People have many options, so how do you make sure they keep buying from your WooCommerce store? Its by creating a WooCommerce loyalty program. You might wonder, why a loyalty program? Well, the numbers tell a powerful story.
Research shows that keeping more customers by just 5% can make your profits jump by 25% to 95%. Plus, customers who keep coming back tend to spend 67% more than new ones. Also, getting a new customer can cost five times more than keeping an old one.
In this blog, we will show you how to create a successful loyalty program on WooCommerce. We’ll cover everything from what is a loyalty program to step-by-step instructions on setting one up. Let’s begin!
Increase your return on investment up to 30X by creating an effective loyalty program with WPLoyalty.
What is a WooCommerce Loyalty Program?
A WooCommerce Loyalty Program is a points and reward system that helps you reward customers for their engagements within your WooCommerce store. This includes purchasing, signing up, referring, reviewing products, social sharing, and more.
The primary goal of the loyalty program in WooCommerce is to encourage customers to return to the store and make additional purchases by offering them rewards, discounts, points, or other benefits.
It is also a customer acquisition and retention strategy to make customers feel appreciated and encourage them to choose the same business for future purchases.
Unlike immediate sales tactics, a loyalty program is a long-term relationship builder. Even the numbers say so. A research from Yotpo shows that, more than 83% of consumers state that being a part of a loyalty program impacts their choice to purchase from a brand again.
Types of WooCommerce Customer Loyalty Programs
When it comes to WooCommerce customer loyalty programs there are different types each with certain aims and goals. Now, let’s look into the most popular types of loyalty programs you might encounter or consider implementing for your WooCommerce business.
- Points-Based Loyalty Programs
- Tiered Loyalty Systems
- Subscription-Based Rewards
- Value-Based Loyalty Program
Points-Based Loyalty Programs
Points-Based Loyalty Programs are the most common type of loyalty programs. These programs are all about rewarding loyalty points for every purchase or customer engagements.
The more they buy, the more points they collect, which can be exchanged for rewards like discounts, special offers, or even free products.
Tiered Loyalty Systems
Tier-based loyalty programs increase curiosity to achieve more levels for the higher value rewards.
Because here is how it works – customers start at a basic level and move up through tiers by shopping more. Each tier offers better perks, like exclusive discounts or early access to new products.
Perfect for: Brands looking to create a sense of exclusivity and reward their most loyal customers with increasing benefits.
Subscription-Based Rewards
Subscription-based loyalty programs operate on a payment model, where customers pay a subscription fee to access exclusive benefits or perks.
This way, customers know what they’ll get regularly, and businesses can count on a steady income.
Value-Based Loyalty Programs
Value-based programs are unique in that they align rewards with the customer’s personal values or social causes. For example, you can donate a portion of the proceeds from a customer’s purchase to a charity.
This helps businesses connect with customers in a deeper way and grow by word of mouth.
Why Should You Create a WooCommerce Loyalty Program?
You should create a loyalty program for WooCommerce to deepen your relationship with customers and keep them coming back to your business again and again.
Here are five compelling reasons why a loyalty program is a must-have for your business:
Enhances Customer Retention
A loyalty program for WooCommerce rewards customers for their repeat business, making them feel valued and appreciated. This emotional connection fosters loyalty, ensuring they choose you over competitors.
It’s a simple equation: the more appreciated customers feel, the more likely they are to stay loyal.
For example, Starbucks does this with their loyalty program, where you earn stars every time you buy a coffee or a snack, and those stars can get you free drinks.
Increases Sales and Revenue
Customer loyalty programs, by their nature, encourage more frequent purchases.
Customers are more likely to choose your business over competitors if they know their spending will be rewarded. This not only increases your eCommerce sales but also increases your overall revenue.
Boosts Customer Lifetime Value
Loyalty programs encourage customers to spend more over time. By offering rewards for customer engagements, they are motivated to increase their spending to reach new levels of rewards.
This incremental increase in spending can significantly boost the overall value they bring to your business.
Amazon Prime is a great example. People pay to join, but then they get free shipping and other perks, so they shop more often on Amazon.
Encourages Word-of-Mouth Marketing
Happy customers talk, and a great loyalty program gives them something positive to share.
