‘The Anatomy of a Profitable Ecommerce Rewards Program’ – HubSpot
Darren DeMatas says, “85% of ecommerce brands are looking to add value to customers beyond discounts and promotions. Yet, 97% of rewards programs are transaction-based.
Giving discounts to attract customers is often a knee-jerk reaction to boost sales. But competing on price is a race to the bottom. Most ecommerce businesses can’t survive by giving deep discounts to one-time customers. To succeed in the long term, you have to shift your focus to customer retention.
Loyalty programs can drive high margin repeat business, but most programs fail to add value to the customer experience. To get real value from your customer loyalty program, you need to go beyond the discounts.
Rewarding your customer for engagement or shared values creates a powerful connection that results in loyalty and repeat business“.
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