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How to Increase Customer Lifetime Value

Here are 8 tactics you can use to increase customer lifetime value — how much your customers spend at your store over time.

Francesca Nicasio

Content Strategy Manager

“Is the juice worth the squeeze?”

If you’re running a small- to medium-sized business, you may be asking yourself this question when calculating how much it costs to acquire and keep your customers. For retailers – where profit margins often run thin and every customer counts, increasing the Customer Lifetime Value (CLV) is one of many levers you can pull to create loyalty and ensure repeat business.

What is Customer Lifetime Value?

Customer Lifetime Value is the metric used to calculate how much revenue or profit your business will generate during the amount of time your customer shops with you (customer lifetime). 

How do I calculate Customer Lifetime Value?

While having a clear, single answer to this question would be great, there is more than one answer on how to calculate CLV, and methods range from the most foundational to more complex calculations. 

The simplest way to measure customer lifetime value is to subtract your lifetime customer costs from lifetime customer revenue. Here’s what the formula looks like:

CLV = Lifetime Customer Revenue - Lifetime Customer Costs

For instance, if a business has a subscription service charging $100 monthly, with customers staying for 3 years, the Lifetime Customer Revenue is $3600 ($100 * 36 months). Assuming Lifetime Customer Costs are $600, the CLV is calculated as:

$3600 - $600 = $3000

This means each customer's net value to the business over their lifetime is $3000.

There are other ways to measure customer lifetime value. So if you want more in-depth information on calculating CLV, check out this article and try our Customer Lifetime Value calculator.

 


 

How do I increase Customer Lifetime Value?


After you calculate your baseline CLV, it’s time to pull the levers to increase it. Here are some tips to do just that.

1. Enhance your customers' experience

Increasing customer retention requires understanding the customer journey and making personalized recommendations. Delivering a better customer experience than your competition is a surefire way to reduce your customer churn rate and build loyalty. 

There are critical metrics to gather regarding customer satisfaction, including your Net Promoter Score (NPS). This information highlights areas of opportunity and gives your team a chance to rectify poor experiences before they become bad reviews.

In addition, personalized marketing campaigns are important to increase customer engagement. That’s why segmentation is key. There are several ways to segment customers to better direct your marketing efforts, and understanding the customer journey, pain points, checkout experience, behavior, and other customer data metrics are the foundation of your customer segments. Consider how much your customer spends, their buying patterns, engagement with social channels, and more. 

Creating a community of long-term, loyal customers who organically spread word-of-mouth referrals is an effective way to increase CLV.

Marsello customer, Pace Athletic, created their community by focusing on customer relationships, having an inclusive and welcoming environment, hosting a regular running club, and implementing a loyalty program with a referral rewards program. This strategy creates more touchpoints, listens to and incorporates customer feedback, and leverages customer loyalty programs – all of which lead to more conversions.

pace-athletic-discounts

2. Implement cross-selling and upselling tactics

Another way to increase customer lifetime value is to point shoppers to products or services that add value to their purchases. You can do this through upselling and cross-selling. When done right, these sales tactics boost customer spending and AOV, ultimately helping you increase customer lifetime value. 

The retailer Scotty's Makeup & Beauty, for example, has a section on their product page recommending similar or complementary items. That way, when you view one of their products, you are also presented with items that enhance your purchase. 

Aside from driving additional sales, this practice improves the overall shopping experience by making it easier for customers to find and acquire everything they need in one place.

cross selling and upselling to increase clv

 

3. Create a customer loyalty program to increase Customer Lifetime Value (CLV)

Offering incentives and perks in a customer loyalty program is often successful in reducing customer attrition, boosting repeat purchase rate, and creating long-term customers. The best loyalty program for you will depend on your pricing, business type, and if you are looking for omnichannel support.

There are four main types of loyalty programs

  • points systems
  • tiered programs
  • punch cards
  • community-based incentives 

With points systems, customers earn points for every dollar they spend, which can be redeemed for products or services. Tiered loyalty programs are based on engagement or spending; the higher the tier, the more exclusive the reward. With punch cards, customers receive punches or stamps for purchases, with a reward once the card is filled. Community-based incentives are based on activities that help grow your brand and include activities like social sharing.

When thoughtfully created, rewards and recognition for customer loyalty can make a significant impact on your bottom line. 

"On average, transactions made by loyalty members are worth over 60% more than anonymous transactions. Imagine even just 5% of your customer-base joins your loyalty program, and spends 60% more per transaction. Think what that would do to your bottom line."

- Rory Moss, Loyalty Expert

And if you’re implementing personalized marketing efforts, personalized rewards are the next logical step. A successful rewards program often drives repeat business with exclusive offers, like VIP tiers and omnichannel support to keep your customers coming back, referring others and thus increasing their CLV.

Once your loyalty program is created, the work is far from over. You have a wealth of data at your fingertips, and using those data-driven insights to adjust your program is key. Offering rewards that resonate with your customer’s preferences and shopping behaviors is the art and science of personalized marketing campaigns and loyalty programs – and our customers see great success in this holistic approach.

Marsello customer, TennisGear, now has complete visibility into their sales across all channels through multi-site reports and easy-to-use dashboards. TennisGear experienced a 2.5% increase in their customer database soon after implementing a point of sale system that prompts staff to add customers to the loyalty program.

tennisgear-available-rewards

But the work didn’t stop there. With Marsello’s automation capabilities, TennisGear is seeing success in recovering abandoned carts and incentivizing lost customers to return and complete their purchase. Together, Marsello works with TennisGear to create a loyalty program that sets them apart from the competition and seamlessly integrates with their other systems.

"I think Marsello is the only solution that we found that had a native integration between all the systems that we are using. Now we can really easily separate our in-store and our online customers. In terms of loyalty, campaigns, and everything, it's certainly the best solution that we found," highlights TennisGear Project Manager, Declan.

4. Send strategic email marketing campaigns

Your customers receive dozens of emails, if not more, every day, and rising above the noise requires strategic planning. To save small marketing teams from being bogged down by the complexity of email marketing, content marketing, and the like, automation is key and optimization is the goal.

From the initial welcome email onboarding process to abandoned cart emails and win-back campaigns, being intentional and targeted in your communication is key. Automated emails tailored to customer behavior and buying patterns helps nurture customer relationships. 

To do this, the aforementioned segmented email campaigns based on customer shopping patterns and preferences provide a customized feel and increase open rates, engagement and then ultimately, CLV. Depending on your business, mixing up personalized recommendations with related products, offering abandoned cart discounts, providing relevant content marketing materials with insights, tips, early access, etc., all work in tandem to create a strategic marketing campaign that works for you. 

At Scott’s Makeup & Beauty Supply, their brick-and-mortar and online store marketing efforts are tracked to view where they’re having success. Their pre-built automations help recover more abandoned carts, drive repeat purchases and win back lost customers. With Marsello, they can see their email campaigns generate 63% of all revenue attributed to marketing activities, delivering on the metrics that matter.

scottys-makeup-and-beauty-results

5. Proactively collect customer feedback—and act on the insights

One of the best ways to get customers to stay with your brand is showing them that you value their input. And to do that, you need to get better at collecting — and acting — on their feedback. 

Regularly send out surveys to glean insights into customer satisfaction. Ask shoppers what they love most about your brand, whether they would recommend you to their friends, and what you can do to serve them better. 

You should then use those insights to improve your products and services. For example, when customers told the apparel retailer Klassy Network that they wanted long sleeved tops with built-in bras, the brand listened and launched those styles. 

Klassy Network sent out an email with the subject line “You Asked… We Listened,” highlighting how customer feedback directly influenced their latest product offering.

email showing customer feedback being heard

As for how to collect feedback, the best way to do it is put the process on autopilot. Use marketing automation software to send out surveys and feedback requests after each purchase.

We can see this in action in the fashion store Katie Waltman, which uses Marsello to automate feedback collection. 

After loyal customers collect points, Katie Waltman's team sends an automated email to show their points balance and asks for feedback on their purchase experience through a simple survey.

Marsello-Case-Study-Katie-Waltman

Katie Waltman's customers are eager to give feedback, with the jewelry brand receiving a 97% positive rate, especially for product quality, customer service, and value.

6. Encourage subscriptions

Subscriptions turn one-time shoppers into long-term customers, which then increases CLV. Subscriptions can also stabilize your finances, because they create reliable and predictable revenue streams.

Businesses selling consumable goods like food and supplements lend themselves well to the subscription model. If you fall into this category, you can encourage subscriptions by offering discounts when customers opt for recurring purchases.

Boba Tea Protein, a site that sells fitness supplements, does exactly that. When you’re on their product page, you'll notice the one-time purchase price of their protein powder is $47.99, but if you choose a subscription, the price drops 10% to $43.19.

subscriptions can increase clvThis approach prods people to consider subscribing, which then boosts customer retention and increases the likelihood of generating consistent revenue over time.

7. Focus on high value customers

Segment your customers based on their purchase activity, then identify those who spend the most. From there, consider creating personalized offers, rewards, and communications specifically for them to enhance their loyalty and encourage continued high spending.

This targeted approach not only maximizes your ROI from marketing and customer service, it also strengthens brand loyalty (and CLV) among your most valuable shoppers. Ultimately, concentrating on high-value customers leads to increased revenue, higher customer satisfaction, and a more sustainable business model.

8. Educate your customers on the value of your products 

People will continue buying from you for as long as they find value in your products and services. That’s why it pays to educate your customers and show them how they can get the most out of your products. 

One brand that does this well is GoPro. They have a special section on their website called “GoPro Tips,” where they provide extensive how-to videos, tips for capturing great footage, and advice on using their cameras to the fullest, helping customers maximize the potential of their products.

educate customers on the value of your products - gopro example

 

Final words

At Marsello, your customer success is our success – and calculating CLV is an important metric to help determine what is working and where improvement can be made. If you’re looking to achieve business growth, you need a trusted partner and a strategy in place to get where you’re headed.

Ready to learn how Marsello can contribute to your business growth goals? Get in touch to learn more.

 


 

Join a community of 5,000+ retailers building sales with Marsello's customer loyalty software

 

Start free trial

 


 

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    Recent Articles

    How to Increase Customer Lifetime Value

    ClockIcon  READ
    Here are 8 tactics you can use to increase customer lifetime value — how much your customers spend at your store over time.

    “Is the juice worth the squeeze?”

    If you’re running a small- to medium-sized business, you may be asking yourself this question when calculating how much it costs to acquire and keep your customers. For retailers – where profit margins often run thin and every customer counts, increasing the Customer Lifetime Value (CLV) is one of many levers you can pull to create loyalty and ensure repeat business.

    What is Customer Lifetime Value?

    Customer Lifetime Value is the metric used to calculate how much revenue or profit your business will generate during the amount of time your customer shops with you (customer lifetime). 

    How do I calculate Customer Lifetime Value?

    While having a clear, single answer to this question would be great, there is more than one answer on how to calculate CLV, and methods range from the most foundational to more complex calculations. 

    The simplest way to measure customer lifetime value is to subtract your lifetime customer costs from lifetime customer revenue. Here’s what the formula looks like:

    CLV = Lifetime Customer Revenue - Lifetime Customer Costs

    For instance, if a business has a subscription service charging $100 monthly, with customers staying for 3 years, the Lifetime Customer Revenue is $3600 ($100 * 36 months). Assuming Lifetime Customer Costs are $600, the CLV is calculated as:

    $3600 - $600 = $3000

    This means each customer's net value to the business over their lifetime is $3000.

    There are other ways to measure customer lifetime value. So if you want more in-depth information on calculating CLV, check out this article and try our Customer Lifetime Value calculator.

     


     

    How do I increase Customer Lifetime Value?


    After you calculate your baseline CLV, it’s time to pull the levers to increase it. Here are some tips to do just that.

    1. Enhance your customers' experience

    Increasing customer retention requires understanding the customer journey and making personalized recommendations. Delivering a better customer experience than your competition is a surefire way to reduce your customer churn rate and build loyalty. 

    There are critical metrics to gather regarding customer satisfaction, including your Net Promoter Score (NPS). This information highlights areas of opportunity and gives your team a chance to rectify poor experiences before they become bad reviews.

    In addition, personalized marketing campaigns are important to increase customer engagement. That’s why segmentation is key. There are several ways to segment customers to better direct your marketing efforts, and understanding the customer journey, pain points, checkout experience, behavior, and other customer data metrics are the foundation of your customer segments. Consider how much your customer spends, their buying patterns, engagement with social channels, and more. 

    Creating a community of long-term, loyal customers who organically spread word-of-mouth referrals is an effective way to increase CLV.

    Marsello customer, Pace Athletic, created their community by focusing on customer relationships, having an inclusive and welcoming environment, hosting a regular running club, and implementing a loyalty program with a referral rewards program. This strategy creates more touchpoints, listens to and incorporates customer feedback, and leverages customer loyalty programs – all of which lead to more conversions.

    pace-athletic-discounts

    2. Implement cross-selling and upselling tactics

    Another way to increase customer lifetime value is to point shoppers to products or services that add value to their purchases. You can do this through upselling and cross-selling. When done right, these sales tactics boost customer spending and AOV, ultimately helping you increase customer lifetime value. 

    The retailer Scotty's Makeup & Beauty, for example, has a section on their product page recommending similar or complementary items. That way, when you view one of their products, you are also presented with items that enhance your purchase. 

    Aside from driving additional sales, this practice improves the overall shopping experience by making it easier for customers to find and acquire everything they need in one place.

    cross selling and upselling to increase clv

     

    3. Create a customer loyalty program to increase Customer Lifetime Value (CLV)

    Offering incentives and perks in a customer loyalty program is often successful in reducing customer attrition, boosting repeat purchase rate, and creating long-term customers. The best loyalty program for you will depend on your pricing, business type, and if you are looking for omnichannel support.

    There are four main types of loyalty programs

    • points systems
    • tiered programs
    • punch cards
    • community-based incentives 

    With points systems, customers earn points for every dollar they spend, which can be redeemed for products or services. Tiered loyalty programs are based on engagement or spending; the higher the tier, the more exclusive the reward. With punch cards, customers receive punches or stamps for purchases, with a reward once the card is filled. Community-based incentives are based on activities that help grow your brand and include activities like social sharing.

