The dinosaurs may be extinct, but giants still exist.
In 2018, Amazon’s share of the US ecommerce market reached a whopping 49%, while second place went to eBay with a modest 6.6% of the market. Showing how the giant’s dominance makes even huge businesses, like eBay and Apple, seem small.
The numbers may feel overwhelming – but all is not lost. It was David that defeated Goliath after all.
While ecommerce giants, like Amazon, offer a lot in terms of price and logistics they fall short when it comes to one thing: Humanity.
They fail to establish an emotional bond with their customers leaving them feeling like just another order number.
This is incredibly important as 56% of customers feel brands “get them” if they show a deep level of understanding of their priorities and preferences. To stand out from the crowd, merchants need to connect to their customers on a deeper, more meaningful level.
And, remember: almost 53% of an ecommerce store’s revenue comes from the top 20% of their customers. Give that 20% the attention they deserve, and they will be sure to get behind you and give you their long-term loyalty.
In this blog, we will take you through some actionable strategies you can implement today to wow the market, help you stand out in the age of Amazon and secure a loyal customer base.
These strategies are:
- To show your personality
- Make your top customers feel special
- And, to transform your loyal customers into brand advocates
Show your personality
Larger brands are unable to relate to customers on a personal level and show-off their personality. With 65% of shoppers buying on the basis of their beliefs, it’s now more important than ever to showcase your brand’s values across your site.
Start by communicating a consistent brand identity across your store to help people to connect to you. A loyalty program is a great place to start – you can cleverly name your loyalty tiers to your identity or even offer on-brand rewards.
A great example of a store that does this well is Beauty Bakerie.
By integrating a fully on-brand loyalty program into their site, it becomes a natural extension of their store. Notice how the images, colors and font are all in keeping with their brand’s personality.
And the tiers – “New to This”, “True to This”, and “Cake Boss” – reflect their bubbly and sassy personality. This approach works wonders and successfully appeals to their millennial shopper base who are not shy to purchase online and use acronyms, abbreviations and hashtags in everyday language.
Make your top customers feel special
Not only do your existing customers return to you more often, but they also spend more. Exactly why it’s beneficial for you to do what you can to make these customers feel valued.
Take a look at your loyalty data and identify the groups who have the highest lifetime value and most frequent repurchase rate. Then do what you can to make them feel special.
One effective way of making those top purchasers feel appreciated is by using loyalty tiers. Adding levels to your loyalty program will give your members something to aspire to while also offering special benefits to your best customers. You can even get really creative and add a secret or subscriber tier.
Annmarie Skin Care have created a two-tiered system. One for basic members with standard rewards and discounts and the other a subscriber tier with extra benefits including gifts, elevated discounts and first access to new products.
With this exciting added level to their loyalty program, Annmarie entices people to become a Collective Insider with exclusive and experiential perks that are guaranteed to make them feel valued.
This appreciation is what keeps their customers coming back to their store and engaging in their loyalty program.
Transform your loyal customers into brand advocates
Customers are four times more likely to buy from your store when referred by a friend.
This is because the recommendation is coming from someone they know. Therefore, they need to do less research to justify their purchase decision. As well as this, 77% of consumers read reviews before making a purchase. It is now more important than ever to turn your existing customers into brand advocates so they leave glowing reviews and tell others about you.
Incentivize brand advocacy by rewarding customers for leaving reviews or referring friends. A store that is brilliantly using its loyalty program to increase brand advocacy is Taylor Stitch.
They have a standard earn-as-you-spend rewards system, but they also incentivize referrals with $20 in credit for the referrer and 20% off the first purchase for the referee.
It’s a win-win. Their customers get perks and discounts while they are also increasing their customer base for a small cost.
Encouraging referrals and reviews are great ways to get your customers to become your brand advocates and attract new business. Referred customers have already established an amount of trust with your brand meaning they’re more likely to purchase than if they stumbled on your store for the first time.
Take advantage of the Amazons of the world’s weaknesses and win the hearts of your customers. Use your loyalty program to wow your customers and drive customer retention.
By connecting with them emotionally and making them feel special, you can establish a bond that will keep them coming back, spending and telling others about you.
LoyaltyLion is a data-driven loyalty and engagement platform trusted by thousands of ecommerce brands worldwide. Merchants use LoyaltyLion when they want a fully customized loyalty program that is proven to increase customer engagement, retention and spend. Stores using LoyaltyLion typically generate at least $15 for every $1 they spend on the platform.
Want to learn more about customer retention? The LoyaltyLion Academy holds valuable resources to transform you into the go-to loyalty expert in your business.