<img height="1" width="1" style="display:none;" alt="" src="https://px.ads.linkedin.com/collect/?pid=3353132&amp;fmt=gif">

The Marsello Blog

Everything your business needs to grow, delivered straight to your inbox.

ClockIcon  READ

Loyalty Programs: What is the Return on Investment (ROI)?

Here's how to calculate the return on investment of your loyalty program. Calculate the expected ROI of your loyalty program, or your past ROI.

Francesca Nicasio

Content Strategy Manager

Every business owner understands it’s easier to retain an existing customer than to acquire a new one. That’s why many merchants use loyalty programs to incentivize customers to come back and spend more with them. When done right, loyalty rewards, discounts, special early access, etc. can help to drive incremental revenue and maximize your customer lifetime value (CLV).

All that being said, it’s important to remember that loyalty or reward programs are long-term undertakings. Yes, they’re super beneficial to your company, but to reap those advantages, you need to periodically evaluate your loyalty program performance. Some consider loyalty programs to be money pits — and they can be if you don’t keep track of your loyalty program ROI.

So, let’s back up a bit: return on investment (ROI) is a financial metric that evaluates how profitable an investment is. To calculate the ROI, you need to divide the net profit by the cost of the investment, and express it as a percentage. The greater the ROI, the more profitable the investment.

To get a handle on your loyalty program’s success, you need to measure its ROI. The results will help you decide if your loyalty strategy is working or not. If it’s working, you can continue what you’re doing and double-down on your initiatives. On the flip side, you can rejuvenate poorly performing loyalty programs by optimizing offers, running referral programs, or getting customer feedback.

Listen to this post instead:

 


 

How do I calculate ROI for my loyalty program?

As with any business initiative, the success of a loyalty program can be measured by its ROI. The formula to calculate it is pretty straightforward.

Return on Investment = (Total Revenue - Total Cost of Running the Loyalty Program) / Total Cost

download free loyalty program roi calculator

Loyalty program ROI calculation: A real-life example


Here's an example from a merchant we have been working closely with. I'm not going to share their name, but I can share their anonymized results so you can see how we assess the impact of their loyalty program.

Real life example (1)

Challenges in measuring loyalty program ROI

The formula for calculating your loyalty program ROI is simple enough to understand. However, there are a few challenges that can make it more difficult to accurately measure your ROI.

Attributing revenue to the right sources

One of the biggest challenges lies in capturing key metrics and pulling the necessary data from various sources — such as your marketing, sales, finance, tech teams, etc. You need to make sure that you’re attributing your revenue gains to the right sources.

For example, your regular customers are your most valuable ones, with or without a rewards program. How can you be sure their value is attributed to your loyalty program?

It can also be tricky to figure out if a purchase was triggered by loyalty program benefits or if it’s just a customer’s normal buying behavior. You need to have the right tracking mechanisms in place to be able to accurately calculate a loyalty program’s ROI. 

Some of the ways to do this include using robust loyalty apps (like Marsello), discount codes, coupons, etc. to track customer behavior that can only be attributed to loyalty programs.

With Marsello, you can track the metrics like change in repeat purchase rate and increase in turnover from loyalty members, as we've done above. This will get you a much more accurate picture of your return.

It takes time to see results

Not only will you need considerable time to gather the data required to calculate the ROI, but it may also take time for your points programs to show results. Customers must first be aware of such programs, engage with them, and rack up enough points on their loyalty cards. It may take months (or more) for your loyalty program to start paying off, so you won’t know your true ROI right away. 

💡 Pro tip: Rather than committing to a 3 month trial across all your sites, commit to one site for at least 1 year (expanding to other sites if you see results earlier). Starting with fewer sites but allowing for a longer time period will give you a much better indication of the impact of the program for your business.

Metrics to consider when measuring the impact of your loyalty programs

Beyond the ROI calculation above, there are many ways you can measure the impact of loyalty programs. You can look at how they affect your revenue, customer base growth, and engagement, among other things.  

You could choose to measure success purely based on financial returns or through KPIs such as engagement rate, brand awareness, etc. Here are some of the data points you may need to track.

  • Transaction volume
  • Average order value
  • Total revenue
  • Cost of loyalty program memberships
  • Marketing cost
  • Purchase frequency of members and non-members

The key is to track these over time. Remember, it takes time to build loyalty, so running a successful rewards program is a marathon, not a sprint. 

And before you calculate the ROI of your loyalty program, make sure you’re clear about your business objectives. What are your specific goals? Do you want to increase revenue by a certain percentage? Reduce your marketing expenditure while boosting sales? Grow your repeat customer base?

This will be essential for setting targets for your loyalty program and understanding its impact on your bottom line.

download free loyalty program roi calculator

Direct ROI of loyalty programs

Direct loyalty program ROI can come in several forms, including:

Increased sales and revenue from repeat purchases

A loyalty program can significantly contribute to a business' goal of increasing revenue and profit. According to a 2023 report by Gitnux, the likelihood of selling to a new customer is less than 20%. Conversely, this probability rises to nearly 70% for an existing customer.

By enhancing customer satisfaction, fostering brand loyalty, attracting new customers, and gathering important customer data, your loyalty program can lead to tangible financial gains. You can also make informed decisions about product development and marketing strategies, further amplifying revenue.

Ultimately, loyalty programs serve as strategic tools for driving sales, revenue growth, and long-term profitability in any business endeavor.

Just ask Scotty’s Makeup & Beauty, which was looking for an email marketing solutions provider when it came across Marsello. Very quickly, the business realized the full potential of Marsello’s tools and decided to also set up loyalty programs. This resulted in Scotty’s Makeup & Beauty unlocking new audiences, increasing its customer engagement, and doubling its revenue.

scottys-makeup-and-beauty-discount

Reduced marketing costs through targeted promotions

Acquiring new customers through marketing efforts and sales outreach can be resource-intensive, consuming both time and funds. Customer acquisition costs pile up especially when leads opt for competitors.

Since loyalty programs help drive sales from existing customers, they enable your brand to mitigate the expenses linked with customer acquisition.You spend less to drive sales, which leads to a higher bottom line.

Indirect ROI of loyalty programs

Now that we’ve covered the direct ways to measure ROI, here’s a look at the indirect metrics that you may want to track.

Improved customer retention

When customers feel valued and content, they are more inclined to remain loyal and make repeat purchases. Implementing a loyalty program can significantly contribute to this effect.

For instance, imagine being a long-term participant in a supermarket’s loyalty program, accumulating rewards for discounts or free items. Such incentives foster loyalty, encouraging folks to continue supporting your brand despite alternative options.

Enhanced brand loyalty and customer satisfaction

Loyalty programs enhance customer appreciation by rewarding purchases with discounts or complimentary items, fostering a sense of value. Tailoring rewards based on individual preferences demonstrates care and enhances the shopping experience.

This helps to elevate customer satisfaction levels. Satisfied customers are more likely to return, which just goes to show the role of customer loyalty programs in enhancing overall satisfaction and fostering repeat business.

Positive word-of-mouth and referrals

Referral marketing, aka word-of-mouth marketing is a highly effective and sought-after strategy for customer acquisition. Recommendations from friends and family, along with good reviews on social media carry more weight than brand messages.

This is one of the most significant gains from loyalty programs — devoted customers become brand advocates, sharing their positive experiences and benefits received from your business. Through their advocacy, your company can gain new customers organically, without incurring any additional costs.

Data collection and insights for better business decisions

Understanding customers is crucial for business success. Rewards programs offer valuable insights into loyal customers, including their personal details and preferences. This enables businesses to enhance customer experiences and satisfaction by tailoring their services to meet individual preferences.

Bonus points if your loyalty program works across multiple channels. Going omnichannel with your loyalty efforts means you can collect data from all customer touchpoints, while providing a seamless experience no matter where or how they’re shopping.

