Loyalty marketing is inevitable for today’s ecommerce marketers. According to Gartner, 80% of your company’s future revenue will come from just 20% of your existing customers. A loyalty program with 360 degree customer engagement that rewards not just purchases but also social sharing, email signups and customer referrals is a fantastic driver of online and offline engagement as well as retention.
That’s the reason why Predator Nutrition, Demandware and ShopSocially joined hands to present a special three-way webinar to showcase how you can implement a customer loyalty program on your ecommerce store.
In this webinar Phil Slater, Head of Marketing at Predator Nutrition, a leading sports nutrition ecommerce brand shared their journey of implementing a loyalty program successfully with the help of ShopSocially on Demandware platform.
This blog post includes the recording and presentation for the webinar and highlights the strategies that helped Predator Nutrition, reap 33% hike in Average Order Value (AOV).
Watch webinar recording here:
See the webinar presentation:
Key highlights from the webinar:
Value of Retention
According to Bain & company, if the customer retention increases by just 5%, it can increase your company profits by 75%! So it’s wise to start engaging with your happy customers now and reward their interactions with your brand at every step. That’s what a loyalty solution can do for you.
Why Marketers are hesitant to adopt loyalty marketing?
1. According to a recent marketers’ survey, the top 5 challenges faced by the marketers while implementing a loyalty program are:
2. Creating a loyalty proposition that stands out from the competition
3. Capturing and rewarding customer interactions across all touch points
4. Tracking and Utilizing customer profile data and buying behaviour patterns
5. Designing a loyalty program with a high perceived value
6. Ensuring customer awareness and understanding of the program benefits
Ways to solve loyalty marketing challenges
1. An omni-channel loyalty program with 360 degree customer engagement which rewards points to your customers not just for purchases but for every interaction such as referring a friend, sharing on Facebook, writing a review and email signups is an effective way to create a personalized customer experience which will differentiate you from the market.
2. Integrating offline and online customer experience of availing loyalty points is crucial and calls for POS and CRM integrations of your loyalty application
3. It’s important to measure the ROI on this investment and ensuring that you get real time data for customer interaction and purchase patterns. For that you will need very robust backend which delivers comprehensive reports and analytics.
4. Loyalty marketing calls for best practices where you empirically decide each component such as name of the program, naming the loyalty tiers, redemptions points etc. Each factor determines the chances of success for your initiative.
5. Implementing a program is just a start; the real game is about promoting it at the right time and at the right place.
Predator Nutrition’s Journey:
Predator Nutrition owes its progress to its loyal and supportive customers. Hence, they wanted to engage customers and reward their onsite and social interactions with the brand. To achieve this, Predator Nutrition implemented ShopSocially’s ‘360 degree Customer loyalty app’ on its site and launched its modern day loyalty scheme.
Predator Nutrition rewarded points to loyalty members not just for purchases but also for referring to a friend, reviewing products and following on social media networks such as Twitter, Instagram etc. They offered several exciting rewards in lieu of loyalty point’s redemption including money off vouchers, gym clothing, supplements, shakers, personalized training and diet programs.
Predator Nutrition implemented ShopSocially’s ‘refer a friend’ app to run online referral marketing campaign. This app helped Predator Nutrition complete the 360 degree loyalty engagement experience for its customers. It encouraged its buyers to refer Predator Nutrition to their friends/family via Facebook, Twitter, Pinterest or email. In return, we offered attractive discount of 10% off on their next order along with certain loyalty points.
This app gave brand virality to Predator Nutrition. They collected thousands of referrals which were of high quality and they converted into sales at an impressive rate of 25.2%!
Email acquisition campaign:
Predator Nutrition offered reward points on several customer interactions on site and promoted the loyalty program on homepage and several other site pages. Predator Nutrition also embedded ShopSocially’s Get-an-Email app and rewarded 500 loyalty points and a free shaker to get the dual benefit of more loyalty members and email signups at the same time.
This promotion strategy shot up our daily enrolments in loyalty scheme by 9.5%.
Predator Nutrition rewarded their customers for engaging with the site at every corner, from points for birthday bonus, being inactive for 4 months to following/liking us on social media i.e. Twitter and Instagram. This engagement tool gave them 70% more repeat purchases through active members.
Loyalty program features:
1. Easy to use customer dashboard where they see exactly how they have earned points and other ways they can earn points apart from making a purchase. This was very easy to customise as per our brand requirements and we easily embedded this on our store. Through this engaging dashboard, our customers can view real time their point’s history, loyalty tier, ways to earn points, and more. Monetary as well as non-monetary activities are rewarded; there is expiration date to points which they are reminded of. via emails.
2. Engaging loyalty tiers: Predator Nutrition made it fun & challenging by naming tiers after animal predators i.e. Leopards to Tigers to TRex.You may customize and name these tiers and set up different levels of spending based on your brand needs such as names of bakery products to standard gold, silver or anything else.
3. Flexible Redemption Options: Predator Nutrition is giving back for their customers’ efforts by exchanging points for interesting products like cyclone shaker or tickets to VIP events, to personal training programs. Our array of options for redemption and its effective email promotion led to spike in redemptions by 73% after a quarter of program launch.
4. Backend Reports: There is a detailed reporting dashboard for loyalty which shows you enrolled users, top usage users along with filters of recency and user search, you can even manually add points to any member’s loyalty account in case of grievance.
5. Easy to install: Setting up this loyalty program is really easy and we dint require any technical person’s help to do it. Predator Nutrition always had a ShopSocially representative help them in installing, customizing and embedding it on their website.
- Achieved 33% higher average order value (AOV) and 70% more purchases for customers who redeemed loyalty points
- 25.23% sales conversion rate for traffic generated from referral strategy
- Earned thousands of loyalty members, word-of-mouth referrals, social posts and followers
- 73% increase in daily redemptions and 9.5% jump in daily enrolments monitored in just one quarter
Here are some excerpts from the question and answer section of the webinar:
Question: Is it possible to reward and redeem points for offline purchase activities also?
Answer: Yes it is possible to offer and redeem points for offline activities as well. ShopSocially loyalty solution is omni- channel which works in tandem with POS systems.
Question: Can we adjust the number of loyalty tiers or give different weightage to monetary and non-monetary activities?
Answer: You can create unlimited number of tiers and qualified activities related to purchases help users to move to higher tier, non-purchase activities or non-qualified activities are rewarded points but do not help customer to move to higher tier.