The e-commerce industry is expanding exponentially and growing larger every day.
Even though most consumers are attracted to large eCommerce brands such as Amazon, eBay, Microsoft, Intel, and others, smaller businesses are able to maintain their market share thanks to the success of their loyalty programs.
Before continuing on to “Examples of Loyalty Programmes for E-commerce Businesses,” let’s review key Statista statistics and market data for eCommerce:
In 2013, B2C eCommerce sales generated astronomical revenues of USD 1,2 trillion.
According to recent statistics, forty percent of internet consumers worldwide have made at least one online purchase.
Currently, more than one billion people purchase items from eCommerce websites, and projections indicate continued growth.
The United States generated over USD 38 million in mobile commerce revenue in 2013.
This data is enough to make any prominent eCommerce business owner delirious with pride. However, for small businesses, acquiring and retaining customers is comparable to a surgical procedure.
In spite of this, businesses with loyalty programs have vastly greater opportunities for consumer acquisition. Let’s conclude by discussing why loyalty marketing is essential and what best practices will yield fast results.
Why is Your eCommerce Store’s Loyalty Programme Important?
The majority of seasoned marketers advocate a customer-centric loyalty programme design.
- According to another Statista survey, it is evident why the loyalty programme is the Generation Next solution for online marketing. Here is a concise summary of the facts.
- According to a survey conducted in May 2014, 70% of digital coupon consumers reported using between one and five coupons in the previous three months.
- According to a separate survey, 14 percent of users who received promotional coupons and offers have used them online at least once.
- In 2014, Amazon received 86 points on the American Customer Satisfaction Index (ACSI). It indicates that companies with superior customer service benefit greatly from loyalty programs. However, Amazon had 88 ACSI points in 2013, and this two-point deficit in the 2014 fiscal year is a modest red flag for the American eCommerce behemoth.
Word-of-mouth marketing is still regarded as a significant component of brand loyalty programs. Multiple online platforms allow eCommerce businesses to monitor brand promotion activities through consumer engagement.
Useful Loyalty Marketing Programme Practises for eCommerce Companies
Businesses rely on loyalty programs for brand marketing. Consequently, the following practices are useful for creating effective and compelling eCommerce loyalty campaigns.
Draw Correctly – Reward Options for eCommerce
In the majority of organizations, marketing personnel must grapple with complex calculations of what, how much, and how to offer incentives. In eCommerce websites, users typically do not limit themselves to single purchases.
Because consumers acquire equal points for every dollar spent on their products, a points-based rewards system is best suited for online purchasing eCommerce business loyalty campaigns.
The redemption of rewards points is as straightforward as solving basic division problems.
Multiple Touchpoints – Smartphones and Mobile Applications in Particular
Smartphones today are much more than just calling and texting devices. As a result of the recent advancements in mobile phone technology, online purchasing has flourished.
As these devices are portable and support eCommerce website features such as online cart systems, payment gateways, etc., consumers prefer to purchase on their smartphones and tablets.
According to a survey conducted by Statista in November 2014, the following facts regarding mobile app payments have been uncovered:
- Three-fifths of the global population believes mobile payment is a convenient method of payment.
- 30% believe it is significantly quicker to make payments with smartphones and tablets.
- 21% of individuals believe mobile payments are significantly more convenient than cards or currency.
- Similarly, 21% assume they do not need a physical wallet to make payments because their cards and banking information are accessible online.
Customer Segmentation – Drawing the Line
If you are experiencing a consumer retention rate of 4-5 percent or less, you can breathe a sigh of relief; this is average.
This tiny group of recurring clients accounts for more than 70% of your total sales volume.
Customer segmentation enhances your targeted marketing campaigns by exerting the necessary effort for each user segment group.
Statista reported in August 2014 that 63 percent of respondents to a survey agreed to enhance their consumer segmentation strategy and pertinent targeting approach.
Customer Experience – An Asset for Online Retailers
Utilize methodical customer experience strategies to entice customers to return to your eCommerce store. Ensure that consumers are compensated for their time, money, and efforts with added value. Positive customer experiences strengthen your marketing strategies and ensure repeat sales.
According to global consumer satisfaction reports published by Statista in October 2014, 83 percent of online customers are satisfied with online services, compared to 63 percent of in-store customers.
In Europe, 80 percent of online shoppers acquiesce to online purchasing services, compared to 64 percent of in-store shoppers.
Conclusion
Using an appropriate combination of these elements, eCommerce businesses can create effective loyalty marketing campaigns. Before you depart, here are a few phrases that summarise this blog’s significant loyalty campaign practices.
Plan your rewards options judiciously, whether it be tier rewards points, a card system, etc.
Your loyalty program should be optimized for mobile and tablet devices.
Develop targeted marketing by segmenting consumers based on the amount of revenue they generate for your store.
Customer satisfaction dictates future sales and recurrent visits from existing customers.
Now that you have a reasonable understanding of the eCommerce loyalty program best practices, it is time to get started.
NextBee would be delighted to assist you in creating a quality loyalty program for your e-commerce business, and we take great pride in observing your expansion.
