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What are the Benefits of Customer Loyalty in Ecommerce?

Best Practice for Consumer Engagement Using Shopify - How to Track your Consumer Engagement

Here are some of our best tips for creating an engaging experience for your customers. Find out how we can create a loyal customer and how to measure your strategy. This article will talk about the most important aspects of the consumer experience.

Best Practice for Consumer Engagement Using Shopify - How to Track your Consumer Engagement

A substantial proportion of the Shopify community are entrepreneurial thinkers who are often building up their business from the ground floor. E-commerce happens to be a very modern topic with an oddly limited supply of educational resources, a curious issue given the magnitude and growth rate of the sector. Resources on e-commerce are often sporadic, inconsistent and an altogether mess of information.The most significant supply of information available on the topic are primarily blogs, which are really just private sector marketing tools.

My hopes for this article are to provide my readers with a proper orientation, which will help them make informed decisions. The greatest gifts are knowledge given freely. We are not intended to live a narrow life of instruction. That is why I aspire to provoke thought and to encourage action. If there were any “one” person that I wish to inspire most of all, that person would be an entrepreneur who seeks fulfillment and independence.

As of recent years and most unfortunately, society has changed to one of profiteering and self-indulgence. Socio-economic equality hinges on technological advancement, and companies like Shopify have turned the tide by enabling those with little to take action. So where is the spirit of entrepreneurship, the spirit of the revolutionary that forged the world we live in today? At the most fundamental level of e-commerce is a question, not the fear of wasted opportunity, but the simple existence of opportunity. Many fail to understand that there is no Prejudice in business, least of all, over the internet. So why not?

The Entrepreneurial Spirit

All things begin with an achievable vision, and the accumulation of wealth has never been the true motivator. If you fail to start, if you lack motivation it must be the intentions behind your actions. A real cause and true resolve is what drives us to persevere in spite of the obstacles that obstruct us. If you are eager for learning and if riches are just an extra perk, then all things are possible for you.

If the internet were to be associated to any singular word which best embodied its essence, I believe that the one word would simply be the “Future”. The world is closer then ever, like a closely knitted fabric of connections and as all things, there is a spirit of greed that claims the whole as its own and gives rise to a senseless chase.Post-modern thinking is all about how to create wealth on the internet and about how many new ways can we find to use these global connections for the creation of wealth.

The Scarcity of Unique Visitors

Any e-commerce specialist will agree that there is no such thing as an endless flow of Unique Visitors. This point becomes more apparent over the lifespan of your store as traffic fluctuates, whether due to store finances or market conditions. Having seen many stores come and go, it has become perfectly clear, that traffic is a scarce resource and that true value is in the loyal customer.  Providing the most customer satisfaction possible, is the true value of any individual shopper.

There is no guarantee that there will be a continuous flow of visitors to your store and those visitors can be scarce and often expensive.As managers we need appropriate tools to market our product and generate leads.The market can be unpredictable and this can only make things worse if we are not actively trying to provide a superior UX. We don’t exactly notice all the stores that have vanished into thin air and we generally focus on success stories as what defines the current e-commerce business model. The key success is avoiding the same failures that have caused the fall of the many stores that have passed. Being different in this industry means building on the failures of the past.

What is the Marketing Funnel?

The Marketing Funnel is a diagram that is commonly used to conceptualize the consumer’s decision making process. The process begins with initial exposure were the prospective client first becomes aware of your product. Once the client has become aware of your offer they go through a process of consideration were they weigh the benefits of your product and decide how to proceed further. After the shopper has considered the value of your proposition, they begin the purchase or conversion stage. A lot of companies make the mistake of stopping at conversion and failing to focus on the creation loyalty. The loyalty or retention stage is characterized by the desire for the customer to advocate on the behalf of the store or brand and to revisit the store in the future. The elements of business management are well known, but many of us fail to see that this is more than just a number game. The rat race can complicate things and distract us from the real objective, a sincere and trusting smile.

Improving your Lead Capture

When creating an action plan, it is important to segment the marketing funnel into separate sections. At each stage we need to we have to set appropriate objectives in order to optimize our efforts. Although it is perfectly normal for numbers to thin at lower stages in the funnel, we must not neglect the total value of an individual customers. Improving the marketing funnel is all about creating a positive and trust worthy experience for the customer. Focusing on these two things alone will instantly improve your conversion and retention rates. There are innumerable creative ways that we can improve our stores overall performance and appeal, remember that laughter is encouraged.

What is Consumer Engagement?

Costumer engagement is more than a blanket term that tells us that we need to interact with our clients and gain some sort of financial gain. It is a creative concept that helps us shape who we are as a company and to explore our creativity. It is who we are that draws our customers to us and not the catalogue in our storefront. Many people out there are more involved with the businesses side of things and don’t realize that there is a story there even if we aren’t focusing on it. Customer engagement is the process by which a company gains the loyalty, trust, and interest of its customers. It consists of four main elements: listening – recognizing your needs and informing you about available offers and services; responding – providing information and updates when your issues are handled; retaining – making sure your needs are addressed consistently and transparently, and facilitating –making the buying experience as easy as possible for the customer so they continue using your business.

Why is Customer Engagement Important?

