Loyalty Programs and Customer Retention in E-commerce

You are not alone in the E-commerce world as a small business owner. You can stand apart from the crowd by building a loyalty program on your platform. Customer experience is the most important aspect of your entire business. Implementing a consumer-centric loyalty program is an easy way to drastically improve the user experience.

Building A Loyalty Program

Implementing a loyalty program gives you firsthand knowledge about your users and their purchase habits. Better the user experience by tailoring your website to specifically target certain users. If customers believe that they are receiving personalized attention, you can gain a customer for life and positive feedback. They can tell their friends and family and become advocates for your brand. The best way to build a loyalty program is to build a framework around the program.

  • Define your goals and complete user research
    • Build a loyalty program that appeals to your users
    • Research your competitor’s loyalty program
    • Utilize a customer relationship management (CRM) system to store user data
    • Create a survey for user feedback


  • Research different loyalty programs
    • Point based
      • Users earn points based on purchases or history
      • Users can win free products or get entered into contests
    • Tiered program
      • Have a member program where members enjoy exclusive benefits
    • Subscription program
      • Users pay a subscription fee to enjoy special privileges or receive exclusive product


  • Purchase customer loyalty software