Fashion label ALPHA60 was looking to improve its customer-first marketing efforts by providing all its customers with the same great experience. ALPHA60 brought in in-store and online sales data into Klaviyo, allowing the brand to display points balances, segment customers, and send personalized emails, no matter how customers shop.

Alpha60 earn options

By using Marsello for loyalty and marketing, ALPHA60 was able to attain a repeat purchase rate of 70%, wildly surpassing what is considered to be a good repeat purchase rate in the industry (between 20% and 40%).

Tools to track your metrics

Loyalty program solutions like Marsello give you a whole host of tools required to track metrics related to loyalty programs. 

The platform's built in marketing analytics capabilities can shed light on which channels and strategies yield the best results. Plus, you can track your loyalty program performance overtime, so you can improve both in the short- and long-term. 

Final words

Loyalty programs can offer substantial returns on investment for your business. The right program can enhance customer satisfaction, drive repeat purchases, and boost retention rates. It also provides valuable data and insights for informed decision-making and optimized marketing strategies. 

That’s why it’s so important to invest in the right solution AND track your return on that investment. Measuring your loyalty program ROI helps you improve, so you can continue to delight customers and keep them coming back.

Need help doing just that? Check out our ROI Calculator to see how your loyalty programs are performing or talk to an expert to discuss opportunities for revenue growth.

Frame 6 (4)download free loyalty program roi calculator


 

Get advice from a loyalty expert and start driving repeat sales.

Book a demo

 


 

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

    Most Popular

    Recent Articles

    How to Request and Manage Google Reviews From Customers In-store and Online

    ClockIcon  READ
    Requesting and responding to Google Business Reviews can feel like a big task. Learn how to manage reviews and target the right customers for valuable...

    There’s a popular saying that you’re only as good as your last performance, and this is certainly true for retail establishments.

    Because of the COVID-19 pandemic, consumers have become more discerning about what businesses they support. With more information at their fingertips than ever before, shoppers spend more time researching different options.

    Google Reviews have become a crucial tool for businesses to manage their reputations online. This blog will explore how businesses can manage Google Reviews and increase discovery opportunities in the search results – and how Marsello can help!


     

    Quick Links:

      •  
      •  

     

     

    What are Google Reviews?

     

    Google Reviews is a functionality embedded within Google Maps and Google My Business where consumers can publicly post reviews for establishments they’ve visited.

    The purpose of Google Reviews is two-fold. They assist businesses with building a positive reputation amongst consumers while also helping individuals find suitable establishments in their local area. More than half of shoppers say they’ve used Google to discover new businesses.

     

    Why do Google Reviews matter?

    Infographic showing that 84% of customers put as much trust in reviews as they do recommendations from close contacts
    Here are some reasons you should consider leveling up your Google Reviews initiatives.

    Improving your local search ranking

    Google Reviews play a critical role in determining your business’s local search ranking. Local SEO helps Google match a person’s search with relevant nearby businesses (e.g., “Italian restaurants in New York City”). Ensuring a healthy supply of positive reviews increases the odds of your business coming up high in the search results.


    Consumers trust online reviews as much as personal recommendations

    Research shows that 84% of consumers trust reviews as much as recommendations from family or friends – this tells us that customers really do consider social proof in their purchasing decisions.


    Giving customers the opportunity to provide feedback

    Customers want to feel that their experiences matter. Giving them the opportunity to share what they love about your business on a public forum shows that you genuinely care and want to receive feedback – even if it isn’t always positive.

     

    How can retailers collect Google reviews?


    Are businesses allowed to ask customers for Google Reviews?

    Yes, though there are some ground rules.

    Google doesn’t allow businesses to pay customers for leaving reviews or “review gate” by discouraging customers from leaving negative reviews. Furthermore, you cannot use reviews left on Google for marketing purposes on other platforms, such as social media or your website.

    Here are some actionable ways that your business can collect Google Reviews:

    Email and SMS automated flows

    It isn’t practical for your business to manually send out review requests to individual customers. Instead, you need a tool that allows you to contact customers in bulk at a time of your choosing. 

    Marsello’s email and SMS automation tool enables brands to build custom email and message flows to request reviews. Marsello customer Harry & Her send automatically triggered email campaigns coupled with the Google Reviews Manager tool to build a solid review base and, in turn, boost their credibility as a retailer. Here's what they had to say about the tool:

    A quote from Harry and Her about how they've automated the Google Reviews collection and promotion process.


    At the POS/checkout directly after a sale

    While the “right” time to ask for a review will depend on your business, products, and customers (more on this below), striking while the iron is hot is usually the best way to get customers to leave reviews. In-store visitors have the chance to form a relationship with sales associates during the shopping experience, which can make customers more responsive to review requests. Consider speeding up the process by having a QR code at the checkout that directs customers straight to your review page.

    When a sale is completed during a promotion

    It’s always a good idea to ask for reviews while your brand is hosting a sales promotion. When customers have gotten a great deal from your business, they’re more likely to have a favorable impression and leave a positive Google review.

    For example, if your brand runs a flash sale for 24 - 48 hours, you can set up an automation flow that sends a review request to a specific segment of customers (i.e., those who placed an order during your flash sale). By using Marsello’s customer segmentation, your business can solicit reviews from customers who are most likely to engage and give glowing feedback.

    When customers join the loyalty program or progress tiers

    Loyalty reward programs can act as their own form of customer segmentation. The shoppers who join your program are usually those already loyal to your brand, meaning they’re also more likely to leave reviews.

    Brands have multiple opportunities to target loyalty program customers, such as when they sign up, redeem a loyalty reward, or progress to a new loyalty tier. These touchpoints are a great time to ask for a Google Review and show members that you care about their experience.

    Smack bang's earn and rewards options from their eCommerce store's loyalty widget displayed on a light pink banner

    You can also take this a step further like Marsello-powered pet boutique Smack Bang by offering loyalty points in exchange for leaving a product review on the product listing itself. With custom automations, it’s easy to create an automated campaign that is triggered when customers leave a positive product review. Product reviews provide a great opportunity to encourage your customers to leave a Google Review about your business.

    Promote/encourage reviews on social media

    Cross-channel promotion is a critical part of collecting Google Reviews. In addition to asking customers for reviews in-person or via email and SMS, you should put out a call on your social channels asking customers to share their experiences.

    It’s important to note that Google does not allow you to use reviews as advertising collateral on other platforms. But there are some less direct ways to achieve this.


    3 social media reviews from Instagram for Chat Thai's restaurants.

    Thai restaurant Chat Thai has a collection of reviews on their Instagram account created from photos and videos they have been tagged in. Consider resharing user-generated review content to steer customers towards leaving Google Reviews.

    Make your Google My Business page easy to find and direct customers there

    Customers won’t leave Google Reviews if your Google My Business page is difficult to find. Some of your customers may never have left a Google Review before. When making review requests via email and SMS, ensure you provide a link to your Google My Business page. Also, consider adding a review page to your website so that you can direct customers to your Google listing.

     

    The right way to request a Google Review

    We’ve gone over some of the best ways to collect Google Reviews. But when is the best time to request a review?

    It can be a tricky balance to get the timing of requesting reviews right. If you leave it too long, your customer’s experience will be less fresh, which could affect the quality of their review. But asking too soon risks annoying your customer, especially if their order hasn’t arrived yet.

    You should also factor in different customer segments. Some of your loyal customers may be more eager to submit reviews straightaway, while those who are new to your business may need some time before they’re ready to leave feedback.

    Marsello’s SMS and email automations allow businesses to automate the process, segment customers, and ensure communications are sent at the optimum time to encourage positive reviews.

    It’s also easy to combine automated campaigns with other review collection methods. For example, a restaurant can prime diners by asking them in person to leave a review and following up by sending an automated email reminder the following day.

     

    How should retailers respond to positive and negative reviews?

     

    Managing positive reviews is simple enough – simply thank your customer for their feedback and say you hope you’ll see them again soon. But what if their experience was less than positive?

