Customer loyalty in e commerce – innovate your approach

There are lots of ways to make your customer loyalty skyrocket. In this article, we’d like to show you a few different, basic, generalizable retention concepts for customer loyalty in e commerce, that, when applied in your specific situation, will take you a long way in terms of differentiation towards your market.

Involve social

This is a big one for loyalty-building, especially for e-tailers with no physical outlets, as social is a mainly digital communication format. Social media is, at least currently, a great collection of marketing channels, with many pros. There is great demographic and interest segmentation, direct ways to communicate, and great possibilities for audience growth.

As an ecommerce company, you are probably using social advertising and brand presence in social media as important communication channels, but not yet as a tool for any real activation.

A common con of social is its very low conversion numbers, when compared to a channel such as Google Adwords. The explanation of course being user intent. You seldomly visit facebook to buy stuff. So, what if social could also become your own customer retention machine, that would really be something, right?

Well it can be. Some new rewards program modules are in fact offering social engagement rewards through their software. It is possible to perform super effective social sharing campaigns through your customers. With the Pinguin Loyalty Module, customers registered through Facebook on a site can, for example, be offered a 30% discount on the next purchase, if they have successfully invited a friend to also join the website rewards program. That is a great type of campaign, that cuts a acquisition cost and grants a repeat purchase from an existing customer.

Understand transactional value and individual incentive power

This leads us to our next point, transactional value and the power of incentives. Whilst using the type of campaign described in the first section, you really need to think over the exact offering a few times before publishing anything.

This is mainly to make sure that the action you are asking your customer to perform matches the benefit of performing the task pretty evenly, a mismatch here may very well result in extremely low conversion numbers and a confused customer.

It is also important to understand that the power of the incentive you have chosen may vary between target groups. To hand out a free protein shaker may be interesting to male bodybuilders, but can be irrelevant, and a waste of money to you, if you choose to give out that same reward to a female fitness enthusiast, for example.

Use a rewards program module

Finally, we want to do somewhat of a self-plug. Software companies enabling e commerce companies to do all the things described above, companies such as our own, are rapidly developing new angles for customer loyalty in e commerce. If you are an e-tailer looking for help getting started in social loyalty, we will most happily work with you, especially if you are Magento-based 🙂