    When thoughtfully created, rewards and recognition for customer loyalty can make a significant impact on your bottom line. 

    "On average, transactions made by loyalty members are worth over 60% more than anonymous transactions. Imagine even just 5% of your customer-base joins your loyalty program, and spends 60% more per transaction. Think what that would do to your bottom line."

    - Rory Moss, Loyalty Expert

    And if you’re implementing personalized marketing efforts, personalized rewards are the next logical step. A successful rewards program often drives repeat business with exclusive offers, like VIP tiers and omnichannel support to keep your customers coming back, referring others and thus increasing their CLV.

    Once your loyalty program is created, the work is far from over. You have a wealth of data at your fingertips, and using those data-driven insights to adjust your program is key. Offering rewards that resonate with your customer’s preferences and shopping behaviors is the art and science of personalized marketing campaigns and loyalty programs – and our customers see great success in this holistic approach.

    Marsello customer, TennisGear, now has complete visibility into their sales across all channels through multi-site reports and easy-to-use dashboards. TennisGear experienced a 2.5% increase in their customer database soon after implementing a point of sale system that prompts staff to add customers to the loyalty program.

    tennisgear-available-rewards

    But the work didn’t stop there. With Marsello’s automation capabilities, TennisGear is seeing success in recovering abandoned carts and incentivizing lost customers to return and complete their purchase. Together, Marsello works with TennisGear to create a loyalty program that sets them apart from the competition and seamlessly integrates with their other systems.

    "I think Marsello is the only solution that we found that had a native integration between all the systems that we are using. Now we can really easily separate our in-store and our online customers. In terms of loyalty, campaigns, and everything, it's certainly the best solution that we found," highlights TennisGear Project Manager, Declan.

    4. Send strategic email marketing campaigns

    Your customers receive dozens of emails, if not more, every day, and rising above the noise requires strategic planning. To save small marketing teams from being bogged down by the complexity of email marketing, content marketing, and the like, automation is key and optimization is the goal.

    From the initial welcome email onboarding process to abandoned cart emails and win-back campaigns, being intentional and targeted in your communication is key. Automated emails tailored to customer behavior and buying patterns helps nurture customer relationships. 

    To do this, the aforementioned segmented email campaigns based on customer shopping patterns and preferences provide a customized feel and increase open rates, engagement and then ultimately, CLV. Depending on your business, mixing up personalized recommendations with related products, offering abandoned cart discounts, providing relevant content marketing materials with insights, tips, early access, etc., all work in tandem to create a strategic marketing campaign that works for you. 

    At Scott’s Makeup & Beauty Supply, their brick-and-mortar and online store marketing efforts are tracked to view where they’re having success. Their pre-built automations help recover more abandoned carts, drive repeat purchases and win back lost customers. With Marsello, they can see their email campaigns generate 63% of all revenue attributed to marketing activities, delivering on the metrics that matter.

    scottys-makeup-and-beauty-results

    5. Proactively collect customer feedback—and act on the insights

    One of the best ways to get customers to stay with your brand is showing them that you value their input. And to do that, you need to get better at collecting — and acting — on their feedback. 

    Regularly send out surveys to glean insights into customer satisfaction. Ask shoppers what they love most about your brand, whether they would recommend you to their friends, and what you can do to serve them better. 

    You should then use those insights to improve your products and services. For example, when customers told the apparel retailer Klassy Network that they wanted long sleeved tops with built-in bras, the brand listened and launched those styles. 

    Klassy Network sent out an email with the subject line “You Asked… We Listened,” highlighting how customer feedback directly influenced their latest product offering.

    email showing customer feedback being heard

    As for how to collect feedback, the best way to do it is put the process on autopilot. Use marketing automation software to send out surveys and feedback requests after each purchase.

    We can see this in action in the fashion store Katie Waltman, which uses Marsello to automate feedback collection. 

    After loyal customers collect points, Katie Waltman's team sends an automated email to show their points balance and asks for feedback on their purchase experience through a simple survey.

    Marsello-Case-Study-Katie-Waltman

    Katie Waltman's customers are eager to give feedback, with the jewelry brand receiving a 97% positive rate, especially for product quality, customer service, and value.

    6. Encourage subscriptions

    Subscriptions turn one-time shoppers into long-term customers, which then increases CLV. Subscriptions can also stabilize your finances, because they create reliable and predictable revenue streams.

    Businesses selling consumable goods like food and supplements lend themselves well to the subscription model. If you fall into this category, you can encourage subscriptions by offering discounts when customers opt for recurring purchases.

    Boba Tea Protein, a site that sells fitness supplements, does exactly that. When you’re on their product page, you'll notice the one-time purchase price of their protein powder is $47.99, but if you choose a subscription, the price drops 10% to $43.19.

    subscriptions can increase clvThis approach prods people to consider subscribing, which then boosts customer retention and increases the likelihood of generating consistent revenue over time.

    7. Focus on high value customers

    Segment your customers based on their purchase activity, then identify those who spend the most. From there, consider creating personalized offers, rewards, and communications specifically for them to enhance their loyalty and encourage continued high spending.

    This targeted approach not only maximizes your ROI from marketing and customer service, it also strengthens brand loyalty (and CLV) among your most valuable shoppers. Ultimately, concentrating on high-value customers leads to increased revenue, higher customer satisfaction, and a more sustainable business model.

    8. Educate your customers on the value of your products 

    People will continue buying from you for as long as they find value in your products and services. That’s why it pays to educate your customers and show them how they can get the most out of your products. 

    One brand that does this well is GoPro. They have a special section on their website called “GoPro Tips,” where they provide extensive how-to videos, tips for capturing great footage, and advice on using their cameras to the fullest, helping customers maximize the potential of their products.

    educate customers on the value of your products - gopro example

     

    Final words

    At Marsello, your customer success is our success – and calculating CLV is an important metric to help determine what is working and where improvement can be made. If you’re looking to achieve business growth, you need a trusted partner and a strategy in place to get where you’re headed.

    Ready to learn how Marsello can contribute to your business growth goals? Get in touch to learn more.

     


     

    Join a community of 5,000+ retailers building sales with Marsello's customer loyalty software

     

    Start free trial

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    From Feedback to Rewards: How to Build a Loyalty Program that Resonates with Your Audience

    ClockIcon  READ
    Learn how to build a loyalty program that puts your audience first. We also discuss strategies for creating a customer experience that secures repeat...

    Fact: Loyal customers are some of your most reliable income sources during uncertain times. 

    We can see this in action in some of the top brands in the market.

    Starbucks, for example, was one of the companies that quickly recovered after the Great Recession. Despite the economic downturn, Starbucks continued to invest in its loyalty program, enhancing its value proposition by offering free refills, free Wi-Fi, and special offers.

    Or consider Sephora, which launched its rewards program, Beauty Insider, in 2007, and has since expanded and diversified the program to include personalized offers, exclusive events, and early access to new products. Today, the majority of Sephora’s sales come from Beauty Insider members

    All this to say that rewards and loyalty programs can unlock lasting customer retention and revenue.

    But there’s a catch: you’ll only achieve these benefits if your loyalty program stands out in an increasingly competitive landscape. 

    In today’s crowded market, consumers are bombarded with them left and right. That’s why we’re big believers in customization—tailoring your program to meet your target audience’s preferences and needs.

    In this article, you’ll learn how to build a loyalty program that puts your audience first. We also discuss strategies for creating a rewarding customer experience that secures repeat business.

     


     

    Importance of customer insights in developing notable loyalty programs


    Guesswork often influences strategies when developing loyalty programs. So before proceeding to launching or overhauling your loyalty program, make it a point to challenge your views.

    Start with a hypothesis. Let’s say you assume your customers are motivated by discounts. Consider the variables that made you think this way. Is it based on sales performance? 

    Next, look at your data and analyze your sales trends. What impact do discounts really have on your sales?

    Maybe you discover that discounts do work, but not as much as they used to. Poring over customer insights may show you that many of your customers favor tangible freebies, such as complimentary samples.

    In this instance, you may need to discard your original hypothesis. Markets adapt, and customer preferences shift. Use your assumptions as a framework, but refer to actual insights as you tailor your loyalty program accordingly.


    Loyalty expert Rory Moss talks about getting data & survey results to customize your loyalty program and appeal to higher value customers.

     

    Benefits of insight-driven customer loyalty programs

     

    Learning to fine-tune your customer loyalty programs directly translates to concrete benefits for your business. These include.

    • Higher customer engagement. By basing loyalty programs on real insights, you can design initiatives that resonate with your customer base. They’ll feel a deeper connection with the tailored rewards and incentives. The more relevant you are, the better your customer relationships will be.
    • Better resource allocation. Insight-driven loyalty programs help your marketing team manage resources. You’ll avoid spending on generic incentives that may not align with customer expectations. Instead, you can direct the resources toward more enticing initiatives, maximizing the loyalty program’s long-term impact.

    Customer insights ensure program success with strategic implementation. Here’s how to leverage this data to build customer loyalty programs that stand out and connect with your target demographic.

     

    6 steps to develop a successful customer loyalty program

     

    From getting customers on board to measuring performance, launching and managing loyalty programs take work. Follow these 6 steps below to start and gradually increase signups and engagement levels.

    1. Conduct customer interviews

     

    Shoppers stay loyal to brands that understand them. To get to know your customer base, conduct direct surveys and interviews. Talk to a sample of 10 to 20 customers in person or on the phone, varying between regulars and one time/new customers.

    Regulars are the most engaged audience with repeat purchases. Use the interview to identify what they want from a loyalty program. 

    One-time/new customers are not as engaged–at least not yet. Take the interview as an opportunity to learn their preferred incentives, offers, or experiences to keep them coming back

    Keep the questions consistent across both groups to get a well-rounded perspective. Here’s a set of potential questions you can ask these individuals. 

    • How often do you purchase from our store?
    • On a scale of 1 to 10, how likely are you to participate in our loyalty program?
    • What types of rewards or perks would motivate you to join the program? (e.g., discounts, freebies, cashback promos, special offers, exclusive event access, early access to sales)
    • How important is it for you to feel valued and rewarded for your loyalty to us?
    • Do you prefer tiered membership systems or ​​points-based loyalty programs? (i.e., point-based voucher amount vs. bronze, silver, and gold tiers with more valuable rewards as you progress)
    • How likely will you recommend us to others if we offer reward/referral programs?
    • Are there any specific products or categories you’d like to see in the loyalty program rewards?
    • What communication channels do you prefer to receive loyalty program updates and offers? (e.g., email, SMS, social media, in-store notifications)
    • How do you typically redeem loyalty rewards or benefits? (e.g., online, in-store, mobile app)
    • Would you be more likely to participate if the program offered early access to new product releases or exclusive benefits?
    • Do you have any concerns or reservations about joining a loyalty membership program?
    • How likely will you continue shopping at our store with vs. without a loyalty program?
    • What additional features or benefits do you want to see in our loyalty program?

    Regular and one-time shoppers have distinct preferences, motivations, and expectations. Engage with both ends of the spectrum to know what drives each group from a 360-degree standpoint. 

    Pro-tip: Gather contact details, such as email addresses and phone numbers, should you require a follow-up.

    2. Collate survey and feedback responses

     

    You can also use surveys to get more quantitative data on your customers. The goal here is to organize and analyze customer feedback to identify recurring patterns. 

    You can do it in a formal, informal, or a hybrid approach.

    Formal surveys are recommended for large-scale operations. Here are the approaches to implementing this method for a more thorough understanding of survey responses.

    • Use advanced software to categorize feedback systematically. For instance, you can implement customer feedback management platforms that tag and sort responses based on common themes.
    • Statistical analysis. If you have the resources, consider applying statistical methods to identify patterns quantitatively. It involves frequency calculation of particular keywords or sentiments expressed by customers.

    Informal surveys are best for small businesses with limited resources. They’re more qualitative in nature and require first-hand assessment to understand your customers. 

    • Manual review. Evaluate customer comments, emails, or survey responses. The goal is to absorb the qualitative aspects that may be overlooked in strictly quantitative analysis.
    • Key learnings. As you review feedback, jot down a few bullet points that summarize key learnings. These could be recurring themes, noteworthy suggestions, or significant areas of concern raised by customers.

    You can also combine formal and informal approaches (hybrid) to maximize both methods’ strengths. Doing so balances qualitative findings with objective insights in a more accessible yet scalable manner.

    3. Review and act on the data

     

    Knowing what appeals to new and existing customers helps ensure your loyalty program aligns with your overall brand identity. It helps craft your Unique Value Proposition (UVP), which you can use to reinforce your brand message and create a cohesive experience across all touchpoints.

    Review the preferences and needs you’ve discovered from feedback responses. Then be sure to offer customers enticing rewards to meet those needs. 

    Take Amazon Prime’s paid loyalty program, for example. Industry data shows that 71.8% of its loyalty program members find the $99 annual pricing worth it for all the shipping, shopping, streaming, and reading perks. 

    How does Amazon know this? Simple. The company actively creates, distributes, and collects online survey responses.

    amazon prime example

    Not many businesses have the same resources as Amazon. But it doesn’t mean you don’t have enough data to analyze in your hands. 

    Sports retailer TennisGear actively observes their database to understand customer behavior. They grow and keep it accurate through complete visibility across their sales channels and prompts that reminds staff to update or add customer information.

    Maintaining a continuous feedback loop with your customers is key to creating a loyalty program that resonates. Send out regular surveys or perform ongoing database analysis to stay current with changing preferences and market trends.

    Additional tip: Look at review sites and Google Reviews to draw information about what customers might appreciate seeing more in your programs.

    4. Design and optimize the program based on feedback

     

    Now that you know your rewards and incentives, optimize your program’s structure and mechanics to incentivize customers to spend more. 

    Choose between non-tiered and tiered programs. Non-tiered appeals to a broad audience, whereas a tiered point system suits a diverse customer base with varying spending levels.

