Could a loyalty scheme help to cement your online store’s COVID-19 gains?

Piranha Designs - Tuesday, August 04, 2020

Such is the immensely disruptive nature of a pandemic like the one we have faced over the last few months, that almost no one can claim COVID-19 has been a “good” thing for them overall.

One positive that ecommerce store owners certainly weren’t expecting at the start of the year, however, was a massive jump in the proportion of e-tail sales as part of overall retail sales, due to lockdown restrictions having forced many more people to make purchases from home.

Hopefully, your own online outlet will have effectively capitalised on the jump in overall demand for ecommerce sites’ services, with the consequence of rising sales.

But as the previous lockdown rules gradually loosen and more people are afforded the luxury of shopping at brick-and-mortar stores again, how can your e-tail store consolidate the gains it has made since March?

One short answer to that question is... by introducing a loyalty scheme.

Why are loyalty programs such a great idea anyway?

Sometimes referred to as ‘VIP’ or ‘rewards’ schemes, or even ‘loyalty programs’, loyalty schemes take many forms on ecommerce sites.

However, the broad benefits of such schemes for both the business itself and its customers are well-defined. A VIP scheme could help your store to boost customer lifetime value (CLV or CLTV), which is a measure of the net profit that can be predicted for a given customer over the entire duration of your relationship with them.

Customers who properly engage with loyalty programs are also, of course, more engaged and loyal customers in general with the brands running these schemes. Your own loyalty club members are likelier to read the marketing emails you send them, and to ‘like’ and share your brand’s social media posts.

Then, there’s the not-insignificant matter of all of the data you can gather from the customers who participate in your VIP scheme. This could enable you to develop a better understanding of how your target audience behaves in general, and how you could better reach them with the right products, prices and marketing messages.

A truly great loyalty or VIP scheme goes well beyond the basics

So, what does a good loyalty scheme consist of? Well, first of all, it should offer something of value to the customer from the moment they join as a member or participant. That might be a discount straight away, or perhaps a gift, or extra loyalty points just for signing up.

Whatever you offer at this stage, make sure it’s exclusively obtainable by those joining your loyalty program, rather than just a duplication of an offer you might already present to those subscribing to your emails, for example.

From there, various other features or quirks may be added to your store’s loyalty scheme to help to make it really interesting, with the exact ones you choose dependent on your business’s sector, preferences and needs.

Some online stores, for instance, might throw in additional bonuses for customers who carry out certain actions like answering a survey or installing an app.

Maybe you might also present VIP shoppers with a voucher or extra loyalty points on their birthdays, or introduce a referral element, whereby the loyalty club member is rewarded if they refer someone to the site who goes on to make a purchase from your store.

Or what about rewarding points for other one-off activities like your customers posting images of your store’s products and how they use them with your social media hashtag? The promise of exclusive content can also be a powerful enticement for those who are unsure of whether to become a loyalty member of your site.

There are so many ways to get loyalty schemes ‘right’

The above is naturally not an exhaustive rundown of all of the possibilities for your store’s loyalty scheme; nonetheless, it should give you a sense of some of the intriguing ways you could experiment and mix things up when launching a rewards program.

A well-executed loyalty program can do so much to better market your ecommerce store’s offerings, heighten engagement and boost sales. However, it is also just one of the many aspects of your e-tail business that you will need to focus on getting right for the remainder of 2020 and beyond.


For an in-depth discussion about your online business’s aspirations and needs with regard to website design, SEO and PPC marketing, and so many more areas of specialism of ours, don’t hesitate to enquire to the Piranha Designs team in Gibraltar, London or Edinburgh today. 

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