Loyalty Blogs

eCommerce loyalty programs have gained huge popularity in recent years. With an increasingly competitive market and the growing importance of customer loyalty, online retailers are struggling to offer unique rewards that are valuable and relevant to their loyalty programs. As 2023 comes to an end, eCommerce brands are looking for the latest trends for the upcoming year that can help enhance Customer Loyalty Software Solution & boost engagement.

In this blog, we have shortlisted the expert’s predictions and insights that will help reshape the customer loyalty trends in 2024.

Why Does Your eCommerce Brand Need a Loyalty Program?

Having a loyalty program for your eCommerce brand is a way to strengthen relationships between brands and consumers by putting efforts into expanding brand touchpoints, enabling personalization and nurturing loyalty. Brands reward their loyalty program members with rewards, discounts & additional benefits.

Not just for big eCommerce brands, the loyalty program for small business is also gaining popularity to cater to ever-evolving customer expectations. With thousands of options available in the market for every customer, eCommerce brands keep on fighting for their attention every day.

Customers today are likely to jump to competitors even after a slight disappointment from a brand. Loyalty programs act as a boon to help prevent customer churn and increase their lifetime value. These programs enable brands to not only understand customers but also build trust to keep them coming back for more again and again.

Here are some of the main benefits-

– Increase the Value of Loyal Customers

The best thing about loyalty programs is that it helps to get multiple benefits of loyal customers such as boosting loyalty among new customers and nurturing loyalty among existing ones.

– Program Members are Owned Media

Another benefit is to capture owned media like email, apps, social media, etc. which are effective marketing channels for eCommerce retailers. Additionally, they help to collect email addresses, which are used only to share exclusive benefits or personalized communications not random stuff like newsletters.

– Collect Data for Personalization

As big tech brands & government regulators focus more on data privacy, retailers don’t get access to customer data easily but with loyalty programs, brands can capture zero-party data where information is willingly shared to get value in return. This is the best way to offer personalized experiences such as free treat on birthdays, benefit after repeat orders, members-only rewards, etc.

Customer Loyalty Trends for the eCommerce Sector in 2024

As loyalty programs evolve with time, eCommerce brands must stay updated with the latest trends to ensure that their loyalty programs are up-to-date.

Here are some of the customer loyalty trends that are expected to grow in eCommerce businesses for 2024 and beyond-

– More Value in Loyalty Programs

With the recession and slowdown of the market, customers will look for more value in the coming years. Your loyalty program must focus on building emotional bonds with customers through value-focused rewards and experiences.

Boost engagement by going beyond purchases through meaningful activities in the loyalty program app for better brand visibility. Other ways are adding gamification strategies in loyalty programs for enhanced engagement, offering loyalty points even on non-transactional activities, etc.

– Growth of Loyalty Program Communities

The next customer loyalty trend is community building for your loyalty program members. For instance. Starbucks built a community called Odyssey to deliver a unique experience for their loyalty program members. The brand uses NFT & blockchain with its loyalty program enabling members to access Odyssey through the Starbucks app.

For better community building, brands can focus on utilizing app features to the maximum and help customers with better customization and personalization. Identify the most valuable customers to offer exclusive experiences.

– Loyalty Programs Aligned with Several Generations

Another trend is to build a loyalty program that meets the needs of different customers belonging to all generations- Gen Z, Millennials, Gen Z and baby boomers. Every customer has different preferences & needs, which is why brands must now focus on providing tailored loyalty program experiences for four different generations.

GenZ customers look for unique experiences with visual content and faster website speed. For millennials, they look for quality and informative content, excellent support, free shipping, etc. Gen X customers prefer rewards & loyalty points or engagement through reviews & surveys. And lastly baby boomers, the oldest generations look for simple user interfaces, on-time support to overcome technical challenges, localized experiences, and more.

– More Demand for “Phygital” Retail Experiences

By bringing technology & reality together through “phygital” experiences, eCommerce brands can unlock opportunities to boost customer loyalty. To fill the gap between physical stores and digital presence, customers wish to choose any platform- physical store, website, or app based on their preference and convenience.

This will help to offer uninterrupted experiences across any customer touchpoints. Integrate a robust loyalty & rewards app for your store to help customers check any products, access reward programs & make payments using points in-store, website, or app.

– Use of Technology-Based Loyalty Programs

Thanks to technological advances that helped loyalty programs to grow & offer better experiences to customers! If you are planning to build a loyalty program, know the latest technologies that you can incorporate into it-

i) Blockchain Technology

Blockchain-based programs offer reliable & transparent offerings where brands enable customers to view reward points earnings, transactions, offers, etc. for better loyalty.

ii) Voice Assistants

Allow customers to shop, redeem rewards & communicate anytime with the brand through voice assistant, which will make customer experience faster.

iii) AI & Machine Learning

Using AI and Machine Learning in programs helps brands to better understand customers’ preferences and behaviours & offer personalized loyalty experiences boosting loyalty.

iv) Augmented & Virtual Reality

Brands using AR & VR in loyalty programs are the ones that have witnessed improvement in engagement opportunities by allowing customers to scan products for exclusive rewards & loyalty points

Closing Statement

As we know loyalty programs play a great role in increasing the lifetime value of customers & boosting brand affinity, your eCommerce brand needs to build a type of loyalty program that is not just right for your brand but also helps in delivering customers the most value. Whether you need to capture and nurture customer loyalty or understand customers better by gathering zero-party data, ensure that your program offers both experiential and tangible benefits.

Being a top eCommerce loyalty program software, we have a bunch of loyalty experts who can help your brand put the right strategies in place to build a robust loyalty program that makes you stay ahead of your competitors’ programs.