    Balance the program’s exclusivity and inclusivity if you opt for the latter. Introduce exclusive high-value perks for top-tier loyalty cardholders (e.g., premium rewards, VIP events) and accessible rewards for those in lower tiers (e.g., birthday discounts).

    Lastly, decide if your customers prefer simple or gamified types of loyalty programs. Gamification adds interactive elements but often requires more resources in terms of design, development, and ongoing management. 

    In Sephora’s Beauty Insider Challenges, for instance, members must first complete a series of tasks to earn rewards. Some tasks don’t involve a purchase but require active engagement. The first challenges include checking out online, picking up orders in-store, signing up for text alerts, and trying Sephora’s in-store shade-matching tool.

    If you’re still testing the waters, a straightforward loyalty program can be equally lucrative. 

    Melbourne-based fashion label ALPHA60 exemplifies this with a simple earn-and-redeem model: spend a thousand dollars, earn a thousand points, and receive a $50 voucher.

    ALPHA60’s Brand Strategist, Kelvin, explained that ALPHA60 customers prefer simplicity. Just by understanding this tendency led to the brand enjoying a high repeat purchase rate.

    Alpha60 earn options


    Find what works best for your audience, and consistently seek feedback for future adjustments if needed.

     

    5. Make communication personalized wherever possible

     

    Before you roll out the loyalty program, establish customer-centric communication channels. Identify where they prefer to receive updates and redeem rewards. Do they prefer traditional in-store redemption like punch cards or through handy technology like an app or a digital card?

    If customers raise concerns or suggestions, acknowledge and address these in your response. Show that you value their input and actively strive to improve their experience.

    A one-size-fits-all approach in communication may alienate customers who seek tailored interactions. Don’t lose your regulars to more attentive competitors. Pay attention to customer behavior when launching or announcing loyalty program updates.

     

    6. Choose technology to run the loyalty program

     

    Invest in user-friendly technology to simplify the implementation process. It’ll help your staff to adjust fast, minimizing the learning curve and likelihood of errors.

    Loyalty program software like Marsello features seamless integration with ecommerce and POS systems (e.g., Shopify, WooCommerce, Bigcommerce, and Lightspeed) to leverage data analytics.

    Syncing in-store and online transactions generates insights to help you deliver consistent loyalty experiences. It’s a hands-off process you can leverage to offer custom-tailored promotions, point earning, and reward redemption across all platforms.

    With the right tools, tracking your loyalty program’s performance becomes easy. Take note of the key metrics and indicators to measure in the next section.

    How to Measure Your Program’s Success

     

    Define key performance indicators (KPIs) that align with your goals to gauge initial success. Some KPIs to consider are customer retention, referral rates, average order values (including credit card transactions), and customer lifetime value. These metrics measure the program’s overall contribution to your revenue stream.

    Tracking KPIs is more efficient with Marsello’s dashboards and automated reporting. These tools feature real-time updates with charts, graphs, and other visual elements to interpret complex data patterns. You can also set up predefined schedules to receive detailed reports.

    scottys-makeup-and-beauty-insights-dashboard

    Invest in technology to keep your efforts on track. Let your staff focus on refining your marketing strategy rather than spending significant hours on data gathering and reporting.

     

    FAQs


    How can small businesses with limited resources effectively compete with larger companies in offering attractive loyalty programs?

    Small businesses can level the playing field with larger companies by focusing on personalized experiences and leveraging community ties. Even with smaller budgets, they can create loyalty programs that resonate deeply with their local customer base by offering unique, personalized rewards and experiences that big chains cannot. Using social media and local events for promotion can also enhance visibility and engagement without significant investment.


    What are the common pitfalls or challenges businesses face when implementing loyalty programs, and how can they be overcome?

    Common pitfalls in implementing loyalty programs include failing to understand customer needs, overcomplicating the rewards system, and lack of promotion. Businesses can overcome these challenges by conducting thorough market research, simplifying participation processes, and using multiple channels to inform customers about the program. Continuously gathering feedback and adjusting the program based on customer preferences ensures it remains relevant and appealing.

    How do businesses ensure the long-term sustainability of their loyalty programs?

    Ensuring the long-term sustainability of loyalty programs requires continuous adaptation and engagement strategies. Businesses should regularly review and update their loyalty programs to keep them fresh and aligned with evolving customer expectations. Incorporating customer feedback, analyzing participation data, and staying informed about industry trends can help businesses adjust their offerings. Creating a community around the brand and offering exclusive, time-sensitive rewards can also maintain interest and participation over time.

     

    Streamlining Loyalty Programs with Marsello

     

    The best customer loyalty program prioritizes the customer experience. So, rather than rushing to launch your rewards or loyalty program, take time to solicit shopper insights, analyze data, design a responsive program, personalize communication, and use technology wisely.

    Loyalty programs shouldn’t remain static. Keep ongoing customer engagement by regularly evaluating and updating your program.

    If you’re ready to reward customers on their next purchase, start with Marsello’s free trial. Build your loyalty program today while synchronizing your omnichannel strategy.

     


     

    Join a community of 5,000+ retailers building sales with Marsello's customer loyalty software

     

    Start free trial

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    10 Communities For Retail Business Owners To Join: Learn, Connect & Grow

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    Explore the top communities for small or independent retailers. Connect, learn, and grow together as you navigate the world of retail entrepreneurship.

    It can be a lonely journey being a business owner. Even with family, friends and staff around to support you, there are unique challenges we face as independent retailers and sometimes all you need is to connect with people who can relate.

    We've put together a list of communities, hubs, YouTube channels and online forums filled with experts and peers who can help and support you along the way. 

     


     

    The Boutique Hub

     

    The Boutique Hub home page


    The Boutique Hub is the world’s largest boutique industry community, connecting boutique retailers, eCommerce retailers, wholesale brands, product makers, and industry services and experts. The Hub provides daily connection, strategy, training, wholesale shopping, live events, and a voice for the boutique industry.

    The Boutique Hub has a paid community offering. As a member, you'll find over 7,500 peers to connect with. You'll access hundreds of trainings for all levels of business, daily content calendars, social media engagement libraries, and guest experts with live trainings weekly.

    But if you're not looking to pay, there is a wealth of free content on their website too. Plus, you can follow The Boutique Hub on YouTube for regular updates and tips.

     

    MeetUp groups

     

    Screenshot of a MeetUp search

    MeetUp groups are a great way to connect with other retailers and business owners. Use MeetUp to search for events and communities in your area, and join the groups that resonate with you! Some are structured — sponsored by retail service providers — others are more casual get-togethers with peers.

    Whatever kind of group you're looking for, especially if you're based near a large city, you're bound to find it here.

     

    RETAILMavens

     

    RETAILMavens home page


    If you're looking for training and 1-1 support, look no further than Cathy Donovan Wagner at RETAILMavens. As a former retailer, Cathy knows how much running a business can have you losing sleep... That's why her business focus is more profit, better sleep.

    While this is a more traditional consultation approach, RETAILMavens also has a YouTube channel and Facebook community for those more interested in learning from afar, or connecting with likeminded business owners.

     

    Start A Boutique

     

    Start A Boutique home page


    Are you a woman looking to start or scale your retail business? Raquel at Start A Boutique is dedicated to helping other women become successful boutique entrepreneurs.

    After working at a 9-5 that she wasn't passionate about, she started her first online boutique in 2006 (at the age of 23!) which quickly expanded into a brick + mortar location 6 months later and another location a year after that.

    Starting a new business is no small feat, and she's been through A LOT of trial and error (and money!) to get it right. So for the past 8 years, she has consolidated all her learnings and set up Start A Boutique to help others create their own thriving boutique business.

    Raquel has a YouTube channel, Facebook group and Instagram profile so you can dive right in.

     

    Reddit: r/smallbusiness

     

    Screenshot of the small business subreddit

    While not retail-specific, r/smallbusiness is a great place to go if you are looking for advice or guidance from other business owners. From employee Christmas gift ideas to lawsuits, other Redditors can share their experience or ideas with you and offer support.

    Reddit is anonymous (unless you choose to share identifying details of your business) so it's a great place to ask anything or just have a vent.

     

    How To Run A Retail Store

     

    How To Run A Retail Store home page

     

    Sara Stonecipher of How To Run A Retail Store has spent 20+ years growing, learning, failing, succeeding, and refining her retail skills. Now, she's on a mission to help other business owners work through all the challenges and delights of growing a business. 

    With all her changes over the years, her retail company has doubled in size and is making over a million dollars a year in revenue. She's focused on being an active participant in her local community, creating an immersive shopping experience for the people who live in her city.

    You can check out Sara's workshop and courses on her website, or follow her channel on Youtube.

     

    The Small Retailer Network

     

    Small Retailer Community home page

    The Small Retailer Network in Dubai is a free membership community that host coffee catch-ups, events and workshops for independent retailers. Whether you are an established retailer or just starting your business journey, their community is there to support and encourage you to succeed.

    If you're non-local, they also have a range of places you can ask questions, access support and get advice from the community, including a Whatsapp group chat, Instagram profile and Facebook page.

     

    WhizBang! Retail

     

    WhizBang home page

     

    WhizBang! Retail is all about practical, tactical, money-making ideas and customer-focused strategies.

    On their Youtube channel, retail experts Bob and Susan Negen offer weekly retail tips, world-class online training, business-building events, and transformational programs that help retailers create the wildly successful stores of their dreams.

    WhizBang! are definitely more focused on training and consultation, but they have a rich selection of content on the YouTube channel above, and you can follow them on Instagram and Facebook too.

     

    Retail Minded

     

    Retail Minded conference page

     

    Looking for more of an event or conference? Retail Minded has you covered with the Independent Retailer Conference. Attendees can expect to learn from industry leaders, retail decision makers, technology providers and more. Talks cover the latest must-know insights to help retailers, marketplace sellers, e-commerce operators and other industry professionals thrive.

    Beyond the conference, Retail Minded introduces retailers to leading industry resources, merchant specific news and timely education to help independent businesses – both online and offline – thrive in their unique retail goals.

     

    Retail Customer Experience

     

    Retail Customer Experience webinar

    Retail Customer Experience's on-demand, evergreen webinars cover a wide range of topics, from increasing holiday conversion rates to leveraging AI. Some are more relevant to larger retailers, but much of the content is suitable for any retailer.

    It's also worthwhile checking out their events around the US, especially if you're interested in technology and innovation in the retail and hospitality sector.

    Other communities and forums:

     

    United States

    National Retail Federation

    UK

    The Federation of Independent Retailers 

    British Independent Retailers Association

    Canada

    Retail Council of Canada

    Australia

    Australian Retailers Association

    Retail Leaders Forum

    New Zealand

    Retail Leaders Forum

     

    Have I missed one?

    Are you part of any communities, forums or networking groups that I've missed? Let me know at marketing@marsello.com.

     


     

    Join a community of 5,000+ retailers building sales with Marsello's customer loyalty software

     

    Start free trial

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    Retail Outlook: Brick & Mortar Defies Odds, Surge Forecast For 2024

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    What's in store for retail in 2024? We analyze economists' forecasts, recent trends and the latest holiday sales data to look ahead at next year.

    A millennial born in the digital age, I grew up arrogantly thinking brick and mortar was on its last legs. Ecommerce was the way forward, and before we knew it, we’d be living in floating armchairs with everything we needed on a projected screen in front of us (think Wall-E).

    Turns out, things don’t move so linearly. And while technology might evolve exactly as quickly as you expect, human nature doesn’t quite match up in rate of change. We don’t want to live isolated from others, married to a holographic screen, consuming limitlessly.

    Maybe we don’t want mandated office days, but we do want to be in the office, around people, on our own terms. We want the option to shop online, but we also want to know we can head into the city to try those jeans on for size. We’ll make a day of it—see friends for coffee, go to the gym, or run some errands.

    Over COVID, we hedged our bets on direct-to-consumer commerce. Big Tech like Amazon went all-in on hires during the pandemic, then made massive staff cuts when eCommerce transactions tapered off earlier than expected.

    Retail giants also bet big on leisurewear—anticipating a pivot to work-from-home comfies to stick around. But it wasn’t long before they realized they’d over estimated demand. Shoppers reported seeing leisurewear littering Target shop floors, and sales abounded to move stock.

    Looking ahead, what can we expect from 2024? More of the same, or a shift for the better?

     


     

    Online Retail Sales: 2024 Outlook


    2022 saw a contraction in online sales worldwide, but 2023 has been back to growth again—around 7%. Now, even with the possibility of recession still hanging thick in the air (will it happen? will it not?), the consumer appears to be resilient.

    The Economist Intelligence Unit, EIU, is predicting online retail sales growth globally to head back into double-digit growth (10.5%).

    But the US and Western Europe will still be playing catch up, with more sluggish single digit growth than the global average. We’ll be seeing profitability pressures continue to restrict growth in the DTC space, with investors seeking better returns.

     

    Brick and Mortar Sales: 2024 Outlook


    If you’ve been following retail news, you’ll have seen Kohl’s has been suffering in eCommerce sales. Following other big brands, Kohl’s has committed to modernizing its physical presence, as well as providing offers and promotions consistently across all channels.

    Where SMB and mid-market retail can provide a more personal touch, retail giants are under pressure to supplement a lack of personalization with expensive tech and impressive fitouts. Consumers are voting with their wallets, demanding a slick, engaging experience of the bigger players. Think Mecca, IKEA, Apple and LEGO.

    Post-pandemic, consumers seem more likely to switch brands for a better product, deal or experience. We’re so used to buying online now, that after the lockdowns it feels like an experience in itself to wander the stores and physically touch what you intend to buy.

    Rory Moss, loyalty and retail expert weighs in: "While I believe we’re seeing a shift back to brick-and-mortar experiences, retailers are still feeling a lot of the lagging pressures they faced during the pandemic lockdowns, and they’ll still be navigating these effects during 2024."

    Pressures include staffing issues, stock delays and increasing supplier costs (a lot of which are driven by fuel prices and production delays from China).

    "These are all passed on to customers and inevitably eat up retail margin," Rory says, "so we’ll still see consumers considering ‘price’ at the checkouts until the later half of 2024."

