How to Turn Casual Shoppers Into Loyal Customers [Infographic]

by Darren DeMatas  February 18, 2016

If you’ve ever ran or marketed an ecommerce site, you know how hard it is to get that first sale from a customer.

You need a super fast, secure site that your visitors can trust and marketing to generate relevant traffic. The problem is too many ecommerce businesses stop after that first sale.

Customers are looking for brands to be loyal to them. Implementing a rewards program is a fantastic way get the loyalty ball rolling.  But having a program that rewards for purchases alone is not enough.

Be Loyal to Your Customers

Retailers and customers are looking for ways to connect beyond transactions. 77% of transaction-based programs fail in two years. Rewarding customers for social sharing, product reviews and engagement hasn’t been easier, yet only 25% of rewards programs work this way. An effective rewards program puts customers first, brand second and money last.  If you’re not trying to build engagement, your program won’t work.

When loyalty programs work, it improves your relationship with your customers, generates repeat business and attracts new, loyal customers. A slight increase in customer retention can increase profits by up to 95%. Repeat sales are easier and more profitable for ecommerce businesses.

Don’t Focus on Discounts

The biggest mistake brands make is to put the focus of on spending and discounts. These types of programs attract the wrong type of customers. Unless you’re Wal-Mart, you can’t build a brand on discounts. While discounts are a key aspect of rewards programs, there are other ways to build loyalty.

Best Buy’s tiered reward program offers different benefits depending on membership level. Faster shipping and longer return periods are examples of non-discount based rewards.

The infographic below from Selfstartr illustrates the growth and profitability of rewards program.

The True Value Of Customer Loyalty Programs

Courtesy: Selfstartr

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About Darren DeMatas

Darren has an MBA in Internet Marketing, but hangs his hat on a decade of experience in the trenches. Check out Selfstartr to learn more about ecommerce. Follow him on Twitter and LinkedIn.

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