This is a guest blog post by Catalin Zorzini. Catalin is the founder of eCommerce Platforms and Inspired Mag. He’s a design enthusiast and loves matcha, and is uber passionate about blockchain technology and travel.
There’s nothing better than rewards to attract customers to buy from you. A customized loyalty program does just that.
It’s tailored to the needs of your eCommerce store to help you gain more sales, returning customers, and consequently, earnings. You may find many loyalty programs but not all of them work.
In fact, there are many online retailers who failed to meet their expectations. And that’s not because loyalty programs are terrible or anything but rather, it has to do with retailers making the program too complex for customers to figure out. In other cases, the retailers lose interest in the program or fail to make their customers fully aware of what’s on offer.
But when you do get it right, there is a lot to gain. It can increase your year-over-year sales and repeat purchases by upwards of 20%! Alright, let me walk you through some attractive loyalty programs.
Annex Cloud offers an array of high tech customer service and relations services. One among these is the loyalty programs which can be used by Amazon sellers.
Companies selling on Amazon can include the Receipt Data Aggregator into their loyalty programs and secure confidential information about the purchases made by their customers. This enables them to gain more insight and analyze their behavioral patterns while rewarding them.
The basic principle behind Annex Cloud’s Receipt Data Aggregator is to enable your shoppers to submit receipts of purchases they’ve made from third party sellers as scanned documents from their mobile, through SMS, or through email.
The receipts will be read with the help of optical character recognition (OCR). Annex Cloud features an auto-processing API that processes the data, recording it in a database and rewarding customers with points based on the purchases they’ve made or other considerations.
Sellers on Amazon can make use of Amazon Incentives for setting up a customized reward program that will increase customer retention, enhance customer lifetime value and even generate new business opportunities.
There are multiple incentive options on offer as well as delivery methods. Because Amazon has an exhaustive inventory, your customers will find redeeming their rewards faster and easier. These rewards also come without expiration dates or additional process fees.
There are customization options provided to suit your customer retention requirements. They’re offered in various denominations ranging from $1 all the way to $2000, and your customers can get to select their rewards and go through a simple shopping and redemption process.
Amazon offers a range of gift cards for sellers to choose from for their customers without an expiry date. You may opt for the physical gift cards, email gift cards, bulk gift codes, API integration and SwiftClaim by which Amazon directly deposits the gift card amount to the accounts of your customers.
You can use Amazon Gift Codes for incentivizing customers. Requisitioning and distribution of the Gift Codes is supported by the Amazon Incentives API. Your customers can redeem their rewards instantly and use them for shopping on Amazon.
Amazon’s Incentives API provides many automation and functional features which your developers can use for streamlining inventory management and improving the operational efficiency. The documentation for the API can be accessed on signing up.
MyStoreRewards for eBay
This referral program for eBay claims to help you increase repeat sales by up to 500%, or at least an average of 300%. When buyers make repeat purchases you can give them a 2% to 5% cash-back reward in the price of the payment.
This feature is automated. It also comes with an email feature which secures the opt-ins of your buyers and sends them emails. The emails promote the most appropriate product from your eBay stuff to help generate that repeat sale.
Though automated, the emails can be customized with your logo and messages. The automated email program helps bring buyers to your listings again while the buyer reward encourages them to buy again. MyStoreRewards is also a free service and you only need to pay the cash-back rewards.
But, here’s the catch.
The rewards are only issued if you manage to generate a repeat sale.
Nevertheless, if you manage to rack up the sales, this program is an excellent choice.
Referral Candy for Etsy
Etsy, the online marketplace for handmade and homemade stuff, offers many promotional tools among which are coupon codes and widgets. Referral Candy has an Etsy referral program.
Let me explain how it works.
The app has a built-in code creation and deletion feature. You can generate coupon codes for your Etsy shop which can help you increase your sales with greater branding and awareness.
Furthermore, it helps you reward your existing customers while retargeting your old ones. It’s easy to set up and comes with a 30-day free trial offer too. It has proved to be really effective in gaining customers.
You can use this kind of program after you ensure it satisfies the requirements of your store and strategy.
Every customer is given their referral link and it’s easy to get new members to join your referral program.
There are many customization options available for designing your program, as you can see from these examples:
The Gratisfaction app can help you set up a combined loyalty, rewards, social and referral program for your Etsy store.
Understanding the Concept of Offering Rewards
According to experts, an e-commerce website only witnesses 1 of 10 customers returning for a repeat purchase. So it’s worth doing something to change that. Getting even 3 or 4 of the 10 customers to revisit your website is still considered an improvement over the usual trend.
You can offer rewards not just for customers making purchases but for account registrations and simple conversions such as signing up for your loyalty program. There isn’t any fixed timeline for introducing these rewards.
Another aspect to remember is to introduce the various offers of the loyalty program one at a time. Overwhelming your customers with the entire rewards plan in an unstructured manner could leave them bedazzled. As we’ve seen above, Amazon does a great job at describing them.
Finally, here are my two cents.
If you haven’t already setup an e-commerce store for drop-shipping, it’s better off to sell on 3rd party stores like Amazon, eBay or Etsy because it’s more effective with in-built loyalty programs.
But again, the choice is yours. You may still build a store from scratch and add your own loyalty programs if you’d like which would mean the entire sales process is under your control. Good luck and happy selling!
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