How Businesses Are Winning With Customer Loyalty Programs? 

Over the years, loyalty programs have seen a growing upward trend. Many businesses have integrated customer loyalty programs into their existing marketing activities to retain customers and win back those who have left.

Customer retention is a problem that almost all business owners face. Competition is increasing as new online WooCommerce stores open up every day. It becomes vital to stand out, or you will be lost. This is where the concept of a customer loyalty program comes in. A dedicated rewards system is the differentiator that will help businesses stand out. This is where incorporating the best points and rewards plugins comes into play.

A customer loyalty program is one of the marketing strategies marketers have used for the longest period. The concept that initiated the process of rewarding loyal customers for their loyalty toward the product. Points and Rewards promoted the idea of direct selling and eCommerce referral marketing (indirect promotion strategy).

Almost every industry has adopted the points-rewards combo in its marketing strategies. In this blog post, we will understand customer loyalty programs, how the points and rewards plugin helps, and finally, how businesses are winning with them.

Understanding Customer Loyalty Programs

Customer loyalty programs are retention solutions structured with incentives for customers who make purchases or have ongoing engagement with your brand.

Image Source: EDUCBA

A crucial question may arise: why are these loyalty programs important? Well, we are prepared with an answer. Marketing is not just about buying and selling goods and services. Once you have introduced the product well in the market and have a strong customer base. The next crucial step is to make optimum utilization of this base.

You can do this if you decide to implement customer loyalty programs. It does not matter which niche your business belongs to; you can easily find ways to reward your customers with additional benefits.

Before we proceed further, let us quickly unfold the benefits –

Benefits Of Loyalty Programs To Customers

The goal of customer loyalty programs is to foster customer loyalty, encourage increased customer retention, and drive continued engagement with the brand, ultimately benefiting both the customer and the business. This type of system is commonly used in various industries, including retail, eCommerce, hospitality, and online services, to create a mutually beneficial relationship between the company and its customers. Here are some of the other benefits –

Source: Slide Team

• Increase in revenue
• Increases sales
• Makes customers feel more valuable
• Gathers user information and valuable data
• A mode of interaction and communication between the business and its customers
• Measure customer loyalty through engagement
• Improves customer retention while attracting new customers
• Constant improvements result in constant growth

Since you must be aware of how beneficial it is to build a loyalty program for eCommerce, you must be wondering where to start, or how you will know that customer loyalty programs are actually working.

In today’s world, simply running basic customer loyalty programs isn’t enough. Without proper loyalty program analytics, businesses often miss critical information such as which rewards motivate customers, what drives repeat purchases, or why customers have stopped engaging.

Here is the list of key metrics that are essential for loyalty program analytics to function smoothly.

1. Net Promoter Score (NPS)

This measures customer loyalty by asking customers how likely they are to recommend a company’s products or services to others. Generally, a Net Promoter Score above 20 is favourable, over 50 is excellent, and above 70 is considered world-class.

2. Repeat-Purchase Rate

The percentage of customers who make repeat purchases within a certain period. A good repeat purchase rate for eCommerce businesses is between 20% and 40%. RPR of 30% means a strong customer loyalty and a healthy business, while an RPR below of 25% mean an urgent requirement for better retention activities.

3. Customer Retention Rate

This measures the percentage of customers who continue to do business with a company over a certain period. A good customer retention rate (CRR) typically falls between 70% – 85%, with 90%+ considered exceptional.

Many other metrics help businesses to calculate the success of customer loyalty programs…

What Is Points and Rewards For WooCommerce?

As we mentioned before, in the ongoing competition amongst WooCommerce stores, it is important to be unique yet accommodating to your customers. Loyalty program analytics is essential, but it is also important to create a loyalty program worth tracking.

Points and Rewards for WooCommerce is the plugin that will help you achieve this and so much more for your eCommerce store. Merchants can get complete access to features like daily login points, rewards on birthdays, points log reports, membership benefits, and more!