    In saying that, EIU forecasts that brick and mortar sales will make up a whopping 85% of total retail sales in 2024. The businesses that have made it through high interest rates and rising costs will enjoy recovering foot traffic and a sales boost.

    “2024 will see the strongest pace of growth for offline retail since the post-pandemic rebound of 2021,” EIU predicts.

    This trend will be global. Beyond Kohls, other large retailers like Nordstrom (US) and Primark (Ireland) are planning store expansion in the US in 2024.

     

    Overall Outlook for Retail in 2024

     

    While the online sales forecast is still overcast, the clouds are clearing and a growth surge is on the horizon for brick and mortar.

    Black Friday / Cyber Monday 2023 proved that the consumer is ever-resilient. We also saw that loyal customers are a critical asset to retailers—brick and mortar in particular.

    Marsello’s latest data shows around half of eCommerce shoppers were repeat customers, and half new shoppers.

    For brick and mortar retailers, on the other hand, repeat customers made up 80% of BFCM sales. What's more, physical retailers grew their customer databases by around 22% over Black Friday in 2023.

    Loyalty programs and customer marketing will play a huge part in boosting 2024 brick and mortar sales.

    "All of this is good news for discount brands and fast-food chains, but if you’re not a price discount retailer, now is the time to utilise your customer data and deliver campaigns which deliver better experiences for your customers," Rory emphasizes. "It’s a great way to mitigate price perception and that’s really where loyalty programs shine."

     


     

    Start a free trial of Marsello, connect your eCommerce and POS platforms, and start syncing the last few months’ worth of sales!

    In 2024, it’s time to put all that data into motion… 

    Start free trial

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    POS Integration: Connect Your Point-Of-Sale To Klaviyo [No Code Required]

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    Looking for a simple, no-code way to integrate your POS with Klaviyo? Look no further. Bring all your online and in-store data into Klaviyo with Marsello.

     

    Want to bring all your in-store sales data into Klaviyo?

    Want to connect all your bricks-and-mortar and eCommerce transactions to unique customer profiles?

    Want to segment your customers by their behavior, no matter where they’re shopping with you?

    Look no further.

    Marsello’s omnichannel loyalty program is your solution. Marsello integrates with point-of-sale (POS) apps as well as your eCommerce apps, and syncs all that data into Klaviyo.

    That means you get all your sales data in one place. Better yet, it’s all identifiable. So if your customers are shopping with you online and in-store, you can see a complete activity log of all their purchases.

    That means more complete data, and more marketing precision.

    Klaviyo Integration - How does it work - Banner

     


     

    Why do I need to use a loyalty program?

    A loyalty program is one of the only ways to de-anonymize in-person transactions.

    Without it, your customers can come in and shop without identifying themselves. Which means you’ve got regulars you can’t talk to, unless you’re actually speaking to them in the store!

    You can’t let them know about new products, you can’t email them discounts for their loyalty, you can’t tell how much they’re spending with you.

    With a loyalty program, you know your customers. They're motivated to self-identify, because they earn points on each purchase. Using Marsello, they simply scan their loyalty code or give sales staff their mobile number. This attaches the customer to the sale, and syncs all the order details through to their profile in Klaviyo.

    Plus, with Marsello, you get much more than just SKU and order data. You can see points balance, tier status, and repeat purchase rate in Klaviyo as well (and use these data points for segments and automations). This shows you how engaged your database is, and how incentivized they are to come back.


    See how Marsello's POS + Klaviyo integration works
    Book a call with an expert to connect your in-store and online sales data with Klaviyo.

    Speak to an expert

    Marsello Integrations

     




    How does the Klaviyo POS integration prevent marketing misfires?

    Marketing works best when it’s data-driven. But your automations won’t make any sense if they’re firing only on your eCommerce transactions.

    If your customers get a consistent brand experience when they shop online, but they’re not getting the same experience when they go in-store, it’s incoherent and jarring.

    For example, if Ronnie Regular gets a follow up email after he buys knitwear online, letting him know how to care for his new garment, that’s the experience he expects from his in-store purchases next winter too.

    By seamlessly linking your sales channels with Klaviyo (via Marsello), you can leverage your in-store loyalty and order data. This enables you to craft more impactful campaigns through Klaviyo. You can segment, automate, and communicate with all the necessary information at your fingertips.

     


     

    How does the Klaviyo POS integration work?

     

    Simply connect your POS, eCommerce and Klaviyo accounts to Marsello. Marsello then links up your in-store loyalty and order details with Klaviyo customer profiles.

    This makes Marsello your loyalty and sales hub, with all that customer data flowing through into Klaviyo for more efficient marketing.

    With the Klaviyo and POS integration, you will:

    • Share customer details with Klaviyo profiles: Sync customer details into Klaviyo, making customer profiles juicier with relevant data.
    • Share customer events with your Klaviyo account: Set up events to automatically send timely and targeted emails based on what your customers are doing – like their shopping habits, loyalty actions, or feedback. These events happen fast, almost in real-time. Share events like in-store and online orders, loyalty actions, and feedback.
    • Send your loyalty and order data to Klaviyo: Sync POS and eCommerce loyalty data and orders to Klaviyo customer profiles instantly. This gives you the full picture of how customers spend. You'll get to know your customers better – their habits and how they like to shop.
    • Create offers and coupon codes for Klaviyo campaigns: Whip up discount codes that work both in-store and online for your campaigns. Load them up against specific customer profiles so folks can enjoy discounts wherever they shop.
    • Build detailed customer segments for Klaviyo campaigns: Take advantage of both in-store and online data to create special customer segments in Klaviyo. These custom audiences help you run more personalized campaigns that go beyond just your VIP list.

    See Marsello's POS + Klaviyo integration in action
    Book a call with an expert to connect your in-store and online sales data with Klaviyo.

    Speak to an expert

     


     

    “Having something that worked across both [online and in-store] channels was really important. Marsello gives us the tools on that front ... It makes it very easy to talk to our customer in just one voice”.

    Will, Pace Athletic

     

     

    What's possible with the POS + Klaviyo integration

    Best integrations for klaviyo - retail

    When you connect Marsello and Klaviyo, you unlock a treasure trove of valuable loyalty and order data such as purchase site, order total, product selections, and more.

    Let’s learn more about the specific data sets that get synced to your Klaviyo profiles.

    POS and eCommerce orders

    By syncing your POS and eCommerce order events into Klaviyo, you can create a 360-degree view of your customers’ spending behavior with your business. With this data, you can create targeted segments and automations based on in-store and online orders, enabling further personalization of your email marketing efforts.

    Loyalty activities

    Using Marsello’s loyalty program, you can encourage customers to return by rewarding them with loyalty points for each purchase they make. Sync loyalty events into Klaviyo to create custom segments and automations based on loyalty program engagement, then use customers’ loyalty profile information to further personalized your marketing efforts. For example, when a customer claims a coupon but hasn’t redeemed it, you could send a follow-up email that recommends products and encourages them to shop.

    Feedback responses

    Finally, using Marsello’s customer feedback features enable you to measure customer satisfaction with their shopping experience, helping you keep track of what you’re doing well and how you can improve. Sync feedback responses to Klaviyo to help measure customer sentiment. Create segments and automate follow-up emails to help nurture customer relationships with your brand.

    And more! For a full list of what’s possible, visit the Help Center.

     


     

    How to connect Klaviyo to your POS with Marsello

    Now that you know how Marsello’s loyalty and order data can empower your email marketing campaigns, here's how to enable the Klaviyo integration within Marsello.

    In your Klaviyo account, you will need to generate a new API key with Full Access to Profiles. 

    To create an API in Klaviyo

    • Navigate to API keys under your profile settings
    • Enter “Marsello” as your Private API Key Name

    • Under Select Access Level, select Full Access Key
    • Click Create. This will generate your new API key.
    • Copy this key and keep it ready to paste into your Marsello add-on settings.

    If you haven’t already created a Klaviyo account, you can do so here.

    How to enable the Klaviyo integration in Marsello

    • First, log in to your Marsello account
    • In your Marsello admin, navigate to Integrations > Add-ons
    • Find Klaviyo in the list of add-ons and click Connect

    • Click Save. Your Marsello & Klaviyo accounts will now be connected.

    And that's it!

    No code, just a simple, seamless integration that only takes a minute.


     


     

    See Marsello and Klaviyo in action with your business
    Book a call with an expert to try Klaviyo and Marsello together.

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    Next read: 5 Klaviyo Integrations Every Retailer Should Be Using

    How to Create a Loyalty Program in 2024

    ClockIcon  READ
    Loyalty programs are essential for driving repeat sales and building brand loyalty. Here's how to create a loyalty program in 2024 (with examples).

    A well-designed loyalty program is the most powerful tool a retailer can have in their marketing arsenal. They offer you a way of engaging your audience, growing revenue, and ensuring your customers stick around for the long term.

    But, how do you create a great loyalty program? In this blog, we’ll dive into a few simple steps that can help you design and launch an effective loyalty program for your brand.

     

    What is a loyalty program, and why is it important?

    A loyalty program is a system that encourages customers to return by rewarding them with points and incentives for each purchase or interaction they have with your brand.

    A well-designed loyalty program goes beyond superficial benefits and genuinely enhances the customer experience. It gives your customers a reason to spend more and shop with you more frequently. The best part is that it can be automated to reward them for activity that grows your brand, like making a purchase, referring a friend, or sharing your profile on social media.

    These incentives not only keep your customers engaged but also help your business thrive, driving repeat purchases, winning new business, and cultivating long-term relationships with your brand. 

    loyalty-program-design

    How to Create a Loyalty Program in 2024

     

    Decide what you want to achieve with your loyalty program

    For most retailers, the ultimate goal of a loyalty program is to increase repeat business and promote activity that grows your customer base and brand, however, it's crucial to tailor your loyalty program to your specific needs.

    Here are some specific goals you might want to achieve with your loyalty program. Keep in mind that every business is different so it’s worth reflecting on what your overall business goals are.

    1. Increase customer retention: Perhaps your repeat purchases rate is low, and you don’t often see the same customers coming back.
    2. Build your customer database: Gather more valuable customer data to inform your marketing strategy and increase brand engagement.
    3. Generate more sales: Increase repeat purchases and provide customers with incentives to spend more per transaction with your brand.
    4. Word-of-mouth marketing: Encourage your customers to spread the word by offering incentives for referrals, growing your database, and increasing your brand awareness.
    5. Reduced marketing costs: 80% of all sales come from 20% of your customers, and it’s much cheaper to target your existing customers than to attract new ones.
    6. Competitive advantage: Stand out from your competition by adding value to your customer experience. Give customers a reason to choose your brand first.

    Remember, specific objectives will vary based on your business needs and market situation. It’s essential to define clear goals for your loyalty program so you can measure performance and know what works.

     

    Determine the type of loyalty program you want to launch

    There are many types of loyalty programs available to you, each with its benefits and tailored to different business models. Here are some common types:

    1. Points system for rewards: Customers earn points for every dollar they spend with your business, or for specific actions. These points can be redeemed for free products or other rewards.
    2. Tiered loyalty programs: Customers can progress through various tiers based on their level of engagement. The higher the tier, the more significant or exclusive the reward.
    3. Punch cards: Customers can receive punches or stamps for each purchase they make with you, with an exclusive reward or free product available after a certain amount.
    4. Community-based incentives: Customers can earn points of rewards for activities that grow your brand, like sharing your profile on social media, liking you on Facebook, or successfully referring their friends to your store.

    In 2024, we’ll see brands adopting a ‘hybrid’ loyalty program model combining various loyalty program types. The best loyalty software providers offer a range of customization options, helping you craft unique loyalty rewards that align with your business model and customers’ shopping habits.

    Design your loyalty program with Marsello
    Customize rewards, points, and VIP tiers to your liking and launch in seconds.

    Start free trial

     


     

    Creating your loyalty program

    Now that you’ve decided on what type of loyalty program you’ll launch, it’s time to dive into the creation process.

    In this example, we’re going to focus on a comprehensive loyalty program setup.

    But before you jump in, here are some key metrics you’ll need handy before you configure your reward settings.

    Know your margins!

    ... And how much you're willing to give away. Here are some helpful metrics to have on hand 👉

    Average purchase value

    First, identify how much your average customer spends when they purchase at your store. This metric is crucial as it serves as the foundation for determining the number of loyalty points you should offer to your customers.

     
    Average purchase frequency

    Knowing how often customers purchase from your store is a critical part of configuring your loyalty program.

    Say you decide to offer 1 point for every $1.00 spent and your first reward (in this case, 20% off) requires 250 points to unlock. That means a customer will need to spend $250 at your store before they can unlock this reward.

    While it might initially seem like a substantial amount, consider this: if your average purchase frequency is once a week, and your average purchase value is around $125, your typical customer will gain access to this reward within 2 weeks. If this is the case, your rewards system is probably too generous and may be eating away at your margins.

     
    Product margins

    When you’re configuring your rewards, it’s important to know your product margins. Platforms like Marsello allow you to choose between percentage and fixed discounts (i.e. $20 off), giving you more flexibility to reward your customers the way you want.

    Typically, we recommend using percentage-based rewards as they scale alongside your order total. Here’s why: If you opt for a fixed discount like $20 off, customers might find ways to abuse it, potentially impacting your profitability. Additionally, if your average purchase value is low, then customers may be forced to add to their cart to redeem the discount.

    Percentage-based rewards scale naturally with the order total, creating a fair balance between your customer’s expectations and your company’s wallet.

     

    Set up your points system

    Designing your points system is the first step toward a successful loyalty program. Loyalty points encourage customers to engage with your brand by rewarding them with loyalty program points for purchases and other activities. Customers’ points can then be redeemed for discounts, free products, or other rewards of your choosing.

    ways-to-earn-points

    Though there are countless ways for customers to earn loyalty points, here are some of the basic options:

    • Making a purchase: Customers earn points for every purchase they make at your store.

    💡 We recommend offering 1 point for every $1.00 spent to keep things simple.

