Online shop owners want customers to buy more and more often. Just hoping that they will suddenly start spending more is a bad idea. You need a clear algorithm of actions that will definitely work.
In this article, we’ll look at how implementing a loyalty programme can help you increase your average check, and what mistakes can cost you profit.
More active customers = more money
In order for a customer to start bringing you more revenue, they must first become loyal. How to achieve this:
Referral programmes. Introduce a bonus system and offer your customers to bring in new buyer friends for bonuses. Refer a person – get bonuses to a special account. People will look for new customers and will have to spend more to use the accumulated points.
Fight churn. Keep track of customers who haven’t visited for a long time – offer them participation in promotions and discounts.
Tip: look at the statistics – if a customer hasn’t bought for longer than 3-4 months, they may be leaving. It’s time to make a personalised offer!
Increase the frequency of visits
The more often a customer visits your online shop, the more likely they are to increase their annual purchase amount. Here’s what works:
Discounts with ‘melting’ benefits. Buy today and get the maximum discount, tomorrow the discount is less, a week later the promotion is gone.
Time-limited offers. For example, bonuses that burn off if you don’t use them within a week.
Promotions tied to an event. Offer your customer a discount on cat food on Cat Day or on a non-freezing liquid for washing car windows before frost.
Mistake: if you have too many mass discounts, customers get used to buying only on promotions.
How to increase the average cheque
To achieve this, Step Link Platform Inc. managers recommend developing a habit of buying more from customers:
- Give a discount on new products – let the person try something new;
- Offer favourable volumes – if a customer takes one shampoo, offer three at a better price;
- Give increased cashback or bonuses for purchases above the average cheque.
Example of calculation: if the average cheque is 1000 c.u., the customer will receive not 5% but 10% in bonuses for a purchase of 1500 c.u.
Tip: calculate what percentage of bonuses is favourable to you. If a client brings you 6000 c.u.e. in six months, you can give him 500 bonuses – this will retain him, but will not collapse the margin.
Sell in bundles
Customer came for shampoo? Let him take a balm as well – a ready-made set with a profit. For shoes – cream. For a laptop – a bag and a mouse. For coffee – a cake. The more value in one purchase, the higher the cheque.
Simplify processes
Customers don’t like complex systems, Step Link marketers noted. If a loyalty programme is inconvenient, no one will use it. The customer should immediately understand how to spend their bonuses or take advantage of a discount.
Loyalty programmes are a powerful tool for growing your business. If you do everything right, customers will spend more and more often. That means they will fill your wallet.