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When it comes to engaging your loyal customers, there is no better way than by rewarding them for spending with your business. It’s no secret that as consumers, we love rewards, free stuff and feeling important to the brands we love. Brands have been implementing forward-thinking ways of incentivising shopping and creating long-lasting relationships with their customers, including bringing in reward point schemes.

In this blog, we will highlight some of the most innovative uses of Shopify point schemes and offer advice on how your business could make the most of rewarding your clients.

Point Schemes – The Facts ❗

The numbers more than support the use of point schemes as a marketing tool for your business. With almost 85% of consumers stating they are more likely to stay loyal to a brand if it offers a points scheme, and two-thirds of consumers saying that a points scheme has openly changed their spending behaviour.

It’s no secret that selling to current customers is much cheaper than marketing for new ones, hence why the schemes are so popular. Shopify point schemes typically fall into four categories: Tiers, social media, paid programmes and points.

Sephora – Being a beauty insider 💄

Sephora is one of the most globally recognised retailers of beauty and cosmetic products. They have shops across pretty much all the biggest cities around the world. Their ‘beauty insider’ programme is debatably the most popular reward scheme in the world. With close to 20 million loyal customers, you can understand the kind of figures we are talking about here. But here is the even more incredible part, their members make up as much as 80% of their annual sales, crazy or what!

The beauty, ignore the pun, of the Sephora scheme, is that it is totally flexible in favour of the customer. They accumulate points when they spend, which they can then use to redeem gift cards or discounts. Beauty Insider members can also spend their points on limited releases within the store or beauty tutorials. Having plenty to offer, encourages people to spend. Sephora has implemented a great example of a points-based reward scheme.

Represent Clothing – Upper-tier reward scheme 🥉🥈🥇

As consumers, we love to shop, especially when it comes to clothing. Manchester-based high-end fashion designer, Represent has absolutely hit their reward scheme out of the park. Each pound spent is redeemed as points. In comparison, Represent has chosen to build tiers which their loyal customers climb as they spend more money.

The tiers themselves come with generic perks as well as the ability to redeem your points for discount codes. If you are a silver tier member, you will get a higher discount off every order than someone who is a bronze tier member, and so on. This format encourages the shopper to spend to receive the discount codes available, but also to spend more to climb the ladder. An almost double-barrelled approach and we love it.

Amazon Prime – The all in one reward scheme 📦

As debatably the biggest company in the world, it would seem rather ridiculous to overlook Amazon within this blog. If you haven’t heard of Amazon Prime, especially after the recent lockdown, you’ve been way too distanced from the world. So here’s the idea…As almost all the products on Amazon can be purchased elsewhere, it left Amazon in a conundrum. How can they differentiate themselves from the competition, especially those who have a storefront and can offer user experience? Well, the answer to that question is Amazon Prime.

On average Prime members spend four times more than ordinary amazon shoppers, which speaks volumes. With Prime, all Amazon shoppers receive free two-day delivery on hundreds of thousands of products, as well as Amazon’s own television streaming service and exclusive Prime-day offers.

By charging a membership, Amazon also gives itself space to manipulate their prices and offer its members the best rate for a particular product. So without thinking it, the consumer is actually contributing to the lower prices they receive via their annual membership fee.

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At Create8, we create bespoke Shopify websites for our clients. Introducing a rewards scheme to your website is a challenge we love, especially when tasked with being innovative and creating a reward scheme that thinks outside of the box. If anything in the blog above interests you, or you are looking for a website or a rebuild get in touch with us today!

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