    • Creating an account: Encourage customers to kick-start their earnings with points when they create a new account. This is a great way of increasing your customer database.
    • Completing their profile: Reward customers points for providing their personal details, like birthday, gender, and mobile number. This helps you build an information-rich database.
    • Say Happy Birthday: Personalize your loyalty experience by enabling the Happy Birthday points option. Surprise your customers on their special day.
    • Product reviews: Encourage customers to review your products.
    • Acting sustainably: Reward customers for acting sustainably. I.e. bringing a reusable shopping bag when they shop with you.
    • Liking on social media: Grow your social media following by gifting points to customers who engage with your brand online (Facebook, Instagram, and Twitter).
    • Sharing on social media: Incentivize customers to spread the word about your store.
    • Refer a friend: Kick-start your referral program by rewarding customers when their referred friend makes their first purchase.

    Alpha60 earn options

    Beauty in simplicity - How ALPHA60 keeps their loyalty
    program as simple as possible.

    "We try not to complicate it too much and add different things in, and that really works for us. I think it’s because it’s simple for people. It’s easy for customers to understand.”

    Kelvin, Brand Manager

    Read their story

     


    Configure your rewards and VIP tiers

    Now that your customers have the means to earn points, it’s time to map out your rewards ladder and VIP tier structure.

    When editing your rewards, it’s essential to strike a balance. If your rewards are too easy to unlock, customers may unlock them too quickly, leaving them with nothing to work towards. On the other hand, if you set the bar too high, customers might lose interest.

    The key is to establish a logical and well-structured progression that ensures customers feel like they’re advancing towards greater rewards with each interaction. This keeps them motivated and engaged throughout their journey with your brand.

    Rewards

    To illustrate, let’s take a look at a hypothetical brand, Opal Essence.

    At Opal Essence, members earn 1 point for every $1 spent at their store.

      • Average purchase value: $100.00
      • Average purchase frequency: 3 months

    The key to your rewards ladder is to make them realistic and attainable, without giving too much value away. For example:

      • 10% off - 200 points to redeem
      • 15% off - 400 points to redeem
      • 20% off - 600 points to redeem

    In this case, with customers spending an average of $100 per purchase, they would need to make two purchases to unlock their first reward. And so on… four purchases for the 15% discount, and six to unlock the 20% discount.

    This rewards setup creates a logical sense of progression for customers, making them feel like they’re working towards substantial perks with each visit to your store. Not only does it drive repeat sales, but it also fosters brand loyalty and increases customer lifetime value.

    While percentage-based discounts are the easiest to implement, there are various other reward options to choose from. Here are 5 common types of rewards:

    • Percentage (%) off rewards: storewide, on a specific item, or on specific collections
    • Fixed value ($) off rewards: storewide, on a specific item, or on specific collections
    • Free shipping
    • Free product(s)
    • Spend threshold rewards: Requires a minimum purchase value to redeem

    Learn more


     

    VIP Tiers

    A VIP program elevates your loyalty strategy by making your best customers feel special. With VIP tiers, you can offer additional benefits to those who reach higher tiers, such as exclusive rewards, free shipping, early access to sales, VIP events, and faster points earning.

    vip-tier-with-points-earning

    Consider how the VIP tiers align with your overall business strategy. For example, if you sell high-end fashion products and are launching a new collection, granting VIPs early access to new product lines creates an aura of exclusivity. This makes them feel like valued insiders.

    Here are some VIP perks ideas you could implement:

    • Faster points-earning: Silver Tier customers earn 2 points for every $1 spent, and Gold Tier customers earn 3 points for every $1 spent.
    • Exclusive rewards: Offer unique rewards to your VIP customers, making them feel valued and understood.
    • Blanket discounts: VIP tier customers enjoy ongoing discounts for every purchase they make from your store, such as 10% off.
    • Free shipping: Ship products out to your VIPs free of charge to thank them for their ongoing support. This makes them feel appreciated and encourages them to stick around.

    VIP tiers not only boost customer loyalty but also create loyal advocates who will spread the word about your brand.

    💡 Pro-tip: Utilizing VIP tiers and customer lists enables you to craft highly personalized email and SMS campaigns. Perhaps you’re hosting a VIP-only event, or want to offer exclusive styling services, VIP tiers, and segmentation lists can help you tailor your marketing to cater to your most loyal customers.

    Build your VIP program with Marsello
    Easily set up a tiered loyalty program, run points campaigns, and more.

    Start free trial

     

    Promote your loyalty program

    Before you enable your loyalty program, take a moment to review your settings and ensure that your points, rewards, and VIP tiers are configured correctly. This is the perfect time to revisit your business goals and check that your program aligns with your business strategy and overall direction.

    With your loyalty program ready to go live, it’s time to spread the word. Send a captivating loyalty program announcement email to share the exciting news with your customers. This announcement can serve as your invitation to customers, encouraging them to shop again and engage with your new loyalty program.

    💡 Pro-tip: To build excitement for your loyalty program, consider sending an email a few weeks before the official launch, teasing the upcoming loyalty perks and getting customers excited about what’s to come.

    loyalty-program-email-announcement-campaign-opal-essence

    Final words

    Loyalty programs aren’t just about giving away discounts; they’re a highly strategic tool that helps you drive repeat sales and build long-term relationships with your customers. Done right, a loyalty program fosters a community of loyal advocates, expanding your brand’s reach and ultimately increasing your bottom line.

    If you’re looking to create a loyalty program for your business, Marsello makes it easy to set up, launch, and promote your loyalty program with ease.

    Create your loyalty program with Marsello

    Book a demo


     

    Bonus tips

    Embrace an omnichannel approach

    Building a successful loyalty program begins with understanding your customers’ needs. An omnichannel loyalty program is one of the best ways to engage and reward your customers, no matter how they shop with you. Customer loyalty platforms like Marsello enable you to run your loyalty program seamlessly across both in-store and online channels, ensuring customers can access the benefits of your program, regardless of their shopping preferences.

    Learn more

    Measure your performance and optimize

    Remember, the job’s not finished once your loyalty program is live. By monitoring your loyalty reporting and customer activity, you can uncover insights to inform your future marketing and loyalty program optimization. Regular optimization will ensure that your loyalty program continues to evolve, providing the best experience for your customers.

    Have fun with it

    Creating a loyalty program can be an exciting journey that helps you understand and connect with your customers on a deeper level. It’s a chance to get creative and celebrate your brand’s unique selling points. So, while you’re planning your loyalty program, don’t forget to have fun with it.

    Good luck with your loyalty program creation!

    Next read:  How to create a points system for rewards

    Winning Black Friday 2023: Building Customer Loyalty that Lasts

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    You win a lot of new business over Black Friday, but do they stick around? Learn how to keep new customers coming back after the sales season.

    You win a lot of new business over Black Friday, but do they stick around? Black Friday isn't just about sales; it's a unique opportunity to build long-lasting customer relationships and strengthen brand loyalty.

    While the typical approach emphasizes short-term gains in the form of sales and revenue, this strategy falls short in fostering lasting loyalty beyond the holiday season. So, how can you transform Black Friday into a platform for building customer loyalty that endures?

     




    Quick links:

     


     

    Prioritizing Relationship-Building Over Discounting


    Black Friday presents an opportunity to engage customers on a deeper level. While many shoppers chase discounts, true brand loyalty goes beyond price reductions. Consider your own shopping habits – you likely have loyalty to brands that resonate with your values and engage with you through various channels. Brands that prioritize customer experience, for example, tend to have more committed customers.

    Building authentic relationships with your customers creates a defense against competition and discount-driven strategies, enabling your brand to thrive even in a volatile market.

    The 3 Types Of Black Friday Shoppers


    There are three types of customer who jump on a Black Friday sale. Some customers you’ll want to avoid entirely, while others will be left with a lasting, positive impression of your brand (and come back for more).

    1. Bargain Hunters


    These Black Friday shoppers are notorious for scoping out the best deals and discounts, rather than building long-lasting relationships with brands. They’ll look for the store with the best price on the products they’re looking for, and will happily choose Amazon over you.

    2. Loyal Regulars


    Your most loyal customers love keeping tabs on your sales so they can enjoy the odd discount. They’re shopping with you at most times of the year anyway, but sometimes there’s that item they couldn’t quite justify at full price and they’re elated to pick it up at 10% off. This segment will also typically purchase more items from you over sale periods than other segments.

    3. Brand Newcomers


    This is your ideal segment of new customers. These customers are first-time shoppers who discovered your brand because they spotted a sale, and were overjoyed by the product and brand experience. They loved what they found, and they are more than happy to sign up to your loyalty program or email list to hear from you more. Let’s take a closer look at the second two segments, and how you can maximize sales from each of them during (and after) Black Friday.

     

    Maximize Black Friday Sales To Your Regulars


    Black Friday is the perfect time to show your loyal customers some extra love. This shopping season, you can boost your sales by following a few key strategies. Let's dive into these tactics to make this Black Friday a memorable one for your loyal customer base.

    Black Friday email campaign

    Send more campaigns


    Send more emails and SMS messages—the normal marketing rules don’t apply. If you run a loyalty program, make sure you’re using your customer purchase data to send targeted discounts and offers where possible.

    Prepare your loyalty program


    There’s a lot you can do to add value over Black Friday beyond discounting. You can award more points per dollar spent, introduce exclusive seasonal rewards, or offer limited-time access to a higher loyalty tier.

    Give them special treatment


    Make your existing customers feel even more loved by giving them VIP or early-bird access to your sales. Alternatively, you can offer a kickstarter voucher as a bonus—an initial $10 off to stack onto their Black Friday discounts.

    Encourage them to share your sales


    Encourage your customers to let their friends know about your sales. Offer incentives for referrals. You can sweeten the deal by offering extra loyalty points or rewards for sharing over the Black Friday campaign period.

    Remind them of the value they earned


    Send frequent points balance emails to remind these customers of their rewards, reinforcing the value you delivered over the sales period. (This has the bonus effect of encouraging them to return and redeem their rewards!)

     

    Attract Newcomers Who Will Stick Around


    Over Black Friday, you’ll welcome newcomers into your customer base who have potential to become loyal supporters in the long run. Let’s explore some strategies to keep newcomers engaged beyond the sales season.

    Prepare your loyalty program


    Will Brand Newcomers get anything extra in your loyalty program if they sign up over Black Friday? Double or triple points for a Black Friday purchase perhaps? A 10% voucher on their next purchase? Make sure your offers are all set up, ready for your campaigns.

    Capture their details!


    Make sure you effectively communicate the benefits of joining your loyalty program to increase your customer attachment rate during the holiday season. This will grow your marketable database and help you retain them beyond Black Friday.

    Customer attachment rate: The percentage of your total sales that are linked to a customer profile. A higher customer attachment rate signifies superior data quality and enhances your ability to effectively market to your database.

    Encourage them to share their experience


    Promote active participation in your loyalty program and create opportunities for these customers to share their positive experiences with friends and family. Encourage them to refer new customers and reward them for doing so. This not only helps you acquire new customers but also solidifies the bond with your newly discovered audience.

    Ask for their feedback


    Asking for private customer feedback can reinforce positive interactions and help iron out any hard feelings. Customers who reciprocate by leaving feedback (good or bad) indicates a promising level of engagement, and can mitigate bad reviews.

     

    How Marsello Helps Merchants Sell More Over & After Black Friday


    Marsello merchants went over and above in Black Friday in 2022—running extra loyalty program incentives, rewarding customers for referring friends, and sending countless email and SMS campaigns. Over the Black Friday / Cyber Monday sales period, more than 2.6 million orders were placed by their loyal customers.


    Black Friday points campaign

    How do Marsello merchants set up for success?


    • A beauty retailer in the US sent a whopping 2-7 emails per day over the sales period, and made more than $350k in revenue Black Friday sales, with one email making over $26,000.
    • A food retailer in the US sends around 1 email per day over the BFCM period. Their points earned by customers triple in November and December each year compared to other months.

    Top tactics to retain and grow Black Friday customers

     

    • Points campaigns: To award more points per dollar spent over a particular time period or in a specified store
    • Tiered loyalty: To incentivize shoppers to unlock more valuable rewards and spend-to-points ratios
    • Prompts for staff at POS: Add reminders at point-of-sale so staff remember to add customers to each sale. Lightspeed users can do this with the Advanced Marketing add-on, powered by Marsello.
    • QR codes & digital membership cards: Help to increase customer attachment rates by making it easy for them to identify themselves at point-of-sale.
    • Referral programs: Make the most of the sales frenzy by offering referral incentives. Drive word-of-mouth and brand awareness from regulars, and let new shoppers know about the program too.

     


     

    Final Words

     

    Black Friday is undoubtedly a powerful tool for businesses to boost sales and revenue. However, its true potential goes beyond the short-lived excitement of discounts and one-time transactions.

    To truly harness the value of Black Friday, companies should shift their focus towards prioritizing relationship-building over discounting.

    While Bargain Hunters may provide a quick spike in sales during the holiday season, their loyalty tends to be fleeting. Instead, businesses should concentrate on cultivating relationships with Loyal Regulars and Brand Newcomers.

    Loyal Regulars, who already have a connection with your brand, can be nurtured further through personalized marketing efforts, VIP access, and special offers during Black Friday.

    On the other hand, Brand Newcomers, attracted by the sale, present an opportunity to convert them into long-term customers through effective communication, loyalty programs, and referral incentives.

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    7 Best Loyalty Apps for Shopify in 2024

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    Choosing the best loyalty program app for your Shopify store isn't easy. In this blog, we review the 7 Best Loyalty Apps for Shopify, and how they can...

    Customer retention isn’t easy. Between your eCommerce and physical stores, social media, and various other touchpoints, customers can slip through the cracks.

    Shopify’s loyalty program apps make it easy to engage your customers with personalized rewards and incentives and ensure they stick around for the long term. But with so many loyalty apps to choose from, how do you know which one is right for your business?

    In this article, we’ll review the 7 Best Loyalty Apps for Shopify and how they can increase customer retention and boost sales for your store.

