5 Reasons Loyalty Programs Will Increase Your Ecommerce Sales

5 Reasons Loyalty Programs Will Increase Your Ecommerce Sales
Do you want a free vacation? Of course you do! Picture a white sand beach, a hot sun, and an ice cold beverage. When I stroll the isles of my local grocery store and see "earn 5 bonus points if you purchase (insert product)", I instantly envision myself resting in a hammock somewhere with a Corona in my hand. Or at the very least, a few free movie tickets. Loyalty programs, points programs, whatever you call them... they work. 

5 Reasons Loyalty Programs Will Increase Your Ecommerce Sales

There are several reasons you can increase your ecommerce sales by providing points based incentives. Here are a few:

1.  Loyalty Rewards Make you Stand Out:

Today’s consumers are faced with tighter budgets and more options – a combination that can make converting site visits to sales more challenging than ever before. When you reward a customer for making a purchase, you stand out as a retailer that’s going to offer a little something more (similar to free shipping). Loyalty has just begun to spread into the world of ecommerce – to date, the most common way to earn points/miles is by flying, staying in a hotel, and using special credit cards, but people are beginning to seek out online stores that offer points for all types of merchandise. Offering points to your customers will help you stand out in the ever-increasing ecommerce crowd.

2. Points/Miles Collectors Spend More $$$:

Research shows that one loyalty program member is better than two non-members. Why? Loyalty program members spend up to 13% more (Forrester Research Paper). Attracting point-hungry loyalty program members to your site and then enticing them to make a purchase can help increase your sales, without having to drastically increase your site traffic.

3. Loyalty Programs Encourage Return Visits: 

Loyalty programs are designed to encourage loyalty to a business, which in turn, results in increased revenue with continued patronage.  Offering points can increase repeat shopper annual visits by up to 20%. Rewarding your customers with loyalty programs can help drive return visits to your site, and even help spread the word about your business through word-of-mouth to increase you customer base.

4.  The Land of Loyalty is Giant-Sized:

Recent estimates put the number of loyalty program members in the U.S. alone at 2 billion, with another 120 million members in Canada (that's a heck of a lot). Given this level of market-penetration, it’s likely that many of your site visitors are members of at least one loyalty program. Not only are billions of people collecting loyalty rewards, many are collecting in more than one program; the average U.S. household is actively collecting in 8.4 loyalty programs!!! By offering your customers a variety of programs to earn in, it’s likely that you’ll hit upon at least one of the programs that they’re participating in.

5. Big Brands Bring you Big Loyalty:

The science behind loyalty programs is simple: reward a customer for making a purchase and the customer returns to you business. What’s not simple about loyalty programs is the loyalty to loyalty programs. Within the crazy world of loyalty programs, there are programs that customers choose over others, time and time again. Take American Airlines’ AAdvantage program as an example: With over 65 million members, the AAdvantage program is one of the largest loyalty programs in the world. When you offer your site visitors points and miles from the world’s biggest programs, you leverage the loyalty these big name programs have already built.

We've teamed up with Points.com and are pleased to offer Incentify in the Shopify App Store. Here's a snazzy video that explains how Incentify will work with your Shopify store:


If you have trouble viewing the video click here

Win 50,000 miles or points! If you download the app before November 1st you’re automatically entered to win 50,000 points or miles in the participating loyalty program of your choice! Once you make a purchase Incentify will also give you a 50% point/mile bonus until November 1st! (See the full contest details for more information).



  • Rita
    October 27 2011, 07:45PM

    Would love for a Shopify app to offer an internal loyalty program. Ex. 3% of checkout value to be applied to next buy.

  • Charlie
    August 14 2014, 10:20AM

    Hi Mark, good article. Have you thought about doing a follow up and covering social loyalty?

    Purchases are only one way a customer benefits a business. Social loyalty programs allow stores to reward and thank customers for all the ways a customer benefits a business, for example points for signing up, referring a friend, making a purchase or even liking a Facebook page.

    That’s what my company does – LoyaltyLion – we’re on Shopify here https://apps.shopify.com/loyaltylion

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