Using loyalty features in a WooCommerce app to increase LTV

WooCommerce loyalty features are transforming how stores build repeat customers and long-term growth.

Introduction: Why Loyalty Is the Hidden Profit Engine in WooCommerce

It’s not enough to lure new customers to your WooCommerce store; your revenue also depends on turning new customers into loyal ones. Many store owners don’t realize the huge potential of customer retention: loyal customers will spend 67% more in the future. Surprisingly, however, less than 30% of WooCommerce stores have made the use of loyalty programs. The result? Year after year, closed, under leveraged loyalty programs keep billions in revenue on the table.

What if boosting your store’s customer lifetime value (LTV) was as Simple As Changing A Few Features? Forget complicated coding and high priced developer consultations; the current suite of loyalty programs would lead to positive, steady growth. Building a loyal customer base today is your fastest route to operational success in today’s environment.

Research from Harvard Business Review shows a staggering 25-95% increase in profit from a mere 5% increase in customer retention rates. Many WooCommerce businesses, however, have a problem in the implementation of effective loyalty programs. The market is also devoid of solutions to this problem; fortunately, no-code tools, such as Twinr, fit this need perfectly.

Why The Power of Loyalty Features Is A Game Changer.

The Loyalty Features That Grow Customer Lifetime Value (LTV)

Customer Lifetime Value (LTV) is the most important Key Performance Indicator (KPI) for eCommerce. Why is this important? LTV is especially important because acquiring a new customer can cost you up to 5-25x more than the cost of retaining an existing customer (Source: McKinsey). As a result, loyalty features focus on turning one-time buyers into repeat customers. They also increase spend and advocacy without additional ad spend.

More and more research demonstrates that loyal and engaged customers will spend more. McKinsey research demonstrates that engaged, loyal customers spend an additional 67% more than new buyers. Loyal, engaged customers also contribute to word of mouth referrals, which can also lead to lower customer acquisition costs.

Building Loyal Engagement Through Personalization

77% more engagement is produced by personalized content than that of generic content (Source: Experian). Loyalty programs offer a customer engagement channel by tailoring content and offer redemption mechanisms (that can be exclusive tiered content and offers) aimed to generate higher emotional and engagement response.

Example: A points system that rewards customers for product (re) purchases, social sharing, and content (review) contribution can stimulate additional repeat purchase regime activity and can be simply setup with most no-code builder platforms General purpose no-code builder platforms allow users to simply add and customize loyalty application mechanics without requiring professional back end development or an application programming interface (API) integration.

How to Reduce Churn by Increasing Retention

The term “churn” describes losing customers, and it is one of the biggest threats to a company’s profit. The more customers a company loses in one month, the more difficult it becomes to attain sustained growth. Loyalty features, like VIP levels and referral bonuses, increases retention. Customers will engage with your company for a longer period of time, they will make additional purchases, and they will make referrals.

According to Nielsen, “loyal customers are 4 times more likely to refer other customers.” This acts as a negative growth lever for WooCommerce stores, and it is becoming more and more of a common problem. This is why the use of loyalty features is so important to unlock the potential of your customers.

Must-Have Top Loyalty Features for WooCommerce Stores

Points and Rewards

When setting up a rewards system, customers should receive rewards for all incentivized actions: purchases, social shares, reviews, and referrals. A set up that usually works is customers receive 1 point for a \$1 purchase and they can redeem points for a discount or a freebie. With the use of modern loyalty system creators like Twinr, this system can be set up without any coding skills.

Tiered Loyalty Structures

Another system that is effective is the set up of loyalty tiers. For example, users can be assigned tiers like Silver, Gold, and Platinum. These tiers unlock new rewards and more exclusive options that are obtained with a certain level of activity. This exclusivity is favored by customers, and in loyalty programs, it can be concluded that it increases repeat purchases by 2 times, as stated in the Shopify Insights of 2023. With modern loyalty system creators, their setup is so user friendly that systems like this one can be set up without any skills in coding.

Referral Rewards

Get your happy customers to do your advertising for you. Reward your customers with discounts or gifts for a successful referral. There are no-code tools available to set up referral links to track conversions, and automate the rewarding to optimize for viral growth.