     


     

    What are the best loyalty apps for Shopify in 2024?

    marsello-loyalty-marketing-tools

    1. Marsello [Top pick ✨]


    Marsello helps you drive sales and reward regulars with a loyalty and referral program that works in-store and online. With Marsello, you can customize the appearance of your program to match the look and feel of your brand. It’s easy to set up rewards, discounts, points, VIP tiers, and more to gamify your customers’ shopping experience and encourage them to spend more.

    Marsello’s key point of difference is the ability to run your loyalty program seamlessly across your Shopify eCommerce and POS channels. This simplifies customer loyalty management and allows for a more seamless customer loyalty experience.

    Marsello’s loyalty tools also connect with its all-in-one marketing automation tools, helping you run more effective campaigns, from email to SMS, reviews, and more.

     

    Here are some popular ways to use Marsello:

      • Customize and launch a loyalty program that works in-store and online
      • Reward customers with personalized rewards, points, VIP tiers, and more
      • Sync sales from eCommerce and POS and link them to unique customer profiles
      • Use your customer insights to run smarter, personalized marketing campaigns
      • Manage all of your marketing from one app, email, SMS, automations, and more

     

    Pricing

    Marsello offers a 14-day free trial. Paid plans start from $135 USD/month, and are based on your customer database size and the number of eCommerce and POS sites connected.

     

    What merchants think about Marsello

    Merchants enjoy using Marsello for its user-friendly interface and powerful loyalty features. Marsello merchants have seen a boost in sales through its loyalty and rewards program, email, and SMS marketing features. Marsello’s marketing automation tools and cost-effectiveness are also highlighted, along with its responsive customer service team.

    Install on Shopify

    Recommended Loyalty App for Shopify
    Marsello helps you launch a world-class loyalty program that engages your customers and drives sales, no matter how they shop. Create rewards, points, VIP tiers, and more with ease.

    Start Free Trial

     

    2. Smile.io

    smile-loyalty-tools

    Smile.io offers easy-to-use loyalty and rewards tools to help you engage your shoppers, and turn first-time customers into forever customers. Over 125 million shoppers earn points through Smile. 

    With Smile, you can create your own loyalty and rewards program that increases sales and repeat purchases, saves on acquisition costs, and boosts brand loyalty. The best part is that creating a loyalty program with Smile only takes a few minutes—with no coding required.

    Smile offers simple management of your customers and loyalty data, and if you need help, you’re supported 24/7 by a team of loyalty experts to answer your questions.

     

    Here are some popular ways to use Smile:

      • Customize your loyalty widget and rewards launcher to match your brand aesthetic
      • Encourage repeat sales by allowing customers to earn points and rewards
      • Connect Smile with your email, review, and customer service apps
      • Nudge customers to continue shopping by reminding them of their points and rewards

     

    Pricing

    Smile is free to install. Their free plan allows up to 200 monthly orders and gives you access to all the basic loyalty features, including a points and referrals program, basic brand customization, default reward emails, and an analytics overview.

     

    What merchants think about Smile.io

    Shopify store owners appreciate this app for its easy setup and seamless integration with Shopify. Smile is praised for its loyalty points system, customizable rewards options, and VIP program features. Smile’s free plan is a good entry point for new businesses looking to increase customer loyalty. The free version is robust and easy to use.

     

    3. LoyaltyLion

    loyaltylion-loyalty-program

    LoyaltyLion helps Shopify brands boost retention and increase customer engagement with a loyalty program that goes beyond points and rewards.

    The popular loyalty app helps you incentivize brand engagement and motivate repeat purchases by offering loyalty points and rewards to customers who engage with your business.

     

    Here are some popular ways to use LoyaltyLion:

      • Reward positive onsite behavior with customizable points and gifts
      • Increase brand advocacy by rewarding customer referrals
      • Deliver points and rewards through email and on-store notifications
      • Tailor how your loyalty program appears on your Shopify eCommerce site
      • Integrate with email providers, subscription partners, reward platforms, and more

     

    Pricing

    LoyaltyLion offers a free plan that gives you access to basic loyalty features, unlimited members, and up to 800 monthly orders. Paid plans start from $156 USD/month.

     

    What merchants think about LoyaltyLion

    Merchants highly recommend LoyaltyLion due to its seamless integration, customizable features, and user-friendly interface. LoyaltyLion is praised for its exceptional customer service, and merchants appreciate the app’s detailed analytics, and easy migration from other loyalty apps.

     

    4. Joy: Loyalty & Rewards Program

    joy-loyalty-program

    Joy is a user-friendly loyalty solution designed to keep your customers around with advanced loyalty programs and rewards features. It’s designed to help Shopify stores effectively convert their shoppers into loyal customers with the help of rewarding points.

    The app has a variety of features that allow store owners to manage the earning and spending of loyalty points flexibly. All of Joy’s loyalty features come in a user-friendly and no-code-required platform that’s supported by 24/7 customer support.

     

    Here are some popular ways to use Joy:

      • Reward customers for signing up, placing orders, leaving reviews, and more
      • Manage your customer tiers, points, and missions with export and import data
      • Run campaigns with built-in email notifications and automations
      • Leverage your store’s point-of-sale data to run more effective loyalty campaigns
      • Engage your customers without slowing down your shop’s loading speeds

     

    Pricing

    Joy offers a free plan, limited to 250 orders per month. You can enable points-earning options for customers who sign up and place an order. Paid plans start from $29 USD/month.

     

    What merchants think about Joy

    Merchants love Joy for its diverse loyalty features such as rewards programs and referral options, and low impact on your shop’s loading speeds. The customer service team is highly praised, and merchants find the pricing reasonable and appreciate its integration with POS. The tool is regarded as a valuable tool for growing a store’s database and social following.

     

    5. Yotpo: Loyalty & Rewards

    yotpo-loyalty-dashboard

    Yotpo’s eCommerce retention marketing platform helps Shopify brands drive repeat sales with connected solutions for loyalty, email, SMS, reviews, and more. With Yotpo, you can build a customizable, retention-driving loyalty program that offers more than just rewards.

    Yotpo’s agile loyalty tools empower store owners to launch a loyalty program quickly and iterate endlessly — with no developer work required. The platform’s out-of-the-box campaigns help you drive repeat sales from the get-go.

     

    Here are some popular ways to use Yotpo:

      • Customize, launch, and manage your loyalty program with no coding required
      • Monitor your loyalty and referral program data, from ROI to customer LTV, and more
      • Increase repeat sales and customer engagement with diverse rewards and tiers
      • Create a seamless marketing experience by integrating Yotpo’s marketing products

     

    Pricing

    Yotpo is free to install, with a free plan available to stores with fewer than 100 monthly orders. Paid plans start from $199 USD/month and provide your customers with more ways to earn.

     

    What merchants think about Yotpo

    Yotpo is highly recommended for its seamless Shopify integration. The platform helps users effortlessly boost business with features like email reminders for points-earning, and reward redemption options. The customer service, especially the live chat is appreciated, and the app’s customization capabilities are also appreciated.

     

    6. Stamped Loyalty & Referrals

    stamped-loyalty-program-and-referrals

    Stamped Loyalty helps Shopify brands maximize customer loyalty with a customized loyalty program, VIP tiers, and referrals. The platform works as a stand-alone product, but can also be integrated with Stamped’s integration reviews and ratings product to create a full suite of customer tools.

    Stamped helps brands deliver immediate value to their customers through a personalized loyalty experience. Their platform helps you increase average order value and maximize customer lifetime value through AI-powered points and rewards, VIP tiers, and referral solutions.

     

    Here are some popular ways to use Stamped:

      • Drive engagement with points-based campaigns that motivate customers to shop
      • Reward and incentivize customers to share your brand with their friends
      • Deliver a fully customized on-brand loyalty program and experience
      • Create exciting VIP tiers and perks to recognize your best customers

     

    Stamped Pricing

    Stamped offers a free plan. Paid plans start from $59 USD/month, however, by signing up for Stamped’s 12-month plan, you can save 17% off your subscription costs.

     

    What merchants think about Stamped

    Merchants love using Stamped for its intuitive loyalty integration with Shopify, along with its advanced customization features and helpful customer support team. Despite some instances where glitches and shortages in real-time assistance occur, the overall sentiment remains positive, with Shopify store owners taking pleasure in migrating from other app alternatives.

     

    7. Rise.ai

    rise-gift-card-app

    Rise is the go-to gift cards and store credits app for Shopify stores. The app is designed to manage all your brand’s re-engagement activity, from gift cards to referrals, rewards, and refund management.

    Rise helps you establish an intuitive rewards program with flexible, automated store credit flows that strengthen your customer relationships and increase customer lifetime value.

    Rise’s customer service team is excellent and has proven to go above and beyond to help customers get the most out of their products and deliver success.

     

    Here are some popular ways to use Rise.ai

      • Trigger and create store credit rewards based on customer activity
      • Issue gift card refunds and offer store credit for returns
      • Launch a loyalty program that encourages store credit accumulation
      • Remind customers of their gift cards with scheduling and sending options

     

    Pricing

    Rise’s starter plan starts from $19.99 USD/month and gives you access to essential store credit and gift card features, limited to 100 monthly store orders.

     

    What merchants think about Rise.ai

    Merchants appreciate the app for its gift cards, rewards programs, and store credit issuance. The app has high customizability and works seamlessly with Shopify and Klaviyo, helping you run more effective campaigns. The app has been instrumental for many Shopify stores wanting to increase sales and attraction, with its gift card scheduling and automation tools being a stand-out feature.

     


     

    So, which loyalty app should I install?

    Shopify’s loyalty apps make it easy for store owners to engage customers and drive long-term brand loyalty.

    The best loyalty programs are ones that make customers feel seen and valued, regardless of how they shop. In this context, Marsello’s seamless integration with Shopify eCommerce and POS allows store owners to nurture customers and manage loyalty and order data across multiple channels.

    By centralizing your in-store and online customer data, you can get a complete view of your customers, helping you optimize your loyalty program and run more targeted and timely campaigns that drive sales for your Shopify store.

    Recommended Loyalty App for Shopify

    Marsello helps you launch a world-class loyalty program that engages your customers and drives sales, no matter how they shop. Create rewards, points, VIP tiers, and more with ease.

    Start Free Trial

    The Marsello & Klaviyo Integration: How Does it Work?

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    Marsello's integration with Klaviyo harnesses your in-store loyalty and order data to help you run more effective, personalized campaigns. Here's how it...

    Marsello has integrated with Klaviyo to create the ultimate customer marketing platform.

    In the fast-paced world of retail and eCommerce, one constant remains: your customers. However, in today’s highly competitive retail environment, customers are inundated with irrelevant promotional emails, making it harder than ever to cut through the clutter and get them shopping.

    By connecting Marsello to Klaviyo, you can harness your in-store loyalty and order data to create detailed segments and run more effective campaigns in Klaviyo.

    Let’s explore the integration in more detail.


     

    What is Klaviyo?

    Klaviyo is a unified customer marketing platform designed to help engage customers and drive sales with email campaigns, SMS, and more. It’s one of the few email marketing services designed specifically for eCommerce, and with an impressive database of over 110,000 paying customers, it’s no wonder brands choose Klaviyo to manage their campaigns.

    Here are a few benefits Klaviyo has to offer:

    • Segment your database using historical data and real-time behaviors for targeting
    • Build coupon codes for automated flows and campaigns
    • Use built-in templates and automated emails for simple workflow management
    • Accurate reporting and attribution for each campaign and channel

    Not using Klaviyo? Discover more about its features and benefits here

     


     

    What is the Klaviyo loyalty integration?

     

    The Marsello and Klaviyo integration combines Klaviyo's advanced email marketing features with Marsello's omnichannel loyalty software to create the ultimate marketing platform.

    Marsello’s point of sale data is the key factor here, syncing in-store loyalty and order data to Klaviyo customer profiles in real-time, empowering your team to personalize your marketing with the latest insights from both your eCommerce and POS channels.

    See Marsello and Klaviyo in action with your business
    Book a call with an expert to try Klaviyo and Marsello together.

    Book a demo

     


     

    Why connect Klaviyo to your Marsello account?

    Because Klaviyo does not integrate directly with POS systems, you’re only using a fraction of the customer data that’s available to you.

    When you integrate Marsello with Klaviyo, you can bridge the gap between your POS and eCommerce data, providing you with valuable insights into customer purchase history, spending behavior, and preferences. This connection enables you to centralize your customer data and create a more seamless omnichannel shopping experience.

    “We have many customers that shop with us in both channels and expect a seamless loyalty and marketing experience.”

    Hayley Greenstein, Managing Director at LEGO® Certified Stores

     


     

    How do Marsello and Klaviyo work together?

    Marsello's customer loyalty and order data gets synced to Klaviyo in real-time. This enriches Klaviyo customer profiles with omnichannel insights, enabling better segmentation for more effective, tailored marketing campaigns.

    Here’s what you can do with Marsello and Klaviyo connected:

    • Push customer properties to Klaviyo profiles: Sync customer properties into Klaviyo, enriching customer profiles with relevant data.
    • Sync customer events to your Klaviyo account: Use events to automate timely and targeted emails based on your customer shopping behavior, loyalty engagement, or feedback responses. These events are dynamic and sent to Klaviyo in as close to real-time as possible. Sync events like POS and eCommerce orders, loyalty activities, and feedback responses.
    • Sync your loyalty and order data into Klaviyo: Seamlessly transfer POS and eCommerce loyalty and order data to Klaviyo customer profiles in real time for a complete view of customer spending behaviors. Understand who your customers are, and how they like to shop.
    • Create omnichannel offers and coupon codes to use in Klaviyo campaigns: Generate omnichannel discount codes for your campaigns and automatically load them against specific customer profiles. Give customers the flexibility to redeem their coupons in-store or online.
    • Create more detailed customer segments for campaigns in Klaviyo: Utilize your in-store and online data to create targeted customer segments and workflows in Klaviyo. Harness your segments to run more personalized campaigns that go way beyond your VIP database.

     

     

     

    Diving deeper into event sets

    Best integrations for klaviyo - retail

    When you connect Marsello and Klaviyo, you unlock a treasure trove of valuable loyalty and order data such as purchase site, order total, product selections, and more.

