top of page

5 Keys to a Successful Rewards Program for Small E-Commerce Businesses

Updated: Jun 2, 2023

Did you know that 84 percent of buyers say they're more likely to stick with a brand that offers a loyalty program? That's huge! Creating a successful customer rewards program can be an incredibly valuable strategy for e-commerce business owners to drive more sales and improve customer satisfaction. Implementing a high-performing loyalty program can boost revenue from customers that use them by 15-25% annually, and who doesn't want that? By offering free or discounted products or even a loyalty discount for their next purchase, you can incentivize repeat purchases and create loyal customers who will continue time and time again to support you and your business. Retaining an existing customer can cost five times less than acquiring a new customer. Yes, you read that right.

But what does it take to create a successful rewards program? In this article, we discuss five key strategies to help you develop a loyalty program that drives serious results for your online business.

1. Identify Your Goals

Before launching your rewards program, set specific, measurable, achievable, realistic, and timely goals. You can structure your program to improve customer satisfaction, generate referrals, move certain inventory, or meet a wide variety of sales and marketing goals.

2. Define Your Program

Keep your rewards program simple to deploy, manage, and participate in. A complicated program that's difficult to understand or participate in will only discourage and frustrate your customers. Launch a program that is easy to understand, requires minimal effort to participate in, and is enjoyable.

3. Choose a Desirable Incentive

Your incentive should be something that your customers look forward to receiving. Consider unique items that customers cannot get anywhere else, or popular merchandise. The incentive should guide your customers towards taking actions that help you meet your goals.

4. Create Ongoing Promotions

Spread the word about your rewards program frequently. Send regular email updates to customers participating in the program to update them on their progress and motivate them to continue earning points towards their rewards. Encourage your customers to share positive feedback about their rewards on social media for more exposure.

5. Monitor Your Program for Success

Pay close attention to data that provides insight into your customers' participation in the program. Use program data and customer feedback to fine-tune your program to increase participation and exceed your goals.

What are Some Examples of an Incentive I Could Offer?

  • Discount Codes: Offer customers a percentage off their next purchase when they earn a certain number of points. For example, you could offer a 10% discount for 5 points earned.

  • Free Shipping: Give customers free shipping on their next purchase when they reach a certain point threshold.

  • Early Access to Sales or New Collections: Offer customers who have reached a certain level of points early access to upcoming sales or new collections.

  • Exclusive Merchandise: Offer customers the opportunity to purchase exclusive merchandise that is only available to Rewards Program Members - or even gift them merchandise that they can't get anywhere else.

  • VIP Events: Invite customers who have reached a certain level of points to special VIP events, such as after-hours shopping events - they can even be virtual!

How can I set up a Rewards Program?

Thought stopped at shipping? Think again! As an Executive or Growth Ship Member, you have access to our Rewards Program Tool, where you can set up a simple loyalty program that assigns points for purchases made or dollars spent and automatically tracks your customers' progress. When the designated points (and you can choose fun, engaging emoji to represent a point if that's your style! 💎) have been acquired and the reward level is achieved, your customer receives an automatic email notification, and you also get a notification to deliver the rewards gift. This "set-it-and-forget-it" program continues to work for you behind the scenes - and even while you sleep.

Try's Rewards Program Tool Free for 14 days - Get Started Today!


bottom of page