Want to encourage customers to purchase from your store? eCommerce Loyalty Program does that for you. An eCommerce loyalty program helps in motivating customers to make repeat purchases in your online shop by rewarding them. Freebies, discounts, coupons, or cashback, all these things can be used as rewards. One of the best examples of an eCommerce loyalty program is Starbucks Rewards Program which lets customers earn stars and for each dollar spent, the buyer can earn one star. After 60 stars, customers will get a free drink or a free slice of cake.
In this blog, we will try to understand- what makes this program important and the benefits offered by it.
Customer loyalty- what makes it so important?
Should smaller businesses focus on attracting new customers? or should they focus on existing ones and make sure they come back again and again? These are some of the questions that can make budding business owners confused. In case you are one of those budding eCommerce owners and unsure whether you should focus on acquisition or retention, here’s why both types of buyers- existing and loyal buyers matter.
Retention is an effective way of growing your business and customer loyalty is a major part of it. As per studies, 75% of customers have switched brands for a better loyalty program whereas 52% of customers will prioritize and shop from brands where that have points and rewards in their account.
How beneficial is the eCommerce Loyalty Program?
eCommerce Loyalty Program comes withsignificant advantages that help your eCommerce store to grow. Following are the perks of the program.
eCommerce Loyalty Program results boost customer retention
One of the major reasons for using the eCommerce Loyalty Program is that it boosts customer retention. Existing customers love to be rewarded for more purchases. Furthermore, of companies that run loyalty programs on eCommerce stores, 81% of shoppers remain loyal to such accompanies according to studies. On the other hand, 69% of shoppers say they choose retailers based on customer loyalty and earned rewards.
Hence, such studies have proven that loyalty programs love the opportunity to receive rewards as well as can achieve frequent conversions. Moreover, they are more likely to stay in your business and avoid switching to competitors once customers earn points and level up.
Opt for eCommerce Loyalty Program if looking for higher sales
eCommerce Loyalty Program is advisable for merchants that are looking for higher sales. Increasing customer loyalty is very simple. Furthermore, this program even allows store owners to reward their lifelong customers by staying loyal to their business. The more customers you keep, the more your business will grow.
A 5% increase in customer retention can increase a company’s profits by 25% to 125% according to an interesting study. Moreover, 81% of shoppers believe that the loyalty program is more likely to continue shopping under the brand. 62% of US mobile shoppers say the loyalty program will increase store visits.
eCommerce Loyalty Programs offer budget-friendly sales and marketing strategy
eCommerce Loyalty Programs offers budget-friendly sales as well as an efficient marketing strategy. Furthermore, if we compare customer acquisition and retaining existing customers, customer acquisition is about five times more expensive than retaining existing customers. So to attract existing customers instantly use Loyalty programs. With proper loyalty reward software and optimized content, it’s also very easy to manage.
Helps retain existing customers
On average, loyal consumers spend 67% more than new consumers. This is a non-negligible statistic. At the same time, acquiring customers can cost at least five times more than retaining existing customers. So to have a positive impact on your business, you can apply this idea. Moreover, Loyalty program members can bring more value to your business during difficult times.
Why choose Knowband modules?
Knowband is famous for offering some of the best plugins for eCommerce systems. With years of experience with eCommerce websites, Knowband knows what works best for the merchants and what does not. Along with efficient plugins for different eCommerce platforms such as Opencart, Prestashop, Magento, and Magento 2, Knowband offers the most efficient after-sales support.
The module is beneficial for Prestashop store owners as it allows the admin to provide the store credit to the customers for certain actions. Certain actions include- New order, Sign-up on the store, etc.
Opencart Loyalty Points extension
Permitting admin to provide loyalty points or store credits to their customers, Knowband’s offers Opencart Loyalty Points Extension. Furthermore, this extension allows customers to make use of their next purchase in the store in the form of a discount.
Magento Loyalty Points Extension
Magento Loyalty Points Extension permits online merchants to provide loyalty points on specific events. Specific events include new registration, first order, on ordering any specific product or products of any specific amount.
Magento 2 Loyalty Points Extension
Magento 2 Loyalty Points Extension allows online admin to provide loyalty points to online buyers. Loyalty points can be offered to online shoppers at different events. For instance, new signup, first order, purchasing a specific product, ordering a product from a specific category, and placing orders of a specific amount or more.
