Customer retention isn’t easy. Between your eCommerce and physical stores, social media, and various other touchpoints, customers can slip through the cracks.

Shopify’s loyalty program apps make it easy to engage your customers with personalized rewards and incentives and ensure they stick around for the long term. But with so many loyalty apps to choose from, how do you know which one is right for your business?

In this article, we’ll review the 7 Best Loyalty Apps for Shopify and how they can increase customer retention and boost sales for your store.

What are the best loyalty apps for Shopify in 2023?

1. Marsello [Top pick ✨]

Marsello helps you drive sales and reward regulars with a loyalty and referral program that works in-store and online. With Marsello, you can customize the appearance of your program to match the look and feel of your brand. It’s easy to set up rewards, discounts, points, VIP tiers, and more to gamify your customers’ shopping experience and encourage them to spend more.

Marsello’s key point of difference is the ability to run your loyalty program seamlessly across your Shopify eCommerce and POS channels. This simplifies customer loyalty management and allows for a more seamless customer loyalty experience.

Marsello’s loyalty tools also connect with its all-in-one marketing automation tools, helping you run more effective campaigns, from email to SMS, reviews, and more.

Here are some popular ways to use Marsello:

• • Customize and launch a loyalty program that works in-store and online
  • Reward customers with personalized rewards, points, VIP tiers, and more
  • Sync sales from eCommerce and POS and link them to unique customer profiles
  • Use your customer insights to run smarter, personalized marketing campaigns
  • Manage all of your marketing from one app, email, SMS, automations, and more

Pricing

Marsello offers a 14-day free trial. Paid plans start from $100 USD/month, and are based on your customer database size and the number of eCommerce and POS sites connected.

What merchants think about Marsello

Merchants enjoy using Marsello for its user-friendly interface and powerful loyalty features. Marsello merchants have seen a boost in sales through its loyalty and rewards program, email, and SMS marketing features. Marsello’s marketing automation tools and cost-effectiveness are also highlighted, along with its responsive customer service team.

Install on Shopify

2. Smile.io

Smile.io offers easy-to-use loyalty and rewards tools to help you engage your shoppers, and turn first-time customers into forever customers. Over 125 million shoppers earn points through Smile. 

With Smile, you can create your own loyalty and rewards program that increases sales and repeat purchases, saves on acquisition costs, and boosts brand loyalty. The best part is that creating a loyalty program with Smile only takes a few minutes—with no coding required.

Smile offers simple management of your customers and loyalty data, and if you need help, you’re supported 24/7 by a team of loyalty experts to answer your questions.

Here are some popular ways to use Smile:

• • Customize your loyalty widget and rewards launcher to match your brand aesthetic
  • Encourage repeat sales by allowing customers to earn points and rewards
  • Connect Smile with your email, review, and customer service apps
  • Nudge customers to continue shopping by reminding them of their points and rewards

Pricing

Smile is free to install. Their free plan allows up to 200 monthly orders and gives you access to all the basic loyalty features, including a points and referrals program, basic brand customization, default reward emails, and an analytics overview.

What merchants think about Smile.io

Shopify store owners appreciate this app for its easy setup and seamless integration with Shopify. Smile is praised for its loyalty points system, customizable rewards options, and VIP program features. Smile’s free plan is a good entry point for new businesses looking to increase customer loyalty. The free version is robust and easy to use.

3. LoyaltyLion

LoyaltyLion helps Shopify brands boost retention and increase customer engagement with a loyalty program that goes beyond points and rewards.

The popular loyalty app helps you incentivize brand engagement and motivate repeat purchases by offering loyalty points and rewards to customers who engage with your business.

Here are some popular ways to use LoyaltyLion:

• • Reward positive onsite behavior with customizable points and gifts
  • Increase brand advocacy by rewarding customer referrals
  • Deliver points and rewards through email and on-store notifications
  • Tailor how your loyalty program appears on your Shopify eCommerce site
  • Integrate with email providers, subscription partners, reward platforms, and more

Pricing

LoyaltyLion offers a free plan that gives you access to basic loyalty features, unlimited members, and up to 800 monthly orders. Paid plans start from $156 USD/month.

What merchants think about LoyaltyLion

Merchants highly recommend LoyaltyLion due to its seamless integration, customizable features, and user-friendly interface. LoyaltyLion is praised for its exceptional customer service, and merchants appreciate the app’s detailed analytics, and easy migration from other loyalty apps.

4. Joy: Loyalty & Rewards Program

Joy is a user-friendly loyalty solution designed to keep your customers around with advanced loyalty programs and rewards features. It’s designed to help Shopify stores effectively convert their shoppers into loyal customers with the help of rewarding points.

The app has a variety of features that allow store owners to manage the earning and spending of loyalty points flexibly. All of Joy’s loyalty features come in a user-friendly and no-code-required platform that’s supported by 24/7 customer support.

Here are some popular ways to use Joy:

• • Reward customers for signing up, placing orders, leaving reviews, and more
  • Manage your customer tiers, points, and missions with export and import data
  • Run campaigns with built-in email notifications and automations
  • Leverage your store’s point-of-sale data to run more effective loyalty campaigns
  • Engage your customers without slowing down your shop’s loading speeds

Pricing

Joy offers a free plan, limited to 250 orders per month. You can enable points-earning options for customers who sign up and place an order. Paid plans start from $29 USD/month.

What merchants think about Joy

Merchants love Joy for its diverse loyalty features such as rewards programs and referral options, and low impact on your shop’s loading speeds. The customer service team is highly praised, and merchants find the pricing reasonable and appreciate its integration with POS. The tool is regarded as a valuable tool for growing a store’s database and social following.

5. Yotpo: Loyalty & Rewards

Yotpo’s eCommerce retention marketing platform helps Shopify brands drive repeat sales with connected solutions for loyalty, email, SMS, reviews, and more. With Yotpo, you can build a customizable, retention-driving loyalty program that offers more than just rewards.

Yotpo’s agile loyalty tools empower store owners to launch a loyalty program quickly and iterate endlessly — with no developer work required. The platform’s out-of-the-box campaigns help you drive repeat sales from the get-go.

Here are some popular ways to use Yotpo:

• • Customize, launch, and manage your loyalty program with no coding required
  • Monitor your loyalty and referral program data, from ROI to customer LTV, and more
  • Increase repeat sales and customer engagement with diverse rewards and tiers
  • Create a seamless marketing experience by integrating Yotpo’s marketing products

Pricing

Yotpo is free to install, with a free plan available to stores with fewer than 100 monthly orders. Paid plans start from $199 USD/month and provide your customers with more ways to earn.

What merchants think about Yotpo

Yotpo is highly recommended for its seamless Shopify integration. The platform helps users effortlessly boost business with features like email reminders for points-earning, and reward redemption options. The customer service, especially the live chat is appreciated, and the app’s customization capabilities are also appreciated.

6. Stamped Loyalty & Referrals

Stamped Loyalty helps Shopify brands maximize customer loyalty with a customized loyalty program, VIP tiers, and referrals. The platform works as a stand-alone product, but can also be integrated with Stamped’s integration reviews and ratings product to create a full suite of customer tools.

Stamped helps brands deliver immediate value to their customers through a personalized loyalty experience. Their platform helps you increase average order value and maximize customer lifetime value through AI-powered points and rewards, VIP tiers, and referral solutions.

Here are some popular ways to use Stamped:

• • Drive engagement with points-based campaigns that motivate customers to shop
  • Reward and incentivize customers to share your brand with their friends
  • Deliver a fully customized on-brand loyalty program and experience
  • Create exciting VIP tiers and perks to recognize your best customers

Stamped Pricing

Stamped offers a free plan. Paid plans start from $59 USD/month, however, by signing up for Stamped’s 12-month plan, you can save 17% off your subscription costs.

What merchants think about Stamped

Merchants love using Stamped for its intuitive loyalty integration with Shopify, along with its advanced customization features and helpful customer support team. Despite some instances where glitches and shortages in real-time assistance occur, the overall sentiment remains positive, with Shopify store owners taking pleasure in migrating from other app alternatives.

7. Rise.ai

Rise is the go-to gift cards and store credits app for Shopify stores. The app is designed to manage all your brand’s re-engagement activity, from gift cards to referrals, rewards, and refund management.

Rise helps you establish an intuitive rewards program with flexible, automated store credit flows that strengthen your customer relationships and increase customer lifetime value.

Rise’s customer service team is excellent and has proven to go above and beyond to help customers get the most out of their products and deliver success.

Here are some popular ways to use Rise.ai

• • Trigger and create store credit rewards based on customer activity
  • Issue gift card refunds and offer store credit for returns
  • Launch a loyalty program that encourages store credit accumulation
  • Remind customers of their gift cards with scheduling and sending options

Pricing

Rise’s starter plan starts from $19.99 USD/month and gives you access to essential store credit and gift card features, limited to 100 monthly store orders.

What merchants think about Rise.ai

Merchants appreciate the app for its gift cards, rewards programs, and store credit issuance. The app has high customizability and works seamlessly with Shopify and Klaviyo, helping you run more effective campaigns. The app has been instrumental for many Shopify stores wanting to increase sales and attraction, with its gift card scheduling and automation tools being a stand-out feature.

So, which loyalty app should I install?

Shopify’s loyalty apps make it easy for store owners to engage customers and drive long-term brand loyalty.

The best loyalty programs are ones that make customers feel seen and valued, regardless of how they shop. In this context, Marsello’s seamless integration with Shopify eCommerce and POS allows store owners to nurture customers and manage loyalty and order data across multiple channels.

By centralizing your in-store and online customer data, you can get a complete view of your customers, helping you optimize your loyalty program and run more targeted and timely campaigns that drive sales for your Shopify store.

Marsello has integrated with Klaviyo to create the ultimate customer marketing platform.

In the fast-paced world of retail and eCommerce, one constant remains: your customers. However, in today’s highly competitive retail environment, customers are inundated with irrelevant promotional emails, making it harder than ever to cut through the clutter and get them shopping.

By connecting Marsello to Klaviyo, you can harness your in-store loyalty and order data to create detailed segments and run more effective campaigns in Klaviyo.

Let’s explore the integration in more detail.

