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The Psychology Behind a Loyalty Points Program

Smile.io

Points programs are one of the most well-known and established retention marketing strategies in the world. Used by millions of brands in virtually every industry, they’re the most common definition of the term “loyalty program”, but why? What makes them so successful, and why have they worked well for so long?

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The Psychology Behind Customer Loyalty

Optimizely

But few brands are lucky to attain the ranks of true customer loyalty. Sure, many of us— 77 percent, in fact —participate in some kind of customer loyalty program. Loyalty program engagement is on the decline , and active use of loyalty programs is decreasing by 2-3 percent per year.

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The 5-Step Framework to Build Loyalty for Your Ecommerce Brand

Optimizely

And, with new ecommerce brands seemingly popping up daily, it’s essential that brands focus on building loyalty within their customer base. So, how do you differentiate your brand and create serious customer loyalty? Offering one-off discounts or sending a series of promotional offers won’t create long-term customer loyalty.

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Why Hyperbolic Discounting Matters in Ecommerce

Optimizely

This common dilemma can also apply to ecommerce marketing—especially when it relates to the psychology behind how customers think. There’s an entire psychological principle that encompasses this very idea: hyperbolic discounting. You might be thinking that’s a lot of psychology for a marketing blog post. Loyalty programs.

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Building Profitable Pricing Strategies on Leading Marketplaces

Smile.io

However, avoid undercutting to the point where your profits suffer. You might offer a bundle deal that includes a screen protector and a case at a competitive yet profitable price point. This strategy relies on understanding your target audience's pain points, desires, and preferences. For example, a product listed at $9.99

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The Truth Behind Loyalty Led Growth

Smile.io

“Is a loyalty program really going to help my business?” They’ve seen the obvious benefits from brands that do loyalty well, but they’ve also heard horror stories.  They With the correct program set up, gone are the days of needing customers to create accounts to start earning points.

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Rewards Case Study: A Look into The Nordy Club by Nordstrom

Smile.io

Loyalty programs, no matter how big or small, all have two goals–to provide value to customers and to retain customers. Nordstrom has developed a retention marketing strategy that targets its best customers through its rewards program, The Nordy Club. What is The Nordy Club?