How to Create a Loyalty Program in WooCommerce?

create loyalty program

Creating a loyalty program in WooCommerce can be a great way to increase customer engagement and retention. In the eCommerce industry, loyalty programs prove to be one of the most effective sales strategies for increasing revenue and customer loyalty.

As many as 84% of consumers say they like to stick with a brand that creates a loyalty program. And 66% of customers say that their ability to earn rewards changes their spending behavior. So, once you get the chance, you need to satisfy your existing customers and keep them returning for more.

Woocommerce, one of the most popular ecommerce platforms, provides limitless opportunities to create an online store. But it has limited features for creating loyalty programs. Here it would help if you had the WPloyalty – WooCommerce points and rewards plugin that allows you to create a loyalty program in WooCommerce.

Let’s look at how to create a loyalty program in WooCommerce and why loyalty programs are essential for business success

WPLoyalty helps you to create a loyalty program, increase sales and revenue quickly.

What is a WooCommerce Loyalty Program?

A WooCommerce loyalty program is a customer retention strategy that rewards loyal customers, who frequently interact with the brand for purchases, sign ups, reviews, referrals and more.

Customer rewards programs encourage repeat purchases by providing members with discounts, unique offers, and VIP offers.

You can create a loyalty program in many ways. For example, you can reward your customers points, coupons, freebies or free shipping. On the other hand, you can create a tier-based loyalty program and reward your loyal customers.

An effective WooCommerce Loyalty program can help you attract new customers, retain existing ones, reactivate inactive buyers and encourage them to spend more dollars.

Why is a Loyalty Program in WooCommerce Important?

To understand why a loyalty program is important in WooCommerce, have a look at these figures,

  • 82% of businesses agree that retention is less expensive than acquisition.
  • 75% of consumers say they favor brands that offer rewards.
  • 65% of a company’s business comes from existing customers.
  • Increase customer retention by just 5% and boosts profits by 25% to 95%.
  • 58% of companies pursue personalization strategies to increase customer retention.

These numbers show the importance and benefits you get when creating a loyalty program. Let’s look at the key benefits for your ecommerce business when you successfully create a loyalty program in WooCommerce.

Increase Customer Retention

WooCommerce Loyalty programs are effective strategies for increasing customer retention. Loyalty points programs help with retention in two ways, help you keep your best customers and help you win back lost customers. Businesses use customer retention to track customer loyalty over time and assess overall success.

Increase in Sales and Revenue

According to Frederick Reichheld of Bain & Company’s research, “An increase in customer retention rates by 5% causes an increase in profits by 25% to 95%.” Customer acquisition costs outweigh customer retention costs. So, create loyalty programs to help repeat purchases and increase ROI.

Boost Customer Lifetime Value

Customer lifetime value, or CLV, is the net profit attributable to a specific customer. When you create a loyalty program that directly impacts CLV and significantly improves the brand-customer relationship’s longevity, it encourages customers to stick with a brand for reasons other than its products and services.

Attrition Rate Reduction

Customer attrition is a problem many brands face across industries. Create a loyalty program to combat this serious problem. Loyalty programs increase customer engagement, which results in reduced attrition.

Promotes Brand Advocacy

A satisfied customer is a vocal one. A loyalty scheme will significantly increase customer satisfaction, promoting brand advocacy. Brand advocates positively influence their network of family and friends, which aids in brand penetration.

Attract New Customers

Customers as brand advocates impact new customers and refer them to the brand. When you create a loyalty program with a loyalty scheme that offers great rewards and loyalty points, it promotes brand advocacy and dramatically expands the customer base.

Access to First-Party Data

Data will remain a priceless commodity in 2022 and the forthcoming years. Create loyalty programs to enable you to ethically source first-party data while adhering to general data privacy compliance rules. First-party data can help you craft a perfect marketing strategy.

Create a WooCommerce loyalty program with WPLoyalty, and acquire more customers.

How to Create a Loyalty Program in WooCommerce

The easiest way to create a loyalty program in WooCommerce is by using the WPLoyalty – WooCommerce points and rewards plugin and creating a reward campaign with it. WPloyalty is one of the best WooCommerce loyalty program plugins in the market.

The plugin lets you create all types of WordPress loyalty programs in a few simple steps. With the WPLoyalty points and rewards plugin, you can reward customers for,

  • Purchasing a product
  • Signing up for an account
  • Writing a product review
  • Referrals/ Refer-a-friend
  • Birthday
  • Social sharing

Customers also can earn rewards in the following forms:

  • Convert points to coupon
  • Free product/gift
  • Fixed or Percentage discounts
  • Free shipping
  • Instant coupons and bonus rewards

Let’s check out how to create a loyalty program using WPloyalty step-by-step. The following example shows you how to create a loyalty program in WooCommerce that allows customers to earn a point for each dollar they spend. It also outlines how customers can redeem points for a coupon that they can use for their next purchase.

NOTE: The article assumes that you have already purchased the WPLoyalty plugin, installed and activated it. If not, please get the WPLoyalty plugin before proceeding and install and activate it.

How to reward customers with points for every purchase in WooCommerce?

Now to guide you through how the campaign system works, let’s look into how to create a ‘Points for Purchases Campaign’ and how it works for your customers.