Exclusive Content & Early Access

Offer your most loyal customers different tiers with unique benefits to help them feel special. Providing them with VIP early access to products, custom content, or dedicated support fosters a unique emotional relationship. Streamlined no-code tools help personalize the delivery through app notifications or VIP content gated behind members-only areas.

Gamification & Badges

“Earned it” badges for certain milestones create a sense community and increase participation. Their purpose could be focused around social interactions like leaving reviews or sharing the post, or purchasing the item. No-code, visual builder solutions help you to create badges, achievement notifications, and leaderboards to elevate community participation.

Common Myths and Pitfalls for Loyalty Implementation

• 2 Complex Processes – Addresses for loyalty and signup for loyalty programs should be simple and easy to fill out. If it is difficult for customers to sign up than they will likely just abandon the loyalty enrollment and unsubscribe.
• Mobile Experience – Death by neglecting mobile experience. Customers have seamless devices and over 60% shop mobile. Mobile experience should be seamless.
• Data Blindness – No analytics means no data. If you do not analyze the data and no changes will be made; you will continue to make the same mistakes. Use repeat sales metrics to help improve sales.
• Failing to Personalize – Long-term value is left on the table thanks to failing to provide personalization. Tailored rewards should be implemented to long-term customers to see rewards.

Case Study: How a WooCommerce Store Achieved a 35% Boost in Repeat Sales with Loyalty Features

Let’s look at EcoGear. They are a mid-sized retailer in the outdoor equipment industry. EcoGear’s repeat purchase rate previously sat at 23%. But after the implementation of a loyalty program with multiple layers (points, VIP tier, referral bonuses), EcoGear’s repeat purchase rate after using Twinr’s visual, no-code builder increased by 31% equating to around an additional $150,000 of revenue per year.

Referral traffic increased by 50% thanks to the loyalty program and subsequent marketing efforts of the program. Customer satisfaction also improved across the board. Most notably, EcoGear accomplished all the above with no developers on the payroll and without a large setup cost.

Key takeaway: Manual efforts provided by no-code tools to deploy loyalty quickly and retention and revenue expectations are likely to be exceeded.

Getting Started: 5 Actionable Steps to Supercharge Your WooCommerce with Loyalty Features

• Identify your most desired (and most purchase) customers’ motivators – Discounts? Exclusivity? Recognition? Use a survey and/or look at purchase history to analyze the patterns and decide.
• Pick a no-code builder platform – Twinr is a good choice as loyalty mechanics can easily be added visually.
• Implement Points and Rewards – Start small and give rewards for purchases and for completing reviews.
• Develop VIP and Referral Tiers – Reward top tier customers to build on your advocacy and top tier customers.
• Track, analyze, optimize – Dashboards should be used to improve the offers provided and retention tools to improve the overall ROI.

Conclusion: How Loyalty Features Turn WooCommerce into a Revenue Powerhouse

Loyalty isn’t a gimmick, it’s a weapon. In the eCommerce world, building loyalty with your customers means more profits. Stores using strategic loyalty features receive repeat purchases, larger purchases, and more referrals. All achieved with NO BACKEND CODING.

Game Changing. You can set loyalty features in no-time with no-code platforms like Twinr. You can engage and scale your store without hiring.

Want to turn your WooCommerce store into a customer purchase machine? Use no-code loyalty features. Start your free trial with Twinr and grow your store like never before with no technical difficulties.

FAQs

Q1: What loyalty features implement in WooCommerce?

A: Points and rewards, VIP tiers, referral programs, exclusive content, and gamification features have significantly boosted lifetime value.

Q2: Can I run a loyalty program? What if I have no programming experience?

A: Sure. Twinr designs loyalty programs where you can visually create, personalize, and deploy features without the need to code.

Q3: What do customers retention features do?

A: They create emotional bonds, encourage repeat purchases, and advocacy. loyalty features reduce churn rates.

Q4: Are loyalty rewards mobile-friendly?

A: Indeed, today’s no-code tools make it so that the loyalty features integrate with every device, ensuring that the customers stay engaged no matter where they are.

Q5: How can I measure the success of my loyalty campaign?

A: Analyze the in-app dashboard to measure success through repeat purchases, customer engagement, referral activity, and LTV and adapt to the most effective value.