What is Klaviyo?

Klaviyo is a unified customer marketing platform designed to help engage customers and drive sales with email campaigns, SMS, and more. It’s one of the few email marketing services designed specifically for eCommerce, and with an impressive database of over 110,000 paying customers, it’s no wonder brands choose Klaviyo to manage their campaigns.

Here are a few benefits Klaviyo has to offer:

• Segment your database using historical data and real-time behaviors for targeting
• Build coupon codes for automated flows and campaigns
• Use built-in templates and automated emails for simple workflow management
• Accurate reporting and attribution for each campaign and channel

Not using Klaviyo? Discover more about its features and benefits here

What is the Klaviyo loyalty integration?

The Marsello and Klaviyo integration combines Klaviyo's advanced email marketing features with Marsello's omnichannel loyalty software to create the ultimate marketing platform.

Marsello’s point of sale data is the key factor here, syncing in-store loyalty and order data to Klaviyo customer profiles in real-time, empowering your team to personalize your marketing with the latest insights from both your eCommerce and POS channels.

Why connect Klaviyo to your Marsello account?

Because Klaviyo does not integrate directly with POS systems, you’re only using a fraction of the customer data that’s available to you.

When you integrate Marsello with Klaviyo, you can bridge the gap between your POS and eCommerce data, providing you with valuable insights into customer purchase history, spending behavior, and preferences. This connection enables you to centralize your customer data and create a more seamless omnichannel shopping experience.

“We have many customers that shop with us in both channels and expect a seamless loyalty and marketing experience.”

Hayley Greenstein, Managing Director at LEGO® Certified Stores

How do Marsello and Klaviyo work together?

Marsello's customer loyalty and order data gets synced to Klaviyo in real-time. This enriches Klaviyo customer profiles with omnichannel insights, enabling better segmentation for more effective, tailored marketing campaigns.

Here’s what you can do with Marsello and Klaviyo connected:

• Push customer properties to Klaviyo profiles: Sync customer properties into Klaviyo, enriching customer profiles with relevant data.
• Sync customer events to your Klaviyo account: Use events to automate timely and targeted emails based on your customer shopping behavior, loyalty engagement, or feedback responses. These events are dynamic and sent to Klaviyo in as close to real-time as possible. Sync events like POS and eCommerce orders, loyalty activities, and feedback responses.
• Sync your loyalty and order data into Klaviyo: Seamlessly transfer POS and eCommerce loyalty and order data to Klaviyo customer profiles in real time for a complete view of customer spending behaviors. Understand who your customers are, and how they like to shop.
• Create omnichannel offers and coupon codes to use in Klaviyo campaigns: Generate omnichannel discount codes for your campaigns and automatically load them against specific customer profiles. Give customers the flexibility to redeem their coupons in-store or online.
• Create more detailed customer segments for campaigns in Klaviyo: Utilize your in-store and online data to create targeted customer segments and workflows in Klaviyo. Harness your segments to run more personalized campaigns that go way beyond your VIP database.

Diving deeper into event sets

When you connect Marsello and Klaviyo, you unlock a treasure trove of valuable loyalty and order data such as purchase site, order total, product selections, and more.

Let’s learn more about the specific data sets that get synced to your Klaviyo profiles.

POS and eCommerce orders

By syncing your POS and eCommerce order events into Klaviyo, you can create a 360-degree view of your customers’ spending behavior with your business. With this data, you can create targeted segments and automations based on in-store and online orders, enabling further personalization of your email marketing efforts.

Loyalty activities

Using Marsello’s loyalty program, you can encourage customers to return by rewarding them with loyalty points for each purchase they make. Sync loyalty events into Klaviyo to create custom segments and automations based on loyalty program engagement, then use customers’ loyalty profile information to further personalized your marketing efforts. For example, when a customer claims a coupon but hasn’t redeemed it, you could send a follow-up email that recommends products and encourages them to shop.

Feedback responses

Finally, using Marsello’s customer feedback features enable you to measure customer satisfaction with their shopping experience, helping you keep track of what you’re doing well and how you can improve. Sync feedback responses to Klaviyo to help measure customer sentiment. Create segments and automate follow-up emails to help nurture customer relationships with your brand.

Learn how to use Marsello properties and events in Klaviyo

How to connect Klaviyo to your Marsello account

Now that you know how Marsello’s loyalty and order data can empower your email marketing campaigns, here's how to enable the Klaviyo integration within Marsello.

In your Klaviyo account, you will need to generate a new API key with Full Access to Profiles. 

To create an API in Klaviyo

1. Navigate to API keys under your profile settings
2. Enter “Marsello” as your Private API Key Name

1. Under Select Access Level, select Full Access Key
2. Click Create. This will generate your new API key.
3. Copy this key and keep it ready to paste into your Marsello add-on settings.

If you haven’t already created a Klaviyo account, you can do so here.

How to enable the Klaviyo integration in Marsello

1. First, log in to your Marsello account
2. In your Marsello admin, navigate to Integrations > Add-ons
3. Find Klaviyo in the list of add-ons and click Connect

1. Under ‘Klaviyo API Key’ paste your Marsello API key, or follow these instructions to create one.

1. Click Save. Your Marsello & Klaviyo accounts will now be connected.

Final words

Integrating Marsello and Klaviyo creates a more cohesive customer marketing experience, unlocking new levels of customer engagement, satisfaction, and loyalty.

This powerful integration brings together the best of both platforms, combining Marsello’s in-store POS data with Klaviyo's advanced customer marketing tools to help you understand your customers and increase engagement with highly-personalized marketing campaigns.

Now that you know how Marsello’s POS data can enrich your Klaviyo campaigns, it’s time to get connected.

Next read: 5 Klaviyo Integrations Every Retailer Should Be Using

Klaviyo is a game-changer for retailers, and it's easy to see why they love it.

Its user-friendly interface and straightforward setup make it a favorite among retailers of all sizes, allowing them to streamline marketing, engage with customers, and ultimately drive sales and growth.

However, unlocking the full potential of Klaviyo's capabilities can be overwhelming, especially with its extensive list of integrations. From seamless connections to popular e-commerce platforms to personalized product recommendations and targeted ad campaigns, Klaviyo’s network of integrations can do it all!

To help you narrow down your choices, we've identified the top five types of Klaviyo integration every retailer should be using—especially if you’re selling in-store and online. We’ve included a few good examples of each so you can find the solution that works best for you.

Regardless of which integrations you choose, rest assured that setting them up is straightforward and hassle-free, so you can quickly leverage Klaviyo's power to enhance your marketing efforts.

1. E-Commerce Platform
2. Omnichannel Loyalty & Rewards
3. Meta Custom Audience Sync
4. Product Recommendation Engine
5. Customer Service & Support
   
   
   

1. E-Commerce Platform

Klaviyo offers integrations with popular e-commerce platforms like Shopify, WooCommerce, BigCommerce, and others.

This integration is crucial as it allows Klaviyo to sync customer data, purchase history, and product information from your online store, enabling you to create targeted and personalized email marketing campaigns based on customer behavior and preferences.

Popular e-commerce platforms that integrate with Klaviyo:

• Shopify
• Shopify Plus
• Bigcommerce
• Woocommerce

See all

2. Omnichannel Loyalty & Rewards

Because Klaviyo does not integrate directly with point-of-sale systems, it’s typically the most powerful for e-commerce use cases.

However, by integrating with Marsello’s customer loyalty software, merchants can bring their in-store customer data into Klaviyo.

This enables you to centralize and leverage all your customer data for better segmentation and targeting.

Marsello helps omnichannel retailers understand customer behavior, preferences, and purchase patterns. That means more effective marketing, 360-degree customer insights and multi-site reporting.

Omnichannel loyalty apps to explore:

• Marsello (best for in-store and online)
  
  

3. Meta Custom Audience Sync

By integrating Klaviyo with your Facebook and Instagram advertising accounts, you can create custom audiences based on email subscribers, customers, or segments in Klaviyo.

This integration facilitates targeted advertising campaigns and improves your ad reach and effectiveness.

Some custom audience sync apps you can explore:

• Marsello
• Facebook

4. Product Recommendation Engine

To boost cross-selling and upselling opportunities, integrate Klaviyo with a product recommendation engine.

These apps enable you to automatically recommend relevant products to customers based on their browsing and purchase history, increasing the chances of repeat purchases.

Check out these product recommendation engines:

• Marsello
• Jebbit

5. Customer Service & Support

Enhance your customer support with Klaviyo by integrating with leading customer service platforms.

By connecting Klaviyo with customer support tools like Zendesk or Gorgias you can provide personalized and timely support to your customers.

Benefits of customer support integrations include....

1. Accessing customer support history: Integrate Klaviyo with your customer service platform to access past interactions and better understand your customers' needs and preferences.
2. Personalized follow-ups: Automate personalized follow-up emails based on customer inquiries or support tickets to show your customers that you care.
3. Targeted feedback requests: Use Klaviyo's customer data to send targeted feedback requests after resolving support issues, helping you gather valuable insights for improvement.

Some customer support apps you can explore:

• Zendesk
• Gorgias (popular with Shopify Plus users)
  
  

So, which Klaviyo integrations should I use?

With the right integrations, Klaviyo becomes a true powerhouse for multi-channel retailers. By tapping into in-store and online customer data, retailers gain comprehensive insights into customer behavior, preferences, and buying habits across all channels.

By adding an omnichannel loyalty program, every other Klaviyo integration becomes exponentially more powerful.

Send product review requests to in-store customers, run marketing campaigns to specific store locations, use your in-store customer data for targeted ads and product recommendations, and so much more.

This omnichannel approach ensures retailers can deliver a consistent and engaging brand experience to customers, no matter how they shop.

Next read: 7 Steps To A Profitable Loyalty & Rewards Program

Quick links:

• • • 1. Design your tiered loyalty program
    • 2. Get everything ready on your website and in-store
    • 3. Promote your program
      
    • 4. Set up important notifications as SMS messages
    • 5. Keep optimizing!

Want to build a loyalty program like Mecca’s Beauty Loop, but don’t have the money or time for custom solutions?

Before building brand loyalty, you need to build a brand. And building a brand? That journey starts with the very first business plan, that spark, that idea on a napkin, that leads you to register a company and step into the wild, wicked, unruly world of retail.

