Running a successful loyalty program takes more than just a bunch of attractive perks. There is more to it as it involves a lot of effort, time, resources, and technical know-how. A loyalty program helps businesses make sure that their Shopify store is sustainable. Losing existing customers regularly isn’t a sign of a fledgling store. This is exactly why loyalty programs are more than a mere marketing channel. In this article, we look at some of the most effective loyalty programs on Shopify.

Must-Haves for Loyalty Program Success Stories:

Let’s look at some of the pointers for your customers to get loyalty program benefits on Shopify.

1. The platform should be able to set up profiles for individual customers. It must include every perk or incentive that the client is eligible for. The profile must also include previous conversations with the customer service team. It helps the eCommerce store understand the customers’ journey.
2. Make sure your brand identity elements like color, font, and other aesthetics can be matched by the loyalty program software.
3. It should allow even guest shoppers to redeem and earn points without having to register an account.
4. The loyalty program technology on Shopify must come with a referral system that has the ability to convert customers into ambassadors for your store.
5. The Shopify store should offer 24*7 support. An online business cannot afford to sleep. Therefore, you must get immediate relief for your issues, whenever it pops up.
6. Make sure it allows you to gather Shopify loyalty program insights to understand how your campaigns have fared.
7. The store must be able to allow customers to create personalized gifts.
8. Your loyalty program growth on Shopify store can be increased by engaging with customers at regular intervals.

Successful Shopify eCommerce Case Studies for Loyalty Program:

Sephora:

In Sephora’s Beauty Insider Program, customers get points for each purchase, which can be redeemed in the form of samples or exclusive merchandise. Apart from getting to choose their own rewards, customers also get exclusive access to the Beauty Insider Community. In this community, the customers get to interact with other beauty lovers who share tips and strategies about skincare.

Its loyalty program offers different levels of tiers. You get access to exclusive events as your tiers go up. The biggest discounts are usually available to customers who are in the highest tier.

MAC Cosmetics:

The loyalty program of the cosmetics giant, titled, M.A.C. Select, features three tiers– Seduced, Devoted, and Obsessed.

• Seduced– You don’t have to make a purchase to be a part of this tier. All you must do is sign up to get early access to limited-edition products.
• Devoted– You are eligible for this tier if you spend more than $150 in a calendar year. Apart from getting early access to select products, you also get a complimentary express makeup application, expedited shipping, and so on.
• Obsessed– Customers who spend more than $500 get to be a part of the highest tier.

The loyalty program tiers are designed in such a way that customers get to move higher up as they spend more on MAC products.

American Express

Amex’s loyalty program is named the Membership Rewards Program, and you can earn reward points for each purchase. The points can be used to cover your travel expenses, gift cards, card charges, purchase from specific retailers, and book travel via Expedia or the AmEx portal.

With Amex, loyalty program customers can redeem their reward points at any of the affiliated brands.

• Amex has several Membership rewards partners– Hilton Hotels & Resorts, Cathay Pacific, Emirates, British Airways, etc
• You can redeem their points into gift cards from multiple retailers at the Amex site
• Program members can enroll for individual and personalized AmEx offers
• There are multiple channels using which customers can earn or redeem their points

Walgreens:

Balance Rewards, Walgreen’s loyalty program, boasts more than 150 million registered members. Its “Thank You” program is an example of how the brand leverages personalization effectively. They segment the customers based on the likelihood of their purchasing. Customers who respond to targeted campaigns have a much higher chance of buying from them than those who do not.

Urban Outfitters:

The retail corporation’s tier-based loyalty program allows customers to earn loyalty points by doing the following– enabling push notifications, browsing their website or app ten times a month, entering giveaways, and so on. They attract their audience to the loyalty program using anniversary rewards, giveaways, and surprise gifts.

Nike Membership:

By being a part of Nike’s loyalty program, you get immediate access to a number of benefits, products, and services. All of this without earning or upgrading points. Let’s look at some of the interesting perks of being a part of the Nike Membership program.

• The Nike Membership group users can create and buy their customized shoe designs. In fact, they encourage users to use the branded #NikeByYou hashtag to do this
• The program is a multi-channel experience as you can become a part of the community using Nike’s related apps like Nike Training Club and Nike Run Club
• There are member-only experiences
• Priority access to tickets for sporting events
• Professional training guidance

The above perks and more make Nike an excellent example of a successful loyalty program.

Tarte Cosmetics:

Tartlettes, that’s what Tarte’s loyal customers are called. They get perks and earn points on each purchase. You get 20% off on your purchase which can be redeemed for 3,000 points. You can earn points by signing up for the Tarte perks program, following them on Instagram and TikTok, taking their best sellers quiz, and so on.

Starbucks:

Their rewards program is considered one of the best Shopify merchant case study. The world’s largest coffeehouse chain’s rewards program has over 21 million members, as of 2021. Starbucks customers earn more points for every dollar that they spend using a digital Starbucks card or gift card.

Let’s look at some of the reasons why Starbucks’ program is excellent

• The mobile app experience they offer is incredible, interactive, and effective in increasing conversions
• When members get 30 stars in a 12-month period, they get “Gold Level” status. This includes perks like free refills on ice, brewed coffee, and tea, free food and drink offers, and a personalized gold card
• They offer express orders and pickup for customers who are part of the loyalty program
• Members can even get points for purchases outside of their retail locations
• The rewards program extends to lower-margin grocery items too, and helps them drive traffic to their store locations
• They offer exclusive games where the rewards range from a $500 gift card to free Starbucks for life

How to Increase Loyalty Program ROI on Shopify?

Let’s look at some of the loyalty program engagement strategies that Shopify stores must use, to get the best returns from it.

• Make it incredibly easy for your customers to join your loyalty program
• Segment your customers based on different characteristics that resonate with your loyalty program’s goals
• Map out the journey of different customers. See if there is any chance for friction
• If you are not clear about the type of rewards that you must include, talk to customers directly. It could be in the form of one-to-one meetings, focus group discussions, or even online surveys. Customer feedback in loyalty programs makes a huge difference
• Keep refining the value proposition and the benefits that customers get
• Find ways to increase reliability and trust towards your brand
• Use a loyalty program software to reduce errors and to increase your loyalty program ROI
• Ensure that you track loyalty program KPIs on Shopify
• Customer testimonials on Shopify store increases your customers’ confidence about their chances of getting rewarded

Wrapping Up:

Shopify store success with loyalty programs is possible when you have the right strategy in place. Customer loyalty is all about providing a delightful experience for your customers. It should make them less hesitant about returning to your business. The right customer retention strategies should leverage technology and be humane at the same time.

Following customer loyalty best practices is pivotal, but so is using the right tool to create a killer loyalty program. If you are looking to add the firepower of a loyalty program to your Shopify store, look no further than 99minds. Get in touch with us at 99minds and we will show you how we can help.