Did you know it costs 5x more to gain new buyers than to retain the existing ones?
And did you know existing shoppers are 50% more likely to purchase a new product of yours and spend 31% more than new buyers?
If you presently have a loyalty program that motivates your buyers to return and make more purchases with you, the above statistics undoubtedly indicate the impact and significance of a successful customer loyalty program.
Let’s discover more about loyalty marketing and how it helps any business’s overall growth and success.
What is loyalty marketing?
The strategies used in loyalty marketing often involve incentivizing purchases and building consumer loyalty. Customer loyalty marketing basically focuses on retaining existing shoppers by providing them incentives. You can incentivize them by offering free products, discounts, special offers to regular or old customers, or running loyalty programs.
Why Should You Aim For Customer Loyalty For Your Online Business?
Customer loyalty brings innumerable advantages to your eCommerce business. It is an ultimate way to build credibility and increase sales. Let’s discuss why you need it in your business.
1- Retain Buyers Who Spend More
Loyal customers spend more money than normal buyers. A report by Accenture shows that about 57% of buyers spend more on brands to which they are loyal. So turning customers into loyal ones will cost less and pay more to your business.
2- Reducing Acquisition Costs
Implementing loyalty marketing lets you retain existing customers and increase repeat purchases. You can utilize useful mobile app tools like personalized push notifications to keep your customers engaged with your brand and keep them informed about new arrivals and exciting offers. Retaining customers is much more cost-efficient than acquiring new customers.
3- Reduced Cart Abandonment
Another big advantage of implementing loyalty marketing and utilizing the MageNative app is the reduced cart abandonment rate. With a powerful cart abandonment campaign by the MageNative app, you can convince your shoppers to complete the purchase process they left in between.
Almost 90% of shoppers utilize coupon codes while purchasing. And undoubtedly, it is the most effective way of building customer loyalty. You can entice your shoppers by offering rewards/points they can gain by completing the purchase.
4- Generate More Positive Reviews
Customer reviews are crucial for building brand credibility and increasing the app’s ranking on the Shopify store. About 95% of shoppers check online reviews before making a purchase. Moreover, when a product gets a 5-star rating, the likelihood of the product being purchased increases by 270%. You can convince your loyal customers to leave reviews on your site by rewarding them with points and promotions.
5- Increased Revenue
As all the above-mentioned points indicate that utilizing loyalty marketing is the ultimate way to increase the overall revenue of your eCommerce business.
Once the shoppers become loyal to your brand, they will always prefer your brand first over your competitors. Also, existing shoppers are 50% more likely to try things than new shoppers. So they are not only purchasing from you but also willing to experiment with your different offerings.
Moreover, loyal customers increase your reach by referring your brand to their friends and family members. According to Neilsen, about 92% of Shoppers trust referrals from their friends or acquaintances. Rather than any other type of advertising.
When you have a loyal customer base, they constantly promote your brand by telling friends and family about your product and offers, which helps you bring in more business from the door.
Build Robust And Fascinating Shopify Mobile App With MageNative!
How Important Is Loyalty Marketing? Stats say it all !
- Building a strong relationship with a new client is 16 times more expensive than maintaining it with an existing shopper.
- 43% of Shoppers are more likely to purchase from a brand they are loyal with.
- About 65% of business sales come from existing Shoppers.
- A report from Harvard business school reveals that about a 5% increase in customer retention rate can increase profitability upto 25%to 95%.
- About 84% of US adults are loyal to specific Brands.
- Highly engaged Shoppers purchase 90% more often.
- Almost 90% of consumers are ready to spend more for improved customer experience.
How To Build Customer Loyalty?
Building trust and keeping shoppers happy is the key factor to building loyalty. To cultivate customer loyalty and build an emotional attachment, you must cater to all your customers’ needs and requirements. Here are the key factors responsible for building loyalty.
Engage with your Shoppers
Connecting with your shoppers enables you to build a sense of community and belonging. Share your brand’s exciting and latest news or achievement and thoughts in your space to get your users engaged and enthusiastic.
You can utilize social platforms to update shoppers about special deals, the latest trends, and discounts.
If you encourage your shoppers to become loyal to your brand and make them feel involved, they’re more likely to have positive connections. And engaged buyers are happy and loyal customers.
Customer loyalty is eventually about retaining, nurturing, and reaching out to the buyers who generate business for you.
Another way to keep your satisfied buyers happy is by identifying their needs. Use user behavior data to anticipate your buyers’ needs, then deliver it to them.
SaaS company Groove reduced the churn rate by 71% by recognizing ‘red flag metrics’, catching consumers at risk of bailing, and giving them incentives to stick around. Discover your red flag metrics by glimpsing at what consumers do before they churn, and then prepare to prevent the churn.
Finally, an old tip still works: a simple Thank You note, Holiday wishes, or Happy Birthday wish will go a long way. Remember, buyers in every sector want to feel that you care about them outside your business transactions.
Focus on what your business does best
Buyers are looking to identify with your brand’s core values and mission. To them, what you offer is who you are.
How can you assist them in identifying your brand’s values easily and quickly?
‘Be definitive,’ says Jim Joseph. ‘The more specific you can be, the more your buyers will start to comprehend what you can offer them. This may push you to pick the single thing you are the best at, but it’s a story you should stick to.’