So let’s forget loyalty points programs for the time being.

Look inward for a minute, and ask: Why did I start this business?

For a lot of retailers, their business started out of frustration. Frustration that you couldn’t find what you wanted at other stores, frustration about the lack of selection or curation, frustration about the customer service, concern that salespeople only wanted to sell you what they were getting the most commission for (rather than what suited your needs best).

Mecca Founder Jo Horgan shared why Mecca came to be back in 1997 in an interview for the Australian Financial Review.

“I loved cosmetics – I thought there was a real space for them that should be fun and entertaining. And yet when I went to a department store I found it exhausting, going from one counter to another,” Horgan says.

So she started to think: “Imagine the best product offer, a beautiful environment and my best beauty friend next to me taking me from zero to expert in one session…” 

“That’s how I wanted to experience cosmetics myself,” she says.

The first time I went to Mecca, I admitted I used $3 foundation and substituted in cheap eyeshadow with a 10-year-old makeup brush for eyebrow pencil. The response? “Oh darling, sometimes that’s all you need to do the trick!”

He told me he often does the same… and still managed to sell me $150 worth of foundation and an eyebrow pencil. Now that’s some serious sales game.

I tried to unpack this later. The feeling I got was: He’s on my side. He knows where I’m coming from. And I can trust him.

Lesson 1: Hold on to that “why” and don’t lose sight of it. It’s your greatest brand asset.

It’s highly likely the reason you started your business is why your customer is here. 

I was surprised to learn that Mecca founder Jo Horgan felt frustrated by the department store experience, just like I did. But in the same vein, it makes sense, based on how shopping at Mecca makes me feel.

Lesson 2: Points programs do not magically create brand loyalty.

A points program is one tool you can use to keep customers coming back. But the truth is, if you’re not doing anything else to support it—it’s not going to have the Mecca effect.

So, let’s take your “why” and I’m going to show you how you can build an extraordinary loyalty program with ordinary, off-the-shelf loyalty software.

How to Build An Extraordinary Loyalty Program With Ordinary, Off-The-Shelf Software

Everything here can be done using Marsello, when integrated with your eCommerce and POS software.

Step 1. Design your tiered loyalty program

Most loyalty software has the functionality to build a tiered loyalty program off the shelf. But before you jump the gun and turn it on, think about what the tiers should look like. Revisit your brand’s vision and mission, and come up with a strategy.

How many tiers are there?

Three is a good place to start. Mecca recently added a fourth tier to give those extra high spenders a more tailored experience, but we’d recommend only adding more than three tiers when you see a clear need for it.

How are the tiers structured?

Are the tiers based on spend, or number of loyalty points? And is it lifetime spend or annual spend? Generally, most retailers want their customers to maintain a minimum spend or number of points per year to keep their status. This requires the ability to expire tiers (you can do this in Marsello).

What are the rewards?

This Level 4 Beauty Looper (below) worked out that her free sample box had a retail value of $80. With 4 of these per year, plus an extra birthday box, that’s $400 for a year of free gifts. However, this person had to spend $3,500 to reach this tier. That’s an 11.4% discount, or about the same as giving away every 10th coffee for free.

The beauty (ha) of giving away free boxes, is that you mitigate price perception. Receiving a free box in the mail is a serious dopamine hit, and Mecca knows this. Customers perceive the value of the loyalty reward to be much higher than it really is. They will happily spend more to receive the reward than “risk” missing out on retaining their status by shopping somewhere else.

What will you call the tiers?

Don’t rush this part, take your time to really find the right fit for your brand. “Bronze, Silver, Gold” isn’t very creative. Mecca chooses names that really connect to its brand mission, product, and the relationship they have with its customers.

Step 2. Get everything ready on your website and in-store

Now that you’ve got your loyalty program designed, you need to make sure it’s all set up properly.

Do you have an online store and physical shops?

If so, make sure your loyalty software is integrated with your POS and eCommerce platforms. This will ensure that points can be earned and redeemed easily across all your sales channels. Marsello integrates with a range of POS and eCommerce apps off-the-shelf, no expensive customization required.

How will customers find out about it?

In-store: Train staff on your loyalty program, and make sure they’re asking customers to sign up point-of-sale. Focus on the benefit to the customer—if you’ve really taken the time to build a considered loyalty program, customers won’t be able to resist.

On your website: Make sure it’s impossible to miss! Set up a loyalty widget on your online store to show visitors how they can earn and redeem rewards, and show the available tiers. Best practice is to create a website page dedicated to your loyalty program that goes into even more detail. See Mecca’s Beauty Loop page:

Step 3. Promote your program

How do I launch it?

Once you’ve designed your program, prepare a launch campaign. Whether it’s a ‘soft’ launch or a full-scale event—make sure your customers know about it. Marsello has all the marketing tools you need to communicate with your customers: email, SMS, automations, website pop-up forms, and more. Use these to craft your promotional campaigns.

• Teaser campaign: Pre-launch, let people know something’s coming. Get people curious and excited for the launch date. For example, you could run contests or giveaways to generate hype.
• Soft launch: It’s okay to do a soft launch to start off, just to test everything is working. But once you’re confident, prepare a launch campaign.

• In-store promotion: Let your customers know about it in-store. Make sure staff are trained on your loyalty app and can answer basic questions about how to get set up, the tier structure, and what the benefits are for the customer.

• Full marketing launch: add a pop-up to your website, send out email campaigns to your database, and promote the program on social media. You can even run a limited-time launch offer—for example, 200 extra points for signing up in the first week.

How do I keep customers engaged?

The promotion doesn’t stop after you launch the campaign! There are lots of light-touch, low-maintenance campaigns you can run to keep your loyalty program interesting. Plus, you can talk about all the cool campaigns you’re running to non-loyalty subscribers to get that FOMO going.

Here are some ideas to get you started:

• Run points campaigns: For example, you could have a double points week. These are great to run in slower sales seasons, as they incentivize loyal customers to accelerate their points growth.
• Hype the program on social media: Use social media to promote the loyalty program and engage with customers through interactive content and contests. See Mecca’s Beauty Loop hype in the Instagram post above!
• Run limited-time offers: Offer special rewards for a short period of time to incentivize customers to participate in the loyalty program.
• Build up a community: Foster a sense of community among loyalty program members through events, forums, or social media groups.
• Collaborate with partners: Partner with other brands to offer joint rewards and increase the value of the loyalty program.
• Build your mobile experience: Encourage customers to save your loyalty portal to their mobile home screen, so they can access their points balance and engage with your brand on the go.
  
  

Step 4. Set up important notifications as SMS messages

Your customers get so many emails, they’re missing important updates. An SMS will cut through the noise by going direct to their mobile. While you don’t want to overdo SMS marketing, automated texts triggered for important loyalty updates and reminders will be much appreciated.

Notify customers when they have a reward coming!

Whether it’s a discount in their inbox ready to redeem, or a gift coming to their physical address, let them know it’s on the way and when they can expect it. 

Let customers know when their tier is about to expire

Like Mecca, you probably want customers to keep up a minimum annual spend. Expiring tiers is a fantastic way to keep customers spending to retain their status… but it won’t have much impact unless they know how they’re progressing! Send customers an automated text message to let them know they’ve got a bit more shopping to do to keep up their tier.

Let customers know when they hit a milestone

Your loyal customers will want to know when they’ve unlocked a new reward, or hit a big points milestone (for example, they’ve entered a new tier). Don’t leave them guessing, automatically deliver the good news right to their mobile.

Step 5. Keep optimizing!

The final step is that… there is no final step. Running a loyalty program is an ongoing, ever-evolving journey that you’re on with your customers. So it’s important to have fun and keep innovating as you go. Loyalty is a regular and ongoing business activity, just like marketing and sales. There will always be improvements and new ideas you can implement, so have a regular reminder set up to check in and evaluate how it’s going.

What are the top loyalty metrics I should be tracking?

Marsello’s dashboard keeps track of all your important loyalty metrics. Top things to track are repeat purchase rate and rewards redemption rate. These will show you that your loyalty program is moving the needle on sales and revenue, and getting good engagement from customers.

How do I know if my brand is doing better over time?

While Marsello doesn’t track brand impact, there are some incredible new tools you can use to measure your brand health. Take a look at Tracksuit, as one example.

Final Words

Building a successful loyalty program like Mecca's Beauty Loop starts with understanding your brand's "why." A loyalty program is just one tool to keep customers coming back, and it should be built with a clear strategy based on your brand's vision and mission.

Mecca's founder Jo Horgan was frustrated with the department store experience and wanted to create a fun and entertaining shopping experience, which is exactly what Mecca and the Beauty Loop experience provides.

Using ordinary, off-the-shelf loyalty software like Marsello, you can create a tiered loyalty program with rewards that offer value to customers and keep them engaged. However, it's important to remember that a loyalty program is only effective if you're doing other things to support it and build a strong brand relationship with your customers.

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

Quick links:

• • • 1. They use the right tool for the job
    • 2. They use customer data for lazer-focused personalization
    • 3. They give compelling reasons for customers to opt in (and stick around)
      
      

Massive international businesses like Dominoes, Sephora, Uber, and Airbnb are all using SMS to increase their revenue and efficiency. By leveraging text marketing, they have been able to reach their customers, boost engagement, and drive sales. If SMS marketing didn't work, these brands would not be using it.

So what do they know that we don’t?

We’ve looked at some of the world’s most successful brands to look at the anatomy of an SMS strategy that converts.

What did we learn? 

1. The science behind running high-performance SMS marketing campaigns actually isn’t as complicated as it looks.

2. By not leveraging SMS marketing, we’re missing out on a powerful tool that can help us reach our business goals faster and more efficiently.

So, we’ve wrapped up the know-how in this article, so you can see how they’ve cracked it. Inside you’ll find practical tips and strategies that you can use to create high-performance SMS campaigns that deliver results.

Best of all, it won’t cost you much to give the big-brand tricks a go.

1. They use the right tool for the job

Big box retailers aren’t afraid to try something new or unorthodox if they think it will get the job done. They just ask—what is the best way to reach our customers to achieve this goal?

