Data-Driven Techniques For Enhancing Ecommerce Loyalty Programs

"Points for purchases" is killing your brand. That's what Phil C., CEO of Upzelo, told me during our recent Chew On This episode. And after seeing the data from 4,000+ brands, I believe him. Here's what's actually working in loyalty and retention → Phil's journey is fascinating. Before Upzelo, he built the world's largest fitness platform with a 1.45% churn rate. Now he's helping brands reimagine loyalty programs. What he taught us: While most DTC brands are still playing the points game, they're bleeding customer value and watching CAC skyrocket. Instead, here are 3 strategies to ensure your loyalty program brings value to your customers and your brand: 1. Stop Chasing Transactions Traditional approach: Points for purchases Modern approach: Reward customer success Phil shared how one UK brand connected health data to their loyalty program. Every workout became a reason to engage, not just every purchase. 2. Meet Customers in Real Life Your customers don't live inside your Shopify store. One of Phil's clients, a motorcycle gear company, built their entire program around Saturday group rides. The result? 3,500 new program members in 3 weeks. No email blasts. No ads. Just organic sharing between riders. 3. Measure Real Impact Drop these vanity metrics: - Program signups - Points earned - Reward redemptions Instead, track what drives growth: - Purchase frequency - Category adoption - Real-world sharing 4. Goal achievement At Obvi, we're already seeing the impact of this approach. When we shifted from points-based rewards to focusing on customer fitness goals and results, our retention impact transformed. The Big Revelation → The best loyalty programs don't feel like programs at all. They feel like a natural extension of why customers chose you in the first place. Want to build real loyalty in 2024? Stop trying to buy it with points.  Start earning it by helping customers succeed. Huge thanks to Phil Carr for sharing these insights from his work with over 4,000 brands. Want the full playbook? Check out our Chewonthis DTC episode where we break down: - Moving beyond transactional loyalty - Building retention through real-life connections - Measuring what actually drives growth

Stop churning high-value customers. Segment your loyalty programs! You’ve worked hard to build a loyal customer base, but are you maximizing their value? If you're not segmenting your loyalty program, you're leaving money on the table. 💵 Based on the success of ‘000s of Appstle customers,  I truly believe personalization is key for customer engagement, retention, and loyalty! 📌 Here’s why I think segmenting your customers into loyalty based tiers is a game-changer: 1️⃣ Personalization drives engagement Generic rewards don’t cut it anymore. Infact, 56% of customers prefer highly personalized loyalty rewards. 👉 By segmenting your customers into distinct tiers based on key characteristics, you can offer rewards that matter to, and motivate them. The result? Higher engagement and increased CLTV! 2️⃣ Encourage more frequent purchases Everyone loves a challenge, and wants to be at the top! Tiered programs with distinctive benefits motivate customers to level up.  Studies show that customers in tiered programs spend 67% more than those without. 👉 As customers move through the tiers, their incentives grow—making them more likely to continue their relationship with your store. 3️⃣ Reward high-value customers Not all customers are the same. Some are your brand’s biggest advocates—your VIPs. With tiered programs, you can give your most valued customers, rewards that make them feel valued. 74% of consumers believe brand loyalty is about feeling understood and valued. 👉 Focus on your top spenders and offer tailored incentives that will keep them coming back. 4️⃣ Track & improve customer behavior With tiered loyalty programs, you gain a clear view of how different shopper segments behave. Are they more likely to shop during specific days and times? Are they influenced by certain promotions and benefits? 👉This data helps you optimize your strategy and maximize LTV over time. ✅Pro tip: The beauty of tiered programs? They incentivize behaviors! Offer perks that motivate customers to reach the next level, and you’ll have customers for life. ♾ Want to grow your Customer Lifetime Value? Segment, personalize, and reward! It’s how you create customer loyalty—and keep it. #Appstle #subscriptions #memberships #loyalty #bundles #customerretention #shopify #shopifyplus

Amazon just released a guide for the Customer Loyalty Dashboard. Summary is below but and the entire guide is attached. Overview The Customer Loyalty Analytics Dashboard is a tool available in Amazon’s Seller Central under the Brand Analytics tab. It provides insights into customer shopping behaviors, helping brands increase customer lifetime value (CLV) through data-driven engagement strategies. Key Benefits • Increase Customer Lifetime Value: Loyal customers (top 10%) spend 3x more per order than others. A second-time shopper has a 45% chance of buying again. • Customer Retention vs. Acquisition: A 5% increase in retention can boost profits by 60%. • Optimized Marketing & Ad Spend: Target the right customers at the right time to improve engagement and return on investment (ROI). • Reduction in Customer Acquisition Cost: Engage customers who already show interest in your brand. Dashboard Features Customer Segmentation Customers are categorized into four loyalty segments: • Top Tier: Frequent buyers who spend the most. • Promising: Occasional buyers with above-average spending. • At-Risk: Customers who haven't bought recently. • Hibernating: Inactive customers with infrequent purchases. Two Dashboard Views: • Brand View: Overall customer segmentation, sales trends, and targeted promotions. • Segment View: In-depth data on each customer segment, including repeat purchase trends and predicted lifetime value. Brand Tailored Promotions: • New Audiences Feature: Identifies customers whose spending is expected to decline. • Cart Abandoners Audience: Re-engages shoppers who left items in their cart. Metrics Available: • Total Sales • Average Sales per Customer • Total Orders • Repeat Customers & Orders • Repeat Purchase Rate & Interval How It Works • Segmentation is based on RFM (Recency, Frequency, Monetary Value) analysis. • Machine Learning Predicts Future CLV: Uses customer history, purchase behavior, Prime status, reviews, and browsing activity. • Actionable Insights:  - Identify and engage high-value customers.  - Target at-risk customers before they stop buying.  - Personalize promotions based on customer segments. Eligibility • Available to registered brands in North America, Europe, and Japan. • Must be an internal brand owner with Brand Analytics access. How to Access Navigate to Seller Central > Brand Analytics > Customer Loyalty Analytics