Do You Reward Your Customers?

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A woman in a gray shirt uses a silver computer to create a reward system for her customers.

How to Create a Reward Program for Customers

Creating a rewards program for your online shop can increase brand loyalty. Did you know that new customer acquisition can be up to five times the cost of customer retention? Taking the time to nurture and reward your current customers can drive sales at a lower cost. 

Do you have a rewards program for your customers?

Rewards programs can come in various forms.  The most popular is a points-based system. This is easy to manage with an app.  Many of my Shopify clients use

A points based system allows you to reward customers with points that earn them a discount off a future purchase.  Customers are commonly awarded points for every dollar they spend.  But don’t stop there!  Award points for following your Instagram and liking you on Facebook.  This will get your brand to show up in their feeds.  Common point systems award 1 point per dollar spent, and then issue a $10 reward when 100 points are accrued. 

Do you have a loyal and raving fan base?  Create social proof through word of mouth marketing. With a referral programs, customers can use an affiliate link to share with their friends and on their social media.  You can offer a discount to the new as well as the referring customer.  I usually recommend $10 off to each of them. This is also a great tool to use with influencers and brand reps who want to monetize their following, all while encouraging them to shop at your site.

Effective Customer Loyalty Programs

Subscription programs are another way to reward your customers.  By committing to a monthly purchase, you can offer a discount off the product.  Subscriptions are a great way to have revenue on repeat.

Tiered reward programs work well for high end brands.  They encourage shoppers to be loyal and spend more with you, so they can earn better rewards. 

For example:

Bronze Tier: over $500 spent, rewarded with free shipping for all orders. 

Silver Tier: over $1000 spent, rewarded 10% off all orders.

Gold Tier: over $2000 spent, rewarded 20% off all orders. 

When creating a rewards system, always use this opportunity to reinforce your brand.  If my shop was called Sam’s Shoes, maybe my tiers would be “Flip Flops, Sneakers, and Stilettos.”

Setting up a rewards program for your online shop can increase brand loyalty, engagement, and sales.  It is an easy way to build relationships with your customers, and an effective marketing tool for your shop.


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