value of shopify loyalty program

How To Explain The Value Of Your Shopify Loyalty Program To Customers?

Learn how to make your Shopify loyalty program look irresistible. 

So, you’ve set up a loyalty program for your Shopify store. That’s great. But is it driving positive returns for you?

Most brands struggle to keep their loyalty programs afloat. Some, soon after they’ve launched.

To put things in perspective, consumers join an average of 14.6 loyalty programs, but are active in only 6.7 of those.

Conversely, some brands are able to reap huge returns from their ecommerce loyalty programs. Take a look at some research findings:

  • 71% of retail brands have a loyalty program (Gartner)
  • 26% of customers remain loyal to brands because of their loyalty programs (PwC)
  • Top performing loyalty programs can boost revenue from customers by 15 to 20% annually. (McKinsey)

So why are some eCommerce brands able to successfully run loyalty programs and some fail?

That’s because starting an eCommerce loyalty program is just the beginning. The real task is to keep it going.

And for that, you have to constantly tell customers about the value of your Shopify loyalty program.

What’s the value of loyalty programs for customers?

To answer this question, let’s think like customers. If you are the customer, what would you want to know about a rewards program before you sign up?

  • What does the loyalty program have for me?
  • How do I earn points?
  • How do I use the loyalty points?
  • Should I join loyalty programs?

What does the loyalty program have for me?

The first thing customers would want to know is what the loyalty program has for them. They will decide whether or not they should sign up based on the benefits the program provides to them. Hence, it’s important to make it easy for customers to understand the different ways in which your program will benefit them.

How do I earn points?

Another important thing that customers want to know about loyalty programs for eCommerce is how they can earn points. If earning points is difficult or confusing for them, they might not want to join the loyalty program. Moreover, they’ll want to know how fast and for what actions they can earn points.

Here’s an example from Dunkin Donuts:

How do I use the loyalty points?

Earning points is one thing, but the real benefits are in using the points. Customers would want the freedom to use the points in many different ways. If they feel it’s not worth earning points because the benefits and perks aren’t equivalent to the effort they put in, they might not see any value in the program.

Should I join the loyalty program?

After considering the above factors, customers would decide whether or not they should join your loyalty program. When brands make it easy for customers to earn points, when the program benefits are clear and easy to understand, customers feel more motivated to sign up.

To help your customers answer all the above questions, you’ll have to ensure they see immense value in your loyalty program. For that, you have to ensure you explain the program well. So, how do you go about that?

5 ways to explain your loyalty program to your customers

#1 Create a dedicated loyalty program page on your website

One of the first steps to make it easy for customers to understand the details of your loyalty program is to create a dedicated page for it.

This page should not only explain your loyalty program, it should also make your customers feel special. How do you do that?

  • Present your loyalty program in a way that it highlights its customer-centricity
  • Mention the benefits of the program clearly to them
  • Make customers feel that the program is designed to benefit them, not you

Here are the key elements your loyalty program page should include:

How to earn points: Allow customers to earn points for many different types of actions. For example, for writing a product review, sharing feedback, referring a friend, on their birthday, on every purchase, for participating in contests, etc. To get them started, offer a sign-up incentive. For example, 100 loyalty points.

How to use points: Make it easy for customers to redeem their points. Imagine how you’d feel if you were made to go through a confusing, long process to use points that you earned by spending a lot of money on purchases. Customers shouldn’t feel like all their efforts weren’t worth it. Using points should feel valuable and achievable.

Explain your loyalty program tiers: How do you make your best customers feel special? One way is to have a tier-based loyalty program so that the best customers receive better perks. What is more, others in the lower tiers will strive to climb up to the higher tiers.

A call-to-action (CTA) button: New customers aren’t going to join the program just because the information is mentioned in the page. To encourage more sign-ups, this page should have a clear CTA button for customers who are interested to join the loyalty program.

Pro tip: Make this page visual as it will make it easy for customers to understand the details.

Example: Beauty brand Sephora’s dedicated page for their loyalty program ticks all the above points and is worth checking out.

#2 Include a loyalty program tab in the customer account page

You may have an excellent loyalty program, but at times, customers might forget about it.

