In this series, we’re covering how DTC ecommerce brands can increase their LTV and enhance the customer journey. We’ve already talked about how bundling products can lead to 2.7x higher LTV as well as the benefits of offering subscription options to enhance the customer experience.
This post will cover how ecommerce merchants can infuse their customer journey with loyalty-focused touchpoints, incentivizing customers to return again and again. With Recharge Loyalty, brands can offer paid membership programs, cash-back promotions, and the best subscription benefits for their customers.
By focusing on cultivating loyalty, your brand has a chance at higher LTV, deeper customer relationships, and better retention. Continue reading to learn more about optimizing loyalty touchpoints for your customers, in order to unlock these valuable benefits.
- Focusing on customer loyalty is crucial for ecommerce merchants, and can help increase LTV and customer retention.
- Paid members are 60% more likely to spend money on brands after joining their membership program.
- Offering cash-back promotions can incentivize customers to continue shopping with your brand.
How to infuse your customer journey with Loyalty touchpoints
It’s crucial that ecommerce brands approach loyalty from a holistic perspective. There are numerous strategies for creating and maintaining loyalty that can lead to repeat purchases and stronger customer relationships. But the heart of loyalty lies in offering exclusive rewards and benefits to your best customers.
Below, we’ll highlight three ways that merchants can use the Recharge Loyalty features to their advantage.
1. Subscription benefits
With tailored, subscriber-only benefits and rewards, your business can add special value for customers. By offering discounted prices and shipping, free gifts, early access, and other perks just to subscribers, you create a subscription program that sticks. And as you increase retention, you’ll be able to encourage customers to try new products—bringing them further into the fold of your community.
62% of subscribers say that good perceived value, or the right combination of pricing and benefits, is most important when signing up for a new subscription. Merchants should take that to heart as they set prices and consider which benefits are most important to their subscribers.
2. Paid membership programs
If we looked at loyalty strategies as the building blocks of a house, paid membership programs would surely create the foundation along with subscription offerings. Both give brands the opportunity to build stronger, more committed relationships and increase lifetime value.
Paid memberships give exclusive access to key incentives, in exchange for a recurring fee. So, they also offer an additional revenue stream for ecommerce merchants. Memberships keep customers engaged, and research has shown that 60% of paid loyalty program members are more likely to spend more on a brand after joining.
Ecommerce merchants can take their membership programs a step further by targeting their best customers for new product drops, testing new products, and providing valuable feedback. Members will quickly become your best and most loyal customers—and brands that have implemented paid membership programs can use this to their advantage.
3. Cash-back promotions
A staggering 80% of consumers prefer rewards in the form of cash back rather than points or miles. Ecommerce merchants should take note of this and adjust how they give rewards to their customers—which is another cornerstone of great loyalty strategy.
Incentivize your customers with cash back instead of discount codes to promote your products. Offering cash back will encourage repeat purchases and increase customer satisfaction. Automatic cash back, free gifts, and other similar rewards will ensure customers see an immediate return on their loyalty.
Give customers exclusive access to rewards & benefits to cultivate loyalty
As your brand looks for ways to increase LTV, customer loyalty should be top of mind. By implementing attractive subscriber benefits, offering paid memberships, and giving cash back (among other rewards) with Recharge Loyalty, you can ensure customers continue to shop with your store again and again.
 2.7x higher LTV: Enhancing the customer journey with Bundles (Recharge)
 Loyalty (Recharge)
 The customer loyalty playbook for ecommerce brands (Recharge)
 Subscriptions (Recharge)
 Sign up now: Creating consumer—and business—value with subscriptions (McKinsey & Company)
 The ecommerce membership advantage (Recharge)
 Coping with the big switch: How paid loyalty programs can help bring consumers back to your brand (McKinsey & Company)
 Wildfire Shopping Rewards Whitepaper (Wildfire-Corp)
 Cash back (Recharge ecommerce glossary)