    Let’s learn more about the specific data sets that get synced to your Klaviyo profiles.

    POS and eCommerce orders

    By syncing your POS and eCommerce order events into Klaviyo, you can create a 360-degree view of your customers’ spending behavior with your business. With this data, you can create targeted segments and automations based on in-store and online orders, enabling further personalization of your email marketing efforts.

    Loyalty activities

    Using Marsello’s loyalty program, you can encourage customers to return by rewarding them with loyalty points for each purchase they make. Sync loyalty events into Klaviyo to create custom segments and automations based on loyalty program engagement, then use customers’ loyalty profile information to further personalized your marketing efforts. For example, when a customer claims a coupon but hasn’t redeemed it, you could send a follow-up email that recommends products and encourages them to shop.

    Feedback responses

    Finally, using Marsello’s customer feedback features enable you to measure customer satisfaction with their shopping experience, helping you keep track of what you’re doing well and how you can improve. Sync feedback responses to Klaviyo to help measure customer sentiment. Create segments and automate follow-up emails to help nurture customer relationships with your brand.

    Learn how to use Marsello properties and events in Klaviyo

     


     

    How to connect Klaviyo to your Marsello account

    Now that you know how Marsello’s loyalty and order data can empower your email marketing campaigns, here's how to enable the Klaviyo integration within Marsello.

    In your Klaviyo account, you will need to generate a new API key with Full Access to Profiles. 

    To create an API in Klaviyo

    1. Navigate to API keys under your profile settings
    2. Enter “Marsello” as your Private API Key Name

    1. Under Select Access Level, select Full Access Key
    2. Click Create. This will generate your new API key.
    3. Copy this key and keep it ready to paste into your Marsello add-on settings.

    If you haven’t already created a Klaviyo account, you can do so here.

    How to enable the Klaviyo integration in Marsello

    1. First, log in to your Marsello account
    2. In your Marsello admin, navigate to Integrations > Add-ons
    3. Find Klaviyo in the list of add-ons and click Connect

    1. Under ‘Klaviyo API Key’ paste your Marsello API key, or follow these instructions to create one.

    1. Click Save. Your Marsello & Klaviyo accounts will now be connected.

     


     

    Final words

    Integrating Marsello and Klaviyo creates a more cohesive customer marketing experience, unlocking new levels of customer engagement, satisfaction, and loyalty.

    This powerful integration brings together the best of both platforms, combining Marsello’s in-store POS data with Klaviyo's advanced customer marketing tools to help you understand your customers and increase engagement with highly-personalized marketing campaigns.

    Now that you know how Marsello’s POS data can enrich your Klaviyo campaigns, it’s time to try it for yourself!

    See Marsello and Klaviyo in action with your business
    Book a call with an expert to try Klaviyo and Marsello together.

    Book a demo

     

    Next read: 5 Klaviyo Integrations Every Retailer Should Be Using

    5 Klaviyo Integrations Every Retailer Should Be Using

    ClockIcon  READ
    Selling in-store and online? Find out how these top 5 Klaviyo integrations can transform your retail business.

    Klaviyo is a game-changer for retailers, and it's easy to see why they love it.

    Its user-friendly interface and straightforward setup make it a favorite among retailers of all sizes, allowing them to streamline marketing, engage with customers, and ultimately drive sales and growth.

    However, unlocking the full potential of Klaviyo's capabilities can be overwhelming, especially with its extensive list of integrations. From seamless connections to popular e-commerce platforms to personalized product recommendations and targeted ad campaigns, Klaviyo’s network of integrations can do it all!

    To help you narrow down your choices, we've identified the top five types of Klaviyo integration every retailer should be using—especially if you’re selling in-store and online. We’ve included a few good examples of each so you can find the solution that works best for you.

    Regardless of which integrations you choose, rest assured that setting them up is straightforward and hassle-free, so you can quickly leverage Klaviyo's power to enhance your marketing efforts.




    1. E-Commerce Platform
    2. Omnichannel Loyalty & Rewards
    3. Meta Custom Audience Sync
    4. Product Recommendation Engine
    5. Customer Service & Support



     

    1. E-Commerce Platform


    Ecommerce and Klaviyo integrations

    Klaviyo offers integrations with popular e-commerce platforms like Shopify, WooCommerce, BigCommerce, and others.

    This integration is crucial as it allows Klaviyo to sync customer data, purchase history, and product information from your online store, enabling you to create targeted and personalized email marketing campaigns based on customer behavior and preferences.

    Popular e-commerce platforms that integrate with Klaviyo:

    • Shopify
    • Shopify Plus
    • Bigcommerce
    • Woocommerce

    See all

    Looking for point-of-sale integrations?
    Connect your in-store point-of-sale data to Klaviyo with Marsello.

    Start free trial

     

    2. Omnichannel Loyalty & Rewards

     


    Because Klaviyo does not integrate directly with point-of-sale systems, it’s typically the most powerful for e-commerce use cases.

    However, by integrating with Marsello’s customer loyalty software, merchants can bring their in-store customer data into Klaviyo.

    This enables you to centralize and leverage all your customer data for better segmentation and targeting.

    Marsello helps omnichannel retailers understand customer behavior, preferences, and purchase patterns. That means more effective marketing, 360-degree customer insights and multi-site reporting.

    Omnichannel loyalty apps to explore:

    • Marsello (best for in-store and online)

    Bring all your customer data into Klaviyo
    Marsello is the best loyalty platform for retailers who sell in-store and online. With integrated loyalty, you'll know your customer better than ever, and keep them coming back.

    Start free trial

     

     

    3. Meta Custom Audience Sync


    Meta and Klaviyo audience sync (1)

    By integrating Klaviyo with your Facebook and Instagram advertising accounts, you can create custom audiences based on email subscribers, customers, or segments in Klaviyo.

    This integration facilitates targeted advertising campaigns and improves your ad reach and effectiveness.

    Some custom audience sync apps you can explore:

     

    4. Product Recommendation Engine


    Product recommendations for Klaviyo

    To boost cross-selling and upselling opportunities, integrate Klaviyo with a product recommendation engine.

    These apps enable you to automatically recommend relevant products to customers based on their browsing and purchase history, increasing the chances of repeat purchases.

    Check out these product recommendation engines:

     

    5. Customer Service & Support


    Product reviews and requests for Klaviyo (2)

    Enhance your customer support with Klaviyo by integrating with leading customer service platforms.

    By connecting Klaviyo with customer support tools like Zendesk or Gorgias you can provide personalized and timely support to your customers.

    Benefits of customer support integrations include....

    1. Accessing customer support history: Integrate Klaviyo with your customer service platform to access past interactions and better understand your customers' needs and preferences.
    2. Personalized follow-ups: Automate personalized follow-up emails based on customer inquiries or support tickets to show your customers that you care.
    3. Targeted feedback requests: Use Klaviyo's customer data to send targeted feedback requests after resolving support issues, helping you gather valuable insights for improvement.

    Some customer support apps you can explore:


     

    So, which Klaviyo integrations should I use?

    With the right integrations, Klaviyo becomes a true powerhouse for multi-channel retailers. By tapping into in-store and online customer data, retailers gain comprehensive insights into customer behavior, preferences, and buying habits across all channels.

    By adding an omnichannel loyalty program, every other Klaviyo integration becomes exponentially more powerful.

    Send product review requests to in-store customers, run marketing campaigns to specific store locations, use your in-store customer data for targeted ads and product recommendations, and so much more.

    This omnichannel approach ensures retailers can deliver a consistent and engaging brand experience to customers, no matter how they shop.

    Next read: 7 Steps To A Profitable Loyalty & Rewards Program

    Bring all your customer data into Klaviyo
    Marsello is the best loyalty platform for retailers who sell in-store and online. With integrated loyalty, you'll know your customer better than ever, and keep them coming back.

    Start free trial

    How Mecca Built One Of The World’s Best Loyalty Programs

    ClockIcon  READ
    Do you ever look at loyalty programs like Mecca's Beauty Loop and think: how could I do that for my business? The good news is... you can! Here's how.

    Quick links:

     


     

    Want to build a loyalty program like Mecca’s Beauty Loop, but don’t have the money or time for custom solutions?

    Before building brand loyalty, you need to build a brand. And building a brand? That journey starts with the very first business plan, that spark, that idea on a napkin, that leads you to register a company and step into the wild, wicked, unruly world of retail.

    So let’s forget loyalty points programs for the time being.

    Look inward for a minute, and ask: Why did I start this business?

    For a lot of retailers, their business started out of frustration. Frustration that you couldn’t find what you wanted at other stores, frustration about the lack of selection or curation, frustration about the customer service, concern that salespeople only wanted to sell you what they were getting the most commission for (rather than what suited your needs best).

    Mecca Founder Jo Horgan shared why Mecca came to be back in 1997 in an interview for the Australian Financial Review.

    “I loved cosmetics – I thought there was a real space for them that should be fun and entertaining. And yet when I went to a department store I found it exhausting, going from one counter to another,” Horgan says.

    So she started to think: “Imagine the best product offer, a beautiful environment and my best beauty friend next to me taking me from zero to expert in one session…” 

    “That’s how I wanted to experience cosmetics myself,” she says.

    The first time I went to Mecca, I admitted I used $3 foundation and substituted in cheap eyeshadow with a 10-year-old makeup brush for eyebrow pencil. The response? “Oh darling, sometimes that’s all you need to do the trick!”

    He told me he often does the same… and still managed to sell me $150 worth of foundation and an eyebrow pencil. Now that’s some serious sales game.

    I tried to unpack this later. The feeling I got was: He’s on my side. He knows where I’m coming from. And I can trust him.

    Lesson 1: Hold on to that “why” and don’t lose sight of it. It’s your greatest brand asset.

    It’s highly likely the reason you started your business is why your customer is here. 

    I was surprised to learn that Mecca founder Jo Horgan felt frustrated by the department store experience, just like I did. But in the same vein, it makes sense, based on how shopping at Mecca makes me feel.

    Lesson 2: Points programs do not magically create brand loyalty.

    A points program is one tool you can use to keep customers coming back. But the truth is, if you’re not doing anything else to support it—it’s not going to have the Mecca effect.

    So, let’s take your “why” and I’m going to show you how you can build an extraordinary loyalty program with ordinary, off-the-shelf loyalty software.

     

    How to Build An Extraordinary Loyalty Program With Ordinary, Off-The-Shelf Software


    Everything here can be done using Marsello, when integrated with your eCommerce and POS software.

     


     

    Step 1. Design your tiered loyalty program

     

    Most loyalty software has the functionality to build a tiered loyalty program off the shelf. But before you jump the gun and turn it on, think about what the tiers should look like. Revisit your brand’s vision and mission, and come up with a strategy.

     

     

    How many tiers are there?

    Three is a good place to start. Mecca recently added a fourth tier to give those extra high spenders a more tailored experience, but we’d recommend only adding more than three tiers when you see a clear need for it.

     

     

    How are the tiers structured?

    Are the tiers based on spend, or number of loyalty points? And is it lifetime spend or annual spend? Generally, most retailers want their customers to maintain a minimum spend or number of points per year to keep their status. This requires the ability to expire tiers (you can do this in Marsello).

     

     

    What are the rewards?

    This Level 4 Beauty Looper (below) worked out that her free sample box had a retail value of $80. With 4 of these per year, plus an extra birthday box, that’s $400 for a year of free gifts. However, this person had to spend $3,500 to reach this tier. That’s an 11.4% discount, or about the same as giving away every 10th coffee for free.

    The beauty (ha) of giving away free boxes, is that you mitigate price perception. Receiving a free box in the mail is a serious dopamine hit, and Mecca knows this. Customers perceive the value of the loyalty reward to be much higher than it really is. They will happily spend more to receive the reward than “risk” missing out on retaining their status by shopping somewhere else.


    Mecca-Facebook-Post-1

     

    What will you call the tiers?

    Don’t rush this part, take your time to really find the right fit for your brand. “Bronze, Silver, Gold” isn’t very creative. Mecca chooses names that really connect to its brand mission, product, and the relationship they have with its customers.

     

     

    Mecca Beauty Loop

     

     

    L1: Beauty Discoverer

    $300-$599.99 spend per year

      • 1 x Birthday gift
      • 4 x Beauty Loop Boxes per year; a lovingly edited sample box for you to experience

     

    L2: Beauty Devotee

    $600-$1199.99 spend per year

      • 1 x Birthday gift
      • 3 x Beauty Loop Bonuses per year
      • 4 x Beauty Loop Boxes per year; a lovingly edited sample box for you to experience
      • Priority invitations to in-store international brand events

     

    L3: Beauty Aficionado

    $1200 - $3499.99 spend per year

      • 1 x Birthday gift
      • 3 x Beauty Loop Bonuses per year
      • 1 x Complimentary MECCA Natural Makeup Application
      • 4 x Beauty Loop Boxes per year; a lovingly edited sample box for you to experience
      • Exclusive insider access to purchase new products and limited-edition collections prior to their release
      • Complimentary events by invitation
      • Priority invitations to in-store international brand events

     

    L4: Beauty Connoisseur

    $3500+ spend per year

      • 1 x Birthday gift
      • 5 x Beauty Loop Bonuses per year
      • 1 x Complimentary MECCA Natural Makeup Application
      • 4 x Deluxe Beauty Loop Boxes per year; a lovingly edited sample box for you to experience
      • Exclusive insider access to purchase new products and limited-edition collections prior to their release
      • Complimentary events by invitation
      • Priority invitations to in-store international brand events

     


     

    Step 2. Get everything ready on your website and in-store

     

    Now that you’ve got your loyalty program designed, you need to make sure it’s all set up properly.

     

    Do you have an online store and physical shops?

    If so, make sure your loyalty software is integrated with your POS and eCommerce platforms. This will ensure that points can be earned and redeemed easily across all your sales channels. Marsello integrates with a range of POS and eCommerce apps off-the-shelf, no expensive customization required.

     

    How will customers find out about it?