    No business wants to receive a bad review. But the most important thing to remember about Google Reviews is whatever you say (or don’t say) is there for potential customers to see. How you respond affects the customer who left the review and onlookers who make decisions based on the reviews left about your business and how you choose to respond. 

    If you receive a negative review, always thank the person for their review. Take the time to investigate the issue to find out what went wrong so you can explain in your response. Most importantly, tell your customer the steps you will take to ensure this doesn’t happen again. Consider offering them a discount for their next visit to encourage them to return and see the changes you’ve made; this puts the ball back in their court and shows onlookers that you have made a serious effort to resolve the issue.

    In some cases, it may help get more information from the customer. In this case, you can respond by encouraging them to tell you more about their experience. As always, it’s best to stay courteous by thanking the customer for their feedback and empathizing with them. 

    Check out this example from Romano's Macaroni Grill.

    A 1-star Google Business Review for a hospitality business with a well-delivered, positive reply from the business owners

     

    Final words


    Google Reviews can feel like a business’s best friend or worst enemy. Using a tool like Marsello to support your Google Review strategy enables you to streamline Review management and ensure that you’re sending the right response at the right time to foster customer loyalty.

    By taking a responsive and automated approach to Google Reviews, your business can proactively enhance its reputation and build stronger relationships with customers – one review at a time.

     

    Book a demo

     

    How to Encourage Google Reviews From Your Customers

    ClockIcon  READ
    Learn how to promote and acquire Google business reviews to increase your online presence and brand recognition – activate your reviews strategy today!

    If you’re searching for a product or service online, do you read a review or two before clicking “book” or “purchase”? If so, you aren’t alone: 93% of consumers say that online reviews influence their purchasing decisions, while 70% of people will only use a business if it has a star rating of four stars or more.

    But it’s no longer enough to list a review or two on your website and call it a day; today’s customers want to see a large amount of social proof before they trust a business. In fact, 54.7% of consumers read at least four product reviews before making a purchasing decision.

    So, what does this mean for businesses?

    It means that you need an ongoing source of positive Google customer reviews to maintain a strong customer acquisition rate. In this post, we’re going to explain how you can get more Google reviews with ease – with a little help from Marsello.


     

    Quick Links:

      •  

     

     

    Why Google business reviews are essential for any business


    With a whopping 92.6% of all search queries going through Google as of June 2021, it’s no secret that Google business reviews are some of the most valuable. 

    When Google is the one-stop shop for consumers searching for everything from hairdressers to restaurants, you need to ensure that you’re at the top of those search results. Otherwise, your business is practically invisible to potential customers. And if they can’t see you, they’re not going to click through to your website.

    By managing Google reviews more effectively, you can make your business more visible – all thanks to something called local SEO.


    Why frequent positive reviews are essential for good SEO


    Local SEO focuses on optimizing a business’s online presence to assist nearby consumers in finding it more easily in search. If a consumer is showing search intent for a particular product or service, Google’s algorithm matches that search query with relevant businesses close to where the person is located.

    For example, if you’re a restaurant in Manhattan, your target audience is likely to be people who are living or visiting in that area. So, if a person searches for “best restaurants in Manhattan” you want your establishment to be as high as possible in those results. 

    According to Moz’s State of Local SEO Industry Report 2020, 90% of search experts believe that review activity is “moderately important” or “very important” in determining local SEO, while 78% agree that Google has become the new homepage for businesses. As such, Google reviews are a fantastic tool to boost local search presence – if you do it right.

    How Google My Business reviews work


    To start collecting Google reviews, you need to either claim or set up a Google My Business listing. This is a free tool offered by Google that allows businesses to manage their presence on the search engine. In addition to reviews, Google My Business listings can also include information such as:

        • Opening hours
        • Address/Contact details
        • Menus
        • Booking widgets 
        • Photos of your establishment

    It’s important to make an effort to fill out as many parts of your profile as possible, as a comprehensive listing will help to boost your local ranking. 

    Check out the listing of the restaurant Chat Thai, which has a number of locations across Australia. All of Chat Thai’s Google listings are fully populated; you can view key business details and contact info, as well as photos and reviews. There’s even an “Order Online” button that lets customers order straight from Google.


    A screenshot of Chat Thais Google business reviews overlaid on a photo of their restaurant

    Once Google My Business is set up and optimized, you’re ready to start driving review activity.

    This is where Marsello’s Google Reviews feature comes in.

     

    How to use Marsello’s Google Reviews Manager

     

    By integrating your Google My Business account with your Marsello marketing, you can easily generate new reviews through automated email and SMS campaigns. 

    Here’s how it works: connect your Google My Business account to Marsello, then enable automated email or SMS flows to encourage people to leave a review. You can customize your email flow with segmentation rules to ensure that you’re engaging the right customers. For instance, you can configure the workflow to only ask your “Best” customers for a review after they purchase. 

    Note that Google Reviews workflows will only be triggered after someone places an order, so you can guarantee the authenticity of your business reviews.

    A Google Reviews collection flow showing tiggers, an SMS campaign, and the eventual Google Review all using Marsello's Generate and Manage Google Reviews feature.

    Finally, it’s easy to track the success of your review automations. And when you receive a review, you can respond to your customers in-app, reward them with loyalty points to say thank you, or email the customer directly – manage reviews your way! 

    Get in touch with our team to book a demo and learn more.

     

    Book a demo

     

    How to use Google Reviews to increase brand awareness


    Before the web existed, businesses and hospitality establishments had to rely on being as visible as possible to attract foot traffic. Everything from flyers and store signage to branded shopping bags have been valuable tools to help businesses increase brand awareness.

    This principle is no different online. Your business needs to take up as much “space” as possible to become known and recognized by as many customers as possible in such a competitive environment. 

    In a time where digital marketing can feel increasingly like a pay-to-play model where only the biggest budgets see results, Google reviews offer a way for less-established businesses to level the playing field. By getting more reviews on Google, you’ll stand out over bigger but less-reviewed competitors.

    How to encourage customers to leave positive reviews

     

    It’s easy to assume that customers will shout from the rooftops when they have a stellar experience at your establishment. But this isn’t the case in reality; less than 50% of customers (47%) say they don’t post negative or positive reviews online at all.

    There are a variety of reasons for this. A lot of us are busy and forget to write a review. Many businesses don’t make it easy or intuitive to leave reviews. If we’ve written reviews in the past and haven’t gotten a response, we might decide it’s not worth the effort.

    By this point, you’re probably asking: How can I get more Google reviews for my business? Continue the following top tips:


    Prompt for reviews after purchases with automated emails and SMS


    The first step to getting customers to leave reviews? Strike while the iron is hot.

    Businesses want to create balance by asking for reviews while a customer’s experience is fresh – this can be tough to coordinate if your establishment asks for reviews manually. 

    Moreover, sending out individually-written emails or SMS is a massive drain on your time. To make asking for reviews as painless as possible, consider investing in marketing automation software that can handle review requests on your behalf.

    Marsello’s automated email and SMS campaign tool enables businesses to send and manage review requests via a straightforward interface. Set the ideal time for your messages to go out to customers and even automate the sending of follow-up messages to give you another shot at securing positive reviews.


    Make an effort to respond to customer feedback


    Getting more customers to leave reviews isn’t just about how you ask for them, but how you choose to respond when you receive them. 

    In fact, 89% of consumers read a business’s responses to reviews during the consideration stage. Why? Because how an establishment engages with positive and negative reviews tells potential customers a great deal about how that business treats its patrons.

    Suppose a customer leaves a negative Google review and that business makes no effort to respond; this could be interpreted as the company not caring about the quality of their customer’s experience, which is a massive red flag. 

    Plus, if you aren’t in the habit of replying to reviews and showing that you’re listening to feedback, what incentive do customers have to put in the effort?

