Rewards programs are very effective schemes to encourage customer loyalty and increase revenue.
Around 80% of Americans are enrolled in at least one loyalty program. According to research, 80% of participants of top-notch loyalty programs will remain devoted to their brand of choice. They are twice as likely to recommend the brand to others, which is one of the best forms of organic marketing.
At least 90% of ecommerce businesses on Shopify have customer loyalty programs. However, not all programs are created equal. The most common ones are point systems. In the digital age, some enterprises have expanded to include social media components or a tier system.
Here are some of the best loyalty programs on Shopify:
1. Stamped.io Loyalty & Rewards
Stamped.io combines reviews and loyalty, so you can give your customers a voice while improving your brand. The app leverages people’s affinity for social media by awarding points when customers connect with a brand on popular platforms.
These programs are customizable, so you can offer the best features to your customers and take your marketing ventures to the next level.
- VIP tier program—Reward loyal customers while increasing sales.
- Referral program—Offer incentives to customers who refer family and friends to the brand.
- In-store discounts—Offer in-store points and discounts, including free shipping.
- Enterprises can also request a quote for custom accounts. Brands can save up to 20% off for annual deals.
Growave is an all-in-one marketing app that helps businesses customize loyalty programs. You can choose from various customer rewards: cash, gift cards, discounts, and free shipping.
The app also has top-notch customer service that includes 24/7 live customer support and regular emails reminding customers of their rewards and if points are about to expire. Customers also receive tips to help them earn more rewards and better deals.
- Social media activities—Reward customers through social media login or when they post user-generated content on Instagram.
- Reviews and wishlist—Provide incentives when customers share their brand-related reviews and wishlist.
- Automated marketing—Amplify marketing and drive sales through autopilot service.
- VIP programs—Give your most loyal customers VIP treatment.
- Basic—$9/month (up to 75 orders)
- Starter—$19/month (up to 150 orders)
- Medium—$49/month (up to 500 orders)
- Growth—$99/month (up to 1,000 orders)
- Enterprise—$299/month (up to 3,500 orders)
- You can also contact Growave to create a custom plan.
3. Monetha Loyalty & Rewards
The best option if you want your small or medium shop to stand out. Monetha’s approach is simple: Just give customers what they want—rewards!
It goes beyond traditional loyalty programs that lock customers in one shop—they work for large businesses but give little value to smaller shops. To solve this, Monetha offers rewards that can be used outside. For example, converted to crypto or Amazon gift cards.
- Simple rewards programs—Customers are encouraged to spend more and buy again with an uncomplicated loyalty program.
- Unique rewards—Customers can claim rewards through gift cards, cryptocurrency, or donations to various organizations.
- Additional promotion—Partners are promoted on Monetha.
- All features are free—Paid plans only buy you points with real monetary value.
- Free—1,000 monthly points credit (every 500 points thereafter will cost $1)
- Bronze—$50/month (50,000 monthly points)
- Silver—$100/month (100,000 monthly points)
- Gold—$200/month (200,000 monthly points)
4. Smile: Rewards and Loyalty
Smile provides easy-to-implement reward programs that make customers smile. There are three main incentives: points for customer loyalty, rewards for referrals, and more rewards for VIPs. Even guests can earn rewards for first-time use, easily converting them into loyal customers.
Their customer service is top-notch, with email reminders encouraging customers to use their rewards and incentivizing social media activities promoting the brand.
- Integration of programs—Customers can combine their points, referrals, and VIP incentives for a better loyalty reward.
- Reward on POS—Shopify point of sale allows customers to redeem rewards whether they are shopping online or in-store.
- Discount programs—You can reward customers through a fixed-amount discount, percentage discount, or free shipping.
- Free—maximum of 200 monthly orders
- Starter—$49/month (unlimited orders and single-app integration)
- Growth—$199/month (unlimited orders and two-app integration)
- Professional—$599/month (unlimited orders and unlimited Smile apps)
Customer retention comes in many forms, and AiTrillion can help your brand with many of them: point-based loyalty program, product discount, a percentage discount, and VIP tier, among others. It also rewards customer engagement through product reviews and referrals.
AiTrillion also provides customer insights: a visual representation of customer behavior based on the type of program they use.
- Versatile rewards system—Many ways to reward customers.
- Automatic upgrades—Very loyal customers will get an automatic tier upgrade based on lifetime points. You can assign multiple tiers with bonus points.
- Startup—$49/month (up to 5,000 contacts)
- Growth—$99/month (up to 10,000 contacts)
- Premium—$199/ month (up to 15,000 contacts)
- You can also ask for a custom plan if you have more than 100,000 contacts.
- New customers get a 30-day free trial.
6. Yotpo Loyalty & Rewards
Formerly Swell Rewards, Yotpo provides on-brand loyalty programs. They are customizable, with over 15 ways to get loyalty points. Among them are the point-based reward system, rebate per purchase, rebate per amount, referrals, and reviews. Simply creating an account or celebrating a birthday or anniversary will also merit points.
Yotpo also integrates with mail service providers for convenience and paid membership benefits to increase your brand’s upfront cash flow.
- Increased lifetime value—Loyal customers reap the best rewards as they get points from the moment they sign up, and with all of their social media activities, birthdays, anniversaries, and many more.
- Versatile redemption programs—Customers can get free products, coupons, discounts, and free shipping.
- VIP tiers—Reward spending and referrals with a robust tier standing.
- Bronze—free (fewer than 100 monthly orders)
- Silver—$29/month (maximum of 200 monthly orders)
- Gold—$249/month (maximum of 800 monthly orders)
7. Referral Candy
Referral Candy turns customers into influencers by encouraging their family and friends to purchase from your store. They will get rewards for their efforts and recommendations. This is one of the best ways to bring in new customers because it is entirely organic and powered by the enthusiasm of your loyal audience.
