Finding a customer who will shop with you regularly is the holy grail of retail. Not only does it reduce the need to spend marketing budget constantly attracting new people to your site, but according to a study by Bain & Company, repeat customers spend 67% more than first-timers!
So what brings people back? Well, a smooth shopping experience, great customer service, and of course, an excellent product all go a long way towards making someone want to buy from you again. But you can do even more.
A loyalty program gives people that little extra nudge they may need to return, especially when your lingerie store is one of a few they’ve had a good experience with.
Here are 5 types of rewards programs you may want to consider for your online lingerie boutique:
1. Points system
This is a very common rewards program that allows customers to accumulate points, which typically lead to money off future purchases – though another idea is to allow customers to exchange them for exclusive gifts-with-purchase such as candles and eye masks.
Usually, customers get points based on their order total, so that higher spenders get rewarded more. However you can also hand out loyalty points for other things that benefit your boutique, such as leaving a review, following you on social media, or referring a friend.
A points program can even increase customer spend if you have rewards tiers that offer better value the more you spend or the more points you have. The 2016 Bond Loyalty Report found that 66% of customers will modify the amount they’re spending to maximise points. For example, if your customer gets 50 points for spending $50 but 100 points for spending $75, they may just add that second pair of briefs they were considering to their basket!
2. Voucher with purchase
Similar to the points system, this reward idea makes customers want to shop with you again because they’ll be getting a discount or a gift. However rather than building points up over time, they get an immediate reward – so it can work better with those buying from you for the first time.
Simply send out a voucher for money or a percentage off the next order, either in the confirmation email or in the parcel itself (or both!). You can make this system even more successful by using one-time codes with a time limit, to encourage shoppers to return quickly.
3. Newsletter discount
Here’s an idea that doesn’t rely on the person having bought anything from you; it will convert more of those people umming and ahhing over whether to place an order into actual customers. Just give them a discount for subscribing to your newsletter!
The prospect of getting a deal can persuade someone to push that buy button, plus it gives you an avenue to remarket to them via email. The downside however is that when a discount is this easy to obtain, customers will also make use of it who would have been happy to buy your lingerie at full price.
4. Newsletter raffle
Here’s an alternative idea to get people signing up for your emails, without giving them a guaranteed discount – once a month (for example), give one of your subscribers a prize such as free lingerie or a discount voucher.
Make sure you clearly advertise the raffle on site to encourage people to sign up, and then announce the winner in the newsletter. You’ll boost your open rates this way because people will want to see if they’ve won, and they’ll be viewing your marketing messages in the process (especially if they have to scroll to the bottom of the email to see the winner).
5. Paid program
Not all rewards programs need to be free! Just look at ASOS Premier or Amazon Prime for example. The idea here is to offer your most loyal customers a range of benefits (such as free shipping and early access to sales) in exchange for a monthly or annual fee.
New or irregular customers aren’t likely to want to pay to join a loyalty scheme. But for your most active customers, it can encourage them to shop with you even more frequently!
Whichever rewards program you choose for your online lingerie store, there are two key things to keep in mind to ensure it’s a success. Firstly, make it simple and easy to understand. And secondly, have reminders in place. Publicise your newsletter discount or raffle regularly on social media, and send automated emails to those with points or vouchers about to expire, so they remember to use them and place another order in the process.
Does your online lingerie boutique have a rewards program? Let us know which type works well for you in the comments below – especially if it’s another idea for one that’s not included in this list!
Tags: E-Commerce Marketing