5 loyalty program mistakes to avoid on your eCommerce site

Customer loyalty programs can be the most effortless customer retention tool when done well. But there are several mistakes Shopify sellers often make that not only prevent adoption, they hurt their sales. We looked at the conversion data of loyalty programs from nearly 100,000 Shopify stores and can say with certainty these five common mistakes will hurt checkout rates, AOV, and rewards redemption:

If you have to explain it, it's too complicated

Complex tiers, clever but indescriptive naming structures, and a disconnected rewards redemption UX almost guarantees customers will not use your eCommerce loyalty program as much as you had hoped.

Your customers should not only be able to understand how the loyalty program works easily, but you also need to remind them it exists at strategic points in the buyers' journey to get them to use it. This is important for both logged-in customers and as an upsell incentive strategy for new users.

Here's a quick list of the most important ways to keep your loyalty program members engaged:

• Show them how many points they will earn when they put items in their cart.
• Send emails reminding them how close they are to earning a gift.
• Show how many loyalty points shoppers will get on the product page.
• Make the loyalty points redeemable during checkout.

Be careful, though; don’t hurt your sales by making the shopping experience more complicated.

Asking customers to sign up before they purchase

The average Cart Abandonment Rate across all eCommerce industries is 69.57%, 85.65 % on mobile. This means there are $18 Billion in sales revenue left on the table. According to a recent study by Shopify, being forced to create an account is the number two reason people abandon their carts.

Having off-brand rewards pages

Shopify recently announced that 17% of shoppers abandon their online shopping carts due to a lack of trust in the site with their credit card information. An aesthetically displeasing site is one of the leading contributors to this decision.

Lots of eCommerce loyalty programs create templated and unbranded rewards pages, which can make customers think they've exited your store and fall off the purchase path. Shopify loyalty app, Rivo, gives you a free and fully customizable loyalty page that automatically connects with your Shopify store page and account. You can create a completely on-brand rewards page in minutes with their drag-and-drop builder.

Not Choosing the Right Theme for Your Shopify Store

Choosing the right theme for your online store is crucial. Your PDP theme design sets the tone for your brand, enhances the user experience, and ultimately affects your conversion rates. Selecting the wrong theme can lead to issues such as slow page load times, a confusing layout, and a disconnect between your brand and your customers.

To avoid these pitfalls, it's essential to select a theme that aligns with your brand identity, target market, and user preferences. That's where theme detector tools like Koala-Apps can help. You can look at your competitors or even brands that inspire you and use the same PDP themes for your brand.

Investing time and effort into selecting the right theme for your Shopify store can make a significant impact on your business. A visually appealing and user-friendly store creates a positive first impression, establishes trust with your customers, and encourages loyalty. It's important to remember that your theme is a reflection of your brand, and a well-designed and carefully chosen theme can set your store up for success.

Not including FOMO in your rewards program

How many times have you bought something extra just to qualify for free shipping? The same tactics can be applied to your eCommerce loyalty program. Here's a quick checklist of ways to use FOMO to skyrocket your AOV and LTV:

DO's

• Create tiers and reward your best customers with exclusive gifts.  
• Let them know when they've earned more points on the confirmation page or email.
• Remind them how many points they've earned and how close they are to unlocking a new reward.  

DONT's

• Focusing too much on rewarding repeat purchases rather than other forms of engagement, such as social media interactions or blog visits
• Not offering compelling incentives to customers at all levels.
• Don’t offer too many choices! Decision fatigue is hard enough to manage with products, don't add to it with your loyalty program.
  

Failing to track customer activities

Loyalty programs are the easiest ways to see what matters to real customers who are actually on your site. Make sure you're reviewing the conversion metrics so you can let the data tell you:

1. Who your most loyal customers are so you can give them some extra love.
2. Which incentives drive purchases so you can apply them across all your marketing campaigns.
3. Your total sales from loyal customers and what your repeat customer rate is.

Ready to drive sales and skyrocket your repeat purchase rate? Set up a free consultation to discuss your loyalty strategy with the founder of Rivo, the only eCommerce loyalty program created exclusively for Shopify sellers.