Best Customer Loyalty/Reward Program Solutions
In today’s competitive marketplace, it is becoming harder to increase conversion rates, acquire customers and retain them using traditional methods. A merchant should have some type of loyalty/reward program to target existing customers, as well as convert new customers into loyal customers.
“A study from Bain & Co shows a 30% increase in company value due to a 10% increase in customer retention levels.”
Good loyalty programs increase purchase frequency, average order value, and customer lifetime value by transforming a customer’s relationship with the brand from a transactional relationship to an emotional one.
A loyalty program can reward customers for various events including, birthdays, account registration, social sharing, purchases and more. Offering multiple reward benefits not only increases sales, doing so also leads to increased customer retention rates!
Reward program’s modules fall under two broad categories:
- Cloud Based
Self-managed are Magento extensions that are installed on the site. Magento Enterprise has reward point functionality built into the system. Extensions providers like Magestore, MageWorld, and AheadWorks are offering great extensions for reward point. These extensions have a one-time licensing fee after which they can be installed and customized to suit your specific need. These extensions capture various customer actions including purchase, registration, and reward customers accordingly. Below are the top third party self-managed extensions in the market:
The Points And Rewards extension feature referral system. It introduces an in-store currency (points) that can be used to reward customers to promote additional purchases. It offers customer reward points on a lot of inbuilt actions like is registration, newsletter signup, product review, tagging product, poll participation, customer’s birthday, etc.
- Rewards customers for registration, newsletter signup, product review, tagging product, poll participation, and customer’s birthday.
- Referral system
- Advanced notifications
- Balance & transactions control
- Magento enterprise edition compatibility
- Specify rewarded points expiration date
- Limit maximum available points balance
- Limit points amount available to redeem
Compatible with Magento: Community: 1.4.x – 1.9.x and Enterprise: 1.12.x – 1.14.x
Magestore Reward Points Plus extension creates a favorable loyalty system which helps improve your customer experience better. Your customers are given points based on their purchasing activities. They can spend points for further purchases at a certain earning/spending rate configured in the backend.
- Managing reward point transactions
- Adjust customer’s reward points in loyalty program
- Use points while creating order in backend
- Refund reward points
- Import/export reward points
Price:Start from $99
Compatible with Magento: Community: 1.7.x – 1.9.x and Enterprise: 1.9.x – 1.14.x
MageWorld’s Reward Points Extension offers customer reward points on in-built behaviors like purchases, birthdays, referrals reviews, special events, Facebook like, etc. It comes with flexible and customizable rules.
- Support flexible reward points rules and spending points rule
- Support different rules per customer group
- Support multiple stores
- Encourage referrals and sharing
- Easy to track and manage customer reward points
- Easy to customize the design, templates, icons, and style to match your site.
Compatible with Magento: Community: 1.5.x – 1.9.x and Enterprise: 1.11.x – 1.14.x
Disadvantage of Self-Managed extensions
- Self-managed extensions do not offer the full functionality cloud based loyalty programs provide.
- Self-managed extensions are not centralized, they are installed on a single website, so if a merchant has multiple platforms for product purchases and other customer events, self-managed extensions will not work.
- Self-managed extensions consume more server resource as compared to cloud-based extensions.
Cloud-based loyalty programs are independent systems. They are centralized and have their own admin panel with various tools to control reward points of customers. In cloud-based loyalty programs, one can create custom events on which he/she wants to reward a customer. The cloud-based loyalty program is managed by APIs. They do provide extensions for different platforms. In cloud-based solutions, customers can be divided into customer tiers so that customers can get reward points on the basis of their loyalty towards the brand. Following are the details of some of the Cloud-Based loyalty programs.
Zinrelo is a SaaS-based, social, referral and loyalty marketing platform that delivers up to 40% more revenue by enabling an increase in new customer acquisition, engagement, conversion rate and retention. More than 500 global brands are using it to grow their business via proven strategies such as referral marketing, visual commerce, customer loyalty, social login, social gamification, customer Q&A and more.
- Reward for purchases as well as pre-defined actions such as sharing on Twitter, LinkedIn, referrals, email subscription, writing reviews, and answering questions.
- Customizable loyalty actions can be added in just a few clicks
- Integration with third party systems via loyalty API
- Turnkey loyalty program, no programming necessary
- Loyalty dashboard that can be seamlessly embedded on your website
Price: Starts from $83.00/month
Smile.io exists to help businesses make their customers happy. It allows internet-based businesses to create fun, on-brand, and easy-to-use reward programs. Smile.io integrates with eCommerce platforms like Magento, Shopify, and Bigcommerce, among others, and also provides developer tools to create the world’s most engaging reward programs for any business.
- The customer can earn reward points on their purchases, account registrations, social shares and follows (on Instagram, Twitter, Facebook, and other social networks.), customer birthday, reaching a VIP tier, and referring friends.
- The customer can redeem their points in $ off discounts, % off discounts, free shipping, and gift cards.
- SweetTooth is optimized for mobile, always making it easy for your customers to access your reward program.
- Integration with third party systems via APIs.
- Create own events by which customer can get rewards.
Price: Starts from $59.00/month
Disadvantage of Cloud-Based Solutions
Generally, Cloud-Based solutions come with monthly fees.
While studies show that excellent customer service is the most important factor in building repeat business, a properly executed loyalty program can also aid in retention. This is why so many retailers have implemented customer loyalty systems; however, a poorly executed loyalty program can not only prove ineffective at building customer loyalty, it can actually negatively impact your bottom-line. Thus choosing the right loyalty solution for your online business starts with identifying which features and functionalities are most important to you and fit within your budget.