B2C Customer Loyalty Program for 10K+ Shoppers Daily
Boosting AOV, repeat purchases, and retention with a personalized customer rewards program
PROJECT IN BRIEF
Client
The client’s brand is popular for distributing organic food supplements and cookware, promoting a healthy lifestyle and additives-free nutrition across millions of followers globally. Their socials focus on educating customers on reading labels and making informed decisions while purchasing food.
Industry
Functional Foods & Beverages
Services
Research and development
Custom logic development
Technology mapping
Analytics and reporting
Platforms
Active users are but a number. However, the fact remains that to convert website visitors into sales successfully, you have to invest in customer trust, incentivizing interaction within every channel via appealing economic opportunities for the clients.
Today, we’ll tell you the story of how we helped a partner break the ice with one-time shoppers and sink that churn rate for good, neat and tidy. May the client and the customer prosper, together!
PROJECT BACKGROUND
Sophisticated loyalty program from scratch
In the face of the upcoming high season, Amitech Group's return client was looking to give an interactive twist to their existing eCommerce platforms, grow the audience, and bolster trust by rewarding the customers right on the promise.
The job was to turn the idea into a clear project vision from the ground up, bringing it then to life as a fully functioning solution with zero flaws in customer experience.
CLIENT’S OBJECTIVES
Drive customer engagement by incentivizing repeat purchases, enabling personalized experience, and increasing interaction
Promote specific features associated with the loyalty program, such as referral programs, reward redemption, and special offers
Boost key website metrics from conversion rate and CTR to daily and monthly active users
Foster customer loyalty through enhanced CX and budget-saving opportunities
Collect data and insights for further experience improvement and A/B testing
VENDOR COMPETITION WIN
Winning over the client’s trust didn’t take extra effort from the Amitech Group team, as we already were in a long-standing partnership that had brought to life several successful B2B/B2C commerce projects, from a food scanner app to a Shopify-based store, and more.
Thus, with B2B eCommerce and CX personalization being our specialties, we’ve become a go-to tech provider for the client.
CHALLENGES
Functional limitations
Implementing a system to award points for occasions and activities other than purchases, such as birthdays, social media subscriptions, testimonials, and profile filling, presented a tech challenge.
The thing is, initially the loyalty program rewarded points for transaction-based operations exclusively, so integrating these non-purchase-related awards required additional functionality.
Collaborating with the client’s third-party vendor, the team successfully extended the loyalty program's capabilities to introduce those non-purchase activities.
Operational lapses
To enhance the tracking process, we’ve implemented advanced mechanisms that accurately record the points earned across multiple sources.
Some user interface adjustments were made to ensure the UI clearly displays the current point balance, while also differentiating various activities the points were earned with.
The team also established clockwork validation processes to rule out errors and ensure points were correctly awarded and redeemed.To enhance the tracking process, we’ve implemented advanced mechanisms that accurately record the points earned across multiple sources.
SCOPE OF WORK
The initial scope of work
Developing a tier-based loyalty system with Silver, Gold, and Platinum levels:
- The tier system was meant to allocate customers within the three tiers based on the number of purchases they made.
- A fixed discount percentage was implemented for each tier, ascending from Silver to Gold to Platinum.
- The customer progression program aimed to encourage customers to purchase more, thus advancing to higher tiers and greater discounts.
Changes to the initial scope
As the project progressed, the scope of work evolved based on the client feedback and strategic adjustments. The loyalty program concept shifted from the initial tier-based model to a more dynamic, points-based system.
The revised concept included:
- Rewards points program enabling customers to earn points for each purchase they make.
- Redeemable points to earn and spend rewards as the customers see fit, exchanging what they’ve accumulated for discounts on future purchases.
- Increased flexibility for customers to stay out of fixed tiers and categories, promising better customer engagement and the overall offering appeal.
SOLUTION
Customer loyalty software for a B2C marketplace
The solution is a work in progress, yet the most critical features are already in place. Providing incentives and bonuses for purchasing from the client’s platform and being a loyal customer, the program rewards a comprehensive set of activities and occasions, from SM subscription to Birthday, and beyond.
Earning points functionality
Point accumulation: customers earn points based on their purchase amount or specific actions, such as signing up for the program, referring friends, or participating in promotions.
Point accrual: points are added to the customer’s account and tracked in real-time.
Redeeming points functionality
Apply points: customers can redeem their accumulated points at checkout to receive discounts on their purchases. The discounts are directly proportional to the number of points used.
Flexible redemption: customers have the flexibility to use their points in increments or save them for future transactions, depending on their preferences.
Tracking and management
Account dashboard: customers have access to a dashboard where they can view their points balance, track their earning and spending history, and manage rewards.
Email notifications: automated notifications remind customers of their point balance, upcoming expirations, and personalized offers based on their point status.
INTEGRATIONS
TECH UNDER THE HOOD
“Collecting insightful data in real-time was among the client’s critical objectives, so the team combined a suite of tools that checked all the requirement bars just right. From customer behavior to transaction data to engagement metrics, the solution has it all covered.”
Advanced data collection and analytics
- Transaction data collection: customer purchases, including transaction amounts and dates, point accrual based on purchases.
- Customer profile management: customer data, including loyalty program status and point balance.
GTM and Google Analytics
- Tracking user interactions to monitor and analyze customer behavior on the eCommerce website, including interactions with the loyalty program.
- Tracking events associated with loyalty program activities, from point earnings to redemptions, and beyond.
Rivo analytics tools
- Point management: tracking and analyzing points accumulation and redemption.
- Engagement metrics: insights into customer engagement with the loyalty program features.
ENGINEERING STACK AT A GLANCE
Shopify Plus
TypeScript
Hydrogen, GraphQL, Oxygen, React
FEATURE HIGHLIGHTS
- Point accumulation and accrual
- Point redemption
- Advanced data collection and analytics
- New customer discounts
- Referral incentives
- Loyalty rewards for every dollar spent
Results
2
months
To implement the eCommerce loyalty points program
B2C focus
Personalized customer loyalty journey and notification
Custom reward logic
From point accumulation to redemption, and beyond
FURTHER COLLABORATION
The project is progressing well, with the main features of the customer loyalty program implemented. Currently, the focus is on refining the design based on customer feedback.
THE UNDERLYING MASTERY INGREDIENTS
Team composition
- 3 full-time frontend developers
- Full-time product owner
- Part-time UI/UX designer
- Product manager on the client side
Engagement model
Time and Material with NTE
Methodology
Agile, Scrum, Kanban
Last updated: September 26, 2024
ABOUT THE AUTHORS
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