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How often does a potential customer abandon their cart before checking out? Why not try Loyalty programs to bring customers back to your site? A solid loyalty program will help reduce a big chunk of your cart abandonment rate. You might have launched a loyalty program, but did you still capture enough sales?
When handled correctly with an appropriate strategy, loyalty programs will reduce cart abandonment rates. This article looks at the five best ways to reduce the abandonment rate with a fantastic loyalty program. It helps you prevent your customers from returning to your store without purchasing.
5 Ways You Can Use Loyalty Programs to Reduce Abandoned Carts on Your Store
Every eCommerce shopper visits an e-commerce store for many reasons. Apart from the intent to purchase, many reasons make them see an e-commerce store. Likely, there are myriad reasons why a store visitor abandons their cart without completing the checkout process.
Your visitors may think something like,
- I don’t feel like registering
- I need to pay more for shipping
- The price is too high
- I don’t want to purchase
When these are your visitors’ thoughts, let us simplify them with loyalty programs. Let us discuss the ways to convert those visitors with the loyalty programs.
1. Encourage registration by promoting Loyalty membership offers
You can use this method exclusively for visitors who do not like registering for your eCommerce store. But, the challenge here is that no customer wishes to share their personal information. Even research says so. Around 23% of customers abandon their carts to avoid the registration process in the eCommerce store.
You can bring in a guest checkout option like the above image to skirt this issue. The guest checkout options benefit the customers who register in it. The customers registering as a guest will get,
- Tracking purchase history
- Product recommendations based on previous purchase
- Setting customer behavioral profiles
- Receiving feedback
- Higher engagement
The good news is that loyalty programs also encourage customers to register. Loyalty program memberships always require a customer to register to earn and redeem the program’s points, which seems pretty straightforward.
You can incentivize your customers to create an account that helps them earn more points from the loyalty program. They can also access coupons, free shipping, and other exclusive discounts. Foreseeing the benefits, the customers would probably create an account in your eCommerce store.
2. Provide “Free Shipping” For Brand Advocates Of Your Loyalty Program
Business Insider says 23.5% of customers abandon their carts due to high shipping costs. Displaying the shipping costs earlier may reduce the cart abandonment rate.
But how can you use the loyalty program here? Announce “free shipping” for customers who have earned specific loyalty points. You can also give free shipping to potential customers who have been shopping with you for years, converting them into brand advocates.
A loyalty program always encourages current customers to make new referrals and earn more points. In this case, you can make your loyalty program work in three ways. They are,
- Advocate Only rewards – Only the referrer gains a reward when his referral
- New-Customer Only rewards – Only the invited customers can earn a reward, typically 10% off or probably free shipping for their first purchase
- Dual side rewards – You can reward both the referrals and the referrer with free shipping or any discounts that they are longing for
Free shipping on the first purchase for the loyalty members is the least expensive way to make them stay on your website. You can give them new opportunities and rewards to remind them they are more valuable to your store.
3. Come With Unexpected Rewards For Unexpected Costs
I am sure you have encountered customers who want to purchase a reasonably priced product. When they visit your store, they may encounter a high price and think of abandoning the products in their cart. Due to a single expensive product, there is a high chance of complete cart abandonment with other products.
No, there are not a few customers. Almost 48% of the customers abandon their carts due to high prices or expect free shipping or rewards. How can a loyalty program make a difference here?
Actually, in two ways!! Yes, here it is!!
Offer Free Shipping: We can take Amazon’s loyalty program as an example here. They have been giving free shipping for their loyalty programs under a $99 annual fee. They will also get free two-day shipping throughout the year!! Splendid, right? You can implement this concept not only at Amazon but also in your loyalty program now!
Offer attainable loyalty points: On the product or checkout page, you can showcase the customers’ loyalty points or explain the benefits they earn from the loyalty program. The most significant benefit displayed on the checkout page may convince the buyer to proceed with their checkout.
Ultimately, the loyalty program always gives customers a high chance to save money. This is why customers love to enroll in the loyalty programs of the eCommerce store. It is also essential to communicate with your customers through different mediums and keep them informed about your loyalty programs.
4. Converting visitors into customers using the loyalty program
You might have seen customers who were not intending to purchase. Instead, they might research a product and its reviews in your store. This is a common one. People out there tend to indulge in many stores to compare the prices of the products they wish to buy.
I agree! Convincing this group of people is quite challenging. But we know they are researching a product or hunting for a bargain. In that case, you can click the ticket to gain business from them.
But how?
Where can you grab the attention of those people? Ensure you use exit-intent popups to inform them about your loyalty programs. People with a bargaining mindset will always fall for attractive loyalty programs. Offering multiple rewards and discounts will change their mind about purchasing the product from your store. As simple as that!!
You can also display many positive reviews about your products and loyalty programs. According to statistics, almost 55% of customers consider customer reviews an essential factor in their purchase decisions. Think how valuable a customer’s review can be!!
And here comes a bonus tip for using loyalty programs effectively to reduce the cart abandonment rate.
5. Make Your Customers Feel Special Using This Loyalty Program
It is expected to have more customers. However, making them stay with your store for an extended period may seem challenging.
To make customers believe in your store, make them feel special. Nothing much!! Celebrate the most referred customer on your social media platform. Offer them more rewards with unbelievable discounts. This will bring instant bliss to all the viewers of the post and your target audience, too.
It motivates other customers to participate in your loyalty program and earn rewards. In addition to rewards, the current generation has stuck with virtual fame. Thus, you can use this to make them popular with your product.
You can also collect feedback about your loyalty program. Take input, make it ideal or “feedback of the week,” and post it on your social wall. This will grab more people’s attention and increase your brand awareness. Try it.
Wrapping Up
You have the most remarkable ways to use your loyalty program effectively. It is essential to ensure your visitors are informed about your loyalty program’s benefits in every possible dimension. You do not need to provide products at a cheap rate. Instead, you can make them affordable through rewards and discount codes.
What’s next?
It’s time to implement it and experience a strategic improvement in your loyalty program graph. You can also rely on the best WordPress cart abandonment plugin for loyalty programs and abandoned cart emails. Hopefully, the article will help you have a flawless loyalty program to reduce your store’s cart abandonment rate. Happy selling!!
Author’s Bio:
Monisha Thangavel is an ardent writer and blogger with years of experience in different realms, including eCommerce, Tech, and SEO. Her brevity and rich writings shed light on the uncovered yet important points about WordPress and eCommerce plugins. Apart from content, Monisha spends her free time learning calligraphic writing.