Bain & Company found that a 5% increase in customer retention boosts profit by more than 25%. This shows the importance of repeat buyers in the e-commerce industry. But what is the best way to reward returning customers so that they keep coming back? The answer is discounting. Yes, let us tell you how discounts for repeat customers can boost loyalty and sales.
You will learn why discounts for existing buyers are needed, the different discounting strategies, and tips to make these tactics effective. We will also tell you how you can provide a personalized shopping experience to your buyers through third-party tools. So, without further ado, let us get started!
Why Focus on Discounts for Repeat Customers
How Discounts to Repeat Customers Benefit You
Set Up Loyalty Rewards in Shopify
How to Make Discount Programs Effective
You may ask, “Are discounts for loyal customers worth it?”
We first need to know what a repeat or loyal customer means to answer this question. Repeat customers are consumers who visit your Shopify store again after their first purchase. They liked your products which is why they came back again with high expectations. When somebody likes what you sell, they end up becoming your loyal customers.
Returning consumers become loyal to you and are likely to choose you over other Shopify sellers. They even tell others about your service to their friends, family, and acquaintances. Below we have some solid points to answer why offer discounts to repeat customers.
Repeat customers are more valuable than new ones when building brand loyalty. Loyal buyers are cost-effective and tend to buy more bringing you profits. They are also likely to refer others to your Shopify store. Customer retention helps increase your revenues to achieve a stronger competitive edge. When you use discounts to retain them then you are likely to improve your profit margins.
Use repeat customer discount programs to improve retention. It creates a sense of appreciation in them who then develop emotional connections with your brand. You have to make them feel valued so that they stay loyal to you. Such shoppers will always choose you over your competitors. For example, loyalty-based coupon codes are some of the best examples of loyalty rewards for eCommerce.
You need smart discount strategies to make offers impactful. Here, you will learn how to reward loyal customers with some of the best strategies on Shopify. The following tactics can help you get started with using discounts for repeat customers:
Exclusive Discount Deals
Exclusive deals via VIP programs are one of the best discount strategies for repeat customers. It can win the hearts of your returning shoppers. Make them feel special by using early access offers. You could also use discount coupon codes reserved only for returning buyers.
Discount Thresholds
Discount thresholds or tiered discounts are another way to keep customers engaged in shopping. Offer increasing discounts based on the frequency of purchase or cart value. This will motivate them to buy more to save more.
You could also do something like, “Unlock a special discount for future orders after a third purchase.” Such attractive offers would make customers want to stick around longer.
Seasonal Discounts
Set targeted discounts in different shopping seasons to re-engage old buyers. Tailoring services to their needs makes them extra happy. Offer Winter-special or summer-special discounts to show that you care about their needs.
Custom Offers
Your customers will feel special when you show that you know them. But how do you show them that? Easy, you offer discounts on items they bought in the past based on their browsing history. Use data-driven insights to create discounts that reflect their interests. They never say no to such personalized discounts.
Urgency in Offers
Urgency in offers increases the likelihood of buyers taking faster action. Time-limited discounts encourage quicker decision-making. You could use flash sales, exclusive offers, or early bird discounts to drive more sales.
Hence, by taking advantage of these strategies, you can retain your Shopify customers. These tactics will also help increase purchases and profitability.
Do you know what is easier and more cost-effective? Satisfying the old customers rather than chasing the new ones. That will grow your e-commerce business faster. But why do we think that discounts for repeat customers are a compelling strategy? Well, let us find out why.
The foundation of any successful business is to build trusting relationships with customers. The stronger the bond the better for your brand. Show your genuine appreciation to your buyers. A one-time buyer will become a lifelong advocate if you treat them the right way.
Who can say no to a good Shopify discount deal? Offers are a great motivator tool to lure consumers into buying more. You can display discounts like “20% off on the next order” or “get 50% off if the purchase is $400 or more”. Such discount offers are known to have increased AOV for many Shopify stores. Try it out for yours as well.
Words spread faster on platforms as popular as Shopify. Therefore, it is crucial to build trust and loyalty in your consumers. Otherwise, your store will get a bad reputation for being a disappointment. Build customer loyalty by letting them know that they can rely on your brand for exclusive deals. Over time, these customers will be the reason for the consistent revenue and word-of-mouth promotion.
It is observed that chasing a new buyer costs five times more than retaining a current one. Loyal customers are often seen to visit more and spend more. They are usually the ones who will recommend your brand to others. That is why their impact on the financial health of your business is highly positive.
