A loyalty program is a popular marketing strategy used by eCommerce businesses to encourage repeat purchases and improve brand loyalty among customers. It works in a way that customers are rewarded with incentives, store credits, or gift cards for their long-term purchases, subscriptions, or referrals.
This helps in building a loyal customer base for a business, which can be used for marketing and promotions. Loyalty programs will motivate your customers to be advocates for your brand and products. It creates opportunities for social proofs, word-of-mouth publicity, positive reviews, etc.
This can help you achieve your long-term business goals and build a healthy relationship with your customers.
Examples of loyalty programs:
- Amazon offers exclusive benefits for its Prime members, like free two-day shipping, access to streaming content, exclusive deals, and more.
- Starbucks offers free drinks, food, and rewards to members who use their loyalty cards.