The Anatomy of a Profitable Ecommerce Rewards Program [Infographic]

85% of ecommerce brands are looking to add value to customers beyond discounts and promotions. Yet, 97% of rewards programs are transaction-based.

Giving discounts to attract customers is often a knee-jerk reaction to boost sales. But competing on price is a race to the bottom.  Most ecommerce businesses can’t survive by giving deep discounts to one-time customers. To succeed in the long term, you have to shift your focus to customer retention.

Loyalty programs can drive high margin repeat business, but most programs fail to add value to the customer experience. To get real value from your customer loyalty program, you need to go beyond the discounts.

Rewarding your customer for engagement or shared values creates a powerful connection that results in loyalty and repeat business.

The infographic below from Selfstartr shows that loyalty programs are often misunderstood by brands. The anatomy of a profitable rewards program is one that avoids discount hunters and focuses on building relationships.