This is one of the biggest perceived challenges for SMBs. When you’re time-poor, it’s easier just to stick to what you know.

The reality is, it doesn’t cost much (time or money) to test a new channel like SMS. And the learnings are worth their weight in gold. If you chat to one of our SMS experts, you can even be in to win 1000 free credits to play with.

Email or SMS?

When choosing between sending an email or sending a text, the main consideration should be time. Does the customer need to act on this right away? If so, use SMS.

If you’re running lots of these time-sensitive campaigns, though, be careful that you’re not overloading your customers. SMS is extremely targeted and almost always opened, so it should be used sparingly for one-off blast campaigns. We’d recommend sending no more than 2 of these to your customers per month.

Another good way to use SMS is for notifications. These only trigger when customers act, so they won’t be as intrusive or annoying (customers will understand why they’re receiving the message). While emails can be used too, they can sometimes get lost in the inbox. SMS will ensure important messages get where they’re meant to go in a near-instant fashion.

Chatbots or SMS?

Chatbots are great when a customer is looking for answers in real time. They work well on messaging apps (Messenger, WhatsApp) and on your website. This is mostly inbound, although you may have a chatbot notification to communicate something when customers visit your online shop.

SMS is better for outbound notifications, like when you’re running a sale or have a personal, time-sensitive invitation or offer to share. You can also use SMS for automated messages, for example, let a customer know delivery updates on their order.

Digital advertising or SMS?

I’ve heard merchants say, “Why would I send a text when it’s so much cheaper to run ads on social media?” I’d respond to this in two parts.

Firstly, is it really cheaper? On average, it costs $17.60 to reach 1000 people on Facebook. For Instagram, it’s $8.30. SMS sits almost bang in the middle—from around $10.00 per 1000 recipients. And that’s not even taking cost per conversion into account. 

Secondly, it depends on what you’re trying to achieve. For example, SMS can drive conversions through high personalization. You have more scope to get really specific to the customer; you know more about them because they’re in your database.

You could use this same idea for secret menu items or order freebies too.

2. They use customer data for lazer-focused personalization

If you’re tracking sales (i.e., if you have a digital POS system and/or an online store) you own a lot of customer purchase data. Now, let’s put it to use!

I’ve just been looking at a merchant account where they’ve automated more than 25% of the revenue. That’s purely just from sending campaigns when customers hit specific criteria or make a particular action.

This business is sending automated emails and SMS messages to customers who haven’t shopped in a while, giving them a small discount, and generating revenue from that.

They’ve also got automated SMS campaigns going out to their loyalty members, letting them know when they have points they need to redeem, or when they’ve unlocked a reward.

This is exactly what the big brands do—they put their data to work. It’s really exciting seeing smaller retailers take that concept and run with it. The set-up time is so minimal, especially because SMS doesn’t require any design work. And the results are incredible.

There are also businesses who are dipping their toe in the water, giving SMS a go with a one-off campaign, and being absolutely blown away at the impact.

Pinjarra Bakery is an example that comes to mind. This is an example of a merchant taking a step back and thinking: what’s the best channel for this campaign?

Every month or so, they’ll make a once-only, off-menu meat pie. They wanted to let their regulars know about it, but the promotion needed to reach them at exactly the right time.

So they sent an SMS, just before lunch time, to encourage customers to come in and try this one-off pie.

After just two SMS campaigns contributed to 15% of revenue over a 3-month period… it’s safe to say, SMS marketing is yet another Pinjarra success.

“Sometimes, I've got to look twice and go—Is this actually real?”

“Sometimes, I've got to look twice and go—Is this actually real?”

- Daniel Pantaleo, Pinjarra Bakery

Another bonus learning: Don’t just track customer purchase data, track the brands and products they’re buying too. With SKU-level data, you can pitch co-marketing campaigns to wholesalers, negotiate better stock prices, and just generally deepen your relationship with your vendors.

3. They give compelling reasons for customers to opt in (and stick around)

If you already see the value in texting your customers, your next challenge is: how do build my SMS database?

The big brands know that people will sign up to get an offer, but will opt out if they aren’t promised continuous benefits. If you want people to stick around (and you want to keep reaping the rewards of high conversion rates), you have to make an offer they can’t resist.

Case study: Sephora

Sephora has a finely-balanced strategy to keep a regular stream of SMS subscribers coming in, while sending exclusive offers and insider info to keep them there long-term.

Opt-in incentive: Sephora uses a 10% discount code to get customers signed up for SMS marketing.

Continuous benefits: Then, Sephora shows the value of being on the list. Their SMS subscribers and beauty insiders get access to all sorts of exclusive offers, as well as being kept in the loop with new stores and events.

Case study: Domino’s

Domino's takes a slightly different approach. The incentive to sign up is access to the deals themselves… and they’re very good deals.

Opt-in incentive & continuous benefit: Exclusive access to time-sensitive deals.

These deals are so good, you wouldn’t find much better. While smaller retailers and hospitality businesses can’t compete with the big brands on price, you can still use this method. Even if you don’t want to offer 50% discounts, your database will still appreciate a $5 voucher or small freebie.

Finally, to make a lasting impression on your audience, don’t be afraid to lean on your customer experience, product quality, and level of service as your point of difference in these kinds of campaigns.

How SMB Merchants Can Leverage SMS Marketing

1. Build Your SMS List: Start by building your SMS list by obtaining your customers' opt-in consent. You can do this by offering a discount or promotion in exchange for their phone number.
2. Expire Discount Codes: When you use discount codes for campaigns, make sure you set an expiry date to make the offer time sensitive.
3. Personalize Your Messages: Use customer data to personalize your SMS messages and offers. This could be based on their purchase history, location, or interests.
4. Time Your Messages: Send timely and relevant messages to your customers to maximize their impact. This could be about promotions, new products, or special events.
5. Keep It Short and Sweet: Keep your messages short and concise, with a clear call-to-action. This will encourage your customers to take action and engage with your brand.

Meet with one of our experts and be in to win 1000 free SMS credits.

Discuss how SMS could work best for your business. Meet with an SMS expert before the end of June and be in to win 1000 SMS credits.

Standard T&Cs apply. Additional competition terms: 1) Offer not available for SHAFT-regulated merchants. 2) To be eligible, you must book and complete a call with a Marsello SMS expert before UTC 11:59pm, 30th June, 2023. 3) Only one entry per eligible business will be accepted.

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

Quick links:

• • • 1. The Very Secret Sale

    • 2. Mystery Discounts

    • 3. Secret Menu Items or Freebies

    • 4. Pop-Up Store Google Maps Link

    • 5. The Birthday Offer

    • Before you begin: Tips From The Experts
      
      

    • Win 1000 Free SMS Credits

      
      

We all know what bad marketing looks like. It’s the emails we bulk delete, the text message that gets us up on the wrong side of the bed, and the intrusive ad in the middle of your Facebook message inbox.

We sign up for things left right and center, opting into emails when we buy something, accepting SMS marketing when we make an appointment… Then before we know it we’re inundated with marketing messages and we’re subjected to a total advertising overload.

That’s why, as business owners, we’re hesitant to send too many emails, or annoying texts, or set up pesky retargeting ads that don’t turn off even when customers have already bought the dang thing.

However, when marketing is done well, we don’t see it as marketing. We see it as a story, or a relatable anecdote, or a club we are genuinely excited to be part of.

So how do we take SMS—one of the more intrusive forms of marketing—and make it exceptional? How do we make SMS marketing so good that customers will be throwing their mobile numbers at us, begging to be part of our list?

The fact is, SMS has a reputation as one of the most annoying forms of marketing because it is the most direct. It comes right to the user's personal device, without the need for an internet connection or mobile data. It’s almost guaranteed to be delivered and opened. There’s really no barrier shielding the recipient from an annoying message if they’re opted in.

But what makes SMS annoying also gives it its edge.

So here’s what we’re going to do. We’re going to design 5 creative, tantalizing & clever SMS campaigns that you can use or modify and promote as part of your brand’s customer experience.

Ready to say goodbye to SMS opt-outs?

Goal: To attract new text subscribers and build up a marketable database for SMS. 

Benefit: Better engagement, higher read rates, and more return on your marketing investment.

Understand that these campaigns should be exclusive (or at the very least first access) to text message subscribers. In return for their mobile number and marketing consent, you want to make it well worth their while. Customers need to know that opting out means they will no longer have access to these incredible offers and campaigns.

Here are 5 SMS Campaigns That Will Have Customers Eager To Share Their Number.

1. The Very Secret Sale

Every month, 1 text subscriber is chosen randomly to participate in a secret sale. This creates hype and excitement within your database, and you can use it in your list of amazing things your subscribed customers get access to. This campaign creates a sense of exclusivity and urgency, while also encouraging customer engagement, referrals and social shares.

Yep, it’s pretty much just a one-off discount or voucher for one person, once a month. But make the offer tantalizing enough that everyone wants it.

Steps: 

1. Export a list of your SMS subscribers as a CSV file (or download a full list, and sort by SMS subscribers, deleting the rest).
2. Use a Random Name Picker like this one, where you can upload a CSV file of your database
3. Pick a name at random (or as many as you like).
4. Create a campaign list or segment with that customer.
5. Generate a single-use or customer-specific discount or voucher code. Adding a time limit or expiry date creates urgency.
6. Send an SMS campaign (copy the text below and modify to your liking).

Message copied to clipboard!

Now paste into your next SMS message.

[YOUR COMPANY]: Hey [name]! You're in the Secret Sale! Here’s your code for [$50 off]: [XXXX]. But hurry, it expires in 24hrs! T&C Apply.Reply STOP to opt-out

Copy message

2. Mystery Discounts

This campaign creates a sense of excitement and anticipation for customers, as they wait for periodic messages with surprise discount codes. By keeping the value of each code a mystery, you’ll incentivize customers to jump online and add items to their cart to apply the code.

You can use this type of campaign alongside other campaigns and releases, for example for early access to new collections, to further increase customer engagement.

Message copied to clipboard!

Now paste into your next SMS message.

