Offering a loyalty or rewards program to customers can help your ecommerce business acquire, engage and retain customers. More importantly, the back-end management of a loyalty program allows you to discover who a customer is, and to track and build demographic profile of that customer. This Ecommerce Guide article discusses planning tips and strategies to help SMBs implement a customer loyalty rewards program.
"Ecommerce businesses that are considering a rewards program first need to decide what specific behaviors they want to obtain with the program. If your objective were only to acquire new customers, the type of program you would offer would be different than if your goal were to gain repeat business from your customers.
"Oxley said that planning a successful loyalty program starts with deciding which behavior is the most important to your business. Once you have that figured out, he then recommends that you plan your rewards program around the behavior you are most looking to get from your customers.
"Before you launch a program, first decide the objective: are you trying to acquire more customers, are you having a problem with retaining customers, or do you want to encourage brand advocacy? Once you decide on the behavior, then you can then create a program to meet that objective."