Offering discounts for repeat customers should be a part of your retention strategy. Doing so will increase customer lifetime value (CLV) which is a critical metric for your store’s financial health.
Shopify brings good news to all of you amazing merchants. It is easy to set up loyalty reward programs for repeat customers with various apps and integrations. Third-party tools offer a range of features to simplify the discounting process for you. Check out a mini guide below to help you segment customers to offer loyalty rewards to them.
Go to your Shopify admin page and on the left, click on customers where segments will appear.
By default, Shopify has already created some customer segments for you that you can select. But if you want to create a new one, simply click on the Create segment on the top right.
You can either choose a template or a filter on Shopify according to your preferences. For this example, we selected the template shown. You need to then complete the filters asked.
Filter for product_purchased ID.
Filter for product_purchased ID.
You will be then asked if you want to add another filter. Note that the valid segment on the left side below indicates that your segmentation is now complete. If you want to add other filters then, you can.
Once you save the settings, your new customer segment will appear on the screen.
A new customer segment called Repeat_VIP_Customers has been created.
To create loyalty discounts, click the Discounts button on the left side.
As you create new discounts, you will come across the above option where you can choose your desired customer segments.
Before you start, first figure out what is it that you want for your Shopify store. Is your primary goal to increase sales? Or do you wish to have repeat visits? Or do you want to reward specific actions like social sharing? Once you decide on the goals, you then choose the right discount app to manage sales offers.
Shopify provides some features but those are not enough to manage advanced setups. This is why you need Shopify discount apps to provide advanced discount tools for repeat customers. You can group consumers, track their activity, and offer discounts like quantity-based, tiered, or bulk. Set up automated discount codes, run promotional campaigns, and track customer progress.
Everything is now easy and quick to manage from your Shopify dashboard. Customize loyalty rewards using apps that simplify the discounting process. Offer early access to products, create large volume-based discounts, or even special business-related perks. Send automated reminder emails encouraging buyers to redeem their rewards.
You have learned how discounts benefit you and the strategies to apply them. But do you know the effective ways to discount for returning customers? Do not worry because we have got your back. Below are the best practices to look out for.
Although discounts are marvelous tools to win over your repeat customers, you should not overdo it. Too much of it will ruin your profit margins sooner or later. Display offers on select items or during special times of the year to maintain that exclusivity. Do not sacrifice profitability for loyalty. Careful planning will help you keep a balance between these two.
You should never rely only on discounts to keep customers engaged. You are making a wrong move if you do so. Use other retention strategies along with discounts. Strategies like email marketing, engaging social media posts, and personalized recommendations help to promote your brand.
In addition to the above, pay attention to your customer service ensuring it is exceptional.
One of the most important steps to achieving success on Shopify is to track performance. You need to ensure that the B2B customer loyalty discount strategies are working. Analyze the output of your store as you offer repeat-customer incentives. You have to see if they’re driving the results that you wish to have.
There are many analytical tools to monitor how well these loyalty discounts are converting. For example, Live Preview is a Shopify tool that lets you track performance in real-time. So, use these tools, see the results, and make adjustments accordingly.
Customers respond to certain types of tailored discounts. Then there are some timings that are optimum for offering discounts. Regular reviewing of your strategies will help save time and money. You will also be able to maximize profits with careful planning. Therefore, figure out the right time to offer the right type of discount to the right kind of buyer.
We have reached the end of our wonderful article. Now you know why offering discounts to repeat customers will help your e-commerce business soar. We have discussed loyalty programs, discount benefits, and the best strategies to implement effective offers.
You are now ready to dazzle your buyers with personalized loyalty discounts. Use third-party tools if you have to. Try to find the right balance between profitability and loyalty. If you follow our guide in this blog, then you will have no problem building long-term relationships with your customers. Good luck!
Customers are just like us who want nice treatment. They will be very happy to see you valuing them as their favorite buyers. Ask yourself how you would like to feel special when you are at a Shopify store. Below are some popular ideas that most B2B merchants use for their returning customers:
There are several benefits of returning customers. Some of these are mentioned below:
If you use it correctly, it has the potential to increase your sales. However, do not overuse it at the expense of your profitability. As you use such offers, you will be able to attract more loyal customers. These customers will tell others about your Shopify store, retaining old customers as well as gaining new ones. Hence, your sales will increase and bring you more profit.
It would be best if you had some smart tactics when approaching repeat customers. The following tips will help you target the right buyers:
Some popular effective methods include loyalty points programs, tiered discounts, and exclusive offers for returning customers. Third-party apps like DiscountRay can assist you to automate discounts and personalize these strategies.
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