Best Practices for Delivering a Personalized Digital Experience with Loyalty Programs
Today’s customers are difficult to crack. They’re yearning for brands to deliver a person-to-person experience but are willing to jump ship if they’re not shown relevant content. In fact, 91% of people say ads are more intrusive than two to three years ago and they’re not afraid to filter out content from brands as a result.
With acquisition costs peaking, personalization is vital to building a loyal and engaged customer base. It turns out, 44% of customers said they would buy again after a personalized shopping experience. But, it’s all too common for social and emotional connections to be lost online. Customers are shopping from the comfort of their own home and only have a digital storefront to engage with.
But whether you’re a new kid on the scene or an ecommerce veteran, customers still demand the personal touch. So how can you deliver a personalized experience in a faceless marketplace?
Build a brand-to-customer partnership
As humans, we’re more likely to gravitate towards others we relate to. This mindset also translates to the brands we choose to be associated with and buy from. Studies show that 65% of customers buy on the basis of their beliefs. To establish a loyal and engaged customer base, it’s vital that you build on these emotional connections, enforce what you stand for and create a brand your customers are excited to be a part of.
Start by evaluating whether you’re seizing every opportunity to tell your brand story. By making your brand ethos clear, you’ll be able to engage with your customers through the values you share.
A loyalty program allows you to showcase what you’re all about. Starting with the name, be sure to embody your brand identity throughout your program. 100% Pure, for example, named their loyalty program “Purist Perks” to communicate their eco-friendly mentality. They also use their welcome emails to tell more about their background and beliefs as a brand.
When a customer feels like they belong to something bigger, they’re more likely to pass your story on to others like them. With customers being four times more likely to buy when referred by a friend, these loyal and engaged customers are incredibly valuable.
Use your loyalty program to create an environment that customers want to engage with and tell others about. For example, Annemarie Skin Care used its loyalty program to create “Honest. Wild. Beautiful. Tribe”. By rewarding members for writing reviews and referring friends, the existing, loyal customers began to act as a source of social proof. Via their loyalty program, Annemarie Skin Care has generated over 1,000 reviews and seen loyalty program members spend 140% than non-members.
Make them feel special
A staggering 86% of customers have said that they are more likely to repurchase from a store that delivers excellent customer experience. Customers like to feel special and that you value them beyond just their next purchase. And, as the person-to-person interaction can too easily be lost online, you need to think of new and exciting ways to make your customers feel important.
With a loyalty program, you can incorporate a tiers based system. This way you will boost engagement and make your customers feel like they’re part of an exclusive club. If you create higher tiers that your customers have to aspire to, they’ll be motivated to return to your store sooner to claim their rewards. You could even surprise members by placing them in a “secret” tier to thank them for their loyalty.
Deliver personalized content
When a customer makes the first purchase that this isn’t the end of your relationship – it’s just the beginning. Not only are they now a captive and engaged audience, but you also have their preferences and purchasing behaviour at your disposal. Loyalty insights offer a perfect opportunity to engage your customers with hyper-personalized content they’ll be excited to engage with.
Using LoyaltyLion and Klaviyo together, you can segment your email list based on the loyalty behaviors your customers exhibit. This allows you to put your customers into three buckets – loyal, at-risk or in need of winning back – so you can target them in the right way with the right content.
On average, loyal customers spend 67% more than new ones. With carefully crafted and segmented loyalty emails, you can target customers with the right message, so they’re encouraged to send with you again – and sooner.
Try sending emails that keep these customers updated about their points balance, the rewards they’ve gained and the new offers available to them. This way, they’ll be reminded of the benefits of shopping with you and will be more likely to return. You could also send prompts showing that they can earn points in ways they may not know about yet – such as writing product reviews or referring friends.
For customers who are classified “at-risk” – if they haven’t returned to make a purchase with you within a particular time frame – use your email marketing to surprise and pique their interest before they forget about you for the long-term.
Remind them why they chose to shop with you the first time by showing personalized offers. These could be double points on products they’ve previously shown interest in or a free gift on their birthday.
Finally, for customers who haven’t returned to make another purchase, send emails that remind them that your loyalty program exists in the first place. They might not know that they earned points when they shopped with you the first time, or be aware of how they could be redeeming them. To encourage re-engagement, showcase products they showed interest in before and remind them why they trusted you to begin with.
You could even make these customers feel like they’re discovering you for the first time. Show them what’s trending on your site since they last shopped with you and the new behaviors you’ve added to your loyalty program since.
In a world where online is king, there’s a danger that we’ll lose the human side to online retailing. A loyalty program gives you the tools and the data needed to deliver a person-to-person experience on your online store and within your ecommerce emails.
Learn more ways you can use the LoyaltyLion and Klaviyo integration here.
LoyaltyLion is a data-driven loyalty and engagement platform trusted by thousands of ecommerce brands worldwide. Merchants use LoyaltyLion when they want a fully customized loyalty program that is proven to increase customer engagement, retention and spend. Stores using LoyaltyLion typically generate at least $15 for every $1 they spend on the platform.
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