84% of users engage more with customer loyalty programs for e-commerce websites.

Written by Vanshitha M

Published on Mar 14, 2024


Global e-commerce is valued at USD 3896640.0 Million in 2022 and will reach USD 7014845.0 Million in 2028, with a CAGR of 10.29% during 2022-2028. The market size makes it more important for us to retain users establish strategies and boost customer loyalty programs for e-commerce websites. 


If you want to understand the perfect tricks to help boost your user loyalty or are you a digital marketer who can effectively leverage these loyalty programs? Check out this article to help integrate these features into your brand.

Effective customer loyalty programs for e-commerce websites:

What is loyalty and its effect on your brand:

  1. Loyal users stay with you even with higher competition ensuring a competitive advantage.

  2. Loyalty ensures referrals and more passive revenue for your brand through positive word-of-mouth and higher social media visibility.

  3. Loyal users increase engagement with your brand and they share the same enthusiasm as much as you.

  4. Loyalty ensures the long-term growth of your brand.

  5. The perceived brand value exponentially increases with the increase in loyal users.

  6. Statistics show that 84% of users engage more with customer loyalty programs for e-commerce websites.

  7. Loyalty introduces your brand to a new audience group.

  8. Higher chance of activating the inactive audience.

  9. Customer Life Time Value (CLTV) increases so it improves the frequency of buyings of the users.

Source: queueit

Curating the perfect loyalty programs:

  • Have a clear plan: Understand your goals. You can always use the SMART principle (Specific, Measurable, Attainable, Realistic, and Timely) to create a proper plan for giving rewards to your users. Get a timely understanding of your users to customize rewards for each person.

  • Multiple channels: Figure out which of your users will be able to get the rewards. You can use channels like referrals, repeat purchases, reviews, and many more through different social media channels.

  • Feedback:Continuous evaluations and communication with your users ensure that you know what your users want. Feedback can not only improve loyalty but also a vice-versa situation where loyal users can give you honest feedback improving your product and brand.

Source: outboundengine

  • Loyalty tiers: Introduce a program where increased engagement increases exclusive gifts to ensure better loyalty.

  • Make it simple: An easier interface and a better user experience with your brand reduce churn rate and increase loyalty.

  • Gamification: Brands can also use games to get their rewards. For example, spin a wheel for retention with the brand. Fun tasks and activities can unlock different badges.

  • Choose the right loyalty program for your brand: There are multiple loyalty programs like tiered programs, points-based programs, value-based programs, universal programs, VIP programs, partnership program, hybrid program, and paid programs. This would depend on the industry you are in, the target audience, the demographic, and user behaviors.

  • Invest in a good loyalty program software: There are many good softwarres that can help you streamline all these points and offer you one interface to solve all your retention problems. It will give you insights on different retention metrics.

  • A/B Testing: A/B testing is a form of experimenttaion youd cna do on your cmarketign copies to help you understand which poster resonates with your users more.

  • Different ways to boost loyalty: a) Asking users to refer your brand to someone. b) Asking users to leave a review or a testimonial. c) Distributing surveys. d) Competitions to boost enaggement.
Examples of customer loyalty programs for e-commerce websites Loyalty programs are observed in many cases. If you are offered a loyalty card when you go shopping, coupons for your next purchase with the brand, Rewards for more purchases, and many more.

a) GPay:

Google Pay does a great job of retaining its users by offering scratch cards for each purchase.

Source: Medium

b) Flipkart

Source: openloyalty

c) Sephora

Source: openloyalty


e-commerce is one of the fastest-growing biz in this digital era. To ensure your e-commerce brand has solid customer loyalty programs for e-commerce websites, make sure to stay updated with the new programs coming up.

If you would like to streamline all the new information and get your brand customized solutions for customer loyalty programs for your e-commerce website, Book a demo call with us and stay tuned with our blog.

Retention10 is the best Customer Relationship Manager that helps you with customized solutions to help your brand reach its drema retention metrics. Whenever the jargon gets too much, book a call with us! So we can help you from A-Z in Customer Retention.

Thanks for reading.

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Vanshitha Munipally
( Research & Content Marketer )

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