Make sure you create a winning loyalty program for your eCommerce through outsourcing

Creating a successful loyalty program for your eCommerce business can help increase customer engagement and retain customers over time. 

Loyalty programs in eCommerce are customer reward and retention initiatives that incentivize customers to engage with a company's products or services. The goal of loyalty programs is to increase customer engagement and build long-lasting customer relationships.

They typically involve customers earning rewards, such as points, rewards, or discounts, for making purchases or engaging with a brand in other ways, such as writing product reviews, referring friends, or following the brand on social media. The earned rewards can then be redeemed for discounts, special offers, or other perks.

These loyalty programs can come in various forms, including points-based programs, tier-based programs, or a combination of both. 

Points-based programs reward customers for their purchases, with the number of points earned based on the amount spent.

 Tier-based programs assign customers to different tiers based on their purchase history, with higher tiers offering more benefits and rewards.

Loyalty programs can be a valuable tool for eCommerce businesses to increase customer engagement and retention, drive sales, and collect valuable customer data. By creating a positive customer experience and incentivizing customers to continue engaging with a brand, loyalty programs can help establish long-lasting customer relationships and build brand loyalty.

Creating a winning loyalty program

Here are some steps you might need to take for building a successful loyalty program:

  1. Define your objectives: Determine the goals you want to achieve with your loyalty program, such as increasing customer retention, boosting sales, or collecting customer data.
  2. Study your customers: Understand your customers' preferences and behaviors by conducting surveys, analyzing customer data, and gathering feedback.
  3. Choose a loyalty program model: Decide on the type of loyalty program you want to implement, such as a points-based program, a tier-based program, or a combination of both.
  4. Offer incentives: Decide on the rewards you will offer to customers who participate in your loyalty program. Consider offering discounts, exclusive promotions, or special perks.
  5. Make it easy to participate: Make it simple for customers to join and participate in your loyalty program by offering sign-up options through your website or mobile app.
  6. Promote your loyalty program: Market your loyalty program to existing and potential customers through email campaigns, social media, and other channels.
  7. Track and analyze results: Monitor and track the success of your loyalty program, using metrics such as customer engagement and participation, and adjust your program as needed.
  8. Continuously improve: Continuously evaluate your loyalty program and make changes to improve its effectiveness and customer satisfaction.

By following these steps, you can create a winning loyalty program that will engage and retain your customers, while also benefiting your eCommerce business. However, most of the times it’s not that simple, this is why we suggest collaborating with an outsourcing service provider.

Why it is best to outsource loyalty programs for your eCommerce

Outsourcing loyalty programs for your eCommerce business can offer several benefits, including:

  • Expertise and experience

 Loyalty program providers have the expertise and experience to design and implement effective programs that drive customer engagement and retention.

  • Cost savings

Outsourcing loyalty programs can save your business time and money compared to creating a program in-house, as the provider will handle all aspects of the program, including design, implementation, and management.

  • Scalability

 Loyalty program providers can easily scale their services to meet the needs of growing eCommerce businesses, ensuring that your program remains effective as your business grows.

  • Access to technology

 Loyalty program providers often have access to advanced technology and tools that can enhance the customer experience, increase engagement, and improve the overall effectiveness of your program.

  • Focus on core business operations

 By outsourcing your loyalty program, your eCommerce business can focus on its core operations, such as product development, marketing, and customer service, without the added responsibility of managing a loyalty program.

  • Increased customer engagement and retention

 A well-designed and managed loyalty program can increase customer engagement and retention, leading to increased sales and a stronger customer base.

  • Data protection

 Data breach issues have risen sharply in today's technologically advanced age when services are simplified for businesses. Reputable BPO outsourcing companies adhere to specific norms and guidelines to uphold security requirements. Maintaining databases and collaborating with industry experts might be a strategic advantage when battling competition.

  • 24/7 Customer support

 The key to increasing customer loyalty is being accessible for service 365 days a year. Can you manage 360-degree support with a small team of agents that are already occupied with important tasks? If the answer is no, outsourcing is the way to improve customer experiences everywhere.