    Restaurant and Bar, The Monday Room, has done a great job of replying to Google reviews, even thanking customers who write more detailed reviews and provide photos:

    The Monday Rooms Google Business Reviews page featuring a response from the business to the reviewer.

     

    Use positive reinforcement, but don’t bribe customers


    If you’re looking to shape consumer behavior in ways that are advantageous to your business, it might seem like a good idea to offer customers a discount on their next order in exchange for leaving a positive review. However, this isn’t a good long-term strategy for most businesses. 

    Too many 5-star reviews on a business listing create suspicion, with studies finding that consumers were more likely to purchase a product or service when the rating is between 4.2 to 4.5 stars. You don’t want your efforts to come across as though your business is buying reviews or deleting negative Google reviews, which can cause potential customers to doubt their authenticity and can even result in your business being penalized by Google. 

    It’s much better to reward customers after leaving a review to guarantee honest feedback. For example, lifestyle and clothing boutique Harry & Her rewards customers with loyalty points if they leave 4 or 5-star reviews, but they don’t actively promote this policy on any of their marketing channels. This practice increases customer satisfaction and ensures that all positive reviews are genuine. 

    The team at Harry and Her was also one of the first to test Marsello's Google Reviews Manager and they've found that Google Reviews are an undeniable source of revenue growth for their business. So much so, they're not going back! Here's what they had to say about their review process and the response from customers:

    "We use Marsello's Google Reviews feature to encourage customer reviews after they buy something from one of our stores. First, we send an automated SMS; then we follow that up with an email to those who have not seen the SMS campaign. It's also been exciting to see our customers respond with so many positive reviews – we now have a 5-star average across our stores!"

     

    Final words


    Managing online reviews can feel a bit overwhelming, especially if you have a brand-new Google My Business listing and gather reviews from scratch. But it’s well worth the effort to create a streamlined outreach strategy to build social proof for your business; when you have a long list of positive customer testimonials, you’re in a much stronger position to acquire new customers.

    By taking advantage of SMS and email automation to coordinate review requests and communicating how feedback enhances the customer experience, you can build a lasting Google review strategy that acquires and retains loyal customers. Marsello’s Google Reviews Manager makes this easy! Book a demo to get started today.

    How to Increase Repeat Business and Revenue with a Loyalty Program

    ClockIcon  READ
    In this Cin7 Masterclass, Marsello CRO Rory Moss dives into how successful loyalty marketing drives repeat business and increases revenue.

    Watch the Loyalty Marketing Masterclass

     

    In this Cin7 Masterclass, Marsello CRO Rory Moss dives into the how-to of successful loyalty marketing.

     

     


    Quick Links:



     

    What is customer loyalty?

     

    Are you part of a loyalty program? Your answer is probably “yes”. But does it make you more loyal to that brand? According to CRO Rory Moss, it actually doesn’t.

    Customer loyalty is all about customer relationships with your business. The positive interactions you have with customers every day and the relationships those interactions build create measurable value that you can continue to grow.

    And customer loyalty is not necessarily transactional; it’s about the experience your customer has when they walk into your store, shop online, read an email, or have any other interaction with your brand.

     

    For a loyalty program to work...

     
        • Your product/offering must be consistent.

        • Your product/offering must be valuable.

    You don’t need a loyalty program to differentiate and compete.

    You do need a deeper understanding of your customer base and a reason for your customers to keep coming back.

     

    Marsello infographic showing that customers are more likely to purchase when brands offer personalised experiences

                    

    Why deploy a loyalty or rewards program?

     

    There are lots of ways to give customers a good experience and keep them coming back - loyalty marketing is just one. Before you make the call, make sure a loyalty program is right for you and your business objectives.

    So, why would you choose to deploy a loyalty program?

        • Gain a deeper understanding of your customer base to augment your marketing mix. The data you collect will empower your marketing team to deliver more personalized, targeted customer experiences.
        • Mitigate price perception and influence perceived value. Smaller brands can’t compete with more prominent enterprise brands on price alone. Loyalty programs are one way to attract customers from your larger competitors.
        • Formation of customer ‘clubs’ which reflect your brand values. Your loyalty program is an extension of your brand. You can tailor your rewards to your customer and personalize automations to augment your brand experience.
        • Steal market share from existing programs. For example, fuel retailers use loyalty marketing to attract customers from competitors. Fuel retailers don’t make their money on fuel, but they do make money on people walking in and buying products in-store.
        • Enhance the customer experience with personalization. Birthday messages, post-purchase automations, data-driven product recommendations, merge tags within campaigns – adding personalization to your marketing will improve your customer’s experience with your brand and help you build long-lasting relationships.
        • Surprise and ‘delight’ with personalized moments. Keep your rewards program up-to-date. Don’t do one big launch then set and forget it – plan campaigns, add new rewards or run competitions. Give your customers new things to engage with (see more ideas in the checklist below).

    Ultimately, data is all about retention. But smaller retailers can’t shell out for expensive coalitions or big agency-led research projects. Loyalty programs make it much cheaper and easier to get that data yourself.

     

    Why focus on repeat customers?


    Marsello infographic showing how customer loyalty leads to a disproportionate increase in revenue
     

    Did you know 61% of retailers cite customer retention as their biggest obstacle, and a 5% increase in customer loyalty can increase the average profit per customer by 25% – 100%? (Source: Invespcro.com)

    Developing customer loyalty is critical to long-term customer retention and loyalty programs can be a great marketing tool to really strengthen those feelings of brand loyalty.

     

    Checklist: How to develop a successful loyalty program

     

    So what questions do you need to be asking and what steps do you need to take to help you develop a loyalty program that your customers love and that sees long-term success?

     

    Ask: do I need a loyalty program?

     
    • Analyze your NPS or CSAT scoring. Are customers satisfied with your offering? 
    • Would deploying a rewards program diminish your brand or enhance the experience and value proposition? 
    • Understand your customer’s needs, their values and ask them about their rewards preferences. 

    Any brand can deploy a rewards system, but it needs to complement your offering to be successful. Make sure you know your problem and make sure loyalty marketing is the right solution. Sometimes, it might be a marketing problem; other times it could be a problem with product-market fit. Deploying loyalty marketing is not always the right solution.

     

    Study your competitors

     

    Look towards your competition, and distinguish whether loyalty tactics would steal market share – a common tactic in Fuel Retail. 

    If all of your top competitors have implemented loyalty programs, this could be a good indication that they believe loyalty marketing will increase their market share. Of course, that does not necessarily mean it’s right for your brand! 

    Alternatively, if you can’t see any of your competitors doing it, maybe there’s a reason why. Again, this is not conclusive evidence – your brand could be ahead of the curve, which could be a very rewarding opportunity to increase your market share.

     

    Do your loyalty platform research

     

    Custom-built loyalty marketing tech can be costly. While some brands have implemented custom-built programs really well (for example, Mecca’s Beauty Loop), we recommend choosing a platform that integrates with both your POS and eCommerce platforms and enables easy set-up straight off the bat.

    Ensure your chosen platform works across your tech stack and don’t invest in programs that don’t scale with your customer database growth. Make sure you provide an omnichannel experience – customers expect to redeem online.

     

    Set up a pilot store

     

    Before any go-live, ensure you’ve set up a single site to test and measure your loyalty program success. Are customers responding to your program and the points values you’ve set?

     

    Keep it simple

     

    Too many earn rules result in a term called ‘loyalty confusion’, where your customers don’t understand what they get in return.

     

    Look at your data and adjust your program accordingly

     

    Once you’re transacting and issuing points, measure sign-up rates and ‘point breakage’ (the % of points earned and spent) monthly. Your point breakage rate will tell you pretty quickly whether or not the rewards program is working.

    If your customers aren’t spending their points, they’re not engaging in your program. Customer engagement is essential if you want to build long-term customer relationships that result in growth.