Final Note:
When loyalty programs come with so many benefits hence it would be great to start one for your business today. With the assistance of Knowband modules, you can make this process easier and can take your business to next level.
As Knowband offers efficient post-sales support to the customers hence feel free to write us at support@knowband.com.
Magento Loyalty Points Extension by Knowband allows the online merchant to give loyalty points to the online users on new registration, first order, any specific order placed by the customers and other events. The online customers can generate a coupon of these loyalty points and use it on their next purchase from the store. The online store admin can this way increase the conversion rate of the website by offering loyalty points to the customers using this Magento Loyalty Points Extension.
Loyalty points make the online users come back and order again and again from the store. The online merchant can set the conditions according to which, customers will get loyalty points. The Magento Loyalty Points module allows the online merchant to offer loyalty points on the customer’s birthday. This Magento Loyalty points system extension is mobile responsive, customizable and offers smooth functioning.
1.1 Basic Features of this Magento Loyalty Points Extension
The Magento Loyalty reward points plugin helps the store admin to offer loyalty points to the customers.
By offering loyalty points, the online merchant can ensure customer retention and customer acquisition.
The online merchant can set terms and conditions for providing loyalty points. The Magento Loyalty Points module allows applying Cart, Product Rule and Behavior rule from the admin interface.
The Magento Loyalty points system extension provides an option to set the price amount for a single loyalty point.
The online store admin can also set the order status on which the online users can get loyalty point.
The online merchant can set the loyalty point expiry date and also send alert notification to the customers before set days of expiry date.
The online admin can also offer loyalty points on customer’s birthday and also restrict this functionality to the specific customers by by selecting customers group.
The Magento Customer reward points plugin provides instructions to setup cron. Admin can get the URLs to Add to Cron via Control Panel and also get instructions of Cron setup via SSH.
The Magento Loyalty points system extension also provides an option to offer loyalty points to any specific customer by setting the loyalty points, validity, status and email id for sending loyalty points. The store merchant can also upload CSV file for adding points.
The eCommerce store merchant can create various rules and apply them for offering loyalty points. The online users can get loyalty points when he meets the conditions.
The Magento Loyalty reward points plugin provides an option to send an email informing them regarding loyalty points.
The Loyalty points extension for Magento allows the online store admin to view the loyalty point balance of all customers from the admin interface.
The Loyalty points extension for Magento provides an option to change the status, validity and number of loyalty points.
The loyalty points module provides ready-made email templates that can be further customized. The online merchant can enable the settings for sending email while offering loyalty points.
2.0 Installation of Magento Loyalty Points Module
The online store merchant can install the Magento Loyalty Points Extension easily by following these steps:
1. Download the extension package from the Knowband store.
2. After downloading the extension package, you will get a zipped file. Unzip the package on the root folder of Magento setup via FTP manager (like Filezilla or WinSCP – download here: https://filezilla-project.org/). The store admin will find the files and folders as shown in the image below:
3. The extension is now installed and ready for use. In the Admin Panel, go to “System > Knowband Extensions >Magento Loyalty Points Extension”.
Now, the store admin can use and configure the Magento Loyalty Points module.
3.0 Admin Interface
After successful installation, the eCommerce store merchant can easily configure the Magento Loyalty points system extension. There are multiple configuration options as shown below:
General Settings
Add Loyalty Points
Loyalty Points Rules
Loyalty points balance
Loyalty points Emails
Admin can easily apply settings and configure them easily.
3.1 Loyalty Points – General Settings
The store admin can apply loyalty points related settings and also offer loyalty points on birthdays.
3.1.1 General Settings
In General Settings, the store admin can configure basic settings related to loyalty points. The online merchant can apply these settings from the admin interface of this Magento Loyalty reward points plugin:
Enable/Disable: click on the button for activating or deactivating loyalty points functionality.
Price for 1 loyalty point: Here, set the price which will be applicable for 1 loyalty point.
Minimum Points Range: Set the least loyalty points which can be used by the customers.
Order Status for Points Awarded: Set the order default status on which customers will get loyalty points.
Order Status for Points canceled: You can also set the order status on which loyalty points will be canceled from the customer’s account.
