The Best Ecommerce Retailers Do This One Thing Better Than the Rest

Want to know the secret to ecommerce growth? As an expert in saving retailers from outdated tech, after we rescue a site, I often get asked what’s key for continued growth. It’s not more paid ads. It’s not adding a buy now pay later option. It’s not a gimmicky app to induce scarcity.

Can you guess what it is?

Left and right our clients are creating personalized loyalty programs. And they are moving the needle. These aren’t just set-it-and-forget-it programs. These are ever-evolving incentives and rewards that are valued by their customer base. 

Let me paint the picture: 

Imagine your business is a tree. To thrive, it needs nourishment. What happens when the soil lacks nutrients? The tree stops growing. And the business suffers.

The best retailers are like expert gardeners. They enrich the soil (customers) with timely vital nutrients (tailored rewards and experiences). 

Focusing on this can boost retention rates significantly. And it doesn’t stop there. Once a program is set, keep refining it to meet customer needs.

Take a loyalty program you’ve likely used before: Starbucks. The Starbucks Rewards program offers stars to incentive purchases. They can use stars to promote buying certain items, like a new seasonal product or to get customers in the door during slow periods of the day. The program is highly valued by their customer base, as the stars are useful to customers (earning free drinks and food) and help encourage them to keep coming back. The stars also expire after a certain period, so it promotes frequency as well. Consider how your loyalty program can be just as relevant and useful as Starbucks’. 

6 Steps to Build a Top-Notch Loyalty Program

1. Know Your Customers:
   Understand their preferences and buying habits. Use data like purchase and browsing history to tailor rewards. Send out a survey to recent customers to understand what they would like to see. Getting their input is the best way to make sure the program is actually useful to them.
2. Segment Your Audience:
   Group customers based on behavior such as purchase frequency, lifetime value, or product categories. Offer rewards that resonate with each segment. Consider creating VIP tiers for top spenders or exclusive perks for first-time buyers. It’s especially important to give these first-timers a reason to come back, otherwise they use the perk and don’t become repeat purchasers.
3. Offer Value:
   Ensure rewards are valuable and relevant. Discounts, exclusive access, or special gifts work well. Personal touches like birthday rewards show customers you care, fostering loyalty and repeat business.
4. Keep It Simple:
   Make the program easy to understand and use. Complicated rules can drive customers away if they can’t understand how to earn or spend their points/rewards. A clear, straightforward program wins every time.
5. Communicate Clearly:
   Regularly update customers about their rewards and progress. Automated emails and push notifications keep them engaged and excited about what’s next.
6. Monitor and Adjust:
   Track the program’s performance and be ready to tweak it based on feedback. Send periodic surveys to gather customer opinions and ensure the program continues to meet their needs.

Why This Matters

The best ecommerce retailers prioritize customer retention through tailored loyalty programs. They know that a well-nourished customer base isn’t just good for short-term gains—it’s the foundation for long-term growth and profitability.

Start building your personalized loyalty program today. Even if you’re not in ecommerce, you can still apply these principles. Focus on what truly matters: enriching the customer experience and cultivating loyalty. Watch your customer base—and your business—flourish.