     

    Start small and introduce new campaigns quarterly

     

    Keep your program fresh by introducing new rewards, double points days, or VIP tiers. You want to ensure your marketing team has a constant stream of new things to shout about!

     

    How to measure the success of your loyalty program

     
    •  
        • Customer Feedback
          Are your customers engaging with your loyalty program?
        • Point Breakage
          Are customers spending their points? Track your Point Breakage rate monthly.
        • Loyalty program Return on Investment (ROI)
          Cost of the loyalty program vs. increased revenue since implementation.
        • Customer Lifetime Value (CLV)
          How much, on average, your customers are worth to your business throughout their relationship with your store.
        • Repurchase Rate
          The % of your customers who complete more than one purchase.
        • Average Purchase Frequency
          The average rate at which customers shop with your store.
       
    •  

    Segment and delight customers with RFM analysis

     
     

    Smart retailers use RFM analysis: Recency, Frequency, and Monetary value.

    Segment your customers into different buckets – a new customer has very different needs from a regular or loyal customer. Treat each customer’s needs differently, rather than applying a standard experience in one broad stroke. Incentivize each segment to come back and reward those who do.

    These days, people expect this kind of brand experience.

    Illustration showing Marsello's default customer segments

                    

    Success Story: Merrell NZ 

     

    Example of how Merrell NZ is using Marsello's Abandoned Cart automations to increase revenue

     

    When COVID hit, Merrell NZ knew they needed to grow their eCommerce presence and encourage customer engagement. To do this, they began testing automated campaigns, one-off emails, and a detailed loyalty program that was designed to attract their in-store customers to shop online.

    By ensuring their marketing changes were recognizable, appealing, and informed from customer data, they were able to grow their customer loyalty program and VIP memberships, improve conversion rates, and increase repeat purchase rates. So far, they’ve seen an ROI of 969x – for every $1 they’ve spent on their marketing initiatives, they’ve earned $969 back.

    “[…] the Merrell Rewards program means a lot to us – it gives us the opportunity to link customers from our retail and web stores, work around customer retention and automate email marketing flows in a really clever way.” - Merrell NZ

    Read the full story

     

    Key takeaways

     
        • Deploying a loyalty program won’t lead to loyal customers, but it will help you develop loyalty program tactics.
        • Loyalty programs mitigate price perception.
        • Use personalization and automation to delight customers.
        • Be consistent across your sales channels and marketing.
        • Prioritize memorable customer experiences.
        • Start small and build on your program.

    Get Marsello

     
     

    What’s new for Marsello x Shopify retailers in 2022?

    ClockIcon  READ
    From Shopify Theme Extensions and Google reviews to a new and improved user experience, we wrap up the biggest changes to Marsello for Shopify users.

    Retailers need to know the tech they invest in will meet their needs and help their businesses grow while also adapting to current trends. In response to changing customer shopping trends, 2021 saw more retailers than ever move into the eCommerce space, and the importance of creating a cohesive shopping experience across in-store and online locations was highlighted again and again. To master this, retailers have needed faster websites, smarter tools, and better connectivity between their different store types.

    To meet the growing needs of omnichannel retailers, Shopify released several exciting changes in the last 12 months – from Themes 2.0 to Shopify Flow. To build on these additions and create more and more marketing opportunities for Marsello x Shopify retailers, we released several complementary features that are helping retailers make the most of their retail toolkit.

    Let’s dive in and discover Marsello’s latest features and biggest updates for Shopify users.

    What features has Marsello released for Shopify users?

     

    The last year saw the development of several stand-out features, and many of these were designed specifically for Shopify powered-retailers looking to grow their business with smart marketing. 

    Introducing Marsello’s  biggest releases of 2021 and a sneak peek of what’s to come very soon:


    Shopify Theme Extension – Product Recommendations:

    The announcement of Themes 2.0 at the Shopify Unite 2021 conference was a cause for a flurry of excitement. With some sources calling it Shopify’s biggest investment in their platform to date, Themes 2.0 opened up a world of opportunities for retailers looking to create their perfect online store, edit and customize themes, and prioritize user experience. 

    To meet the needs of fast-growing retailers who need smart, data-driven marketing tools, we developed a product recommendations extension for Shopify Themes 2.0 users. With this tool, users can add personalized product recommendations to their eCommerce store to encourage bigger cart sizes, improve customers’ online purchase experience, and help customers find products they’ll love.

    Product recommendations built into eCommerce store themes makes it easy to create a seamless experience for customers


    Marsello’s product recommendations are powered by our purpose-built, data-driven product recommendations engine that recommends products based on buyer behavior and purchase history. And the potential doesn’t stop with data-driven recommendations either. Retailers can also select specific products to implant into the recommendations block and encourage sales of specific products. 

    Learn more about our Shopify Theme extension – Product recommendations.

     

    Marketing Extensions:

    Shopify’s extensions feature allows merchants to integrate tools and apps into their Shopify admin almost as if they were in-built. There are countless options to choose from merchandising to stock management; however, none would allow you to create loyalty points campaigns designed to multiply customers’ loyalty points on purchases automatically – this is where Marsello’s Marketing Extension for Shopify comes in.

    Shopify Marketing Extensions users can now create points campaigns in their Shopify admin with the Marsello marketing extension, reducing steps to creating and managing loyalty points campaigns that boost customer loyalty. For example, to increase customers’ motivation to make purchases, you can easily create campaigns where customers earn double loyalty points during a set promotional period directly from the Shopify admin. 

    It's easy to create Marsello-powered loyalty points promotional campaigns directly from within the Shopify admin


    Loyalty points promotion campaigns are a great tool to help promote and encourage engagement with your store's loyalty program.  You not only give customers an extra reason to shop and increase their cart size, but points campaigns are a great alternative to running a sale or discount and help your customers to feel appreciated and respected.


    Marsello’s Shopify Flow connector:

    2021 was a big year for marketing automation – in fact, one study found that 51% of companies were reportedly moved to or were already using marketing automation in some way by 2021. This increased demand for automated marketing capabilities saw the perfect opportunity for Shopify to release Shopify Flows for their Shopify Plus users - in our opinion, one of the most exciting features released in 2021. 

    To help Shopify Flow users tie their loyalty program to customer activities, we released a Shopify Flow connector designed to augment the potential for loyalty marketing. Customers can now earn loyalty points for actions like leaving Google or social media reviews, purchasing specific products, or even purchasing at a particular store location through carefully crafted flows and triggers. 

    Give points and tag a customer directly after an order is fulfilled with Marsello & Shopify Flow


    Learn more about Marsello’s Shopify Flows connector in our launch blog.


    Learn more


    Google Reviews:

    Do you request Google Business reviews from your customers? Do you manage and respond to the reviews left about your business? 

    Google Reviews are integral to helping business owners improve their Google ranking and appear higher in search results, which, in turn, plays a huge role in influencing customers’ purchasing decisions.

    To help you collect, manage and respond to reviews, we’ve developed a Marsello-powered Google Reviews marketing feature. A soon-to-be-released addition to the Marsello toolkit, consider this your sneak preview into our latest tool for retailers who want to increase their presence through local SEO and Google recommendations. 

    The Google Reviews feature from Marsello make managing and acquiring new Google Reviews easy

    Marsello’s Google Reviews feature will make it easy to automate the review process and create a consistent flow of quality reviews that increase online visibility and help to acquire new customers. 

    With email and SMS automations built into your Marsello admin, it’s easy to promote and generate Google reviews as soon as a customer makes a purchase (when their experience is fresh in their minds). You can then easily track, manage and respond to reviews directly from your Marsello admin. Subscribe to our blog and emails to stay up to date with each new release as it happens.

    Subscribe


    What’s changed for the Marsello platform?

    One of Marsello’s biggest updates within the last year has been to implement a new look and feel for our existing app. Since June 2021, we’ve been launching a variety of improvements to the Marsello admin to save you time and make your life easier. With a cleaner design and faster tech, new-look Marsello will now launch universally in April 2022, and we can’t wait to hear what you think.

