Strategy
1 min read

eCommerce Loyalty Program – WORTH IT?

Written by Andriy Boychuk
Strategy
1 min read

Should you build a loyalty program? Watch this video or read our recent case study about loyalty program to make the right decision. 

https://youtu.be/GkvS-8g2n3E

– All of us know that email marketing is important for eCommerce brand. Also loyalty program is crucial for eCommerce brands as well. But realistic question, how important it is? How much return on investment can you get, and what impact will it do for your brand? Hi, this is Andriy from Flowium, the email marketing agency dedicated to grow eCommerce business sustainably via channel data. In this video, I’ll show you actual results we got from one project we did, where we helped eCommerce brand, DTC, direct-to-consumer brand, with their email marketing, as well as their loyalty program. They had two big challenges. First of all, not everybody from their customers or potential customers knew that they have a loyalty program. The second problem was they had zero email marketing around loyalty program. But before we continue, I want to show you results, and you decide if you want to continue watching, or it’s useless video and you don’t need to see it. I checked, and in the last 30 days, this brand made an autopilot. So we set up this loyalty program, this email marketing strategy around the loyalty program, set up on autopilot. So it’s working and they don’t have to touch it again. In the last 30 days, they made 15,971 dollars. Is it a lot or little? I dunno, it’s a decent chunk of money. If it’s on autopilot and you do not invest anything else, and it equals to 3 dollar 35 cents per recipient, which is huge. Our benchmark in our company in general, if we send campaign, our benchmark is eight cents per recipient. Sometimes it can be much bigger. It depends on the segment, but for this, 3 dollar 35 cents is a lot, trust me. Let’s go to my computer, and I’ll show you the exact strategy, how we plan it, what we implemented, and how it works. So you can repeat the same thing for your business. Okay, so we use we use Miro, Miro, it’s a flow diagram tool, all our strategies. First we create in the Miro, then we present to the client and if they approve, we move forward. If not, we have to revise it. So here’s the strategy they approved, let me– so it’s more natural for me to put myself on the left. Okay, so, the first challenge. Their existing customers, these are customers or subscribers, but not customers yet, did not know that loyalty program exists. So, the first thing we did, anybody who’s not a member of the loyalty program, in this case it’s smile.io program. Smile.io, it’s one of the leader in the eCommerce loyalty program. There’s also Swell by Yotpo, which is relatively expensive to smile.io, and there’s a line key, sorry, not line key, reward line or something like that, we never use that program before. Okay, anyway, so, if they are not member of this loyalty program, first email they will receive is, “Hey, we have the loyalty program, and please join us.” Okay, I missed one email. So yes, so this is the first… Okay, so I’m just missed one more email. So this is B. Okay. So we have a split test, split in our automation in flows. So first email will go to the existing customer, somebody who purchased already in the past, and this one, the benefit of joining, it’s to subscribers who never purchased but they’re part of their database. So in the first email, the idea here is like, Hey, like, you’re already customers, and you’re just leaving those points, or those dollar benefits on the table, like we don’t ask you anything extra, just join. And you have those money already, I mean those points, like they’ll benefit already. So it’s very easy sell for them. Email number 1B was just for subscribers, but not customers yet. The idea here is just to like, tell them, “Hey, we have loyalty program,” and tell the benefits of the loyalty program. So here you just need to do more selling, to command them. So in email number two, in case they did not join, you want to say like, “Hey, here’s the way you can earn or spend your points,” because every loyalty program have some kind of system, how to earn, or how to spend dollars, so you need to educate them. So this is test, you don’t have to do it. But the idea of 3A email is to convince them to join, and join not because of them, but because of their friend. Because when they join, they will get special link when they share with their friend, their friend will get some kind of discount, and they will have the same discount as well, but, in this email we’re trying to persuade them to do it not because of them but for the loved ones or the friend. And email number four, we just want to understand why they did not join the loyalty program. Something’s confusing, something’s not clear, I don’t need it, and so forth. This way, we can refine the email marketing strategy around loyalty program better in future. So if they took step and join the loyalty program, next we’ll send them member. They become member and they will, first email we just want to congratulate them. “Hey, thank you very much for joining our loyalty program” and so forth, and tell them about the program, what it’s worth. Like recap one more time. Do not assume they know how to use it. And number two, we want to share them a referral link and say like, Hey, this is the link, a special link, share it with your friend, they will get ten dollars or 25 dollars, or ten percent, or whatever discount you use. And you will get the same discount if they take you up on this offer. And the last one, I already recorded a video about this, monthly points statement. But it’s very simple, actually. One second, it’s A, and, also we have B, I forgot about that. Okay, so also we have a B, and… minimum reward. Okay, so, every month, we remind them and tell them, hey, this is your rewards balance. So go and spend your, like, points. If they have the minimum reward. So whatever minimum is, like 500 points, thousand points, whatever you use, but they have to have the minimum. So, in this email, you tell them, “Hey, go and spend.” If they do not match the minimum, you just say like, Hey, this is your balance, but you didn’t meet the minimum. So here’s the ways, free ways how you can get extra points. Maybe like, why did I do this? Because they’re in your loyalty program, I guarantee there are some options like, share it on Facebook, share it on Instagram, share, like, subscribe, do this, do that. So it’s like free way to get the points, but it’s not. If they already use those things, they are not able to get any free points anymore, so they have to spend, to get points. Okay, so those three, those are three flows, which added to our client 10,000 dollars per month on autopilot, which equals three dollars something per recipient. Honestly, it excites me. Why? Because it’s on autopilot. You make those kind of money. But don’t trust me, let’s use the real numbers. Okay, so let’s go first. So the smile.io, welcome to loyalty programs. This is when we welcome them, they join the loyalty program and we send them just two email, and in this case it generated seven and a half thousand dollars and to 2 dollars 65 cents per recipient. So it shows you the value of email marketing as well as the loyalty program, because people are more loyal and more willing to spend more money with you. Okay, second, flow is loyalty. Join a loyalty program. In this case, we target more people. That’s why you can see only seven cents per recipient because we are sending to everybody who is not a member. So majority of people are not members. But, still we generated 4,700 dollars, 47 cents, which is, I think, I think it’s amazing. And the last thing which is everything is 3,763 dollars and 63 cents per recipient. So this is only one email, one email that we just send them the statement, like, you’ll receive bank statement or credit card statement, but in this case, it’s just benefits, and telling them, “Hey, Mr. Client, or Mrs. Client. “This is how many points you received for the last 30 days. “Go and spend them.” So what do you think about this? Will you do this for your company? Will you add loyalty program? Or if you already have it, do you have email marketing around your loyalty program? In any case, feel free to leave your comments under this video, ask me questions. I will be more than happy to answer or my team will answer them. Also, if you want to do the same thing or similar or even more advanced for your company, under this video there is link. Apply for a call, apply for our call. We schedule a call and talk how we can improve your email marketing around loyalty program. And also, if your first time on this channel, please subscribe, like this video, or don’t like it if you don’t like it. And if you want, like you don’t like it, please comment, why. And yeah, stay tuned for the next YouTube video which we release every Thursday. Thank you, bye.

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