Voucher Expiry days: Set the number of days after which voucher will get expired.
Disable Earning Of Loyalty Points: Enable this option if you don’t want to offer loyalty points to the customers if a loyalty voucher is applied in cart.
Enable/Disable Points Expiry Alert: Enable the option if you want to send an email to alert the customers about the expiry of loyalty points.
Alert Before Expiry Days: Set the number of days from which you want to send an alert email.
3.1.2 Label Settings
Here, the online store admin can set the label for loyalty points. The Magento Loyalty reward points plugin allows setting label for Awaiting Validation, Converted, On Hold, Available, Canceled and Expired loyalty points.
3.1.3 Birthday Settings
The Magento Loyalty points system extension allows the store admin to apply settings for offering birthday loyalty points. There will be customizable options as shown below:
Enable/Disable: The online store merchant can enable or disable the settings from the Magento Loyalty points system extension admin interface in order to offer loyalty points on birthdays.
Customer Groups: Select the customer group to whom you want to offer loyalty points on their birthday.
Number of points: Set the number of loyalty points which you want to offer on customers birthday.
Validity of Points: Set the number of days for which loyalty points will be valid.
3.1.4 Cron Instructions
The Magento Loyalty Points Extension provides instructions to setup cron. It provides URL to add to cron via Control Panel. The Store admin can also view the instructions to setup cron via SSH.
Admin can configure cron and manage the overall process of offering loyalty points. This way, admin can send birthday points manually, send a notification for expired points and set loyalty point state to expired manually.
3.2 Add Loyalty Points
Here, the store admin can apply settings related to loyalty points. View the detailed description of all the configuration options.
3.2.1 Add Points
The online merchant can offer loyalty points for the customers by selecting their email id from the Magento Loyalty points system extension admin interface. Check the customization options below:
Title: Set the loyalty points title which will be shown in loyalty points history.
Points: Set the number of loyalty points.
Validity: Set the points validity days.
Status: Select the status for points.
Customer Email: Enter the customer’s email id here.
3.2.2 Add Points Using CSV
Admin can download the sample CSV file and then add loyalty points with other details. Then the admin can upload the updated CSV files for offering loyalty points.
Field Separator: Set the field separator for every column.
CSV File: Upload CSV File to add loyalty points .
Send Email Notification: Enable or Disable email notification option from the admin interface of Magento Loyalty points and discount module.
3.3 Loyalty Points Rules
Admin can create multiple rules for loyalty points. The Magento Reward points module allows for adding various rules without any limitations. Admin can edit or delete any rule anytime from the Magento Reward points module admin interface.
3.3.1 Add new Loyalty Rule
Admin can apply the settings and add new rules easily from the Loyalty points extension admin interface.
Enable/Disable: Enable or Disable The rule for the website.
Title: Set title for the rule.
Description: Set the rule description.
Rule Type: Choose the type of Rules for points.
Loyalty Points: Set the number of loyalty points.
Validity: Set the validity of loyalty points in days.
Start Date: Set the start date of the rule. Admin can leave it blank if he doesn’t want to put any restriction.
End Date: Here, set the end date for the rule. An online merchant can leave it blank for no restriction.
Customer Groups: Select the customer’s group for which this loyalty rule is applicable.
There are several rule types which are based on product cart and behavioral rule.
A. Product Cart Rule
1. Offer loyalty points based on the cart subtotal
The online merchant can apply conditions on cart subtotal amount. There may be several conditions and customers can get loyalty points when the condition meet properly.
The customers can get discount when the subtotal is any specific amount, is not a specific amount when cart total amount is equal to or greater than selected amount when cart amount is equal or less than the selected amount, greater than the selected amount, less than the amount as per the module settings.
2. Offer loyalty points based on the item quantity
Admin can provide loyalty points to the customers when they shop for specific product quantity. Similar conditions as “cart subtotal” can be included in item quantity.
3. Offer loyalty points based on the total weight
Define what should be the total weight of the cart to earn loyalty points.
4. Offer loyalty points based on the Payment method
The Loyalty points extension for Magento allows the store admin to provide loyalty points when any customer makes a payment through the specified payment method.
5. Offer loyalty points based on the shipping method
The store admin can provide loyalty points when a customer opts for the defined shipping service.
