Tech Talk with LoyaltyLion: How to find the best loyalty and retention strategies for your brand
- The ecommerce market shows steady growth and has thus given rise to many competing companies.
- Increased competition has led to an increase in people losing interest in an online shopping site and choosing another for a better offer.
- Our latest Tech Talk with Fiona Stevens, Head of Marketing at LoyaltyLion sheds light on how a loyalty program could help manage the issue.
- She highlights that it is not one of the only ways to retain customers but has seemingly worked well with many online fast fashion brands.
- LoyaltyLion is a customer loyalty platform that helps companies successfully manage loyalty programs. It offers many features that ensure easily attainable successes.
The ecommerce industry has been growing at a rapid rate of 13% each year and is a trillion-dollar industry. This tells us that it takes in the most money and shows the potential for tremendous growth. However, that led to an increase in the competition. Also, the fact that Amazon eats up more than half of the online sales. The acquisition charges are increasing as the business needs to acquire more customers.
Talking about this ecommerce landscape, it must also be mentioned that only 49% of the people can form emotional connections with a brand they shop from online. About 81% expect the brand to want to understand them and their needs better.
Since the ad effectiveness has gone down by 9%, companies must create offline experiences online to ensure shopper loyalty.
Our latest Tech Talk features LoyaltyLion’s Head of Marketing, Fiona Stevens talks about how their customer loyalty software serves as a unique solution for companies like Lively, Pacifica Beauty, Ancient Nutrition, and six thousand other merchants worldwide.
It was launched in 2014 and is a platform that can add power to your current technologies and marketing tools.
The solution for retaining customers by LoyaltyLion
How can a company retain customers? How can you ensure long term loyalty from the customer? Fiona Stevens mentions that a good solution would be initiating loyalty programs coupled with other marketing strategies.
All of which can be easily checked and maintained by LoyaltyLion. As per the research by LoyaltyLion, almost 81% of the merchants created loyalty programs for increasing customer lifetime value.
LoyaltyLion helped merchants drive this customer lifetime value.
How do they do this? They provide solutions that can unlock insights that help ecommerce companies get a better understanding of what could build long-lasting customer relationships—ultimately accelerating the ecommerce company’s success.
To quickly discover LoyaltyLion’s offerings, you can also view their Tech Talk below:
Why you should use a loyalty program
LoyaltyLion’s Fiona Stevens comments,
“How do you know if your company needs LoyaltyLion’s loyalty programs?”
You can understand that by reading the points below:
- If you are an establishment that offers products of everyday needs or desires to customers such as clothing or food.
- You have noticed an increase in customer churn rate over time.
- There is a growing database of customers that are unengaged and do not return to shop again.
- Your acquisition costs have seen a consistent high.
- Newer brands are entering your space, offering similar products.
Loyalty in a retention strategy in each of these scenarios will be the long-term solution that drives more revenue to each channel.
How does LoyaltyLion work?
The company’s platform helps build loyalty programs and their management that are fully customizable.
These programs can fully be embedded in the customer journey, from signing up to the checkout. Through this, the customers can win points for purchases, account creation, social media likes, and shares.
These points can be redeemed in ways of vouchers, free delivery, or free gifts, and even custom rewards.
Fiona comments about noticing marketers offer experiential rewards such as early access to sales or entry to exclusive VIP communities. Offers that mirror a brand’s value like redeeming points in exchange for donations to a certain charity could also be made.
Such gifts or rewards are engaging ways to ensure customer loyalty is maintained and decrease customer churn rate. They are thereby maintaining the success of the business.
The analytics dashboard
The analytics dashboard on the platform will tell you how much you have earned through loyalty purchases, new revenue generated, and see traffic coming from referrals, and more.
You can also view the customer value snapshot to see how much a customer spends on your site through these analytics performed by LoyaltyLion.
Clicking on “At risk” shows how many customers are at the risk of churning. Stevens calls the “Campaign” feature on the platform most innovative. They are time-based experiments that help positively influence customers.
LoyaltyLion and customer success
Since its establishment, LoyaltyLion has issued over four billion points by stores and rewarded over 150,000 shoppers in just one month.
They work with merchants on Shopify, Shopify Plus, big commerce, Magento, and other custom stores. Their major clients are from industries like fast fashion, health and wellness, cosmetics, pet care, and F&B.
In the Tech Talk, Fiona Stevens gives a live example of the online clothing brand Lively, a company that possessed a powerful brand identity. But they wanted to ensure long term loyalty, high repeat purchase rates, and a sense of community.
LoyaltyLion helped them come up with a points system that is usually displayed on their loyalty page. A user can see the points they have collected, what tiers they are in, and their benefits as they move up the tier.
This helped encourage customers/members to engage more with the program. You can see a snippet in the image below.
Brands such as Ancient Nutrition saw a 300% increase in the reward redemption after collaborating with LoyaltyLion. The company REN clean skincare boasts of a 68% increase in customers’ spending amount with its loyalty program with LoyaltyLion.
Fiona Stevens, in the Tech Talk, presented these researched analytics.
Before coming to an end with the Tech Talk, Fiona Stevens mentions,
“The more customers you have that are likely to shop with you on a regular basis the more ROI you are likely to drive through a loyalty program.”
You can check the effectiveness of the program by mixing it with the wider marketing mix. Checking on how many customers have churned and how many gained, you can proceed to prioritize your marketing gimmicks.
The services by LoyaltyLion can surely streamline the responsibilities and tasks by employing an ecommerce company in the right direction. They offer plans to merchants of all sizes, and for those who are just starting out, you can get a free plan.
The plans can be set up within minutes, and a paid plan comes with a boarding manager that guides you. Their team of experts is always online at your disposal.
Bhavik Soni is a Creative Writer at Auto Monkey. We provide an original analysis of the latest happenings in the social media industry.
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