[YOUR COMPANY]: Mystery Code Alert: [XXXX]. Will you get 10% off, 20% off, or even more? It's a mystery! Expires in 8hrs! T&C Apply.Reply STOP to opt-out

Copy message

3. Secret Menu Items or Freebies

In one of the most creative SMS campaigns we’ve seen, Pinjarra Bakery promotes exclusive meat pies to their local customers. They’ll create whacky recipes and do a one-off batch, then send a text just before lunch to let customers know.

Campaigns like this are great. they’re time-sensitive, they’re fun, and they get customers excited to try something new and different.

Message copied to clipboard!

Now paste into your next SMS message.

**LIMITED TIME** [SECRET MENU ITEM]. Visit [YOUR COMPANY] today. Hurry, we always sell out fast!Reply STOP to opt-out

Copy message

You could use this same idea for secret menu items or order freebies too.

Message copied to clipboard!

Now paste into your next SMS message.

Say “[PASSWORD]” when you order from [YOUR COMPANY] today and we’ll add a large fries to your order for free. Offer ends 5pm today.Reply STOP to opt-out

Copy message

4. Pop-Up Store Google Maps Link

Running a pop-up store? Offer first access to the pop-up store Google Maps location to SMS subscribers. When promoting your pop-up store, you can create a landing page or add a form to your Link In Bio. Ask customers to add their mobile number to receive the location 24 hours before the store opens.

Pop-up stores can offer an air of mystique and exclusivity. They’re outside your usual store location, run for a limited time, and often promise the best deals and last-of-run items.

I was recently out shopping and needed a different size in the hoodie I wanted. I was told that there was only one left, that it wasn’t available online or in any of the physical other stores, but that it would be at the pop-up, happening later that week. Plus, the store assistant whispered as an aside, it would be half the price.

I got there on the day and the line was halfway down the street.

Pop-ups and markets are a popular way for stores to run sales and move stock quickly. Having everything for sale in one place, and for a limited time, creates urgency and demand. They are also great for ecommerce/DTC brands who want temporary, cheaper floorspace to build their brand presence in a particular market.

Message copied to clipboard!

Now paste into your next SMS message.

**THIS WEEK ONLY**[YOUR COMPANY] pop-up store.Location: [LINK]. Open 10-5 until Friday or while stocks last. Reply STOP to opt-out

Copy message

5. The Birthday Offer

Last but certainly not least! Most customers expect birthday offers when signing up for a loyalty program or marketing emails these days. But why not offer something extra to SMS subscribers?

This campaign creates a personalized experience for customers, making them feel valued and appreciated on their special day. Additionally, by setting a time limit on the offer, you’ll create urgency and encourage customers to take advantage of the offer before it expires.

Message copied to clipboard!

Now paste into your next SMS message.

Happy Birthday Frances! Enjoy a coffee at any Flora's Cafe this week, on us! Just show this text at the counter. Reply STOP to opt out

Copy message

Before you begin: Tips From The Experts

Above: Wildfang leads with the benefit of opting in when promoting their SMS marketing program at checkout.

1. Be upfront. Dominoes lead the charge in transparency, letting customers know before they subscribe to expect no more than 6 text messages a month. If you’re open, people know what they’re signing up for and will be less likely to opt-out.
2. Lead with the benefit. Retailer Wildfang asks customers to opt-in by self-selecting whether or not they want a discount. Be clear under the initial copy/headline that customers are signing up for SMS marketing, and make sure you deliver the discount in the first SMS message you send them (automate it to be extra certain).
3. Keep compliant. Make sure you’re staying within global, regional and industry SMS legals. While we stay up-to-date with the rules and regulations, we’re not legal experts, so make sure you check the TCPA and other legislation and guidelines to make sure your campaigns don’t miss the mark.

Final words

SMS marketing campaigns can be highly effective if they are designed well, creating a sense of excitement and exclusivity among customers. As SMS is the most direct form of marketing, it is important to ensure that campaigns are designed with care to avoid being seen as intrusive. The campaigns outlined above all offer creative and tantalizing options for customers to engage with a brand through SMS. By providing exclusive access to offers and campaigns, customers are more likely to opt-in to SMS marketing, leading to higher engagement and return on investment.

Meet with one of our experts and be in to win 1000 free SMS credits.

Discuss how SMS could work best for your business. Meet with an SMS expert before the end of June and be in to win 1000 SMS credits.

Standard T&Cs apply. Additional competition terms: 1) Offer not available for SHAFT-regulated merchants. 2) To be eligible, you must book and complete a call with a Marsello SMS expert before UTC 11:59pm, 30th June, 2023. 3) Only one entry per eligible business will be accepted.

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

With over 800 plugins listed in the WooCommerce extension marketplace, it can be overwhelming to choose which ones to use. That's why we've compiled a list of the 9 best plugins to help you grow your WooCommerce store.

From boosting sales and customer loyalty to improving the user experience and site performance, these plugins can help take your store to the next level in 2023.

1. Marsello: Seamless In-store & Online Loyalty
2. Klaviyo: Email & Text Marketing
3. Zapier for WooCommerce
4. WooCommerce Product Table
5. Google Product Feed for WooCommerce
6. LiveChat for WooCommerce
7. Tiered Pricing Table for WooCommerce
8. WooCommerce Wishlists
9. Back In Stock Notifications
   
   

9 Best WooCommerce Apps to Grow Your eCommerce Store in 2023.

1. Marsello for WooCommerce: Seamless in-store & online loyalty

Know your customer, no matter how they shop. Marsello is the only loyalty platform that integrates with a range of POS apps. This means you can track every sale, in-store or online, to a customer profile.

Then, turn this 360-degree data into revenue with personalized campaigns and incentives to drive repeat sales—all with one smart loyalty marketing app.

How it can help drive sales:

• With a loyalty program in place, customers are more likely to return to your store and make repeat purchases in order to earn rewards.
• Tiered rewards incentivize customers to spend more in order to reach new ‘levels’ in your loyalty program.
• By connecting your in-store sales data and WooCommerce sales to Marsello, you’ll get deeper insights into customer behavior and preferences, allowing you to optimize your marketing and maximize sales.

Pricing: From $100/month

Start a free trial

2. Klaviyo: Email & Text Marketing for Ecommerce

A unified customer platform for email, SMS, and more. Klaviyo helps you convert data into personalized customer conversions with smart campaigns and automations. Whether you’re sending a drip campaign, a transactional email, or a special holiday campaign, ultra-relevant content can help you boost engagement—and earn more revenue.

How it can help drive sales:

• Personalized messages such as abandoned cart reminders, product recommendations, and post-purchase follow-ups can help you increase conversions.
• The plugin allows you to sync your customer and order data and create more personalized and targeted campaigns.
• Automation tools such as follow-up emails can help you automate your marketing workflows and drive more sales.

Pricing: From $0/month (pricing scales with your business)

View on the WooCommerce Marketplace

3. Zapier for WooCommerce

Zapier enables you to connect your WooCommerce store to over 2,000 apps, automating tasks such as order processing, customer data management, and shipping notifications.

How it helps you drive sales:

• You can create custom workflows based on triggers and actions, such as sending a discount code to a customer who abandons their cart or adding a customer to a specific email list when they make a purchase.
• Automated workflows can help you increase conversions and drive more sales.

Pricing: $59/annum

View on the WooCommerce Marketplace

4. WooCommerce Product Table

The WooCommerce Product Table plugin displays products in a table format, allowing customers to view multiple products at once and compare them side by side.

How it can help drive sales:

• Customers can filter and sort products based on various criteria, making it easier for them to find what they are looking for and reducing the likelihood of them leaving your store without making a purchase.
• The plugin is mobile-friendly and responsive, providing a seamless shopping experience for customers on all devices. Using the WooCommerce Product Table plugin can enhance the user experience on your store, increase conversions, and drive more sales.

Pricing: Paid plans start from $59/month.

View in the WooCommerce Marketplace

5. Google Product Feed for WooCommerce

This plugin creates a product feed for your WooCommerce store that can be used to advertise your products on Google Shopping, allowing you to reach a broader audience and increase sales.

How it can help drive sales:

• This plugin can be used to increase your visibility and drive more traffic to your store.
• It ensures that your product data is accurate, complete, and relevant, which Google favors.
• You can easily manage your product listings and make changes to your data as needed.
• You can tap into a large audience of potential customers who are actively searching for products online.

Pricing: $79/annum

View listing in WooCommerce Marketplace

6. LiveChat for WooCommerce

LiveChat provides real-time customer support and engagement through live chat, improving customer satisfaction and retention.

How it can help drive sales:

• Live chat support provides immediate and personalized support to customers, which can increase customer satisfaction and ultimately drive more sales and repeat business.
  

Pricing: From $20/month.

View in WooCommerce Marketplace

Easily set up individual pricing for various quantity ranges, and your customers can see instantly how the price for one item changes depending on the quantity they have chosen.

How it can help drive sales:

• The plugin allows you to offer bulk discounts to customers who purchase larger quantities of your products.
• By offering these discounts, you can incentivize customers to purchase more products from your store, which will increase your sales and revenue.
  

Pricing: $79/annum

View in WooCommerce Marketplace

8. WooCommerce Wishlists

This plugin enables your customers to create and manage wishlists on your WooCommerce store, increasing engagement and encouraging customers to return to your store to make a purchase.

How it can help drive sales:

• When a customer creates a wishlist on your site, they are more likely to return to your store to purchase the items they have saved.
• By allowing customers to share their wishlists with friends and family, your products get more visibility and can attract new customers to your store.

Pricing: $79/annum

View on WooCommerce Marketplace

9. Back In Stock Notifications

The Back In Stock Notifications plugin allows customers to sign up for alerts when a product they are interested in is back in stock. This can help you gauge demand for out-of-stock products and drive sales when those products become available again.

How it can help drive sales:

• By providing customers with the ability to receive notifications when a product they want is back in stock, you can increase the likelihood of them making a purchase and help prevent them from going to a competitor.
• The plugin integrates with popular email marketing platforms such as Klaviyo, allowing you to easily send targeted emails to customers who have expressed interest in specific products.
• By providing customers with a way to receive notifications when a product is back in stock, you can build stronger relationships with them and encourage repeat business.

Pricing: $49/annum

View on the WooCommerce Marketplace

So, which WooCommerce plugins should I install?

