For all retailers, loyalty is extremely important. The reason: It’s powerful. From reducing churn to driving repeat purchases, customer loyalty has a major impact on a business’s bottom line.
In fact, data from Temkin Group shows that loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try a new offering. Not bad, right?
Boosting loyalty is especially important within the subscription model. Loyalty-focused efforts add sustainability to operations, lower marketing costs, and improve the long-term viability of a business.
However, some merchants can feel intimidated by the idea of introducing a robust loyalty program. They worry it’ll be expensive, complex, and time-consuming. The good news is: Introducing a loyalty program is a whole lot simpler with the help of tools like LoyaltyLion.
Using the Recharge and LoyaltyLion integration, you can quickly set up a program that rewards loyal subscribers and that spearheads retention efforts. In no time at all, you can start incentivizing the customers you’ve worked hard to acquire — and get on the path that transforms subscribers into long-term fans and supporters.
LoyaltyLion + Recharge in Action
There are a few key ways you can use the LoyaltyLion integration to start producing positive results for your business:
- Increase reward redemption and spend by automatically placing customers into an exclusive subscriber-only tier
- Grow your subscriptions by rewarding customers with loyalty points that they can use on future purchases
- Improve retention with meaningful rewards that customers can use on their future subscription orders
- Earn referrals with the refer-a-friend feature that enables customers to earn points by referring their friends to your business (includes social media sharing)
Let’s look at a few of these features in a bit more detail.
1. Offer Recurring Rewards
By offering recurring rewards on subscriptions, customers can earn meaningful rewards that are applied to future subscription orders. This helps encourage long-term engagement and gets the ball rolling with new subscribers.
For example: Offer new subscribers a discount on a customer’s first two months (or more).
2. Introduce a Point System
By placing subscribed customers into an exclusive group, you can reward your most loyal customers with special discounts and perks via a point system based around purchase behavior. Points can then be redeemed for future purchases.
Zox uses LoyaltyLion for their point-based reward system. In their system, subscribers earn 15 points for every $1 spent and 1000 points for every referral, all of which can be redeemed on-site. Subscribers also get exclusive access to select products, preferred pricing, and early insights around new releases.
Dr. Axe uses LoyaltyLion for a slightly different approach. While they also deploy a point-based system, they offer two different tiers in which their subscribers earn savings and special access as seen here:
Maybe at this point you’re thinking, “Okay, but what about results?”
Glad you asked. Many subscription merchants are already seeing benefits from the LoyaltyLion integration. From increased average customer spend to boosted revenue and increased customer retention, brands like Dr. Axe, The Chive, CheapUndies, and 100% Pure are seeing a positive impact on their subscription products. Other brands are already seeing returns of more than 800%.
Reward Your Loyal Subscribers — Today
If you don’t yet have the LoyaltyLion integration in place, now is the time to do so. In three quick steps you can setup and integrate this tool with both Recharge and Shopify.
We know that loyalty programs work: 2016 data showed that brands who implemented an influencer marketing program in 2016 received $11.69 in earned media value for every $1.00 of spend, on average.
So what are you waiting for? Start rewarding your subscribers and creating more loyal customers who stick with you for the long haul.