Customer engagement is an overarching marker for us to evaluate the quality of our store, it gives us valuable insight on how we are treating our customers and how involved they are with our brand. Customer engagement is the process of building, growing, and retaining a loyal audience. It takes place on every page of your business’s website and involves all of your employees. Engagement improves search engine rankings, improves customer retention, and creates a positive customer experience that drives repeat purchases. An engaged audience is more likely to tell others about your company and recommend it to their friends. At the core of any successful business is an authentic customer orientated team.

In order to create a noticeable distinction between the basic store and our special and extra-ordinary store, we need to engage the customer in order to influence their opinions. Appealing directly to the customer is important for the marketing funnel as it creates a clear distinction in service quality. When we interact with the customer and operate around their preferences we are fulfilling a latent trust issue and simultaneously demonstrating that there is some one behind the curtain. If a little encouragement was all it took to land that repeat customer, wouldn’t you go that extra mile? Behind every store is a lot of research and hard work, but this little push is how we show our true colors. Fully engaged customers provide for a 23% higher share of profitability, revenue, and relationship growth.

There is no guarantee that there will be a continuous flow of visitorsto your store and those visitors can be scarce and often expensive. Asmanagers we need appropriate tools to market our product and generateleads." and we can add: "For example, encouraging customers to leave onlinereviews is a great way to increase traffic, and therefore sales, byinfluencing the way others look at your business. The entire process can bemade more efficient with the help of customer review software.

How Do Loyalty Programs Affect Consumer Engagement?

In practical terms, a loyalty program can be one of the most effective ways to improve consumer engagement. When customers have a strong connection to a company, they simply spend more. If and once a connection is established, encouragement through loyalty rewards tend to have a heightened effect. Studies have shown that the average customer expands their spending by more than 10% when offered a free present or bonus. There are immediate and direct effects to implementing a loyalty program, but we should be thinking long-term. A Loyalty Program can attribute to a devote following, but a loyalty reward is only a financial perk at the end of the day. True Loyalty can build a robust community, something that can arguably be of much higher value in the long term...

Reward your Customers with Loyalty Points

An excellent way of reciprocating gratitude is by rewarding your clients for their generosity. This is surely a sensible path towards a resilient business model. Depending on your rewards program, they can be offered in the form of gift cards, coupons, or in the form of points – which are fully redeemable and completely customizable. There are truly limitless ways that you can thank early followers, something thats entirely up to you.

Customers love being a part of a loyalty program so much that they often actively seek out opportunities to become a member. When a customer becomes a member, they have a better chance of getting special offers and discounts throughout their lifetime. Customers love the idea of earning cash back for spending and can use their points to purchase merchandise online or from brick-and-mortar stores.

Social Media is a Warm Embrace

Social Media is an integral part of any online business, if a business manager wishes to cover all fronts a genuine social media presence cannot be avoided. Commitment to social media gives you store the sort of authenticity that cannot be replicated. Yes, it is more than common that a client would check your social media before committing to their first purchase. More than anything, it's an opportunity to deliver your own brand of expression. If the product truly appeals to your fellowship, they could become another authentic voice advocating for your brand.

Engagement is key to driving traffic to your store, social media is one of the best ways to connect with your followers and build relationships. Social networks are places where people share and express their opinions, we should not consider it as just a promotion tool. If you post frequently and share things that are relevant to your customers interests, you can foster a connection on an emotional level. Learning how to use social media for content is key in creating lasting relationships.

Bottom of the Marketing Funnel

There are tools and integrations in the Shopify store that can help you achieve your objectives. There are countless integrations out there that can create an impactful presence on your store. The sky is the limit when you stand out from the crowd and let this article be encouragement to go ahead and take the leap. Every loyal customer is a part of your companies story, an example of our brilliant success for any business. Brand loyalty on its own can be considered a major bonus, but having advocates for your brand and referrals is above and beyond. This sort of exposure is a something that can send your company into the stratosphere. Remember where it all started and how much has changed, it is true that the journey is worth more than the ends. The absolute best way to understand how your store is performing is hearing directly from your customers and realizing the benefit you provide.

How Do We Track Our Consumer Engagement?

We've gone on forever about how very important consumer engagement is, so here are a few indicators that can help you keep an eye on your strategy.

Visitor Registration Rates

Registration is unbelievably important. Keeping in touch and actively increase your registration data base is a very strong objective. One time shoppers are those customers that complete the purchase process without registration. Remember that customers who create an account on your website are more likely to return for another purchase and that you can actively interact with them if you have they contact details.

You can calculate it using the following formula:
Number of orders completed by a visitor /total number of orders

Unique Visitor Purchase Rate

This formula indicates how often new visitors complete the purchase process and how well we perform with these new visitors. These figures are particularly important in understanding our stores presentation and concept efficacy.

You can calculate it using the following formula:
Number of orders placed in the past 365 days/ Number of unique visitors in the past 365 days

Average Order Value

Average order value (AOV) is the average amount that your customers spend when making a purchase on your online store. This metric can help you find out how much an average customer spends on your website. In fact, it was found that repeat customers spend 67% more than one-time purchasers. The point here to observe how this figure changes over time, indicating the effect our Loyalty Program has.

You can calculate it using the following formula:
Total revenue over the past 365 days / Total number of orders placed in the past 365 days

Repeat purchase rate

Repeat purchase rate (RPR)  is the percentage of customers who’ve made more than one transaction on your online store within a certain period of time. Your repeat purchase rate offers you a clearer picture of your whole retention strategy because it informs you how many consumers are engaged enough to make more than one purchase on your online store.

You can calculate it using the following formula:
Multi-purchase customers / Total individual customers 
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