    New Look Marsello provides a faster, more responsive user experience.

    Can't wait? Get access to new-look Marsello now. 

    Try New-look Marsello

     

    How can Shopify merchants make the most of their Marsello marketing?

     

    Hopefully, you're familiar with Marsello’s core features. If not, let’s recap quickly with just a few bullet points:

        • Customer loyalty marketing – use a branded loyalty program, automated notification emails, varied reward types, and achievable earn options to garner customer support and engagement. And you can build customer relationships that span a lifetime with VIP tiers that segment your loyal customers based on their purchase history. Learn more here.  

        • Marketing automationdelight customers by communicating with them how they’d prefer. With Marsello’s email & SMS campaigns, you can create one-off campaigns from scratch or choose from a library of professionally designed email campaigns developed to get results. And once you’ve sent your campaigns, it’s easy to monitor their success, create new campaigns, or even boost your original with a new subject line for those who didn’t open the first. Learn more here.  
        • Email & SMS campaigns – delight customers by communicating with them in the way they’d prefer. With Marsello’s email & SMS campaigns, you can create one-off campaigns from scratch, or you can choose from a library of professionally designed email campaigns developed to get results. And once you’ve sent your campaigns, it’s easy to monitor their success, create new campaigns, or even boost your original with a new subject line for those who didn’t open the first. Learn more here

        • Marketing listsUse forms, landing pages, and marketing opt-ins to grow your customer database and your return on investment. You create marketing opportunities with new customers by capturing customer information at your POS and eCommerce site. Marsello also automatically segments your customers based on their shopping history, making it easy for you to leverage your customer database and target specific customer groups through email, SMS, or even Facebook ad targeting. Learn more here.  

        • Feedback surveys – Gather customer feedback to understand their shopping experiences and create memorable shopping experiences that they adore. By adding feedback surveys to your communications (for example, a points-earned email that is sent when a customer has just made a purchase), you get confidential, real-time insight into what it’s like to shop at your store. Monitor your growth, see how your business improves, and celebrate your success by measuring customer satisfaction and feedback. Learn more here

    And Marsello has much more to offer our Shopify users too – just think of the combination of possibilities! What if you were to create a custom Shopify Flow that rewarded your customers with loyalty points when they leave a 4-5 star review? Or, if customers shopped during an annual secret sale, you could reward points to purchases over a set price! Get creative and start delighting your customers in all-new ways with all new experiences. 


    Get in touch with our team to learn about Marsello’s full product offering for Shopify.

    Get in contact

    Final words


    The last two years have seen tremendous growth for retail and eCommerce technologies – and that growth doesn't seem to be slowing down. That's why meeting the growing needs of retailers in the retail and eCommerce market is at the forefront of platform and tech providers like Shopify (and Marsello). 

    To help our Shopify-powered retailers achieve their goals, grow their business, and stay ahead of the competition, we needed to continue to innovate with Shopify's product offering in mind. And we don't plan on stopping in 2022. 

    From automated campaigns and complete customization to set-and-forget style flows and fully integrated customer loyalty programs, the future is looking bright for Marsello x Shopify retailers. Book a demo today to grow your business with Marsello.

    Book a demo

     

    How to master loyalty automation with Marsello's Shopify Flow connection

    ClockIcon  READ
    Learn how to automate custom loyalty rewards and encourage customer engagement by enabling Marsello’s Shopify Flow connection.

    Create automated loyalty rewards that encourage customer engagement no matter how they engage with your store by enabling Marsello’s Shopify Flow connection. In this blog, we learn a little about the Shopify Flow platform and how you can pair it with your Marsello-powered loyalty to get creative and reward customers for all kinds of actions.

    First, let’s understand what Shopify Flow is and how it works.


    What is Shopify Flow?


    Exclusive to Shopify Plus merchants, Shopify Flow is an automation platform that connects to your eCommerce (and other third-party services) and allows you to automate just about anything that could be a trackable event. 

    The possibilities for intelligent, automated retail are a game-changer – from tagging and flagging customers and orders, to rewarding customers with loyalty points for just about any action (for example, exclusive rewards for customers who leave 4 or 5 star Google reviews). 

    To access Shopify Flow, you’ll need to get the app from the Shopify App Store.

    And to make sure you have a complete understanding of the possibilities that Shopify Flow offers, there are countless resources available. From downloadable workflows and examples to imports for your store, Shopify has you covered. Check out these resources below to get started: 

      1. A selection of examples from the Shopify Flow reference manual
      2. 14 top workflows blog post

    Check out this video from the Shopify team about the Shopify Flow platform and how it can become your new secret weapon.

     

     


    How can Shopify Plus merchants use Shopify Flow to automate and track their Marsello marketing?

     

    Shopify-Flows-1

     

    Let’s delve deeper into what a Marsello connection for Shopify Flow means and how you can pair the two platforms to boost customer loyalty by rewarding loyalty with all new triggers.

    As we mentioned, one of the ways that retailers could use Shopify Flow is to reward high-value customers who leave 4 or 5 star Google reviews. And rewarding Google Business Reviews is just one example of how you could make the most of Marsello’s Shopify Flow connection.

    And when you’ve created your new flows, you can track the success of each flow – helping you to create automations that reap more and more benefits as your business grows.

    Learn how to create custom automated flows with Marsello’s Shopify Flow connection in our help center.

    And remember, while Shopify Flow is only available to Shopify Plus retailers, Marsello’s Customer Loyalty feature still uses built-in automated points earn options triggered by events like completed purchases, birthdays, and social media interactions. The Marsello loyalty feature is also available to all Marsello Pro users, and the automation doesn’t stop there.

    Do you know about Marsello’s Marketing Automation feature?

     


    Final words


    Shopify Flow opens up exciting new automation possibilities for Shopify Plus merchants – and with Marsello’s Shopify Flow connector, this now includes rewarding customers for their loyalty no matter the interaction. 

    Retailers are now able to automate processes like stock orders, product tagging, and (with the help of Marsello’s connector) rewarding customers with loyalty points for a variety of interactions. And as each Flow is created and used, retailers can track their success and adapt their automations to encourage more and more customer interaction. 

    Curious about Marsello and how it works with Shopify Flows? Get in touch with our team today.

    Book a demo

    What a Marsello & Ecwid by Lightspeed integration means for retailers

    ClockIcon  READ
    Learn how to supercharge your marketing for your Ecwid-powered store with Marsello.

    Marsello integrates seamlessly with Ecwid by Lightspeed and
    your chosen Point-of-Sale platform.

    Marsello-_Ecwid-Launch-Blog-1

     

    If you use Ecwid to power your eCommerce store, you can now run your customer loyalty program across your physical stores and online! And that’s not all – grow your ROI, nurture customer relationships, boost customer loyalty, and grow your business with proven marketing strategies all available within the Marsello app.

    But what does this mean for your business, customers, and marketing? Let’s dive in and understand what Marsello brings to Ecwid retailers.

     

    What marketing can you achieve with Marsello x Ecwid by Lightspeed?



    Marsello integrates seamlessly with Ecwid and your POS provider making it easy to set up and run your retail marketing strategy across your Ecwid eCommerce and brick-and-mortar stores.

    Here are our top marketing features for Ecwid retailers:

    Run a fully-integrated loyalty program with Marsello, Ecwid, and your POS provider

     

    Ecwid-Instore-Online

    Turn one-off shoppers into brand ambassadors and reward customer loyalty with an omnichannel customer loyalty program that encourages customers to keep coming back no matter where they like to shop. 

    Studies show that up to 86% of customers are more loyal to the brands with which they have reward program memberships. And this number grows again when customers can access their loyalty program information and benefits in-store, online, and on the go. 