Being about just one thing can be counterintuitive – surely, offering more services, products, and identities would value your brand to more people. But the more identifiable you are, the more attachment you trigger in people who like you. If you try to delight everyone, you will end up making no impression at all.
You need to ensure that your buyers realize what you do is something they’ve been missing their entire lives and can’t live without now they’ve discovered it. That implies you must zoom in on just one thing until it fills the screen. For example, Nike does a bunch of sportswear and sporting gear –yoga pants, tube socks, water bottles, and dumbbells. But when you think about Nike, the thing that comes to mind is sneakers. So build single product branding, but solid, that sticks to people’s minds. And turn them into your permanent and loyal buyers.
Ensure Your Brand’s Consistency
Consistency is a crucial factor in building loyalty. Your brand should feel the same to consumers each time they interact with it. We’re back at consumer experience again, states GrowingSocialBiz’ Sue Cockburn: ‘Consumers want to have a belief that we’ll deliver on our commitments each time, not just when it’s suitable. In fact, if we invariably deliver promising products and services across our organization, if we mean what we communicate and communicate what we mean, if we under commitment and over-deliver, the potential for our organization to not only prosper but reach remarkable heights are real. It won’t ensure success but it will lay the foundation for you to gain more and it will usually separate you from your competitors.’
McDonald’s is one of the most widespread brands in the world. One of the hallmarks of the chain since Ray Kroc began his franchise development has been that a McDonald’s in Indiana is the same as a Mcdonald’s in India– or in New York.
The thing is, McDonald’s is also amongst the world’s most popular brands. And the men behind it, Maurice and Richard, built it that way: even when the plans for their first restaurant were still on the drawing board, they used the phrase ‘Golden Arches.‘
So consistency is important to make a mark in your shopper’s mind.
How to Grow Your Shopify Business with Mobile App & Loyalty Marketing?
1. Customer Loyalty Programs
A customer loyalty program is an excellent way to encourage and reward loyal shoppers. These programs generally have benchmarks for rewards (e.g., the Shoppers must spend X amount every month), but the benefits for the shopper usually outweigh these conditions.
There are numerous kinds of customer loyalty programs, such as point systems, punch cards, and credit card programs. They all incentivize shoppers to spend more money on your offerings.
Consider Starbucks, for example. When you join its loyalty program, you earn points each time you purchase a drink or any other item from its menu. You get a free buy when you reach a certain number of stars. This helps shoppers feel justified in their purchases, as they are working toward a reward they might not get elsewhere.
So the loyalty marketing metric reveals that loyalty programs help you know your loyal customers. Creating a loyalty marketing strategy for your shoppers helps increase your brand presence and increase revenue. Moreover, it is an excellent way to publicize your brand. Differentiate your store from your competitors and help build an emotional attachment with your shoppers.
2. Social Media
Once you have successfully created a customer loyalty program for your Shopify, the next step is to promote it. And social media could be the most effective way to promote it.
You can tell your social media followers about the benefits of being a member of your brand’s loyalty program rather than trying to do a hard sell on social media.
Following this approach, you can reach a maximum number of buyers and convert them into loyal customers. Also, you can reach some social media influencers relevant to your field. And encourage them to join the loyalty program and promote your Shopify Store.
3. Implementing Loyalty Program In Your Mobile App
Mobile apps are the platforms that most eCommerce Shoppers prefer to use nowadays. About 60% of shoppers prefer eCommerce apps over mobile sites due to an enhanced user experience. So if you want to increase loyal customers, you must add a loyalty program to your mobile app.
Retaining existing customers is getting harder and becoming more expensive by each day. Including customer loyalty programs in your mobile apps entices your shoppers to your business.
Since we know the importance of customer loyalty, we have integrated top loyalty apps into our Shopify app, like Flits and Yotpo customer loyalty.
Implementing these loyalty apps to your Shopify app lets you make your shoppers feel special and turn them into your loyal customers. 75% of Shoppers reveal that they purchase from a brand that offers rewards.
How can MageNative help?
The primary goal of MageNative is to deliver quality service to its clients and maintain good customer relationships. Utilizing MageNative apps lets you deliver an outstanding shopping experience to your shoppers. It offers numerous stunning features that make buyers’ journeys smoother and delightful. And by offering a unique in-app buying experience, you can turn your shoppers into loyal customers. MageNative understands the benefits of customer loyalty for any business. It has integrated with popular customer loyalty apps like Flits and Yotpo, through which you can run exclusive loyalty programs for your loyal customers to keep them engaged. So, MageNative apps have left no stone unturned to let you turn your customers into loyal ones. And the loyal customers are the ones that yield maximum benefit to the business.
In A Nutshell
For the overall growth of your business, it is imperative to develop healthy and long-lasting relationships with your customers. Loyalty marketing is the ultimate approach to building a strong connection with your Shoppers. This can be done by offering outstanding customer service and delivering an ultimate app experience. And By rewarding your regular or loyal customers with points and offers to make them feel special. So get connected with your shoppers and grow your Shopify business with the all-in-one MageNative Shopify Mobile App.
About The Author
A content marketing professional at Magenative, An app development company providing solutions on different app development platforms including Shopify , Magento and Woocommerce.
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