Do you know what's better than a paying customer? A paying customer that keeps coming back!
Your store's Customer Lifetime Value is one of the most important performance metrics you should track, because it gives you a projection of how much money you can expect to earn from each customer over their relationship with your store. It will also come in handy while setting up this scenario, as we will see in a minute.
To put CLV in perspective, just consider this simple calculation: if you manage to turn a one-time client into a recurring client, you're effectively multiplying your gross earnings while also increasing your store's profitability, since your Customer Acquisition Cost stayed the same.
There are four ways to increase CLV. You can try to:
Increase your Average Order Value (e.g. using up-selling techniques);
Increase the Average Orders per Customer (e.g. using automation scenarios such as After Sale, Cross-Selling or Viewed Products);
Increase your store's Average Profit Margin (which only you can do); or
Prolong your Average Retention Period (the average time between your customers' first and last orders).
The Loyalty Program scenario is perfect for that last method. When done correctly, it can keep your customers buying from you for longer periods since the more they spend, the more incentives to come back they will receive.
NOTE: In the Loyalty Program scenario, the reward is always a discount coupon.
Let's learn how to set it up!
How to set up the Loyalty Program scenario
To begin, log into your Mission Control and go to AUTOMATIONS > READY FLOWS > LOYALTY PROGRAM.
Detail: the customer does not return to level 1 when the loyalty program cycle ends. Each customer only participates once.
Step 1: Adjust
In this section, you will determine how many automated messages you will send, and which accumulated order value thresholds must be reached in order to trigger them.
NOTE: Before we move forward, it's worth knowing your Customer Lifetime Value. This information will help you determine how many thresholds you show apply to your Loyalty Program, and which values they should have. You can easily check your store's CLV on your General Overview dashboard.
You can have up to four thresholds, and each will trigger two messages: a reminder of how much that customer needs to spend in order to achieve the next reward; and the reward message.
For example, let's say you have set up three thresholds ($200, $500 and $1000). A loyal customer's shopping journey might look like this:
First order: $150 – message saying "you're only $50 away from a reward!"
Second order: $80 – first reward message ($200 reached)
Third order: $120 – message saying "you're only $150 away from a reward!"
Fourth order: $260 – second reward message ($500 reached)
Fifth order: $110 – message saying "you're only $280 away from a reward!"
Sixth order: $70 – message saying "you're only $210 away from a reward!"
Seventh order: $230 – third reward message ($1000 reached)
There’s no one-size-fits-all approach to setting thresholds. Use your CLV, align rewards with your marketing strategy, and start with what feels right. Monitor performance and adjust thresholds as needed.
You can also set the time between the last order and the message send by clicking the tile under the order block.
Step 2: Design
1) Click on Edit Message.
2) Set the sender, title, and subtitle of the message.
3) Go to our Drag n' Drop Editor. You will need to create different emails depending on the number of thresholds you selected on Step 1 and the number of languages you determined on Step 1.
MERGE TAGSWhen creating these emails, make sure to include the corresponding merge tags whenever relevant:
For example, if you write an email with this text:
Hi *|FIRST_NAME|*! Thank you for your latest purchase. Did you know we have a special reward for clients that have spent more than *|THRESHOLD|* on our store? You're just *|MISSING_AMOUNT|* away from getting a 25% discount code!
Your customer will see something like this on their email:
Hi John! Thank you for your latest purchase. Did you know we have a special reward for clients that have spent more than $500 on our store? You're just $30 away from getting a 25% discount code! |
TIP: You can add dynamic elements to your emails. In this scenario, you can:
Show products the customer has purchased (using the PRODUCTS element), or
Encourage further purchases by showing BESTSELLERS.to your message:
You can also add a discount code to your message:
Choose between Static Coupons (the same for every customer) or Dynamic Coupons (a unique code for each customer).
We recommend using Dynamic Coupons.
Click on Coupon Code, then Edit Coupon. Choose an existing coupon pool or add a new one by clicking the gear icon:
You need to upload a CSV file with the coupons. It is important to use separate CSV files with different and unique coupons for each type of message. If you need help creating them, there are several free coupon generators online.
Once your files are ready, select each type of message from the drop-down menu in the top left corner, then click on COUPON, followed by the GEAR ICON and ADD NEW.
Step 3: Summary
Send a test email to make sure everything is working properly.
Step 4: Reports
The only thing left is to monitor how your new scenario performs.
Click into the REPORTS section. Here you’ll find key metrics such as:
Revenue
Sent
Opened
Clicked
Ordered
Ordered with coupon, and more.
Remember, you can filter results by date and message type.
Need more help?
If you have any further questions about the Loyalty Program scenario, please do not hesitate to contact us at hello@edrone.me