    With Marsello & Ecwid, your customers can automatically earn points for online purchases and effortlessly redeem rewards at checkout, just like they do in-store. And because Marsello integrates with Ecwid and your chosen POS platform, all your customer data, loyalty marketing results, and essential business are wrapped up in detailed closed-loop reporting. Then, you can use this information to refine your marketing strategy and create an undeniable customer-centric loyalty that boosts your ROI

    Make the most of your Marsello-powered marketing and offer an eCommerce and POS loyalty program that all of your customers love. Build life-long relationships with your customers and turn them into brand ambassadors with a customer referral program that rewards successful friend referrals.  

    Learn more about customer loyalty with our Loyalty Marketing Guide.

    Design and trigger automated marketing campaigns directly from in-store and online purchase behavior

    With Ecwid connected to Marsello, you can automate marketing campaigns from customer activities across your entire business. From welcome messages to customer reactivation, it's easy to customize and enable pre-built workflows for every step of your customer journey or design and build new flows from scratch.

    Marketing automations help you to encourage purchase, build customer relationships, and boost sales with perfectly timed emails and SMS automations triggered by customers’ purchase behavior. And because Marsello integrates with Ecwid and your chosen POS provider, your customer data is captured no matter where they shop, making it easy to trigger the right message to the right customer at the right time. 

    Did you know that 76% of companies that start using marketing automation generate noticeable ROI within the first year? If you don’t already use automated marketing campaigns to delight and engage your customers, now is the perfect time to start.

    Learn more about Marsello’s Marketing Automation software.


    Create personalized one-off campaigns to increase sales online and in-store

    Marsello’s integration with Ecwid and your POS makes it easy to use one-to-one email and SMS campaigns to design personalized campaigns that help to build diverse customer relationships. 

    Marsello automatically collects your customer data and organizes shoppers into customer segments, giving you access to valuable insights that make it easy to personalize your campaigns and target specific customer groups strategically. Offer your best customers exclusive deals and encourage them to share promotions with their friends, then target at-risk customers with easy-win campaigns that encourage them to shop with you again before they disappear for good. The options are endless! And with a library of professionally designed email templates for you to choose from, creating stand-out campaigns that excite every type of customer is simple.


    Gain customer insight and track the effectiveness of their marketing accurately in-store and online


    With both your POS and eCommerce connected to Marsello, you can also track the efficacy of your customer marketing strategy. Closed-loop data attribution directly attributes your marketing efforts to sales, helping you understand the success of specific campaigns, flows, and marketing tools while also creating opportunities to improve and iterate on areas that don’t perform as expected.

    Testing is an integral part of the marketing journey, and accurate data reporting will help you curate valuable marketing campaigns that get results. 

    Look at it this way: by understanding what tools work well with your business and customers, you improve the customers’ experience. Merrell NZ had this to say about testing their Marsello-powered marketing campaigns:

    Marsello also offers automations, loyalty, rewards, email campaign segmentation, SMS. All the tools that we knew we wanted to test in stages as our eCommerce and business grows.

    They went on to add: Marsello is a platform that provides you with a lot of solutions that you can test step-by-step while looking at the results. It’s not an expensive tool, so it makes sense to test it for a couple of months. 

    By investing in accurate reporting and using the data to improve your marketing, you’ll boost customer engagement and, therefore, increase your ROI. 

    And Marsello’s insights don’t just stop at reporting around your marketing efforts. By connecting your Ecwid and POS providers to your Marsello account, Marsello automatically segments your customers into marketing lists, making it easy for your to confidently create marketing campaigns and promotions designs for specific customer groups. You can even create your own customer segments – a simple way to design campaigns for groups like your VIP loyalty program customers.

    Understand more about the insights you’ll see in your Marsello dashboard or learn more about our Marketing Lists feature.


    Final words

    Ecwid-Marsello-All-In-One

    By connecting Ecwid and your POS platform to Marsello, you gain access to a variety of marketing tools designed to help you get the most out of your retail marketing strategy. From customer loyalty programs to marketing automations and one-off campaigns, there are countless ways to build life-long customer relationships, promote your business, and encourage new growth.

    We haven’t even covered all the tools Marsello has to offer! To name just a few: feedback surveys, online pop-ups to gather customer data, sync your marketing lists to Facebook Ads audiences, unique coupon codes – these are still just a few of the tools on offer.

     

    Ready to increase your ROI and design an retail marketing strategy that engages customers no matter where they chose to shop?

    Get Marsello

    What a Marsello & Heartland Retail POS integration means for retailers

    ClockIcon  READ
    Run Marsello-powered marketing across all your brick-and-mortar & online stores by integrating seamlessly with Heartland Retail & your eCommerce platform.

    Run your loyalty and marketing across all your stores and online by seamlessly integrating Marsello with Heartland Retail and your eCommerce platform.

    Heartland Retail POS with a retailer loyalty program in the background.


    Become the ultimate omnichannel retailer with marketing across all your sales channels! You asked for an all-in-one retail marketing platform that would integrate with both Heartland Retail POS and your eCommerce provider, and we’ve delivered!


    Let’s dive in and learn what Marsello brings to Heartland Retail POS users. 

     

    How do Marsello and Heartland Retail POS work together?

     

    It’s easy to set up and run your retail marketing strategy across brick-and-mortar and online stores. Marsello integrates seamlessly with Heartland Retail POS and your choice of eCommerce platform.

    Integrate your customer loyalty program in-store & online, and turn shoppers into brand ambassadors

    Heartland-Retail-Omnichannel

     

    With an omnichannel customer loyalty program integrated across your Heartland Retail POS-powered store and eCommerce, you can create a seamless customer loyalty experience. Track and reward customer engagement, gather valuable customer information, trigger perfectly-timed notifications to encourage customers to shop, grow life-long customer relationships, and more! 

    Create an undeniable customer loyalty program that can turn one-off customers into brand ambassadors by bringing your in-store and online customer, marketing, and retail data into one platform.

    Get started by learning how to add customers to your Marsello x Heartland Retail POS loyalty program and how customers earn points.

    Send personalized email and SMS campaigns and delight customers with communications they love


    Marsello-Drive-Sales-With-Email-SMS-Campaigns-1

    Personalization is the secret ingredient to make email and SMS campaigns stand out. When you include brand colors, logo, product images and use data to feed-in customer information, you create a standout marketing experience that captures your customers’ attention. 

    With tools like data-driven product recommendations, merge tags to automatically include customer details (like their names), unique coupon codes, a drag-and-drop email builder, and professionally designed templates, it’s easy to create campaigns that encourage customer engagement.

    Marsello’s email templates library is an excellent place to source inspiration while quickly creating memorable email campaigns if you’re new to creating them.


    Trigger automated marketing campaigns based on customer data and boost your ROI


    Marsello-Sign-Up-Form-Automated-Welcome-Email

    Automated marketing campaigns are a powerful customer retention tool. Celebrate critical milestones, encourage customers to return to your store, reward your best customers, and more – all automatically triggered, so you don’t have to manually remember every date for every customer. Better yet? Marsello includes pre-designed automated campaigns. All you need to do is customize the flows with your branding, check that the settings meet your desired goals, and then click enable. Our pre-built automated campaigns include:

        • A ‘Thank you’ automation to new customers who have shopped for the first time. 
        • A product recommendations and exclusive discount email flow designed to encourage Best shoppers to keep shopping with you.
        • A ‘Happy birthday’ celebration flow for customers who have shared this data with you. 
        • A ‘win-back’ automation to encourage at-risk customers (those who’ve not shopped recently) to make a purchase.
        • An automated flow dedicated to recovering abandoned carts when customers fail to complete a purchase.


    But with customizable campaigns, the options are endless. Learn more about Marketing Automations by Marsello or book a demo today.

    Book a demo


    Understand detailed marketing reports and customer data to improve your marketing


    Marsello_reporting

    By integrating your Marketing results with your Heartland Retail POS and eCommerce data, you can accurately attribute sales and successes from your marketing to specific sales channels, giving you results you can trust. Marsello uses closed-loop data attribution to ensure you can make informed decisions that see results. 