The following steps will help you reward customers with points for every purchase in WooCommerce. This involves,

  1. Creating a campaign to allow customers earn points
  2. Creating a reward to allow customers spend the points

Creating a campaign to allow customers to earn points

It’s time to create a campaign. WPLoyalty allows you to create campaigns that rewards customers with points for a variety of actions like purchases, sign ups, reviews, referrals and more.

In this example, we are going to see how you can create a WooCommerce Loyalty Points program for purchases.

Go to your WordPress dashboard -> WPLoyalty -> Campaigns -> Click on the Create a new campaign -> choose the “Points for Purchase” campaign type. You will now be asked to give a title and a description for the campaign and set up the points to award for customers when they purchase.

You will need to define how many points you would like to give for each dollar (or any currency) that a customer spends on your store. In this example, we are going to set “Earn one point for every one dollar spent”.

Check out the screenshot below for an example configuration:

campaign to allow customer earn points

Now, we have created a campaign and customers can start earning points.

Let’s create rewards for customers to spend their points.

Creating a reward that allows customers to spend points

WPLoyalty offers a number of reward types as we have seen above. This example uses a basic reward option that allows customers to convert their points into a coupon. Say, we want to allow customers to redeem 500 points for a $5 coupon, which they can use for their next purchase.

To create this reward, go to your WordPress dashboard -> WPLoyalty -> Rewards -> Click on Create a new reward-> choose the Points Conversion reward type.

In the following screen, you will be asked to give a title and description for the reward and set up how many points a customer can redeem for what value.
For example, Redeem 500 points into a $5 discount.

The following screenshot shows you an example of the configuration:

reward allows customers to spend points

We have now created both the campaign and the reward that allows customers to earn points and spend them in WooCommerce.

It’s now time to let our customers know about the WooCommerce Loyalty program.

WPLoyalty offers a number of features to showcase your loyalty program. In this tutorial, we are going to see an exciting feature called – Launcher widget.

Showcase your Loyalty program to customers

The chat-like launcher widget allows your customers to discover your loyalty program easily. It sits nicely on the bottom right/left corner of your store and customers can click to view the rewards you offer.

It lists out all the ways they can earn points and rewards in your store. Also, it prompts the customer to become a member of your loyalty program.

The following screenshot is an example of the Launcher Widget.

showcase loyalty program

In addition to the Launcher widget, your customers can also view and manage their points and rewards under the default WooCommerce’s My Account page on the storefront.

Why Choose WPLoyalty Plugin to Create a Rewards Program?

WPLoyalty, the WooCommerce loyalty program tool, is here to help you grow while you create a loyalty program. WPLoyalty will help you retain your customers and gain new ones. It includes all the advantages of creating a successful WooCommerce loyalty program.

Try the free demo to see how a WooCommerce loyalty program works for you.

WPLoyalty offers the following features;

  • Loyalty Points & rewards
  • Rewards programs
  • Referrals/ Refer-a-friend program
  • Points expiry & notification
  • Conditional points/ rewards
  • Points for social share
  • Points management
  • Customer management
  • Manually assign points
  • Import/ Export points as CSV
  • Customer reward page
  • My account page
  • Unlimited campaigns
  • Branding
  • Easy redemption from checkout pages
  • Convert points to coupons.

Launch WPLoyalty, create a loyalty program, and keep your customers engaged easily.

Wrapping Up

Create a loyalty program that has proven effective in increasing customer retention, increasing customer lifetime value, inspiring loyalty, and many other benefits over the decade.

While the low-key punch card has its place for some businesses, a truly innovative approach to WooCommerce loyalty programs can create massive value for retailers. Whether you go with loyalty points and rewards programs or any loyalty schemes, customer loyalty programs are an excellent way to ensure repeat purchases.

For your WooCommerce loyalty program to work, you must keep your customers engaged and interested with status emails, special offers, birthday gifts, and more. Take inspiration from eCommerce brands and use a perfect loyalty tool like WPLoyalty with a strong focus on its perks.

Learn more about Customer Loyalty Programs, how to create a point-based loyalty program in WooCommerce and how to set up WooCommerce rewards for your customers.

Happy Customers, Happy Business.

How do I add a point system in WordPress?

Install WPLoyalty – Points and Rewards for WooCommerce plugin and then create a campaign to add a point system in WordPress. To create a points and rewards campaign, go to your WordPress dashboard -> WPLoyalty -> Campaign -> Click on Create a new campaign button -> choose the Points for purchase campaign. Set up the points to be earned by customers for spending in your store and activate it.

How do I reward customers with points in WooCommerce?

To reward customers with points, Install WPLoyalty and activate the plugin. Now create a points for purchase campaign and let customers earn points for their purchases. You can also let customers earn points for sign ups, referrals, reviews, social shares and more.

What are the different types of Loyalty Programs?

There are various types of loyalty programs. The most commonly used one is points programs. You also have tiered loyalty points programs, VIP programs, referral programs and more.

Do Loyalty Programs increase sales?

Yes, Loyalty programs lead to Customer satisfaction and Customer retention. As existing customers spend more, it leads to increased sales.

Why do Loyalty Programs fail?

The most common reasons for loyalty program failure are incorrect reward selection and improper data utilization.

Which Loyalty Program is best?

The rewards for purchase and SignUp are the most commonly used customer loyalty programs. Selecting customer loyalty programs depends entirely on your business and customer personas.

Akshay R
Akshay R

Start your WooCommerce Loyalty Program with WPLoyalty

Create a loyalty and rewards program now to increase your revenue and loyal customer base.