Some of the popular on-demand features of this points and rewards plugin are mentioned below,

• User Level & Badges: Admins can now motivate customers to earn reward points through various activities by awarding unique user badges. These badges represent different levels of achievement. The admins have full control over their position and level names.
• Gamification: Merchants can enhance their website’s engagement with gamification marketing. Customers can spin the “win-wheel” for rewards. Customize positions, colours, and segments while setting points per section. Control spinning freedom and engagement levels.
• Purchase Through Points: Merchants can enable users to purchase items with just WooCommerce reward points. They can also assign points to different available categories.
• Assign Product Points and Rewards: Using this WooCommerce Points and Rewards plugin, merchants can assign reward points to the products as well as different categories. He/she can do this from the Assign Products Setting of the plugin.
• Build Membership: Build your membership program to reward your customers. Admin can create multiple membership tiers and add the number of points to join them. Discounts and the expiration date can also be set.
• Referral Points: The merchants can offer points and rewards to the referrer for every unique referral. The admin just needs to enable the referral Woo points option and then enter the number of points and the minimum referrals required.

WP Swings has created a powerful plugin that helps merchants create a reward system for capturing loyal customers. Don’t believe us?  Check for yourself!

How Businesses Are Winning With Customer Loyalty Programs?

In this section, we will learn how people like you have leveraged our plugin to achieve their business goals. Check out some of our client testimonials to gain insights into our business process.

1. Uniq Gold

Uniq Gold Store is a luxury jewellery eCommerce store that brings together 18K gold and real diamond creations from iconic designers. Their objective is to make premium jewellery accessible to customers through an exquisite online shopping experience.

What Were Their Challenges?

Keeping in mind that their USP (unique selling point) is selling exquisite luxury jewellery. They were facing difficulty in bringing customers to their website. To achieve this purpose, they wanted to introduce a referral program and use their customers as their brand ambassadors.

What Is The Solution, And Where Did They Get That?

Uniq Gold started using Points and Rewards for WooCommerce Pro, developed by WP Swings, which helped them stand out amongst their competitors. WooCommerce Points and Rewards is among the best-selling plugins that can not disappoint the user.

They implemented the “Referral Points” feature. After the successful implementation of these features, they received a lot of positive feedback from their customers and also saw a direct 9-10%  increase in conversion rates.

A Short Quote From Uniq Gold

Extremely cooperative and helpful support.

– Uniq Gold

2. Artivoxa

Artivoxa allows motion designers to learn from online courses and generate high-end 3D assets. They aim to create a space for designers to learn from premium Houdini and Redshift tutorials, complete with detailed project files.

What Were Their Challenges?

Keeping in mind that their USP (unique selling point) is creating exclusive membership programs for designers, which they can utilise to learn and create from premium Houdini and Redshift tutorials to stay ahead in the industry. The difficulty they faced was creating these membership programs for their target audiences.

What Is The Solution, And Where Did They Get That?

When Artivoxa started using WooCommerce points and rewards, developed by WP Swings, it helped them stand out from competitors. They implemented the “Build Membership” feature. After successfully implementing these features, they received a lot of positive feedback and also saw a direct 25% increase in conversion rates.

A Short Quote From Artivoxa

I really love the support team and the help you give me for the website development, very fast and always professional services.

– Artivoxa

3. Mitapet

Mita Pet Product has managed to differentiate itself from competitors in the pet industry with its meticulous workmanship and quality-oriented production approach throughout its nearly 20-year journey since 2002. They also specialize in 80 product types.

What Were Their Challenges?

As a company that prioritizes customer satisfaction, they faced a challenge in providing their customers with something that their competitors were not providing. The end goal was to make their customers feel important.

What Is The Solution, And Where Did They Get That?

They implemented the per-currency points & point conversion, and coupon generation features. After successfully implementing these features, they received a lot of positive feedback and also saw a direct 40% increase in conversion rates.

A Short Quote From Mitapets

WP Swings support and the technical team have been helpful with my queries and issues pre- and post-upgrade. They have been very prompt in their replies, too. The plugin back-end admin is easy to understand and set up. Thanks so much for all your help. It has been a pleasure dealing with WP Swings!

– Mitapets

4. Filtrupasaulis

The Filtrupasaulis team is responsible for the air pollution. They have created a specialised recuperator filter store. Their main goal is to ensure that the air in your home is always clean. And the recuperator would work in the most optimal mode.

What Were Their Challenges?

Their business highly depended on returning customers. Because their product is replacement filters for HRV. They have to be changed at least every 6 months, which demands this. They wanted to incorporate a system that would help them with returning customers.

What Is The Solution, And Where Did They Get That?

Using Points and Rewards was beneficial for them because features like Points on Purchase and Registration/Sign-Up Points answered their challenges (bringing in returning customers). Once they started using our plugin, they also saw an instant change in their conversion rates— 3% to 5% as compared to the previous period.

A Short Quote From Filtrupasaulis

For quite a low fee, we have received a great tool to retain customers, reward them for annual purchases and keep communication.

