Customer retention is one of the biggest keys to the success of your business. According to research, when you increase 5% customer retention, the profit boost by 25% to 95%. Besides, acquiring new customers can spend more time than retaining current ones. So building a customer loyalty system can increase customer retention and reduce costs and achieve business growth. Also, acquiring new customers can cost you five times more than retaining current ones. So, building a loyalty program to increase customer retention will help you reduce costs and achieve business growth.

With an eCommerce store, a Reward Points - Multistore Marketplace Magento 2 would be a perfect choice.  In this article, we will introduce to you some of the best ways to reward loyalty. 

What is the point reward system?

A point reward system is the customer loyal system that allows your store to reward customers with points for various actions such as referring friends, writing product reviews, and making purchases… These reward points can be used to exchange for discounts or special deals on the next purchases. 

The point reward system is designed to increase customer engagement as well as encourage them to make a purchase again. The more activities customers do for your store, the more points they get. Also, they will receive a large number of points when making a purchase with higher values. You can read more Reward Point System: Why Should Your Business Have It?

It is not simple to build a point reward system that really works as a successful customer loyalty program. It requires lots of steps to be done. You can take a look at our demo 

6 ways to build the best point reward system for customers

#1 Reward customers with points for account registration

The first activity of customers to be rewarded points is creating an account. Many people don’t like to use their personal information to sign up for an account when visiting a website or maybe they are too lazy to do that. Thus, you can give reward points for them to register at your site

When you have customer data, you can use the customer information to design specific marketing campaigns to target more customers effectively. Research indicates that consumers are 40% more likely to view products recommended based on information they have shared with the brand. So in this way, you can also gain more repeat customers and increase your revenue.

#2 Reward customers with points for purchases

This is one of the most common ways to reward in a point reward system with a simple rule: Spend more, reward more. By rewarding buyers to earn points when they make a purchase, you can encourage them to buy more and spend more on your products. You should set a specific value for every point. For example, you can reward costumes with one point for reaching the $10 they spend.  So, after they purchase a $100 item, 10 reward points will be added to their account. These 10 points can equal to $10 discount on their next order.

One more important thing is setting an expiration date for reward points to remind customers to use their points. Maybe it can be 3 months or 6 months

#3 Reward customers with points for product reviews

A great idea to consider for your best point reward system is to allow customers to collect points by writing reviews after they make a purchase. Product 

Another idea to consider for your reward point system design is to allow customers to collect points by writing reviews for purchased products. A product with five reviews is more to be purchased than one with no review. However, it is rare for customers to come back and share feedback about the product they bought.  Therefore, you can encourage them to come back to your site and write product reviews by the point reward system. In this way, you can take advantage of user-generated content to boost sales and also maintain a strong relationship with customers, killing two birds with a stone.

#4 Reward customers with points for referral activities

People tend to trust suggestions from their friends and family more than advertising. It is easy to turn your customers into your brand ambassador by point reward system by referring their family and friends to  your online stores

Those new costumes can be interested in your customer loyalty program. This way will benefit your business in the long run. Besides, you also reward costumes with additional points after the customers they refer to make a purchase successfully

#5 Reward customers with points for comments and social sharing

Sharing your content and products on social media is a great way to drive more traffic to your website. With the best point reward system for customers, it allows them to earn reward points through social sharing. This idea also encourages them to share their favorite products with their social media. Now it is a chance for your business to convert social traffic into sales. Moreover, rewarding customers for leaving comments on your blog could help you get insights about their interests and build content. 

#6 Reward customers with points for newsletter subscription

To be honest, visitors are less likely to subscribe to your business channel. But it will change if they are rewarded for that action. After that, you can delight and retain them by sending attractive content and super offers/ Don’t forget to use email marketing tools to personalize the email content. According to data gathered

Website visitors are less likely to subscribe to newsletters, but the situation will change if they are rewarded for that action. After that, you can delight and retain them by sending informative content and attractive offers through weekly or monthly newsletters, personalized email can increase open rates. 

Conclusion

Creating a point reward system is one of the most effective ways to build customer loyalty to your brand. All the below actions can reward customers. This will increase your revenue significantly. A great point reward system does not only strengthen your relationship with current customers. So use tips and start to build an outstanding reward point program for your business today. Don't forget to read Guide to Build a Customer Loyalty Program