    In-store: Train staff on your loyalty program, and make sure they’re asking customers to sign up point-of-sale. Focus on the benefit to the customer—if you’ve really taken the time to build a considered loyalty program, customers won’t be able to resist.

     

    On your website: Make sure it’s impossible to miss! Set up a loyalty widget on your online store to show visitors how they can earn and redeem rewards, and show the available tiers. Best practice is to create a website page dedicated to your loyalty program that goes into even more detail. See Mecca’s Beauty Loop page:

     

    mecca2

     


     

    Step 3. Promote your program

     

    How do I launch it?

    Once you’ve designed your program, prepare a launch campaign. Whether it’s a ‘soft’ launch or a full-scale event—make sure your customers know about it. Marsello has all the marketing tools you need to communicate with your customers: email, SMS, automations, website pop-up forms, and more. Use these to craft your promotional campaigns.

    • Teaser campaign: Pre-launch, let people know something’s coming. Get people curious and excited for the launch date. For example, you could run contests or giveaways to generate hype.
    • Soft launch: It’s okay to do a soft launch to start off, just to test everything is working. But once you’re confident, prepare a launch campaign.
    • In-store promotion: Let your customers know about it in-store. Make sure staff are trained on your loyalty app and can answer basic questions about how to get set up, the tier structure, and what the benefits are for the customer.

    • Full marketing launch: add a pop-up to your website, send out email campaigns to your database, and promote the program on social media. You can even run a limited-time launch offer—for example, 200 extra points for signing up in the first week.

     

    How do I keep customers engaged?

     

    The promotion doesn’t stop after you launch the campaign! There are lots of light-touch, low-maintenance campaigns you can run to keep your loyalty program interesting. Plus, you can talk about all the cool campaigns you’re running to non-loyalty subscribers to get that FOMO going.

    Here are some ideas to get you started:

    • Run points campaigns: For example, you could have a double points week. These are great to run in slower sales seasons, as they incentivize loyal customers to accelerate their points growth.
    • Hype the program on social media: Use social media to promote the loyalty program and engage with customers through interactive content and contests. See Mecca’s Beauty Loop hype in the Instagram post above!
    • Run limited-time offers: Offer special rewards for a short period of time to incentivize customers to participate in the loyalty program.
    • Build up a community: Foster a sense of community among loyalty program members through events, forums, or social media groups.
    • Collaborate with partners: Partner with other brands to offer joint rewards and increase the value of the loyalty program.
    • Build your mobile experience: Encourage customers to save your loyalty portal to their mobile home screen, so they can access their points balance and engage with your brand on the go.


     

    Step 4. Set up important notifications as SMS messages

    Loyalty-Rewards-points-SMS-notification

    Your customers get so many emails, they’re missing important updates. An SMS will cut through the noise by going direct to their mobile. While you don’t want to overdo SMS marketing, automated texts triggered for important loyalty updates and reminders will be much appreciated.

     

    Notify customers when they have a reward coming!

    Whether it’s a discount in their inbox ready to redeem, or a gift coming to their physical address, let them know it’s on the way and when they can expect it. 

     

    Let customers know when their tier is about to expire

    Like Mecca, you probably want customers to keep up a minimum annual spend. Expiring tiers is a fantastic way to keep customers spending to retain their status… but it won’t have much impact unless they know how they’re progressing! Send customers an automated text message to let them know they’ve got a bit more shopping to do to keep up their tier.

     

    Let customers know when they hit a milestone

    Your loyal customers will want to know when they’ve unlocked a new reward, or hit a big points milestone (for example, they’ve entered a new tier). Don’t leave them guessing, automatically deliver the good news right to their mobile.

     


     

    Step 5. Keep optimizing!

     

    The final step is that… there is no final step. Running a loyalty program is an ongoing, ever-evolving journey that you’re on with your customers. So it’s important to have fun and keep innovating as you go. Loyalty is a regular and ongoing business activity, just like marketing and sales. There will always be improvements and new ideas you can implement, so have a regular reminder set up to check in and evaluate how it’s going.

     

    What are the top loyalty metrics I should be tracking?

    Marsello’s dashboard keeps track of all your important loyalty metrics. Top things to track are repeat purchase rate and rewards redemption rate. These will show you that your loyalty program is moving the needle on sales and revenue, and getting good engagement from customers.

     

    How do I know if my brand is doing better over time?

    While Marsello doesn’t track brand impact, there are some incredible new tools you can use to measure your brand health. Take a look at Tracksuit, as one example.

     


     

    Final Words

     

    Building a successful loyalty program like Mecca's Beauty Loop starts with understanding your brand's "why." A loyalty program is just one tool to keep customers coming back, and it should be built with a clear strategy based on your brand's vision and mission.

    Mecca's founder Jo Horgan was frustrated with the department store experience and wanted to create a fun and entertaining shopping experience, which is exactly what Mecca and the Beauty Loop experience provides.

    Using ordinary, off-the-shelf loyalty software like Marsello, you can create a tiered loyalty program with rewards that offer value to customers and keep them engaged. However, it's important to remember that a loyalty program is only effective if you're doing other things to support it and build a strong brand relationship with your customers.

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    How Big-Box Merchants Are Dominating With SMS: And How You Can Too

    ClockIcon  READ
    We analyzed SMS campaigns run by the giants. We put together our learnings into this article for you to read, examine and test yourself. Read on.

    Quick links:

     


     

    Massive international businesses like Dominoes, Sephora, Uber, and Airbnb are all using SMS to increase their revenue and efficiency. By leveraging text marketing, they have been able to reach their customers, boost engagement, and drive sales. If SMS marketing didn't work, these brands would not be using it.

     

    So what do they know that we don’t?

    We’ve looked at some of the world’s most successful brands to look at the anatomy of an SMS strategy that converts.

     

    What did we learn? 

    1. The science behind running high-performance SMS marketing campaigns actually isn’t as complicated as it looks.

    2. By not leveraging SMS marketing, we’re missing out on a powerful tool that can help us reach our business goals faster and more efficiently.

    So, we’ve wrapped up the know-how in this article, so you can see how they’ve cracked it. Inside you’ll find practical tips and strategies that you can use to create high-performance SMS campaigns that deliver results.

    Best of all, it won’t cost you much to give the big-brand tricks a go.

     


     

    1. They use the right tool for the job

     

    Big box retailers aren’t afraid to try something new or unorthodox if they think it will get the job done. They just ask—what is the best way to reach our customers to achieve this goal?

    This is one of the biggest perceived challenges for SMBs. When you’re time-poor, it’s easier just to stick to what you know.

    The reality is, it doesn’t cost much (time or money) to test a new channel like SMS. And the learnings are worth their weight in gold. If you chat to one of our SMS experts, you can even be in to win 1000 free credits to play with.

     

    Email or SMS?

    EmailVSSMS

    When choosing between sending an email or sending a text, the main consideration should be time. Does the customer need to act on this right away? If so, use SMS.

    If you’re running lots of these time-sensitive campaigns, though, be careful that you’re not overloading your customers. SMS is extremely targeted and almost always opened, so it should be used sparingly for one-off blast campaigns. We’d recommend sending no more than 2 of these to your customers per month.

    Another good way to use SMS is for notifications. These only trigger when customers act, so they won’t be as intrusive or annoying (customers will understand why they’re receiving the message). While emails can be used too, they can sometimes get lost in the inbox. SMS will ensure important messages get where they’re meant to go in a near-instant fashion.

     

      Email SMS
    You’ve got a special offer for your top customers, but it’s only available today.   ☑️
    You want to showcase a range of new products. ☑️  
    Delivery updates and order notifications.   ☑️
    You want to let customers know that they’ve just unlocked a new reward in your loyalty program.   ☑️

     

    Chatbots or SMS?

    Chatbot-VS-SMS-Message

    Chatbots are great when a customer is looking for answers in real time. They work well on messaging apps (Messenger, WhatsApp) and on your website. This is mostly inbound, although you may have a chatbot notification to communicate something when customers visit your online shop.

    SMS is better for outbound notifications, like when you’re running a sale or have a personal, time-sensitive invitation or offer to share. You can also use SMS for automated messages, for example, let a customer know delivery updates on their order.

     

      Chatbot SMS
    A customer needs to find something on your website. ☑️  
    Let your customer know about a deal in-store.   ☑️
    Send a special offer to customers who haven’t shopped in 60 days.   ☑️
    A customer wants to learn more about your shipping policy. ☑️  
    A customer wants to receive an update when their order is delivered.   ☑️

     

    Digital advertising or SMS?

    Digital-Ads-Vs-SMS

    I’ve heard merchants say, “Why would I send a text when it’s so much cheaper to run ads on social media?” I’d respond to this in two parts.

    Firstly, is it really cheaper? On average, it costs $17.60 to reach 1000 people on Facebook. For Instagram, it’s $8.30. SMS sits almost bang in the middle—from around $10.00 per 1000 recipients. And that’s not even taking cost per conversion into account. 

    Secondly, it depends on what you’re trying to achieve. For example, SMS can drive conversions through high personalization. You have more scope to get really specific to the customer; you know more about them because they’re in your database.

    You could use this same idea for secret menu items or order freebies too.

     

      Digital Advertising SMS
    A brand awareness campaign to introduce new people to your brand. ☑️  
    Retargeting ads to remind people about specific items they were browsing. ☑️  
    An abandoned cart notification letting the customer know there’s a 10% discount code in their inbox.   ☑️

     


     

    2. They use customer data for lazer-focused personalization

     

    If you’re tracking sales (i.e., if you have a digital POS system and/or an online store) you own a lot of customer purchase data. Now, let’s put it to use!

    I’ve just been looking at a merchant account where they’ve automated more than 25% of the revenue. That’s purely just from sending campaigns when customers hit specific criteria or make a particular action.

    This business is sending automated emails and SMS messages to customers who haven’t shopped in a while, giving them a small discount, and generating revenue from that.

    They’ve also got automated SMS campaigns going out to their loyalty members, letting them know when they have points they need to redeem, or when they’ve unlocked a reward.

    This is exactly what the big brands do—they put their data to work. It’s really exciting seeing smaller retailers take that concept and run with it. The set-up time is so minimal, especially because SMS doesn’t require any design work. And the results are incredible.

    There are also businesses who are dipping their toe in the water, giving SMS a go with a one-off campaign, and being absolutely blown away at the impact.

    Pinjarra Bakery is an example that comes to mind. This is an example of a merchant taking a step back and thinking: what’s the best channel for this campaign?

    Limited-Time-Pinjarra-Bakery-SMS-next-to-man-eating-a-pie-1

    Every month or so, they’ll make a once-only, off-menu meat pie. They wanted to let their regulars know about it, but the promotion needed to reach them at exactly the right time.

    So they sent an SMS, just before lunch time, to encourage customers to come in and try this one-off pie.

    After just two SMS campaigns contributed to 15% of revenue over a 3-month period… it’s safe to say, SMS marketing is yet another Pinjarra success.

     

    “Sometimes, I've got to look twice and go—Is this actually real?”

    “Sometimes, I've got to look twice and go—Is this actually real?”

    - Daniel Pantaleo, Pinjarra Bakery

     

    Another bonus learning: Don’t just track customer purchase data, track the brands and products they’re buying too. With SKU-level data, you can pitch co-marketing campaigns to wholesalers, negotiate better stock prices, and just generally deepen your relationship with your vendors.

     


     

    3. They give compelling reasons for customers to opt in (and stick around)

     

    If you already see the value in texting your customers, your next challenge is: how do build my SMS database?

    The big brands know that people will sign up to get an offer, but will opt out if they aren’t promised continuous benefits. If you want people to stick around (and you want to keep reaping the rewards of high conversion rates), you have to make an offer they can’t resist.

     

    Case study: Sephora

     

    Sephora has a finely-balanced strategy to keep a regular stream of SMS subscribers coming in, while sending exclusive offers and insider info to keep them there long-term.

     

    Opt-in incentive: Sephora uses a 10% discount code to get customers signed up for SMS marketing.

    Sephora-Welcome-SMS-Discount-Code

     

    Continuous benefits: Then, Sephora shows the value of being on the list. Their SMS subscribers and beauty insiders get access to all sorts of exclusive offers, as well as being kept in the loop with new stores and events.

    Sephora-Personalized-SMS-Message

     

    Case study: Domino’s

     

    Domino's takes a slightly different approach. The incentive to sign up is access to the deals themselves… and they’re very good deals.

     

    Opt-in incentive & continuous benefit: Exclusive access to time-sensitive deals.

    Dominos-SMS-discount-codes

    These deals are so good, you wouldn’t find much better. While smaller retailers and hospitality businesses can’t compete with the big brands on price, you can still use this method. Even if you don’t want to offer 50% discounts, your database will still appreciate a $5 voucher or small freebie.

    Finally, to make a lasting impression on your audience, don’t be afraid to lean on your customer experience, product quality, and level of service as your point of difference in these kinds of campaigns.

     


     

    How SMB Merchants Can Leverage SMS Marketing

     

    1. Build Your SMS List: Start by building your SMS list by obtaining your customers' opt-in consent. You can do this by offering a discount or promotion in exchange for their phone number.
    2. Expire Discount Codes: When you use discount codes for campaigns, make sure you set an expiry date to make the offer time sensitive.
    3. Personalize Your Messages: Use customer data to personalize your SMS messages and offers. This could be based on their purchase history, location, or interests.
    4. Time Your Messages: Send timely and relevant messages to your customers to maximize their impact. This could be about promotions, new products, or special events.
    5. Keep It Short and Sweet: Keep your messages short and concise, with a clear call-to-action. This will encourage your customers to take action and engage with your brand.

     


     

    Meet with one of our experts and be in to win 1000 free SMS credits.

    Discuss how SMS could work best for your business. Meet with an SMS expert before the end of June and be in to win 1000 SMS credits.

    Talk to an expert

    Standard T&Cs apply. Additional competition terms: 1) Offer not available for SHAFT-regulated merchants. 2) To be eligible, you must book and complete a call with a Marsello SMS expert before UTC 11:59pm, 30th June, 2023. 3) Only one entry per eligible business will be accepted.

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

     

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