Whether you're a new eCommerce entrepreneur or an established WooCommerce store owner, you'll want to take advantage of the many great apps the WooCommerce Marketplace has to offer.

Before you start your Marketplace search, we suggest you take a moment to reflect on your business goals and needs. Ask yourself these simple questions:

1. What challenges am I facing as a WooCommerce business?
2. What specific tools do I need to address my problems?
3. What does my ideal state look like, and will this plugin help me get there?
4. Does this app have what I need, what is the cost, and am I willing to pay for it?

By answering these questions, you'll gain a clearer understanding of your business objectives, and it will become easy to choose the plugins that align best with your goals.

Remember, with the right tools at your disposal, you'll be poised for success and ready to take your WooCommerce store to new heights. Best of luck with your search!

Next read: 7 Steps To A Profitable Loyalty & Rewards Program

WooCommerce retailers now have access to seamless in-store and online loyalty. 

We are thrilled to announce our latest integration with WooCommerce, an open-source eCommerce platform built for WordPress.

“WooCommerce is one of the most requested integrations we've ever had,” says CEO Brent Spicer. “Retailers want to be able to create a seamless experience for their consumers both in-store and on their WooCommerce online store through Marsello. This is game-changing for many of our current, and future, retailers.”

Ready to get set up? Watch the video.

With Marsello for WooCommerce, you can connect your online sales data with a range of POS providers.

To really know your customer, you need all the data—no matter where they’re shopping. But it's notoriously difficult to track customer behavior seamlessly across in-store and online channels. Until now.

The Marsello plugin for WooCommerce means you can…

• Create a better shopping experience. It's easy for customers to earn and redeem points no matter how they shop.
• Know your customers better than ever before. With all the data you need to send personalized, targeted campaigns.
• Keep customers coming back. Loyalty, email, SMS and automation features are all designed to increase average order size and incentivize repeat sales.

Step-by-step: How to connect Marsello and WooCommerce.

How it works

Marsello is an advanced loyalty and marketing platform that is powered by your eCommerce and point-of-sale integrations. Using offers, sign-up forms and a customizable loyalty program, WooCommerce merchants can now collect invaluable first-party customer data in-store and online. This data syncs to unique customer profiles so you can know your customer and their preferences better than ever before.

As well as loyalty and list-building, Marsello also gives you tools to keep growing those customer relationships (and sales). Emails, SMS campaigns, automations, reviews and more. It’s all possible for WooCommerce and Marsello users.

"We've created a seamless redemption process with Marsello because we’re committed to prioritizing the customer’s experience,” says Product Manager, Kat Williams. “But staff will love it too—there’s much less confusion from customers about how and where they can redeem and earn points. It all just works, whether transactions are in-store or online.”

Senior Software Engineer, Rukshan Dangalla, agrees. "I'm so excited to see this integration launched. The end result will provide a seamless experience for our merchants, and it's a significant milestone for our company. I'm proud to have contributed to its success!"

Your fully integrated tech stack

With Marsello, WooCommerce sales tracking is seamless in-store and online. Marsello has direct integrations with all major POS platforms including Lightspeed Retail, Cin7, Heartland and Shopify POS.

Getting set up

Setting up the integration is a breeze. You can connect Marsello with just a few clicks and start using the platform to create your marketing campaigns. The integration also ensures that your data is synced between your WooCommerce store and Marsello, so you can track your progress and make informed decisions about your marketing campaigns.

Marsello: Seamless in-store and online loyalty. Drive repeat sales with a loyalty and rewards program Send email and SMS campaigns to customers Create set-and-forget marketing automations Track the direct impact of all your marketing on revenue Build a customer database

Marsello is now fully integrated with Lightspeed Retail (R-Series). 

R-Series retailers can now run their loyalty program seamlessly in-store and online. Marsello helps R-Series users provide an enhanced customer experience, personalized rewards, and targeted marketing campaigns.

"Lightspeed is a leader in the retail industry and we're proud to integrate with their R-Series platform," said Brent Spicer, CEO of Marsello. "Our partnership will empower more retailers to grow their business and foster strong relationships with their customers through personalized loyalty marketing."

Why connect R-Series + Marsello?

R-Series retailers can glean valuable customer insights with Marsello. This empowers them to make data-driven decisions with ease.

🗣️ Attn: R-Series users! You can now…

• Sync your POS and eCommerce sales data all into one customer marketing platform
• Attach customers to a sale on the POS sale screen to attribute purchases to a unique customer profile in Marsello
• View a customer’s loyalty profile right from within your R-Series sales screen
• See how your loyalty and marketing activities impact sales in-store and online
• Get a 360-degree view of customer behavior and purchasing habits
  
  

Your fully integrated tech stack

With Marsello, R-Series sales tracking is seamless in-store and online. Marsello has direct integrations with all major eCommerce platforms including Shopify, BigCommerce, Ecwid, and WooCommerce (coming soon).

Getting set up

Marsello users can now add R-Series in their Integrations tab in the left navigation menu in Marsello. Staff can also access customers’ loyalty and marketing profiles directly from the R-Series sales screen.

About Lightspeed Retail (R-Series)

Lightspeed R-Series is a point-of-sale (POS) system developed by Lightspeed, a leading provider of cloud-based commerce solutions. R-Series is a Lightspeed Retail product, designed to help retailers manage their brick-and-mortar operations, including sales processing, inventory management, customer management, and reporting.).

Marsello: All your marketing, in one place. Drive repeat sales with a loyalty and rewards program Send email and SMS campaigns to customers Create set-and-forget marketing automations Track the direct impact of all your marketing on revenue Build a customer database

The Shopify App Store holds the key to transforming your operations and unlocking revenue growth for your business. But, with thousands of apps to choose from, it can be overwhelming to choose which apps are the right fit for your store.

To help you get started, we’ve compiled a list of the 11 best Shopify apps to grow your business in 2023.

1. Keeper—Recover Abandoned Carts
2. Shopify Flow
3. Marsello: Loyalty, Email & SMS
4. Loop Returns & Exchanges
5. PageFly Landing Page Builder
6. Stamped Product Reviews & UGC
7. Booster: Page Speed Optimizer
8. Appstle Subscriptions
9. Peek! Better Replay & Survey
10. Easyship - All in one Shipping
11. Klaviyo: Email Marketing & SMS

11 Best Shopify Apps to Grow Your eCommerce Store in 2023.

1. Keeper—Recover Abandoned Carts

According to the Baymard Institute, the average abandoned cart rate in 2022 was 69.99%. That means that for every 100 people that visit your online store, almost 70 of them will never make it to checkout—that’s a lot of potential revenue you’re missing out on. 

Keeper is a one-click install Shopify app designed to recover abandoned carts and increase your store’s revenue automatically in the background. When customers log in across multiple devices they will find their abandoned shopping cart waiting for them, ready to complete their order. This makes it easy for them to pick up where they left off, resulting in more sales for your Shopify store.

Key benefits:

• Automatically prompt users to complete their orders.
• Remember customers’ shopping carts across their devices.
• Merge previously abandoned carts with current ones and drive more sales.
• Reduce your abandoned cart rates and drive more sales.

Pricing: Free

Shopify Review | CHIC 414 Boutique

“SO helpful for regaining sales and reminding our clients that they have abandoned their shopping carts. We have definitely seen an increase in our sales.”

2. Shopify Flow

Shopify Flow helps automate processes that solve unique challenges eCommerce store owners face. With Flow, you can easily build custom workflows to solve specific challenges and tasks that would otherwise burn precious time and resources.

Flow is a powerful but simple automation tool. You can quickly customize unique triggers and conditions to create advanced workflows that run on autopilot, all without needing prior developer knowledge. 

Key Benefits:

• Create custom workflows and automate processes to streamline your operations
• Save time by turning repetitive, time-consuming tasks into automatic workflows
• Simple to set up: Automate workflows in a few clicks and get back to business

Pricing: Free

Shopify Review | Landyachtz Skateboards

“In my opinion Flow is the single most valuable aspect of Shopify Plus! The biggest limitation of Flow is your imagination and the things I've been able to automate have been game-changers for our operations. One aspect I never expected was how effective Flow is in helping me build safety nets and redundancies for problems that would go unseen without it. Probably my favourite app.”

3. Marsello

Marsello is a seamless loyalty and marketing platform that helps Shopify brands drive repeat sales and engage customers, no matter how they shop. It offers a variety of marketing features, including loyalty programs, email and SMS campaigns, automations, social media management, and more.

One of Marsello's key strengths is its omnichannel loyalty solution, which allows Shopify brands to run a seamless loyalty program across their eCommerce and brick-and-mortar channels—simplifying your customer loyalty management and improving customer experience.

The platform's eCommerce and POS connection helps brands unify their customer data, making it easy to understand how your customers shop, and providing powerful data that can be used to run more effective marketing campaigns.

Key benefits:

• Run a seamless loyalty program across your in-store and online channels.
• Save money on subscription fees by consolidating all your apps into one.
• Get a complete view of your customer, and harness that data for smarter campaigns.
• Incentivize customers to come back more frequently, and spend more when they visit.

Pricing: Free plan available. Paid plans start from $100/month

Customer Review | LEGO® Certified Stores

“Marsello made the most sense as it offers a single loyalty program that extends to customers online and in-store. We have many customers that shop with us in both channels and expect a seamless loyalty and marketing experience.”

4. Loop Returns & Exchanges

Loop is a returns app that aims to simplify and automate returns, exchanges, and store credit processes for brands. With the global economy facing a potential recession in 2023, retaining customers and cutting costs are more important than ever.

With Loop, you can analyse your customer interactions from a cost-saving lens, helping you to identify opportunities for revenue retention, and nurturing your customers through their most fragile interactions with your store. Control how and when returns get approved, optimize costs, prevent losses of returned products and retain more revenue with ease.

Key benefits:

• Retain customers through fragile interactions with your brand and optimize costs.
• Save time and automatically control how and when returns and exchanges get approved.
• Reduce refunds and negative reviews, and drive repeat purchases from happy customers.
  
  

Pricing: Paid plans start from $59/month.

