Loyalty programs in ecommerce

Loyalty programs are a great idea to engage your customers and boost your profits.

Often, the desire to get a better reward and enter the next level of the program (and achieve a certain status) motivates customers to make larger and more frequent purchases in both online and offline stores.

Offering customers, the opportunity to collect points and redeem them for rewards will not only increase your revenue, but above all will increase the number of consumers who will shop again in your store.

Example of use - Retail Industry

Challenge

For our customers from the retail industry, we have prepared an engaging loyalty program.

We decided to encourage users to register and use coupons and discounts using dynamic campaigns. The campaign was totally personalized, which means that every segment of customers was provided with a different message.

Solution

We chose three main segments:

1st segment: users who have an active account in the application and an active promotion

2nd segment: users who have an active account but have not activated any coupons in application

3rd segment: users who do not have an account and did not use any coupon

Depending on which segment the user belonged to (A,B,C) he saw different campaigns in the store. The main assumption was:

1st segment INACTIVE CLIENTS

  • If this user went to the site and visited the product page, he first saw dynamic content with number of points he could gain.

  • When he added a product to the cart, we saw a second dynamic content campaign which presented him the privileges of membership in the loyalty club as soon as he created an account.

  • When the user went to the cart page, he saw another dynamic content campaign with a banner encouraging him to join the club and use the discounts after registration.

Screenshot presenting ecommerce loyalty segments

2nd segment ACTIVE CLIENTS without ACTIVE COUPONS

  • When the user from this segment visited the product page, he saw the same banner with the number of points as the users from segment A.

  • When he added the product to the basket, he saw a pop-up banner with information that he could activate the coupon in the loyalty club. As you can see, this is different content than in the case of the previous segment.

  • When the user went to the cart page, he saw a banner with information that he could activate the coupons and obtain some benefits in the loyalty club.

Screenshot presenting ecommerce loyalty segments

3rd segment ACTIVE CLIENTS with ACTIVE COUPONS

  • When this user got to a product page, he saw a dynamic banner with the number of points he could gain by buying a certain product.

  • After adding the product to the cart, a popup was displayed with a banner with information that his coupon is now active. This segment saw a calculated discount based on the coupon already in this place so he saw the final price with the discount.

  • When the user went to the cart page he saw a banner with information that the coupon was active and he could use more benefits in the loyalty club.

Screenshot presenting ecommerce loyalty segments

Requirements

  • Synerise Tracker implemented
  • OG tags implemented
  • Having the active loyalty program

How to do it

  1. First, create two aggregates and one expression:

    All of our assumptions have to be based on the 3 analytics described below:

    • The first parameter is an aggregate Account status. In this aggregate we check for the existence of an event which tell us if the account in the application is active or inactive for a specific user.

    • The second aggregate Active promotion checks for the existence of an event with an activated promotion from the application.

    • The last parameter is the Active/inactive promotion expression, which checks if the user has an active or inactive promotion. If the promotion was activated in the application, the expression returns 1, and if it was inactive – 0.


  2. Create 3 segments based on analytics created earlier. All of the assumptions for them are described in the table below.

    Screenshot presenting ecommerce loyalty segments

    Segment 1: Customers who are in segment A with an inactive account have to fulfill 3 conditions:

    • Aggregate account status returns 0
    • Aggregate active promotion returns 0
    • Expression returns 0

    Segment 2: Users who have an active account but have not activated any coupon in application. They have to fulfill 3 conditions:

    • Active account in the application
    • No active promotion (if they have never activated any coupon in application, the aggregate returns null, but if they previously activated coupons, the aggregates return the name of promotion)
    • Expression returns 0

    Segment 3: Active customers with active promotion who have to fulfill 3 conditions:

    • Active account in the application
    • Active promotion, so the second aggregate shows us the name of the promotion which was activated
    • Expression created earlier must return 1

  3. Create dynamic content campaigns which will be added in three places on your website;

  • Banner in the product page (in this case it is the same for every segment)
  • Banner displayed after adding the product to the basket (in three different versions)
  • Banner in the basket (in three different versions)

Prepare different versions of each banner in each of those 3 places.

After that, remember to mark in the Audience tab in the campaign creator, the proper segment to which the specific campaign should be displayed.

Important: The expression counts the number of activated coupons and subtracts the sum of burnt coupons and deactivated coupons from this number. As a result, it always returns 0 or 1.

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