- Configure reward points icons
- Rewards for customer group
- Rewards for specific store views
- Set the maximum available points balance
Earning configuration
- Set rounding point method: up or down
- Allow earning points from tax
- Allow earning points from free shipping
- Enable/Disable point refund
- Allow earning points after Invoice created
- Enable admin to set the point expiration
Spending Configuration
- Minimum balance to spend points
- Insert the discount label
- Set the maximum spending points per order
- Spending points on tax
- Restore spent points after order refunding
- Use max points by default
Display configuration
- Displaytotal points on top links
- Display earning points on Minicart
Email Configuration
- Enable email notification
- Subscribe customers by default
- Set the email Sender
- Update point balance email
- Points expiration email
- Integration and other features
- Reward points by earning and spending rules
- Display reward point on the Category page, Product page
- Reports of earned and spent points
- Sell products by points
- Reward for Social behavior
- Display Social button on frontend
- Choose page to display Social button
- Reward for referring friends
- Invitation email for referral
- Allow inserting default refer URL
API integration
- Import/Export reward transactions
- Import points
- Reindex management
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This is the guest post contributed by Daisy from Mageplaza Team.
Daisy is a Mageplaza content writer, who loves to write about business solutions. She believes in the power of words and how a message can inform and even transform its intended audience.