Your most loyal customers are the backbone of your business. It’s their continued business that allows you to grow sustainably and invest in more customer acquisition. It’s only right you respond by rewarding customer loyalty.
But how do you actually go about rewarding loyal customers? Should you offer discounts or free shipping? Is a point-based rewards system best, or should you create different VIP tiers? You’ve come to the right place.
Rivo is the #1 platform to build your Shopify loyalty program on, creating a cohesive, branded experience that encourages brand advocacy for life. We’ll show you how to reward customer loyalty below so you can improve retention and keep customers coming back for more.
The benefits of rewarding customer loyalty
If you haven’t already read our list of statistics on customer retention, here are a few for you:
Retaining customers is 5x more affordable than acquiring new customers!
A 5% increase in customer retention can boost profits as high as 95%!
83% of customers say they’re more willing to continue doing business with a brand if they have a loyalty program!
There’s plenty more where that came from, too. Rewarding customer loyalty is one of the most powerful ways to raise customer lifetime value (LTV) and grow your business profitability.
It’s natural to gravitate towards methods for acquiring new customers, but strategies for customer loyalty tend to yield a higher ROI. Not only have you already spent on acquisition, but loyal customers typically spend more and shop more frequently.
So many brands get stuck in the cycle of constantly acquiring new customers, seeing them churn, and having to go back to the drawing board to get more customers. Why not focus on rewarding customer loyalty instead?
Plus, rewarding loyal customers helps build brand advocacy. You’ll deepen the emotional connection customers have with your brand so they leave positive reviews, perhaps even going as far as referring their friends and family to your business.
It’s really easy to set up a customer loyalty reward program, too. We’ll show you how to reward loyal customers below so you can see just how profound this strategy is.
How to reward customer loyalty: 8 ways to reward loyal customers
The first step in figuring out how to reward customer loyalty is building your program from the ground up, something you can do with Rivo. Schedule a demo today and we’ll guide you through the process. In the meantime, here are some of the types of rewards you can offer:
Points-based rewards systems
This is among the simplest and most popular ways to reward brand loyalty. Customers can earn points for a multitude of interactions:
- Purchases
- Reviews
- Social media engagement
- Survey submissions
- Referrals
- And much, much more
These points can then be redeemed for discounts, free products, or other perks. This system gamifies the shopping experience to encourage repeat engagement.
The specific breakdown of points for a corresponding action is totally up to you. Just keep in mind that one reason why loyalty programs fail is they’re too daunting. Don’t make it so difficult for a customer to earn enough points to redeem them that they never end up participating.
VIP tiers for top customers
Your brand probably has a handful of customers, if not more, that really move the needle. These are the people buying every new product drop, purchasing stuff for their loved ones, raving about your brand online - they deserve extra-special treatment!
You can create a tiered loyalty program where the bigger the advocate, the more enticing the rewards. Create levels such as “Silver,” “Gold,” and “Platinum,” (get more creative than that, but you get the point).
You can offer free shipping at the silver tier, or early access to sales. The gold tier might get free expedited shipping or exclusive access to sales. Meanwhile, the platinum tier might get a free product every so often. There are so many directions you can take this.
Personalized discounts or freebies
One of the more insightful stats from our customer retention guide is that customers who receive personalized experiences are 60% more likely to become repeat buyers.
Similarly, companies that focus on personalization in their loyalty program see up to a 10% growth in retention. The moral of the story? You need to bake personalization into the customer loyalty rewards experience! Generic offers don’t cut it anymore.
So, send out unique, tailored discounts or freebies using the data you’ve collected on a customer. This could be birthday discounts, anniversary perks, or tailored product recommendations based on purchase history.
The goal is to make the customer feel as if the offer is really just for them, and that they’re not just another customer - they’re a part of your brand’s family.
Referral incentives
Your loyal customers are already more likely to refer others, so why not build out a Shopify referral program with Rivo while you’re at it?
You can encourage customers to spread the word by incentivizing referral sales. Every new customer they bring you can unlock a certain percentage off their next sale.
Or, you could try something like a “Give $10, Get $10” offer that incentivizes referrals while expanding your customer base organically. The key is to reward both the referrer and the individual being referred.
Exclusive access to products, events, and content
One common mistake we see brands make is thinking they have to offer discounts that cut into their margins in learning how to reward customer loyalty. Sometimes, all your customers want is to feel as if they get special treatment.
You can make them feel like insiders by offering them first dibs on new products, tickets to exclusive events, or access to premium content like behind-the-scenes footage. This builds stronger emotional connections without sacrificing profitability.
Subscription perks
Getting customers to be consistently loyal is one of the best ways to ensure repeated revenue. There’s no better way to go about it than through a subscription service, and you can bake this into the loyalty experience as well.
This is becoming commonplace for brands that sell consumables, like supplements, but there’s a way to make it make sense for just about any brand. Offer 5-10% off (or whatever you decide makes sense for your margins) if the user subscribes to automated re-orders.
This is a win-win as customers never run out of product without having to lift a finger - you get a predictable source of regular income.
Gamify the experience
Who said creating a loyalty program had to be so serious? Make it more fun by gamifying the experience with challenges, milestones, or badges to reward customers for completing specific actions.
For example, earning a “Super Shopper” badge after a customer’s fifth purchase adds excitement and encourages continued engagement. Or, you could give out a “Social Star” badge for customers who share your brand’s content on social media or leave a review.
Get creative in how you set up your loyalty program and make it feel less like supporting a brand, and more like playing a game.
Parting thoughts on how to reward loyal customers
Hopefully this guide on how to reward customer loyalty has left you feeling inspired and confident in your next steps.
There are plenty of directions you can take this, but all that matters is you’re focusing on loyalty segmentation so customers are getting rewards they actually want. It also ensures they are met with personalized, relevant messaging at every touch point.
The only thing left to do now is get started now that you know how to reward loyal customers. There’s no better place to get the ball rolling than here at Rivo, the #1 platform for Shopify loyalty programs.
Get in touch and we’ll talk about your brand and help you come up with some unique ways you can consider rewarding customer loyalty - and why our platform is the optimal choice. See how we compare to the other options below:
