After 15 years as a webmaster implementing ecommerce loyalty programs, I‘ve seen firsthand how impactful they can be. A well-designed program attracts, engages, and retains customers in a big way.
In this comprehensive guide as your loyal friend, I‘ll walk you through exactly how to create a results-driven loyalty program in WooCommerce using the excellent Advanced Coupons plugin.
Contents
Why Every Ecommerce Business Needs a Loyalty Program
Let‘s start with some eye-opening statistics that showcase the power of loyalty programs:
- Customers enrolled in loyalty programs drive 30% more revenue than non-members.
- Program members have 3x higher lifetime value than non-members.
- Loyalty program members spend 13% more when shopping than non-members.
- Almost 60% of customers say rewards programs make them more likely to shop with a retailer.
With numbers like that, it‘s easy to see why brands like Starbucks, Amazon, Sephora, and Walgreens all have popular loyalty programs.
Here are some of the key reasons why a program is a must-have:
Incentivize Repeated Purchases
The core purpose of a loyalty program is to incentivize customers to make repeated purchases. Customers will keep coming back to earn rewards and redeem points. This directly increases customer lifetime value.
Amazon Prime is a perfect example – members get free shipping and other benefits that encourage them to order again and again.
Drive Incremental Sales
Loyalty programs get customers to spend more to unlock rewards. You can even create tiers and thresholds to encourage bigger purchases.
Sephora‘s Beauty Insider program offers free birthday gifts, bonus points during your birthday month, and early access to sales when you reach higher tiers.
Create Brand Loyalty
A loyalty program makes customers feel valued and builds an emotional connection with your brand. They become invested in earning rewards and less likely to shop around.
Starbucks Rewards members are extremely loyal, with over 50% of sales coming from the program members. Offering free coffee, birthday rewards, and exclusive deals keeps them hooked.
Gather Data for Targeted Marketing
Loyalty programs allow you to collect data on purchasing habits and shopping behavior. You can then segment customers for more personalized marketing.
Retailers like Target can send hyper-targeted ads and offers to loyalty program members based on their purchase history.
Increase Customer Engagement
When customers enroll in a loyalty program, they engage more frequently with your brand to earn and redeem rewards. This leads to higher retention.
The My Best Buy program keeps customers checking their account balances, redeeming points, and shopping for bonus point offers. This deeper engagement retains customers.
Deter Competitors
A great loyalty program keeps customers continuously shopping with your brand rather than competitors.
The Walgreens Balance Rewards program offers over 6,000 points of value for a $1 spend to lure customers away from competing drugstores.
Clearly loyalty programs are incredibly beneficial. Now let‘s get into how to create one for your WooCommerce store.
How to Set Up a Loyalty Program in WooCommerce
There are a few different ways to build a loyalty program in WooCommerce:
- Use an integrated solution – Plugins like Advanced Coupons add sophisticated programs with many features.
- Build custom functionality – You can develop custom features like points and rewards by coding it yourself.
- Integrate an external service – Services like Smile.io and LoyaltyLion offer pre-built programs you can integrate.
The easiest yet most robust option is using a dedicated plugin – and Advanced Coupons is hands-down the best choice.
Here are the steps to set up a full-featured loyalty program using Advanced Coupons and its Loyalty Program add-on:
Step 1: Install and Activate the Plugins
First, install and activate both the free Advanced Coupons plugin along with the premium Advanced Coupons – Loyalty Program add-on.
You can purchase the add-on bundled together with Advanced Coupons.
Tip: Make sure to properly install plugins on your WooCommerce site. Also, limit the number of unnecessary plugins to avoid performance issues.
Step 2: Configure the Main Loyalty Program Settings
Next, go to Coupons > Loyalty Program and open the Settings tab.
It‘s here you can configure all the key components of your program:
Let‘s review the settings and options:
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Name – This will be shown to customers in their accounts and elsewhere. Get creative! Names like "Rewards Club" work well.
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Points to price ratio – This sets how many points are earned per dollar spent. 1 point per $1 is common.
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Redemption ratio – This configures how many points equals a dollar discount when redeemed. 10 points = $1 is a standard exchange rate.
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Expiration – Pick when unused points expire. 180 days is a reasonable timeframe.
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Qualifying actions – Enable points for actions like registrations, reviews, referrals.
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Spend thresholds – Reward customers who spend over certain amounts with bonus points.
Take the time to carefully consider each setting to design an enticing and balanced program.
Step 3: Configure Advanced Point Settings
Go to the Points Earning tab for more advanced options:
Here you can:
- Set minimum spends to earn points
- Give bonus points for big spenders
- Exclude discounts or fees from points calculations
- Limit points earned from coupons
- Run limited-time bonus point promotions
Tweak these settings to incentivize profitable customer actions. Big spenders should earn exponentially more points – this encourages larger purchases.
Step 4: Connect User Accounts
For customers to actually earn and redeem points, they need an account.
Under WooCommerce > Settings > Accounts:
- Disable guest checkout
- Enable account creation during checkout
This ensures customers have accounts to accumulate loyalty points.
Step 5: Let Customers Redeem Points
The final step is allowing customers to redeem earned points for rewards.
They can do this in My Account > My Reward Points:
Customers choose how many points to exchange for a discount coupon.
And that covers the complete setup process! The exciting loyalty program features are now ready.
Now let‘s get more customers enrolled…
Promoting Your WooCommerce Loyalty Program
You‘ve built an amazing program – now it‘s time to spread the word!
Here are some proven and effective ways to promote a new loyalty program:
Announce the Launch
Let your audience know about your new program across all channels:
- Blog post
- Social media
- Email list
- Site popups and banners
Share details on points earning, redemption, and the benefits of joining.
Educate with FAQs
Create a dedicated page that answers frequent questions about how your program works.
The more questions you answer, the more confident customers will feel about signing up.
Show Points in the Cart and Account
Display the points earned for purchases both in the shopping cart and in a user‘s account dashboard.
This acts as a continual reminder to keep collecting more points.
Send Milestone Emails
Send customized emails when customers hit milestones like 100, 500, or 1000 points earned.
Celebrating loyalty milestones makes customers feel valued.
Run Promotions and Bonuses
Offer sign-up bonuses like 500 bonus points and double points days.
This incentivizes new members to enroll and existing ones to engage more.
Advanced Tips for Building Loyalty
Here are some pro tips from my own experience running ecommerce loyalty programs:
Tier Your Program
Separate members into tiers like Gold, Platinum, Diamond based on points accrued.
Higher tiers unlock added benefits and rewards. This incentivizes customers to move up tiers.
Incorporate Gamification
Add fun gamification elements by showing progress bars, member levels, badges, and leaderboards.
Gamification satisfies the human need for achievement.
Spotlight VIP Perks
Highlight special perks only VIP members get like free gifts, early access to sales, and free shipping.
Exclusive benefits make members feel privileged.
Partner with Other Brands
Allow points to be earned and redeemed across multiple brands.
Co-branded programs like airline alliances expand options for earning rewards.
Let‘s Recap the Key Steps
Here‘s a quick recap of the steps covered in this guide:
- Install and activate the Advanced Coupons plugins
- Configure the main loyalty program settings
- Set up advanced points options
- Connect user accounts
- Allow points redemption
- Spread the word and promote enrollment
- Use pro tips to further improve your program
And that‘s it! The steps above will help you create an extremely compelling loyalty program that customers can‘t resist.
Remember to continuously refine the program based on metrics like enrollment rates, active users, points redeemed, and revenue growth. Pay close attention to which incentives drive the results you want.
Here‘s to building long-term customer loyalty and sales with rewards programs! Let me know if you have any other questions.