– Filtrupasaulis

5. Ciao Italia

Ciao Italia is an online food delivery and catering service provider. It guarantees high-quality Italian snacks, ice cream, sorbets, and meals. They cater to individuals, businesses, and private occasions. They also provide complete catering based on years of experience and the Italian top chefs in our kitchen.

What Were Their Challenges?

Keeping in mind the competition faced by business houses in the food industry. They too faced this issue. It was difficult for them to convert new customers and retain the existing ones. They wanted to incorporate something to stand out in the market.

What Is The Solution, And Where Did They Get That?

They implemented Membership and Sign-up points to see an instant change in their customers’ attitude, to see that the customers seemed satisfied, happy, and committed. They also saw a 10% increase in their conversion rate and retained 20 new customers.

A Short Quote From Ciao Italia

Great plugin, very good support.

– Ciao Italia

6. Art By Daan

It is an online eCommerce company that sells handmade, precious pieces of jewelry. All artistic jewelry and art are made from special castings of colourful acrylic paint, combined with the finest materials, and are 100% unique.

What Were Their Challenges?

Art by Daan is a company that makes handmade, unique jewelry. But it was very difficult for them to retain customers. This is a common problem that is faced by a lot of in-house artists, who are pretty new to the industry. It becomes impossible to build a certain level of credibility and loyalty amongst their customers.

What Is The Solution, And Where Did They Get That?

They included features like Conversion and Referral points. The company saw an instant increase in conversion and retention rates. Not only this, but the customers are more committed than before.

A Short Quote From Art By Daan

You have a friendly support team that is willing to develop!

-Art By Daan

7. Perties Freshwear

At Perties, they are devoted to producing highly absorbent menstrual, incontinence, and postpartum pants that are vegan, naturally more comfortable, PFAS substance-free, economical, and safer options for the human body than the alternatives.

What Were Their Challenges?

The goal of Perties Freshwear is to maintain product quality, and customers often abandon their purchases due to high prices. The product price is always an essential factor that drives purchase. And for a price-sensitive customer base, the real problem was to maintain the standard without compromising its price.

What Is The Solution, And Where Did They Get That?

The included rewards plugin to their existing marketing activities. They implemented the following functionalities –

• Reward & Redeem Points
• Points Notification Through Email
• Referral Points
• Points Table Tracking & Updation
• Points Adjustment On Order Refund & Cancellation
• Points On Order Total
• Review Comment Point
• Point Conversion And Coupon Generation
• Building Membership

When asked about the impact of Points and Rewards for WooCommerce on the growth of his store, Vlado says, “1/3 of our customers return to our store to buy again because they want to redeem their points.

The points he offered to customers made their return to his store for redemption and discounts on their next purchase. As a result, Perties could increase their revenue by 25 percent in just two months. The best part is you win both ways. Customer satisfaction & engagement, and continued store sales.

A Short Quote From Perties Freshwear

I couldn’t expect better results with any other team. Attention is always excellent and on time, even when you have minor issues, and they solve them asap. The features have everything, and I can’t think of any feature that could make it better. From compatibility to customizations, they have assisted a lot. Absolute satisfaction. I’ll give it a full 5-star review. It’s definitely worth an upgrade to the pro plugin version. Additionally, I’m using RMA for WooCommerce, and it’s smooth too.

– Vlado Laco

What Do These Customer Loyalty Programs Have In Common?

Despite operating in different industries, from luxury jewellery to food delivery, all these brands wanted to build long-lasting customer relationships. Whether through referral points or membership benefits. Their main objection was simple: to give customers reasons to return.

None of the mentioned brands wanted a customer loyalty program because it was trending. Each of them had a specific challenge –

• Uniq Gold needed customer acquisition to happen through referrals,
• Artivoxa wanted premium membership engagement for their customers,
• Mitapet needed a customer loyalty program to make customers feel valued,
• Filtrupasaulis depended heavily on repeat purchases,
• Ciao Italia needed both acquisition and retention strategies to work simultaneously,
• Art by Daan’s main struggles were with credibility and loyalty, and
• Perties Freshwear required customers to justify premium pricing

There was one clear solution for each of these challenges – Points and Rewards for WooCommerce. Customer loyalty programs reward customer actions, create personalized experiences, and make shoppers feel valued. They successfully increased retention, conversions, and overall customer satisfaction.

These brand success stories prove that the right customer loyalty program can turn occasional buyers into loyal customers.