The app also makes it easy for brands to launch a referral program with post-purchase popups and emails. It will even customize your landing pages and emails so you can put your brand logo, images, and color palette front and center.
- Instant rewards—Customers will automatically receive the rewards when they complete referrals. This is a great way to encourage loyal customers to refer more people to your brand.
- Monitoring system—Brands get detailed insights through dashboard tracking referral data.
- Fraud detection system—Self-referrals are rejected immediately, and the same goes for the rewards.
- You can start with a 30-day free trial and proceed to the premium plan, which costs $49 monthly. It includes unlimited customers and referrals, dashboards and data reports, live chat support, and automatic fraud protection.
LoyaltyLion is a data-driven loyalty program that aims to drive lifetime value. It allows brands to customize their rewards scheme to reflect their brand identity. You can opt for a customizable widget or an integrated loyalty program for your Shopify site.
The customer loyalty program encourages engagement, so almost every action will be rewarded with points: signups, site visits, purchases, social media activities, and birthdays. You can also add custom activities to merit points or rewards. LoyaltyLion also allows you to integrate your loyalty program for convenience.
- Increase customer lifetime value—Reward customers every step of the way, and provide versatile redemption through discounts, free shipping, money-off discounts or vouchers, and free products, among others
- Motivational rewards—Reward customers when they write a review or refer a friend or family member to the brand.
- Exclusive perks for loyalty—Personalize loyalty programs and offer exclusive perks to loyal customers.
- Free—maximum of 800 monthly orders
- Small Business—$159/month for 800 monthly orders and a loyalty program with core features
- Classic—$399/month for 2,000 monthly orders and an upgraded loyalty program
- Advanced—$699/month for 4,000 orders, additional rewards and support, and multichannel loyalty
What is a Rewards Program?
It is an incentive plan (more on customer incentives here) that businesses implement to encourage customer loyalty and retention. It’s one of the most—if not the most—effective customer retention strategies.
The most basic rewards program is a simple points system, where the brand awards customers a point for a certain amount of money spent on their store. The more they purchase from the brand, the more points they get. Accumulated points can be exchanged for cash, gift cards, and coupons, among other things.
The most loyal customers—those who spend the most—can get the VIP treatment. Some brands also offer paid programs where customers pay a recurring fee to enjoy exclusive products, discounts, and promotions.
Over the years, these types of loyalty programs have expanded to include social media. Customers can get points when they follow the brand’s page and like or share its posts.
How Can It Help Your Ecommerce Store?
There are several reasons why you should keep your customers loyal. First, retaining customers costs less than attracting new ones. And second, existing customers spend 67% more than new ones.
Consider these results from KPMG International’s global survey on customer loyalty:
- 86% will recommend the brand to family and friends
- 66% will write a good review online
- 46% will remain loyal even after one bad experience
When a brand maintains loyalty, repeat customers can easily power continuous revenue and long-term success. Loyal customers are happy to refer the brand to their close acquaintances and social networks. They will also talk about their positive experiences online, basically doing a ton of marketing for you.
A robust rewards program is a great first step to fostering loyalty. One of the most common trends is to reward customers when they sign up for the program because getting those first points or rewards will excite them. If the rewards and VIP perks are engaging, new customers will continue to purchase items and engage with your brand.
What Makes a Good Rewards System?
Note that excellent products and exceptional customer service are still the most critical elements in the success of your business. A rewards program will merely complement them to foster customer loyalty. With that in mind, here are a few things that can help you improve your program:
- Simplicity— Complicated rewards systems may overwhelm or intimidate your customers; they may not bother to sign up and explore their options.
- Value—Provide value with what you give loyal customers; don’t offer them so that you can say that you have created a loyalty program. You already know loyal customers will do wonders for your brand, so you should do better than a simple 1% discount. Offer your loyal customers something truly valuable, like free shipping or cash back, or something exciting like exclusive items and deals.
- Social media component—Offer another tier of attractive perks that will push customers to post about your brand on social media. Online exposure is incredibly valuable, so integrate this component with your rewards system if you haven’t already.
- Personalized rewards—Customers will feel valued when they get unexpected rewards from your brand. So, surprise them with special perks on their birthday or anniversary of their membership.
Many businesses implement some type of rewards program because it has been proven very effective for customer retention, boosting sales and getting rid of excess inventory (we’ve talked about it here). It’s up to these brands to offer perks that are attractive to their customers and will encourage more purchases and engagement.
On Shopify, around 90% of businesses have programs that reward customers. Be part of the majority by setting up your loyalty and rewards system when you launch your Shopify stores. Provide loyalty points with real value with Monetha.io.
Hundreds of apps will help you create a rewards program on Shopify. The first step is to decide which app will provide everything you need for the perks you want to offer customers.
If you don’t know which app to use, you can browse the Shopify App Store. When you’ve chosen your app, press the Get button, and you will be taken to a page where you can install the app. Click the Approve button to complete the installation.
Once the app is installed, you can customize the rewards and roll out the perks that your customers can take advantage of.
No, but you can take advantage of Shopify’s many rewards and loyalty program apps. Some apps are compatible with Shopify POS for seamless transactions.
Keep it simple and name your tiers. A basic example of a tiered loyalty program has three tiers: bronze, silver, and gold. The rewards will get better as customers move up the tiers.
Get your creatives to work by creating specialized names for your tiers. For example, Sephora’s Beauty Insider has the following: Insider, Very Important Beauty Insider (VIB), and Rouge.
Lay out concrete terms for each tier. Closely consider how you can give the best rewards to the highest tier while still making the lowest tier excited about theirs.