6. Offer loyalty points based on the product
The Magento Loyalty points system extension allows the online store admin to offer loyalty points when cart products match with all/any selected product or no product matches.
7. Offer loyalty points based on the Product
The online merchant can offer loyalty points when customers purchase from a certain category(all or any matches)/do not purchase from the specific category.
8. Offer loyalty points based on the price
The Loyalty points extension for Magento allows the store admin to offer loyalty points when the cart price meets conditions as per the Loyalty points extension settings. Similar conditions as “cart subtotal” can be included in Price Settings.
9. Offer loyalty points based on the attribute set
The online store admin can set the conditions related to attribute sets. The customers can get reward points if added products from/not from a specific attribute set. (As per the conditions)
Note: In the conditions section, the online merchant can select “AND” or “OR” condition conjunction. All conditions should match for offering loyalty points while using “AND” conjunction and any of the condition should math while applying “OR” conjunction.
B. Behavior rule
1. Offer loyalty points on registration
Online users can get loyalty points on successful registration.
2. Offer loyalty points on first order
The online users can get loyalty points on their first order if the admin selects this event.
3.3.2 Edit Loyalty Rule
The online store admin can edit the rule settings from the admin interface of this Magento Loyalty reward points plugin.
Email Notification: The online merchant can send an email with the loyalty point details will be sent to the customers if they get any loyalty point. The online merchant can enable or disable the settings for sending an email notification. The online merchant can also customize the email template easily.
3.3.3 Delete Loyalty Rule
The Magento Loyalty reward points module allows deleting the loyalty rules from the Magento Customer reward points plugin admin interface.
3.4 Loyalty points balance
The online store admin can view the list in which he can check loyalty points balance of the customers.
Admin can apply filters and also reset it. The store admin just needs to click on the “view” button for checking the details. Admin can also edit the details.
Title: Admin can change the title for showing on loyalty points history.
Points: Set the number of loyalty points from the admin interface of this Magento Customer reward points plugin.
Validity: Set the validity of loyalty points in days.
Status: Change the status of loyalty points.
Customer Email: Admin can also change the customer’s email.
3.5 Loyalty Points Emails
Admin can view a list of default emails and edit the emails as per the requirements.
The online store admin can customize the ready-made email templates.
Enable/Disable: Admin can activate or deactivate email notification.
Subject: The online store merchant can set the email subject line.
Email Template: The online merchant can configure the email by adding images, HTML text and description.
4.0 User Interface
The online users can get loyalty point on registration, first-order events and they can also get loyalty points on any specific order and cart state.
They can view the loyalty points from the “My Account” section.
They can view the loyalty points details on the loyalty points history and they can convert the loyalty points into the discount coupon.
In any case when two or more situations get common then the customers will get the highest loyalty point from any of the applied condition.
The online users can view the total available loyalty points.
The online users can enter the amount which they want to redeem.
Customers need to apply loyalty voucher for availing discount.
The online users can also get email notifications when they get loyalty points.
This way, the online merchant can place order and get loyalty points.
What are Loyalty Programs? Why have they become an important element for online businesses? What are the benefits of customer loyalty programs? How do loyalty programs work?
If you have these questions running through your mind, you have landed at the right place to get an answer to all these questions. Let’s begin.
When the eCommerce industry was less crowded and people had limited options to shop online, Brands did not use to be much concerned about losing customers. Since the choices were few, people used to shop from the same brand from which they shopped earlier.
But today, when the eCommerce sector has hugely expanded, people have countless options to shop from. This led to brands losing out customers to their competitors, and hence loyalty programs came into existence.
What is a Loyalty Program?
A Loyalty Program is a marketing strategy used by Brands where they reward incentives or loyalty points to the shoppers every time they purchase from their website/store. The points are awarded so that the customer continues to shop from the same brand in his/her future purchases.
To begin with, the customer makes a purchase and receives some points in his/her wallet. It is a gesture by a Brand to thank customers for choosing their brand to shop for.
Upon receiving loyalty points, the customers can redeem those points as a discount on their next purchase.
What’s exciting about customer loyalty programs is that it is a continuous cycle where customers get rewarded for every purchase.
