Effective Customer Loyalty Programs

Customer loyalty programs help increase the number of returning customers and ultimately increase sales for your e-commerce business.

Find out how to choose the right program for your business and implement it effectively.


As customer service guru Shep Hyken says, “There is a big difference between a satisfied customer and a loyal customer.”

Yes indeed Shep. But what exactly is the difference?

Just because a customer likes the products of your e-commerce business does not mean that they will keep their shopping special for you. Someone else can offer a better price or better shipping options. So how do you retain your hard-earned customers and not lose them in the competition?

Answer: customer loyalty programs.



Loyalty programs have many benefits for businesses. To name a few:

They improve the customer’s identification with your brand
Increase sales
Promote brand advocacy
Encourage lost customers to shop with you again
Turning a customer into a loyal customer is not easy, and competition is high, especially for e-commerce businesses. A winning loyalty program can help you succeed in the online sales world.

In this article you will learn:
Why should you invest in a loyalty program?
Different types of loyalty programs
Why is Customer Loyalty Important?
I expect to start losing rather than gaining business by saying, “It’s important, let them shop with the other guy. I’ll just keep gaining new customers.” The cost of starting a new business is high, but it’s easy for businesses to measure customer acquisition (CAC) costs.

On the other hand, the lifetime value (LTV) of a customer is a more complex calculation. This means that many businesses ignore the value of the returning customer because they cannot break the numbers.

But one thing is clear: the real value is getting customers back. Businesses that focus on customer acquisition ignore the risk of customer retention. Business analysts emphasize this time and again.

This is because returning customers are more likely to spend more money, sell more easily, and become brand advocates. Math says it all:

On average, it costs five times more to attract a new customer than to keep a returning customer.
The probability of selling to an existing customer is 60-70 percent, and only 5-20 percent for a new customer.
Returning customers earn 23 percent more revenue

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