Introduction
The best reward program strategy can vary depending on the nature of the business and product categories.
After discussing with many co-founders, e-commerce managers, and marketing managers we are sharing the best strategies to increase retention using our store credit reward program.
You can acquire more customers through various reward triggers like,
- Give credits for creating an account
- Give credits for subscribing to newsletter
- Give credits for placing orders etc.
Multiple earning rules may confuse customers. Hence, if you are launching your reward program for the first time, you can refer to the following strategies.
Example of earning rule strategy
Setup credit for Placing order
Percentage of cart value: It's the perfect option and should be the preferred strategy to reward customers.
Give substantial credit on placing the “1st Order”
And for 2nd and rest of the order you can give a common “ x%” credit.
Tip: Decide a percentage based on your product price range, average order value and profit margin.
Notify your customers about their credit earnings by setting up a mail notification.
Example of spending rule strategy
Most merchants prefer to set up three cart ranges for spent rules as per product range and average order value.
For example,
On cart range $1 to $500 USD = 15% credit
On cart range $501 to $1000 USD = 20% credit
On cart range $1001 to Max USD = 25% credit
Considering the above rules, if a customer's current order cart value is $100, the customer can spend $15 credits. In this case, the customer falls within the cart range rule of $1 to $500, which offers a 15% credit usage on the $100 order
Tip: A three-tier cart range would be ideal for a spent rule.
Strategies outlined above will help you increase repeat purchases and customer retention.
For any confusion or questions, feel free to connect at support@getflits.com