  • Customization

 Businesses benefit from tailored solutions when they outsource some of their work. Outsourced agents with the necessary skills can beautifully personalize solutions in accordance with the client's needs. These sales representatives assist in customizing loyalty programs to get the attention of clients because they are aware of market trends. It takes money and effort to invest in training and updating the internal staff in order to improve the quality of services. As a result, outsourcing aids in bringing customized services on board within budget.

Outsourcing loyalty programs can provide eCommerce businesses with the resources and expertise needed to create a successful program while allowing them to focus on their core business operations. By outsourcing their loyalty programs, eCommerce businesses can drive customer engagement and retention, increase sales, and build a stronger customer base.

Outsource vs. In-house: Why third parties are better when it comes to loyalty programs!

Companies usually prefer trusting a third-party service provider when it comes to creating and managing loyalty programs. Here are a few reasons why:

  • Creating an internal solution takes far too long

 The team will probably attempt to improve it incrementally. Meaning that substantial portions of the code will change from version to version. Additionally, many functions can operate poorly or not at all. The procedure can take years to complete!

  • It takes a long time to assemble a team

 Most companies lack an internal team with the knowledge to create a loyalty program. Building an expert team and finding the proper developers, analysts, and managers could take up to 6 months, and in some unusual circumstances even longer. Once they are ready to begin working on a solution, it takes a few extra months to ensure that the new employees comprehend the project and internal business processes. Even then, there is no guarantee that the team has access to all relevant knowledge.

  • Internal teams are challenging to modify or reorganize

 There is no assurance that the task will be successfully completed or that the outcome will be pleasing. The team might need to be reorganized or terminated, and you'll need to spend a year or two creating a new one. When the company restructures in-house teams, keep in mind that there are also compensations and other expenses that the company will need to cover.

Depending on the exact terms of the agreement, you can easily discontinue the contract while outsourcing the development. The only thing left to do is find a different team and hire them. This is more practical and serves as another motivator for outsourcing teams.

  • The product team should concentrate on enhancing the functionality and quality of their offering

 One of the many techniques utilized for expansion and scaling up is loyalty programs. They are there to support the company only, not to consume vital resources. Teams should concentrate on the major features, while third-party service providers take care of the rest!

Understanding the importance of loyalty programs in eCommerce businesses

Loyalty programs are an important aspect of eCommerce businesses for a lot of reasons. Some of the key benefits of loyalty programs in eCommerce businesses include:

  • Increased customer engagement

 Loyalty programs incentivize customers to engage with a brand, encouraging them to make more purchases and increasing their lifetime value.

  • Increased customer retention

 By offering rewards and incentives to customers, loyalty programs help to build brand loyalty and encourage customers to continue doing business with a company over time.

  • Improved customer experience

 Loyalty programs can help create a positive customer experience by offering personalized promotions and incentives, providing valuable rewards, and offering exceptional customer support.

  • Increased sales

 Loyalty programs incentivize customers to make purchases and can drive sales by offering exclusive discounts and promotions.

  • Collecting valuable customer data

 Loyalty programs provide valuable customer data, such as purchasing behavior and customer preferences, which can be used to tailor future marketing initiatives and improve customer experience.

  • Differentiation from competitors

 A well-designed loyalty program can differentiate a brand from its competitors and provide a competitive advantage in the eCommerce market.

Loyalty programs are an effective way for eCommerce businesses to create a positive customer experience, build long-lasting customer relationships, and drive business growth. By understanding their importance, eCommerce businesses can take advantage of this tool to achieve their goals and succeed in the competitive world of eCommerce.


Let’s win together!

Customer loyalty programs are a great approach for businesses to cultivate long-term relationships with their customers. Everybusiness must understand its clients in order to provide them with suitable answers promptly, as competition intensifies daily.

Whether your business is B2B or B2C, loyalty programs will always help you improve your customer reach. Outsourcing with We Are Fiber is the secret to straightforward answers in an era of escalating market competitiveness.

Even if you have a fantastic marketing and development team with the ability to create and manage a high-performing loyalty program, you still need to take care of your expenses and savings. Don’t worry, we got you!


Get in touch with us by clicking here.


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