Whether it’s bragging about the rewards they’ve earned or sharing an exclusive deal they received, loyal customers become brand advocates, spreading the word to friends and family.
Sephora’s Beauty Insider program is really good at this. Members get special birthday gifts and exclusive products, so they love to talk about it and share with friends.
Saves You Money on Finding New Customers
Customer acquisition can be expensive. But with your WooCommerce loyalty program, your current customers keep coming back, so you don’t have to spend as much money trying to find new ones.
Think about how Kohl’s gives out Kohl’s Cash. When customers get Kohl’s Cash for buying things, they’re more likely to return and spend it, instead of going to a different store.
Implement WPLoyalty’s customizable loyalty program campaigns reduce your customer acquisition costs organically.
How to Create a WooCommerce Loyalty Program?
To create a WooCommerce Loyalty Program for your store by installing and activating a Points and Rewards Plugin like WPLoyalty.
You need a third-party plugin like WPLoyalty because the default WooCommerce settings doesn’t come with loyalty program options.
With WPLoyalty, you can create loyalty programs for customer actions like,
- Points for Purchasing a product
- Signing up for an account
- Based on spending
- Writing a product review
- Referrals
- Customer Birthday
- Social sharing
- Following your social media pages
- Logging in daily
- Reaching a new level – Tier based
Customers also can earn rewards in the following forms:
- Loyalty points and redeem those points to coupon
- Free products
- Fixed discounts
- Percentage discounts
- Free shipping
Note: You can create all the loyalty campaigns mentioned above using WPLoyalty and reward your customers with different reward types.
Now, in the following example, we’ll show you how to create a loyalty program called the “Points of Purchase” Campaign. You can define how many points you would like to give for each dollar (or any currency) a customer spends on your store. In this example, we will set ‘Earn one point for every dollar spent.’
It also outlines how customers can redeem points for a coupon with “Point conversion” reward type that they can use for their next purchase.
Step 1: Install WooCommerce Loyalty program plugin – WPLoyalty
The first step is to download WPLoyalty. Once downloaded, install and activate the plugin.
Detailed instructions for both the installation and activation of the WPLoyalty plugin are available in the provided documentation.
Step 2: Create “Points for Purchase” Campaign
Go to your WordPress dashboard -> WPLoyalty -> Campaigns -> Click “Create a new campaign” -> choose the “Points for Purchase” campaign type. Now, you will be asked to determine the points and other details.
Here is the screenshot of the example configuration:
We have created a campaign, and customers can earn points.
Let’s create rewards for customers to spend their points.
Step 3: Create “Points Conversion” reward type
Example: Enable customers to redeem 500 points for a $5 coupon.
Go to your WordPress dashboard -> WPLoyalty -> Rewards -> Click “Create a new reward “-> choose the Points Conversion reward type.
In the following screen, you have 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:
We have now created both the loyalty program campaign and the reward, allowing customers to earn points and spend them.
Next, we have to let your customers know about the Loyalty program.
How to Showcase your loyalty program to customers?
WPLoyalty offers several features to showcase your WooCommerce loyalty program. Your customers can discover their points and reward earring opportunities and redeeming options in three different ways.
- One way is through the default My Account page -> Points & rewards section on the storefront.
- Second way is through the “Loyalty reward page”
- Third way is through the chat-like “Launcher widget” at the bottom right corner.Your customers can also look out for their rewards on the widget.
Here is the example screenshot,
Six Easy Ways to Design your Loyalty Program in WooCommerce
You can design your WooCommerce loyalty program by following six simple ways like:
- Identify your loyalty program goals and objectives
- Understand your audience
- Select the type of loyalty program
- Determine the rewards and benefits
- Implement the program with the right loyalty program plugin
- Promote and market Your program
Identify Your Loyalty Program Goals and Objectives
Start by deciding what you want your loyalty program to achieve. This could be anything from increasing the number of repeat customers, boosting sales or average order value, to enhancing overall customer satisfaction.
Tips to follow:
- Set SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound.
- Align your program’s objectives with your broader business goals.
Understand Your Audience
Understand your customers’ likes, dislikes, preferences, and shopping behaviors. This knowledge will help you create a loyalty program that truly resonates with them.