So customers keep buying, receive rewards, and then use them during checkout, and this is how the loyalty program cycle works.
The types of loyalty programs vary from business to business but they all have their focus centred around one purpose- Making customers loyal to the brand or in short, building customer loyalty.
A loyalty program offers numerous benefits. In this article, I have put forward the top 6 benefits of loyalty programs for your online business.
1. Improve Customer Retention
The first and foremost benefit of a loyalty program is it helps you improve customer retention. I mean, every loyalty program has one primary motive, i.e. to retain customers, and they do make one of the best and most effective customer retention strategies.
Did you know around 60% of the retailers find customer retention their biggest obstacle? Loyalty Programs eliminate that hurdle to a certain extent.
2. Increase in Sales
Increased sales are the next advantage of loyalty programmes. So, loyalty programs are highly effective in boosting your eCommerce revenue. Offering loyalty points to a customer for buying products ensures repeat purchases and helps you win customer loyalty over time.
Once you win their loyalty, they will be likely to put more trust in your brand and prefer it over your competitors. And once they become your loyal customers, your sales graph would often remain high.
What if I tell you that existing customers contribute to 65% of a company’s business? I guess this is enough to make you understand the importance of customer loyalty programs.
Retaining existing customers is comparatively less expensive than acquiring new ones. The credibility that you have built with your existing customers would have taken you a lot of effort, time and money. To turn a new customer into a loyal customer would require the same commitment.
But your existing customers have been through your journey, hence, the expense to persuade them for regular purchases is less than what would be required to influence new customers.
Research says acquiring new customers costs 5 times more than retaining the existing ones.
4. Take Customer Relationships to the Next Level
To grow as a brand requires a healthy relationship with customers, and Loyalty programs help you build a strong bond with your customers.
76% of consumers think that Loyalty programs are a part of their relationship with brands. By getting rewards or loyalty points for making a purchase, customers feel more attracted and emotionally attached to your brand and prefer it as their go-to option for online shopping.
Value your customers, and treat them special. Make them feel that they are important and you want them to return to your store again. Build a personal connection through your loyalty programs.
5. Grow Brand Awareness
Adding to the benefits of customer loyalty programs is they boost your Brand Awareness.
If a customer receives loyalty points on a purchase, he or she will likely suggest your brand to his/her friends, family, colleagues or relatives. Those customers are what we call Brand Advocates who do word of mouth for your brand and bring you, new customers. So we can say that customer loyalty programs are effective in customer acquisition as well.
This gets your brand noticed. More and more people visit your store and look to buy from your brand.
Customer happiness and fulfilment are one things that customer loyalty programmes promise. Any consumer would adore getting anything in return for their buy.
And customers would also appreciate you for this and will have more liking towards your brand. It reflects that you not only see them as one-time customers but want to maintain a healthy relationship with them in the future as well.
Loyalty Points module by KnowBand
If you are also looking to set up a loyalty program for your eCommerce business, our Loyalty Points module will help you do so efficiently. It not only helps you with customer retention but also provides you with an opportunity to acquire new customers. How?
Well, the Loyalty Points module lets you reward a joining bonus to new users when they sign-up on your website and when a user makes a purchase. Customers can use loyalty points in the form of a discount voucher.
This is a feature-packed module that lets you define several conditions for a customer to earn loyalty points, for example, when a user has shopped for a certain amount or a certain quantity, etc. Simply expressed, a user will only be qualified to collect loyalty points if they meet the criteria established by the store.
To make things more interesting, you can surprise your customers by crediting loyalty points in their store wallets anytime. Knowband offers the Loyalty Points module for PrestaShop, OpenCart and Magento 2. Check out the module to know its complete features and benefits-
Over to You
More than 80% of online shoppers said that loyalty programs encourage them to continue purchasing from certain brands. Therefore, you simply cannot overlook the benefits of loyalty programs.
Your competitors, somewhere, are taking away your potential customers from a loyalty program scheme. It’s high time that you have a similar program too. Do not overthink what your competitors are doing. Focus on what you can do best to motivate your customers to remain loyal.
I Hope, this information that I shared with you made you understand the importance of customer loyalty programs. If you would like to add something to this article, feel free to leave a comment below. For any assistance or queries regarding the module, you can contact us at support@knowband.com
