Conditions, points and rules are three building blocks of a loyalty program. With an undying interest of eCommerce shoppers to earning reward points when shopping online, it is critical to create them in a most appealing way. While 66% of consumers tend to modify their purchase amounts in order to increase points earned, let’s have an insight on the rules that resonate with customers the best.
3 Pillars of Every Reward Points Extension
1. Rules that regulate how reward points are assigned
This is the most important part of each and every Reward Points extension as it creates basic conditions to assign reward points for performing certain activities. According to Colloquy, 57% of the US shoppers will abandon a loyalty program if it takes too long or it is too complicated to earn credits. With this said, we’ll pay special attention to this specific pillar in this post.
2. Points Management and Usage
Both customers and merchants expect reward points to be as easy and transparent as possible. With that in mind, points management and usaget are essential. When it comes to shoppers, they naturally expect to use points as a payment method. As for merchants, it is critical to have a possibility to manage reward points flawlessly, set points exchange rate/conversion, etc.
3. Special and unique features
Interesting that 57% of shoppers that participate in loyalty programs, do not know the number of reward points they’ve got. 37% of them have no idea what is the value of the earned points. With that in mind, it is critical to keep customers informed about their balances. Such functionality as sending in-store reminders or email notifications, for instance, is certainly a nice-to-have. According to CodeBroker, 56% of shoppers either changed or abandoned their shopping carts as soon as they found out that the reward points had expired. Keeping customers informed will certainly serve you well.
While the major objective of a loyalty program is to increase customer lifetime value and sales correspondingly, the following 10 features certainly pitch in. Why features? I did have certain doubts about defining rules as features. Nevertheless, let’s trust most Magento developers who believe that rules are features as that makes sense.
10 Effective Rules to Assign Reward Points
Personalization has been trendy for a while already, and remains powerful today. That is why merchants address shoppers by name when reaching them out via emails, and recommend items/services based on customers’ past purchasing or browsing information.
If you are looking for a good way to connect with your clients, consider creating a positive emotion by offering Birthday reward points. Customers must see value in your offer.
There is a non-written rule regarding the amount of birthday reward points, which is to give 25% of the amount you’d offer to a new customer for creating an account. This is just an approximate number, and it is totally up to you what amount of points to present.
Do you think customers get irritated when asked personal info? Hm, maybe some of them are as you can’t make everyone happy. But it is worth giving a try. Moreover, 61% of shoppers say they are ready or even want to share personal data in exchange for reward points.
With all the advantages that registration of online shoppers offers – better customer service, enhanced shopping experience, fast checkout, improved sales – it is certainly worth giving a try.
This is one of the rules that can be displayed on the cart and checkout pages. Offer to complete an order ‘now’ and earn points. The earned points can be used as a discount on future purchases. This can have a positive effect on increasing customer retention. However, there are high chances that users will expect rewards any time when further purchasing with your store, or wait until you make such an offer. There is obviously fine line, and you should be careful about it.
Completing a profile
Only 14% of brand loyalty programs offer rewards for completing a profile. Surprising? Asking users to complete a profile is paramount for your Magento store, as it helps improve:
- Shopping experience. Merchants get to find out about their customers more, and keep them returning.
- Order info. Data on shipping will be stored all-in-one place.
- Sales. 51% of customers are more loyal to brands that use their preferred communication channels. WHy not ask users to specify the most essential for your fields?
- Customer retention. New customer acquisition can cost up to 7 times more than customer retention, returning customers has been proved to spend 67% more.
Newsletters have been proved to increase and maintain relationships with the shoppers. According to Nielsen Norman Group, 90% of online shoppers prefer to receive newsletters as opposed to Facebook notifications. This rule is created to reward customers with points on successful sign up to your newsletters.
Leaving a review
It’s not new that online reviews impact 67.7% of purchasing decisions, while 90% of consumers read them before deciding whether to deal with a business or not. Positive reviews are good for business, while negative reviews stimulate development and improvements.
This rule can be used as a ‘thank you’ for taking time to leave a review. Time is money. Show your customers that you care about their time. In fact, 50% of Gen Zers are more likely than Millennials to write a product review in exchange for points. That’s where either a completed profile or provided birth date comes in handy!
Specific amount spent
According to the stats provided above, online shoppers tend to shape their purchases in order to earn points. This rule helps increase minimum purchases. If the amount of items in a shopper’s cart is close to the set by your figure, you can gently inform them about a possibility to get reward points.
Specific number of products bought
This rule offers to reward customers that purchase a certain number of items/services per order. This may lead to purchase increase, especially if the rules of your rewards program are made available.
Absence of customer activity for a certain period of time
Do some of your customers haven’t shopped for a certain period of time? Offer them reward points for coming back! This can become an intrinsic part of your retention strategy, specifically when carefully blended with personalization.
According to Nielsen, 92% of customers trust people they know. This is the power of the word of mouth. When learning about an offering from family members or friends, 77% of shoppers are more likely to complete an order. Why not stimulate this by offering reward points without being too pushy?
No secret that customers expect rewards when they shop online. With that in mind, make sure to choose eCommerce solutions that allow creating rules that resonate the best with your Magento customers.