Every eCommerce Website Needs a Loyalty Program

Mar 31, 2022 | 3  min
author Bonnie Horner
FacebookTwitterLinkedIn

Loyalty programs come in all varieties, from loyalty cards to membership-based programs, and no one type is better than the others, let alone perfect. E-commerce loyalty programs are one of the most common types that the Pyxl team deals with on a daily basis. With the average U.S. household subscribed to around 22 different programs – how can your business afford to not offer one as well?

What Do I Need for a Loyalty Program

Building an e-commerce loyalty program is often one of the most inexpensive ways to break into the loyalty market. The cost of development is usually one of the only costs involved to get the program up and running digitally.

Additionally, creating upfront goals for what you want your program to accomplish is the best way to measure future success. Some goals are obvious, while others you have to look deeper into analytics to fully formulate. Some example goals could be: total sign-ups, daily active users, and visibility to the market.

Similarly, some questions to keep in mind include: “Am I influencing better purchase behavior?” and “Am I coercing bystanders to convert to customers?”

stats for loyalty

Loyalty Program Elements

The main goal of any loyalty platform is to create a program that simultaneously delights current customers and appears irresistible to those not engaged. As a result of your loyalty program, the two groups (current customers and bystanders) will experience the following at some point:

  • Gratitude: Appreciation for benefits received and a desire to reciprocate.
  • Status: Perception of holding an elevated position in customer hierarchy.
  • Unfairness: Ratio of received outcomes relative to inputs, as compared with other customers.

Appeasing one group can alienate the other with feelings and thoughts such as, “Why didn’t I get that feature?” In order to account for these opposing forces and help eliminate that ‘unfairness feeling’ that might be experienced, use these guiding principles:

  • Rule Clarity – How hard is it to understand rewards?
  • Reward Exclusivity – Do customers feel like this reward is unique?
  • Reward Visibility – Do others see the customer earn? Do they want to join in?

There are many methods of integrating your e-commerce platform into a loyalty program. Creating rewards based on purchase history is the most common, but can take on many forms. The first method revolves around points. Points can be converted into discounts, free items and more. The next method is cash value, such as giving cash back and offering discounts. The final is through physical items, like including extra items with a purchase.

Hooking your e-commerce loyalty program back into other types of loyalty programs creates a seamless experience that keeps customers engaged and coming back for more. Allowing customers to collect or redeem reward points in stores or in a mobile app will make sure your brand is top-of-mind no matter where they are in the buyer’s journey.

Examples of Loyalty Programs

Magento has a number of tools that allow you to create an engaged, enticing experience for your customers. Numerous extensions exist that can help you implement some of the aforementioned point- and cash-based systems at a fraction of the cost of creating something custom. Magento is also extremely extensible, offering a built-in API to connect other applications to the purchasing, customer information, and existing loyalty program.

magento loyalty program

Partner with Pyxl

Pyxl’s loyalty program experience varies widely with a range of technologies and loyalty program types. We’ve integrated technologies like Magento with existing loyalty programs that have millions of members. If you are just getting started with creating a loyalty program, or if you are a seasoned veteran in the loyalty space looking to integrate into another technology medium, Pyxl is here to help! Reach out today to see how we can help.

Updated: Apr 13, 2022

Where does your digital marketing need help?

What's New

Latest trends and insights
HubSpot Onboarding Checklist
Mar 23, 2023 | 11  min

HubSpot is a powerful marketing, sales, and customer service tool that can help businesses grow and succeed, but it can also appear to be complex ...   Read more

author Pramita Pramod
Innovation in Action: A Showcase of Pyxl’s Most Creative Projects Over the Years
Apr 27, 2023 | 5  min

As we celebrate our anniversary month at Pyxl, we are delighted to reflect on some of the innovative projects we have had the privilege to ...   Read more

author Pramita Pramod
16 Marketing Lessons for 16 Years: Tips and Insights for Digital Success
Apr 06, 2023 | 8  min

Coming up on Pyxl’s 16th year as a successful digital agency, we have seen trends come and go, platforms rise and fall, and have adapted ...   Read more

author Pramita Pramod
© 2023 Pyxl, Inc. All rights reserved. | Privacy Policy