Tuesday 10th July 2018
5 Ways a Loyalty Scheme Can Increase Conversions for Your Store
Loyalty schemes are becoming increasingly popular for eCommerce stores. For retailers, it helps to boost sales, revenue, order value, conversions and drives brand awareness. For customers, you get your fair share of perks and rewards with loyalty schemes too, creating a positive customer experience.
Loyalty schemes are highly powerful in boosting sales and conversions for eCommerce stores, and also give you the opportunity to connect and establish meaningful relationships with your customers.
But what is it about loyalty schemes that make them so effective in helping to boost conversions?
1. They Give Customers Incentive to Return to Your Store
Customers who sign up for your loyalty program now have a reason to return to your store again, thus increasing your conversion rate and turning shoppers into loyal customers - as more of your traffic will be an active, engaged customer base who are purchase-ready.
Giving customers an incentive to return to your store and continue to make purchases will increase sales and will also see a boost in your store’s conversion rate.
This also provides you with additional opportunities to upsell to your returning and loyal customers, offering them further discounts and giving them more reasons to convert.
2. They Boost Account Signups with Rewards & Offers
Encouraging customers to sign up for accounts and for your loyalty scheme, in return for exclusive offers and rewards is an effective strategy for driving customer engagement.
Customers are much more likely to sign up for an account on your site if they are receiving some kind of reward. This is therefore likely to boost your conversions, as customers who sign up and make an account on your site will then be presented with more offers, links and other marketing communication that will lead to a rise in conversions.
3. They Turn First Time Buyers into Brand Advocates
Brand advocates do more than just purchase repeatedly from your store - they promote your brand and your products to a wider audience and offer trust and reassurance, helping you to gain more customers.
Loyalty schemes that offer customers rewards for sharing their purchases and experiences, promoting them on social etc. will see shoppers turning into loyal brand advocates, bringing in more potential customers and helping to lift your store’s conversion rate.
4. They Increase Conversions by Rewarding Individual Actions
Incentivising and rewarding specific, individual actions as part of your loyalty scheme will help to boost your conversion rate as customers are much more likely to complete said actions for a reward.
Loyalty schemes allow you to reward customers when they sign up for an account, make purchases, share their experiences, leave reviews, refer friends etc. This encourages customers to complete multiple actions on your site, leading to a boost in conversion rate across all key conversions - purchases, upsells, account signups etc.
5. They Help You Build a Community
Once you have your brand advocates, they can help to build a community of loyal shoppers and customers. Brand advocates promote your brand and products, driving your store to a wider audience and helping to build and expand your customer base.
By broadening your customer base and building a community, you are likely to see an increase in both sales and conversions, as more customers means more traffic to your eCommerce site.
Loyalty Schemes Increase Conversion Rate
Loyalty schemes have many benefits for eCommerce stores and their customers, one of which is their ability to impact your store’s conversion rate. Depending on your sector and industry, loyalty schemes can perform well and can be a source of great revenue for your store.
If you use them to push promotions and discounts, upsell to customers, reward them for individual actions etc., you’re likely to see a boost in conversion rate.
If you want to know more about how to optimise your loyalty program to boost conversions, just get in touch with our team and we’ll be more than happy to help.