Shopify Review | Mediclio

“Love that this app continues to keep customers and merchants comfort in mind. They continue to vamp up the features so that returns and exchanges process can run as smoothly as possible…”

5. PageFly Landing Page Builder

Running a successful eCommerce store requires regularly creating and optimizing landing pages that help turn traffic into revenue. With PageFly, you can drag and drop your way to high-converting landing pages that engage shoppers and grow revenue for your business.

PageFly helps bring your website pages to life with intuitive page-building features and pre-made elements that help you design your storefront how you want it. With its user-friendly interface and pre-built elements, it offers a convenient solution for new Shopify store owners looking to improve their performance.

Key benefits:

• Simple drag-and-drop landing page builders that help create pages that convert.
• Build landing pages with or without code.
• Suitable to build pages of any type and on any device.
  
  

Pricing: Free plan available. Paid plans start from $24/month.

Shopify Review | The Sustainable Watch Company

“Really easy to use, similar to the Shopify page builder. Really knowledgeable, helpful support and after-sales service.”

6. Stamped Product Reviews & UGC

When a customer has a positive interaction with your brand they’re more likely to tell other people about you.

With Stamped, you can encourage customers to leave reviews after positive experiences with your brand, then use those reviews to improve your online reputation and stand out from the crowd.

Key benefits:

• Collect and showcase product reviews to build trust and transparency.
• Improve your website’s SEO and Google Shopping rankings.
• Gain deeper insights into what your customers think about your service.
• Use reviews to promote your business and drive more sales via your store.
  
  

Pricing: Free plan available. Paid plans start from $25/month.

Shopify Customer Review, Seed Cycle Brand

“Stamped Product Reviews is a great app if you want a more minimalist and stylish review app. Their support and technology upgrades are great also!”

Page load speeds are everything when it comes to conversion. According to Hubspot, website conversion rates drop by an average of 4.42% which each additional second of load time. 

Booster helps your eCommerce stores prevent lost sales by making your Shopify store pages feel like they load almost instantly. With Booster, you can pre-load landing pages and increase your website performance without needing any code.

Key benefits:

• Improve your store’s load speeds on desktop and mobile.
• Reduce bounce rates and improve your chances of conversion with faster loading times.
• Pre-load landing pages in the background when a customer hovers over a website link.
  
  

Pricing: Free

Shopify Customer Review, Zael Findings

“Very friendly customer service quick to respond and if you are ever looking for a service to get a speed boost I highly recommend for you to check it out.”

8. Appstle Subscriptions

Subscription-based selling provides a consistent, predictable revenue stream from your best customers. If you're running a subscription-based business model, then Appstle Subscriptions is the perfect solution for managing orders and driving repeat purchases.

The app makes it easy to choose and manage subscriptions via the Shopify checkout page and encourages customers to spend more with personalized product offers, up-selling and product bundling. This helps increase customer engagement and provides reliable, recurring revenue.

Key benefits:

• Provide subscription plans for customers during their checkout process in Shopify.
• Allow customers to manage their subscriptions and skip, reschedule or edit deliveries.
• Drive consistent revenue from customers and up-sell personalized offers and bundles.

Pricing: Free to install. Paid plans start from $10/month.

Shopify Customer Review, Friendly Soap

“This app works like a dream. It’s really popular with our customers and the support team are very responsive and helpful. Highly recommend.”

9. Peek! Better Replay & Survey

Ever wonder why customers aren't converting on your website? If you do, then Better Replay can help. With free session recording and playback options, Better Replay allows you to observe how visitors interact with your site. 

Boasting a 4.7-star rating on the Shopify App Store, Better Replay eliminates the uncertainty of why your pages aren't converting, helping you enhance your user experience and increasing conversions.

Key benefits:

• Learn how your visitors interact with your website with session recordings.
• No more guesswork. See exactly why your landing pages aren’t converting to sales.
• Gain insights into customer behavior and improve your website conversions.

Pricing: Free. Paid plans start from $29/month.

Shopify Customer Review, Smaller Living

“I recommend gaining knowledge of what leads to a bounce rate. You can review live sessions, and it shows where you are losing customers.”

10. Easyship - All in one Shipping

Online shoppers have extremely high expectations when it comes to shipping times and order management. According to a Retail Dive study, 62% of shoppers expect to receive their shipping orders to arrive in less than 3 days. 

Easyship is an all-in-one shipping management platform that helps Shopify businesses manage their shipping operations and save time and money. The app helps customers easily compare costs and delivery times with dynamic rates during the checkout process. It helps you create a tailored shopping experience and requires little effort so you can focus on growing your business.

Pricing: Free plan available. Paid plans start from $29/month.

Shopify Customer Review, Mokuyobi

“I use this app to help fulfill our orders efficiently. It has worked great in the 3+ months that I have been working where I currently am. So far I have not had any real issues with Easyship.”

11. Klaviyo

In the world of eCommerce and retail, customer relationships are everything. Klaviyo is a unified customer marketing platform that revolutionizes the way you connect with your customers, helping you build profitable relationships with intuitive features like email marketing, SMS, automations, forms, and reviews.

Klaviyo's intelligent marketing automation features make it easy to earn more revenue without resorting to ineffective batching and blasting. The well-known Shopify app delivers unmatched speed and time-to-value, empowering you with best-practice marketing templates that are ready to go live from the start.

Key benefits:

• Deliver tailored experiences to each customer, increasing the ROI of your email marketing.
• Save time and effort with automated workflows that nurture leads and engage customers.
• Leverage your customer data and analytics to make informed decisions that drive growth.

Did you know? You can integrate Klaviyo's advanced customer marketing features with Marsello's loyalty software to create advanced customer segments that can be leveraged to craft highly-personalized campaigns that engage customers and grow revenue.

Learn more about Klaviyo and Marsello's integration.

Pricing: Free to install. Paid plans start from $30/month.

Shopify Customer Review, Wingback

"Klaviyo provides vastly superior data on every customer, every automation, and every campaign, helping us make better decisions and drive greater ROI each month. The support guides are really comprehensive, their team is always quick to provide guidance and the platform is constantly improving."

So, which Shopify apps should I install?

Whether you're a new eCommerce entrepreneur or an established Shopify store owner, you'll want to take advantage of the many great apps the Shopify App Store has to offer. From all-in-one marketing solutions to shipping and customer service apps, Shopify has something for everyone.

But the truth is, there's no one-size-fits-all solution for Shopify stores. Each business is unique and faces its own set of challenges, but with the right app, you can overcome these challenges and achieve success.

Before you start your app store search, we suggest you take a moment to reflect on your business goals and needs. Ask yourself these simple questions:

1. What challenges am I facing as a Shopify business?
2. What specific tools do I need to address my problems?
3. What does my ideal state look like, and will this app help me get there?
4. Does this app have what I need, what is the cost, and am I willing to pay for it?

By answering these questions, you'll gain a clearer understanding of your business objectives, and it will become easy to choose the apps that align best with your goals.

Remember, with the right tools at your disposal, you'll be poised for success and ready to take your Shopify store to new heights. Best of luck with your app store search!

Next read: 7 Steps To A Profitable Loyalty & Rewards Program

In an analysis of over 60 million purchases, Marsello found that 25% of orders come from the top 2% of customers (2022).

While it can be tempting to focus on getting new customers, marketing to your database can be much more profitable. We call this customer marketing or loyalty marketing because it focuses on bringing back customers who already know you.

💡 Did you know? According to the Pareto Principle, 80% of your profits come from the top 20% of your customer base.

Loyalty programs are one of the most popular customer marketing tactics for several reasons.

• They only reward high-value customers. Unlike discounting, loyalty programs only offer discounts and rewards to your best customers.
• They give you valuable data and insights. Loyalty programs build a profile of your customer’s shopping behavior, in-store and online. To earn points on a purchase, customers have to identify themselves. That means you can track each sale against their unique loyalty identifier. This then adds to their profile in your database and helps you engage them with marketing.

Done correctly, a loyalty program can be one of your most important marketing tools.

7 steps to make your loyalty program profitable.

• • 1. Know your customer
    2. Make it easy to use
    3. Promote the program
    4. Personalize the program
    5. Offer exclusive rewards
    6. Keep it fresh
    7. Track success metrics
       
       

While most loyalty apps work out of the box (with some setup time), the reality is the best results come with a bit more effort.

To ensure you’re getting the most out of your loyalty program, follow these simple steps. Trust us, a small amount of planning and reporting each month or quarter will go a long way.

1. Know your customer.

Before setting up your loyalty program, look through the data and customer records you already have. What do you know about your customers? What resonates with them? Do they have any common preferences, qualities or identifiers?

Putting in a bit of work upfront to understand your customer will help you design and structure a loyalty program that resonates with them. After all, you want the program to be enticing and engaging, and ultimately, to incentivize repeat purchases.

Things you could consider:

• What age bracket are your customers in? What are their interests?
• Are they in-person shoppers, or more likely to buy online?
• What emails worked best with your database? Did any particular imagery or copy work well?
• What sales or offers generated the most sales? Can any of these past campaigns provide insights into what rewards might be most enticing?
  
  

2. Make it easy to use.

Make sure your loyalty program is user-friendly and easy to navigate so that customers will be motivated to participate. Barriers like long load times, delays in points balance updates, or a poor mobile experience will deter customers.

We know, as consumers ourselves, that if something isn’t easy, we won’t bother!

Before you invest in any particular software, do a bit of research. Read reviews, sign up for a few free trials, shop around. Make sure the app you go for has all the integrations you need as well (if you’re omnichannel, integrations with both your POS and eCommerce software is a must)!

3. Promote the program.

Once you’ve designed your program, prepare a launch campaign. Whether it’s a ‘soft’ launch or a full-scale event—make sure your customers know about it.

• Teaser campaign: Pre-launch, let people know something’s coming. Get people curious and excited for the launch date. For example, you could run contests or giveaways to generate hype.
• Soft launch: It’s okay to do a soft launch to start off, just to test everything is working. But once you’re confident, prepare a launch campaign.
• In-store promotion: Let your customers know about it in-store. Make sure staff are trained on your loyalty app and can answer basic questions about how to get set up, the tier structure, and what the benefits are for the customer.
• Full marketing launch: add a pop-up to your website, send out email campaigns to your database, and promote the program on social media. You can even run a limited-time launch offer—for example, 200 extra points for signing up in the first week.

