Online businesses and store owners are always on the lookout for new methods of revenue generation. In today’s competitive world, it is hard to stand out from others and deliver consistently.
While we are busy researching new ways of generating revenue, we somehow miss out on one of the biggest existing profit sources – loyal customers.
Customer loyalty is the best gift businesses can wish for. It is way easier to market to existing customers than acquiring new ones.
According to Harvard Business Review, acquiring a new customer is anywhere from 5 to 25 times more expensive than retaining an existing one.
Providing amazing customer services and satisfying your customers is a great start. Firstly, it improves the overall experience for a customer at your store. Secondly, it has great potential for driving in referrals and positive word-of-mouth.
Online business owners need to reframe their business strategy which gives more emphasis to customer loyalty. They need to figure out what all steps are being taken to increase the number of loyal customers.
Encouraging repeat purchases and compelling customers to become brand advocates should be the priority.
A customer loyalty program can be defined as a simple setup through which your business incentivizes people who are loyal to you for quite some time and make them feel valued.
Businesses use customer loyalty programs to show their appreciation and liking to their faithful audience.
Loyalty program membership* in the United States
Brands have an open choice to decide in which way they want to incentivize their loyal customers. It can range from offering discounts to giving early access to your exclusive products. The methods can be different but all with one message to the customers, we value you.
When you understand that existing customers spend 67% more than new customers and makeup around 70% of sales for a business, you know you need to pay attention.
The impact of customer loyalty on business revenue and growth is huge.
Affluent consumer attitude towards brand loyalty worldwide
There are a lot of benefits a loyal customer can offer your business. Here are some points supporting the claim:
With loyal customers, it comes unsaid that your business will experience substantial growth in revenue.
The probability of selling to an existing customer is 60-70 percent whereas the probability of selling to a new prospect is 5-20 percent.
When you have your customers backing you up, sales are undoubtedly gonna rise. In fact, businesses have started taking customer retention seriously off late.
With more and more loyal customers filling in, you reduce the churn rate dramatically.
What is the customer churn rate?
Customer churn rate can be defined as the percentage of customers who end their relationship with your business over a specific period of time.
Churn rate is an important metric in customer retention. If customers tend to leave your business for good, you know it’s time to act. With loyal customers, you are on the opposite end, meaning customers are attached to your brand and will not abandon you that easily.
A loyal customer means a satisfied and happy customer.
What do satisfied and happy customers do?
These customers turn into brand advocates for your business and influence others to do business with you.
Nothing gets bigger than loyal customers striving to drive in more loyal customers. People act as brand ambassadors and convince others that your business is the best for them.
This forms a whole network of people spreading the good word about your business which is instrumental for your success.
It is way easier to market to your existing customers as compared to new customers. Your existing customers understand you and your business better. There is a great chance that your newly launched product is well received by your existing audience.
Your loyal customers are the easiest ones to serve. They themselves take the initiative and solve a lot of issues on their own, just by checking the FAQ’s and knowledge base.
If you have a community or forum, your loyal audience will even help other users in solving their problems.
Have you ever wondered who are the people who respond to your survey polls or engage with you on social media?
Yes, those are your loyal customers.
They always strive to contribute to your company’s growth in whatever way they can. Apparently, they form a concentrated group of people who tend to go that extra mile for your brand.
Doing consumer research on what drives their loyalty is a good way to drive more loyalty.
Be it any online store or specifically the WooCommerce store, the loyalty program is a must for all.
WooCommerce captures the major market share of the eCommerce industry. Considering this data, we can also claim here that WooCommerce also supports the major customer base and revenue share as well.
The future of WooCommerce stores is quite bright and with the implementation of customer loyalty programs – it is more like some extra cheese with your favorite pizza.
WooCommerce has got your back with the best loyalty programs for your customers. There are many loyalty programs that work wonders for your WooCommerce store like
And many more…
Without taking much of your time, we’ll be discussing the two most preferred loyalty programs,i.e. Points & Rewards and Coupon Referral Program further in this blog.
Points And Rewards for WooCommerce is an automated solution that rewards your customers with points based on the actions they take on your online store.
Be it a new sign-up on your online store or product purchase, you can easily define the rules for giving out the points. Customers can use these points to get discounts on products. Managing customer points and discounts is as easy as it gets.
Some of the highlight features of WooCommerce Points and Rewards are:
Such loyalty programs are the need of the hour for online businesses as they take user engagement to a new high.
WooCommerce Points and Rewards has become a revelation in terms of customer loyalty for WooCommerce store owners. It gives you the extra edge on customer retention and helps you to stay ahead in the game.
Some advantages of implementing Points and Rewards for WooCommerce on your WooCommerce store:
Along with the aforesaid benefits of customer loyalty, referrals are one of the most important aspects which businesses cannot ignore. Recommendations from family and friends act as the most influential factor affecting a customer’s purchasing decisions today.
Effect of B2B referral programs on sales and marketing in North America in 2015
Referral programs provide your business the extra exposure to drive in more conversions. With your customers becoming brand advocates, your services are served to a bigger audience and you get your brand name in front of a lot of people.
Some of the main benefits of driving in referrals are as follows:
Coupon Referral Program is a complete solution for implementing a referral program on your WooCommerce Store. Unlike other referral programs, it allows both the referrer and the referred customer some kind of discount.
The coupon referral program provides a win-win situation for everybody. Engaging and rewarding both the parties involved in referring your business can work wonders for you.
“The referral will earn a discount coupon when the referred friend places an order. Along with this, all your users will earn a discount coupon when they sign-up on your e-store.”
It is an effortless approach to gain new customers while rewarding your existing user base. Some great features of the plugin worth mentioning are:
Customer loyalty programs show a very powerful impact on many business activities and performance metrics, from customer retention rates to increased sales. Such simple and easy to create loyalty programs increase the average customer value with comparatively much lesser marketing efforts. We hope you also experience the best results with WooCommerce based customer loyalty programs and soar your business to new heights.
This article was written by Himanshu Rauthan, an entrepreneur, Co-Founder at MakeWebBetter, BotMyWork, and the Director of CEDCOSS Technologies. He has worn many hats in his career – programmer, researcher, writer, and strategist. As a result, he has a unique ability to manage multi-disciplinary projects and to navigate complex challenges. He is passionate about building and scaling ecommerce development.