Tips to follow:
- Conduct surveys or interviews to gather customer feedback.
- Analyze purchase data to understand buying patterns.
Select the Type of Loyalty Program
Choose a loyalty program that fits your business style and meets your customers’ needs. Points-based, tiered, subscription-based, and value-based are all popular options.
Tips to follow:
- Match the program type with your customer engagement level.
- Consider your product or service lifecycle when selecting a program type.
Determine the Rewards and Benefits
The right mix of rewards can help in both customer acquisition and retention. Ensure your rewards are desirable and accessible to your audience.
Tips to follow:
- The most popular rewards are points, discounts, free shipping, and free products.
- Offer a mix of immediate and long-term rewards.
- Keep the redemption process simple and straightforward.
Implement the Program with the Right Loyalty Program Plugin
A smooth technological integration is key to a successful loyalty program. Choose the best WooCommerce loyalty program plugin that works well with your current systems and is easy for customers to use.
Tips to follow:
- Look for plugins with wide range of loyalty campaigns and reward types
- Seek excellent customer support.
- Ensure the technology is scalable as your program grows.
Promote and Market Your Program
Get the word out about your loyalty program through effective marketing. Use multiple channels to reach your audience.
Tips to follow:
- Utilize social media, email marketing, and in-store signage.
- Create compelling and clear messaging about the benefits of joining your program.
Pre-Launch Checklist of your WooCommerce loyalty program
Before launching your loyalty program in WooCommerce, you need to tick certain boxes that are essential. Here’s a pre-launch checklist to ensure your loyalty program’s success, organized as a timeline leading up to the launch:
1 Month Before Launch
- Run one last round of surveys or chats to get fresh insights on what your customers like.
- Look over recent sales data to spot trends and shopping habits.
- Recheck the type of loyalty program you are implementing (points-based, tiered, etc.).
- Settle on the rewards and benefits structure.
- Finalize on how to create the loyalty program structure.
3 Weeks Before Launch
- Choose and implement the right loyalty program plugin for your eCommerce platform.
- Test the plugin and conduct a trial run to make sure it fits smoothly into your website.
- Make sure your list of rewards is attractive and reachable.
2 Weeks Before Launch
- Prepare ads and posts for different platforms, like social media, emails, and your website.
- Make sure your team knows all about the loyalty program and its perks.
1 Week Before Launch
- Soft Launch (If You Want) with just a few customers to get their thoughts and fix any snags.
- Use their feedback to tweak and improve.
- Conduct the last checks over all.
Launch Day
- Activate your loyalty program and monitor the initial customer engagement.
- Monitor the system for any technical issues and address it promptly.
Get started with WPLoyalty’s seamless loyalty programs and reward your customers with multiple reward types like points, discounts, and so on.
Wrapping Up
As we wrap up our blog, it’s clear that creating a loyalty program for your WooCommerce store has proven effective in increasing customer retention, customer lifetime value, inspiring loyalty, and many other benefits over the decade.
Initially creating a WooCommerce loyalty program may seem like a big task, but it’s definitely doable with the right steps. We advise you to choose the best loyalty program plugin like WPLoyalty and create a loyalty program effectively that aligns with your sales and revenue goals.
Learn more about point-based loyalty program, best loyalty plugins, and best referral plugins.
To add a point system in WordPress install points and rewards plugins like WPLoyalty. Then, go to your WordPress dashboard -> WPLoyalty -> Campaign -> Click on Create a new campaign -> choose the Points for purchase campaign. Set up the points to be earned by customers for spending in your store and activate it.
Identify your goals, understand your audience, offer valuable rewards, ensure simplicity in participation, and regularly analyze and adjust the program for improvements.
Success rates vary widely but can be significantly high if the program is well-designed, engaging, and aligns with customer values and expectations.
Choose a loyalty program model (points, tiers, or perks), decide on the rewards, integrate the program with your sales system, promote it to your customers, and track its performance.
Costs can range from minimal (using basic, in-house resources) to several thousand dollars (for advanced software solutions and marketing).
A popular example is Starbucks Rewards, where customers earn stars for purchases which can be redeemed for free drinks, food items, and more.