Remember, promotion doesn’t end after launch week. Encourage new loyalty signups in-store and online on an ongoing basis (see Step 6 below).

4. Personalize the program.

<First name> merge fields in a blast email campaign are old news. Now we’re all about unique customer journeys—using triggers, automations, and even AI for targeted messaging.

To offer more tailored experiences and increase customer engagement, add some automated workflows to your loyalty program setup checklist. Birthdays, loyalty points updates, and sign-up anniversaries are all super simple to create and give a personal touch to the customer’s experience.

5. Offer exclusive rewards.

Provide exclusive rewards for higher-tier members to incentivize them to remain loyal and engage more frequently with your brand.

Be clear about your tiers and what they mean, and let people know how far away they are from advancing up the ranks.

You can also send surprise awards to delight your most loyal customers and make them feel valued.

6. Keep it fresh.

The promotion doesn’t stop after you launch the campaign! There are lots of light-touch, low-maintenance campaigns you can run to keep your loyalty program interesting.

Plus, you can talk about all the cool campaigns you’re running to non-loyalty subscribers to get that FOMO going.

The bCode launched this ‘double points’ campaign. This email had a 20% open rate and saw a 94% increase in customer’s average loyalty points spent.

Need inspiration? Here are some ideas to get you started:

• Run points campaigns: For example, you could have a double points week. These are great to run in slower sales seasons, as they incentivize loyal customers to accelerate their points growth.
• Hype the program on social media: Use social media to promote the loyalty program and engage with customers through interactive content and contests.
• Run limited-time offers: Offer special rewards for a short period of time to incentivize customers to participate in the loyalty program.
• Build up a community: Foster a sense of community among loyalty program members through events, forums, or social media groups.
• Collaborate with partners: Partner with other brands to offer joint rewards and increase the value of the loyalty program.
• Build your mobile experience: Encourage customers to save your loyalty portal to their mobile home screen, so they can access their points balance and engage with your brand on the go.
  
  

7. Track success metrics.

Remember, the purpose of loyalty programs is to increase repeat sales, average basket size, and the average value of a customer to your business.

So, what should you be tracking? Here are a few metrics you can use to see how well your loyalty program is performing over time:

• Order frequency
• Repeat purchase rate
• Average customer lifetime value

If you’re using a loyalty program app that integrates with your sales channels, you can also directly attribute sales to your loyalty program activities.

Marsello made the most sense as it offers a single loyalty program that extends to customers online and in-store.
- Hayley Greenstein, LEGO® certified stores

Marsello’s dashboard also allows you to see how your loyalty program is performing compared to all your other marketing efforts.

Don’t be afraid to make adjustments as needed, but make sure you test how these impact your results.

Are loyalty programs worth it?

Yes! Loyalty programs can boost important metrics in your business. For example, the average amount customers spend per order, the total amount they spend over time, and how often they make purchases.

But that's not all! When done right and in line with your brand, loyalty programs can also give your customers a better experience and make them feel valued.

To make sure the benefits of the program outweigh any costs, connect your loyalty program to both your physical and online stores. This way, you can see the direct impact your loyalty program has on revenue. 

Read next: A complete guide to creating effective tiered loyalty programs

Marsello: All your marketing, in one place. Drive repeat sales with a loyalty and rewards program Send email and SMS campaigns to customers Create set-and-forget marketing automations Track the direct impact of all your marketing on revenue Build a customer database

It’s no secret that the retail and hospitality sectors are in for a challenging year. The EY Future Consumer Index (November 2022) found that:

• 62% of consumers don’t expect the economy to recover within the next 12 months
• 58% expect their living costs to increase over the next six months

So let’s tackle this head-on, rather than letting it become the elephant in the room. We talked to Victoria University Economics Lecturer Nathaniel Robson about economic trends, and where retail and hospitality merchants can focus their energy in order to keep business pumping. 

We also want to take a look at how this might affect your marketing plan, and give you tips and resources you can use to inform your campaigns in coming months.

💡 Marketing to your most loyal customers, innovating with your products, and building your brand could be your most important investments in 2023.

What's Happening For Hospitality & Retail Businesses in 2023:

• • • Pressure to offer more competitive wages will continue
    • Demand from lower-income consumers will drop 
    • Prices will increase to pass on some costs to consumers
    • Customer loyalty and a strong brand will pay off
    • Innovative, flexible brands may see the most success
      
      

1. Pressure to offer more competitive wages will continue

Pressure on wages is driven by two main factors: a tight labor market and higher inflation expectations.

“Because the skills of the primary workforce in hospitality and retail are highly transferable, businesses in those sectors will be competing with a range of alternative potential employers,” says Robson.

“​​At the same time, higher costs of the materials used in hospitality and retail service provision will squeeze profit margins.”

Both of these factors will make it harder for hospitality and retail businesses to find and retain staff.

2. Demand from lower-income consumers will drop

Consumers are seeing cost-of-living going up. But this doesn’t affect everyone in the same way.

Robson explains that lower-income households will be hit the worst by inflation. Basic costs of living (rent, groceries, power, internet, etc) will use up an increasing portion of their weekly income unless minimum wages and benefits increase proportionately.

Brands that serve higher-income households (boutique hotels, for example) might not see a significant decline in business. However, many retail and hospitality businesses serve customers in a younger, lower-income market. These customers will start looking for cheaper alternatives (looking to retail giants for cost-effective, mass-produced products).

3. Prices will increase to pass on some costs to consumers

Inflation expectations are also driving up costs of ingredients and materials, meaning tighter profit margins and pressure to pass on extra costs to consumers (i.e. to increase prices).

Robson notes that this also presents an opportunity to innovate with your product line and attract higher-income, generally older, consumers.

“New products may attract a new market of early-30s customers as the early 20s market has drifted away due to living cost rises pushing them towards more mass-produced and cheaper alternatives.”

4. Customer loyalty and a strong brand will pay off

Businesses that have invested in customer loyalty initiatives and brand experiences over the pandemic may be rewarded. Through the pandemic, consumers’ purchasing habits changed, with loyalty decreasing as people worked and shopped from home.

Browsing stores and shopping on a lunch break in town was no longer a convenient option, and consumers opted to compare prices online and have goods delivered to their front door. 

Brands that focused on customer loyalty and established a unique market position over this time will see these efforts pay off as consumer wallets tighten.

"The opportunity ... can be met by striving for a unique market position – having a strong brand and established customer loyalty."

Nathaniel Robson, Economics Lecturer

How a make-up retailer grew a loyal database & doubled sales with Marsello

For years, Scotty’s Makeup & Beauty customers had been asking about discounts for students or industry professionals. “With the Scotty’s Rewards Program, we now have a solution that suits a lot of our customers,” says Hollie, Sales Manager. “The fact that we can run the program both online and in-store is great for building our customer database and turning one-time customers into repeat customers.”

With the loyalty program, Scotty’s Makeup & Beauty has seen expansion beyond the industry it initially sought to serve. Now, they’re building a whole new audience of customers who come to them with all their dress-up and costume needs. Since unlocking these audiences with Marsello, they've seen EOFY sales double.

5. Innovative, flexible brands may see the most success

“Trying to hibernate until the crisis is over is not a safe strategy; it may actually involve less risk to try something bold.”

— Nathaniel Robson, Economics Lecturer

Learning from past recessions and economic downturns, a pattern emerges. Those brands and businesses that take a proactive approach to innovation can emerge stronger and more successful than before. We see this across every sector—just look at brands like Lego, Netflix, and Walmart, which all grew during the 2008 recession because of new products and investments.

Yes, there may be upfront costs, Robson says, but “there is some potential long-term benefit to come from the associated innovation.”

What does all this mean for your 2023 marketing plan?

When budgets are tight, it’s more important than ever to stick close to your strategy. That doesn’t mean stop innovating and go back to 1950s marketing tactics — quite the opposite.

What it does mean is being focused, considered, and clever about the way you reach your target audience, the key message, and the call to action. Planning your marketing campaigns shouldn’t be rocket science. If you stick to what’s important, it can be both simple and effective.

To keep your campaigns focused, try our 5-Minute Campaign Plan activity. In this template, you’ll strip everything down to the strategic essentials, and you can flesh out the details later.

Let’s run through an example, with all of the above in mind.

Question 1. What is the key insight?

Any good campaign strategy starts with the “why”. We find that business owners have marketing ideas in spades (which is great!), but this is the time to turn on the filter. Which ideas have a sound reason for action? What is the driving insight that makes this specific idea a good one? 

Example: Consumers are tightening their budgets as inflationary pressures hit. 

Question 2. What campaign idea works best with your insight?

Test your idea(s) against your “why”. Be ruthless. You might have an idea to design and launch a new luxury product, but realize that if you’re being honest with yourself, it doesn’t align with the insight at all.

Example: A loyalty campaign, like a double points week, that drives repeat orders.

Question 3. Who will be your campaign audience?

Now you have your “why” and “what”, it’s time to figure out the “who”. Think about who the insight impacts, and what they have in common.

Example: For your double points campaign, you might have a couple of audiences. First, you’ve got customers who are already in your loyalty program. They are aware of your brand, and actively engage with you. Second, you’ve got customers in your who aren’t in your loyalty program (and who may or may not be in your database).

Question 4: How will you reach your audience with your campaign?

Sketch out a rough plan of channels and activities. Think about where your campaign audiences are, and how you can engage with them.

Example:

• Loyalty members – SMS, email

• Non-members in database – SMS, email (use double points as an incentive to purchase & join the program)

• Other shoppers – Ask to join in-store and include in welcome pop-up online (use double points as an incentive to join the program)

• Social followers – Instagram, TikTok ads & posts

Read next: 4 Simple Marketing Automations For Easy Revenue Wins [With Examples]

Manage your 2023 marketing campaigns with Marsello

All your marketing, in one place. Turn one-time shoppers into loyal customers with loyalty and rewards Send email and SMS campaigns to your customer database Create, schedule and publish social posts across Instagram, TikTok and Facebook Create set-and-forget marketing automations Plan all your campaigns in one simple marketing calendar Track the direct impact of all your marketing on revenue