For example, customers can get so busy browsing your products that they can easily miss the loyalty program page.

And so, you’ll have to make sure they see the loyalty program tab easily.

One of the most prominent places on the website to have your Shopify loyalty program tab is the customer account page.

This page holds all the important information that customers might look for. For example, their order history, wishlist, recently viewed products, contact details, etc. When customers want to refer to any of this information, they head to the customer account page.

Hence, by having the loyalty program tab in the customer account page, you can make it easy for customers to access information about the program.

In general, this tab should include:

  • Explain the basics of the program
  • A link to the explainer video
  • Points collected by customers
  • How many more points are needed to access a benefit
  • Points used or available for use
  • Ways in which the points can be used
  • Points about to expire

Pro tip: Install an efficient customer loyalty program app that makes it easy for you to manage your program.

#3 Create an explainer video

Eight out of 10 customers say explainer videos are useful and help them understand products/services better. An explainer video for your loyalty program can increase your conversion rate. Why do we say so?

  • Visuals/ video is more impactful than text
  • It’s easy to understand details of a video with sound, text, and visuals
  • When customers see benefits and perks visually, they’re more motivated to sign up

Here are some ways to create the best explainer videos for your loyalty program:

Show the value of your program visually: What do customers want from loyalty programs? They want it to add value to their relationship with your brand. Hence, show this motivating factor in your video. For example, customers might want discounts, free services, being part of a special community or other such valuable benefits.

Make it easy to understand in just a few seconds: We live in the age where bite-sized content consumption is the most effective. Use this tactic in your explainer video. Create short and to-the-point videos that clearly explain the eCommerce loyalty program. Some best practices are: short text, minimal design, clean visuals, a clear CTA.

Distribute the explainer video via different channels: Once you create a good explainer video, the next step should be to share it widely. You can make the video a part of your email campaigns, social media, website, etc. Don’t bury your explainer video in the loyalty program page. Use it creatively in a way that it is viewed by as many people as possible.

#4 Use customer testimonials

There’s no better proof of the value of your loyalty program than hearing it from your customers themselves. Human beings are wired to follow other people. This is true in the context of loyalty programs, too. When we see many other people being a part of a loyalty program, we feel more confident or motivated to join it.

This is where customer testimonials come in the picture.

Do this:

  • Collect testimonials from the existing customers who’ve signed up for the loyalty program
  • Ask them to talk about the benefits they enjoy
  • Tell them to explain how your program added value to them
  • Run contests around your loyalty program and display what the winning customers’ won
  • Set up gamification within your loyalty program. It has a clear actions and rewards element, which can keep customers excited
  • Ask customers to talk about how easily they earned loyalty points on your Shopify loyalty program
  • Ask them direct questions such as ‘why yours is the best loyalty program’

#5 Create engagement opportunities

Think of ways in which you can engage customers. The ways in which your loyalty program engages customers are also the value points of the program.

For example, opportunities to earn more points, opportunities to easily use the points, chances to participate in games or contests, etc.

The more your customers would engage in your loyalty program, the more value they’ll discover. Here are some innovative ways to boost engagement:

  • Run surprise special promotions
  • Double-points days
  • Bonus points on weekends
  • Extra points for high-value purchases
  • Triple-points during off-season
  • Allow customers to share points with their friends and family members

Example: Starbucks rewards program is known for how it creates excellent engagement opportunities.


Do things differently to show the value of your loyalty program

Loyalty programs have become common. Every eCommerce brand has one. The differentiating factor is which loyalty programs do customers find more valuable.

And it all boils down to the way you communicate the value of your Shopify loyalty program to customers.

While the most basic ways to explain loyalty programs such as a dedicated page, an email invitation to join the program, etc. may work for some businesses, a truly unique approach to showing the real value of your loyalty program is what can give you an edge over your competitors.

To set up the best Shopify loyalty program, you’ll need a smart loyalty program app that provides flexibility, easy tracking, automation, and analytics capabilities.

Install Flits loyalty program app on your Shopify store today!

Install Flits To Set-Up Your Customer Account page Right-away

Vanhishikha Bhargava
Vanhishikha Bhargava
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