    Track your Return on Investment, Average Customer Lifetime Value, specific marketing results (like loyalty program insights), and detailed customers & revenue insights. Then, use this information to improve your marketing campaigns and processes to ensure that your efforts see the best results in-store, online, and through whatever marketing channels you use.


    Use customer segmentation to target specific customer groups through email, SMS, or paid advertising

    image-asset

    Capture visitors’ details with POS & eCommerce marketing opt-ins, email capture pop-up forms, and website landing pages. Then, leverage your customer data with Marsello’s in-built segmentation, which can be used for email, SMS, and Facebook ad targeting.

    Marsello automatically segments your customers into specific groups to help you create personalized marketing campaigns that get results! With RFM segmentation, you’ll see your customers grouped into the following segments:

        • Best: ordered recently, ordered the most often, and spent the most 
        • Loyal: ordered recently, ordered often, spent good money
        • Promising: ordered recently, ordered more than once, and spent an average amount
        • New: made their first order recently
        • At-risk: haven’t ordered recently
        • Lost: haven’t ordered in a very long time.  

    Customer segmentation is a valuable tool for enabling marketing that gets results. Although you might be narrowing down the recipient list, you’re also making it more relevant, which means that customers in that list are much more likely to engage; this is particularly important when creating email or SMS campaigns and paid advertising.

    Learn more about Marsello’s Marketing Lists feature.


    Final words

    The options don’t stop at loyalty marketing, email and SMS campaigns, automations, or customer data either! From customer feedback collection to native eCommerce integrations, Marsello creates an all-in-one marketing powerhouse designed for omnichannel Heartland Retail merchants.

     

    Ready to increase your ROI and create an omnichannel retail marketing strategy your customers love?

    Get Marsello

    Abandoned cart automations are just the tip of the iceberg.

    ClockIcon  READ
    Recovering abandoned carts is just the tip of the iceberg. Here's how you can streamline business operations and increase Shopify revenue with automation.

    For modern Shopify businesses, it’s easy to lose track of your customers - between all your different touchpoints, customers and marketing opportunities fall through the cracks, leaving you with missed sales and less-than-optimal customer retention.

    By incorporating a suite of set-and-forget automations into your marketing strategy, you can reach the right customers at the right time, with the perfect offer to increase engagement and drive sales with zero ongoing maintenance.

    marsello-marketing-automation-workflow-showing-options-and-delays-via-marsello-platform

    What is marketing automation, and how does it work?

    Marketing automation is the combination of technology and strategic marketing activity that runs on autopilot for your business. A good marketing automation platform (MAP) will enable you to automate repetitive tasks, like email marketing and loyalty programs, while building lasting relationships with your customers, increasing brand loyalty, and driving new and repeat purchases across all of your touchpoints.

    For merchants who sell in-store and online, marketing automation works by following your customers throughout their journey and engaging with them based on pre-defined triggers. With most automation platforms, you can either choose from a selection of pre-built email flows that are designed to drive sales at key moments, or you can build your own from scratch.

     

    5 automations that Shopify merchants should have enabled

    1. Recover abandoned carts: Encourage customers to complete their checkout with a series of abandoned cart recovery emails. This acts as a friendly reminder for your customers to come back to your store and complete their purchases. Pro tip: If a customer doesn’t convert from the first email in the series, consider adding a discount or free shipping to incentivize the purchase.

    2. Thank first-time customers: Say thanks to your customers after their first purchase with you. Make a great first impression, introduce them to your brand, and encourage them to keep coming back for more with product recommendations and exclusive offers.

    3. Reward your best customers: Look after your best customers with an automated email workflow that thanks them for their loyalty and encourages them to shop again. Personalize your emails with product recommendations that align with your customers’ needs and purchase history. Make them feel like valued customers and that their loyalty matters.

    4. Wish your customers a Happy Birthday: Make your customers feel appreciated on their special day. A cheerful Happy Birthday email will get them shopping and strengthen their relationship with your brand.

    5. Win-back lapsed customers: Remind customers to come back to your store with an automated email that’s designed to win them back. Motivate repeat purchases discounts that are too good to ignore, and create a sense of urgency with limited-time offers.

     

    Did you know that Marsello merchants who have more than one email automation enabled see an average of over 70x ROI for their marketing?

    Request Demo

     

    marsello-automation-tiles-with-woman-smiling

    The advantages of marketing automation for omnichannel Shopify businesses

     

    1. Save time while nurturing your customer relationships

    With marketing automation, you can save yourself hours of work every week. Rather than wasting valuable time building one-off marketing campaigns, you can simply enable behavior-triggered marketing emails that run on autopilot and feel authentically engaging. 

     

    2. Provide a personalized experience

    Quit annoying your customers with irrelevant emails…. It’s frustrating and can impact your email open rates. Utilizing personalized messaging means that your customers are more likely to open your emails, engage with your content, and complete a purchase. Some simple examples of personalized messaging include; using customers’ names in your email headlines, suggesting products based on their purchase history, or promoting new collections that might interest them.

     

    3. Build relationships and increase customer lifetime value

    Acquiring new customers can be expensive. In fact, it’s around 5x more expensive to acquire new customers than it is to nurture your existing ones. So, rather than investing all your marketing dollars into attracting new customers, it’s worth redirecting some effort into improving your existing customers’ experience and building brand loyalty.

     

    By automating your Shopify marketing, you can ensure your customers stay informed and engaged across every touchpoint. Whether it’s an update regarding their loyalty points status, an email that invites them back to the store with a discount, or a one-time offer, these timely and hyper-personalized messages all work together to grow your relationship with your customers and keep them interested.

     

    4. Keep your brand front-and-center across all your marketing channels

    Your customers are constantly moving between various marketing channels, from email and social media to your eCommerce website or your physical store, so being able to reach them automatically across all these touchpoints is critical to keeping your business top-of-mind. Marketing automation apps work overtime to nurture these relationships while you can focus on other areas of your Shopify business. Read 6 essential steps for omnichannel commerce.

     

    5. Boost your in-store and online revenue, automatically

    Implementing a set-and-forget marketing automation system enables you to bring in consistent ‘background’ revenue for your business. Once set up, it runs completely autonomously for you - Simply enable pre-built email workflows, or customize your own and watch your platform do the hard work for you. Deliver timely and personalized messages that reach your customers at exactly the right moment to encourage them to make a purchase. 

     

    Ozzie Collectables have seen a 517% increase in revenue since enabling their automated marketing campaigns with Marsello. Learn more.

     

    marsello-ozzie-collectables-abandoned-cart-recovery-automation-workflow-with-delay

     

    Final words

    Creating a seamless, automated marketing experience is critical for growing revenue and building customer loyalty across both brick-and-mortar and Shopify eCommerce sites.

    With marketing automation apps, you can send timely and targeted messages that encourage your customers to keep coming back for more, all while decreasing your personal workload and letting your focus on other areas of your business.

    An all-in-one marketing platform harnesses your customer data to create a carefully curated and specific marketing experience that feels intentional to your customers. If your marketing automation provider has your back, the basics of these automations will be largely set up for you.

     

    Did you know that Keep Cart is part of the Marsello ecosystem?

    Keep Cart was purpose-built for omnichannel Shopify merchants to recover sales from abandoned shopping carts. But while Keep Cart has helped recover thousands of abandoned carts, many of you wanted to know - What else could I be doing?

    That’s why we built Marsello - it’s the complete marketing solution for Shopify merchants who sell products in-store and online. Marsello has an entire suite of set-and-forget automations (including abandoned cart recovery emails) that bring in consistent, predictable revenue for your business. Learn more about Marsello’s features

    With Marsello, everyone gets special treatment with a personal touch. Every customer is different, so each marketing feature is designed to guide them through different points in their journey with your brand - The ultimate goal? To move them from a one-time shopper to becoming a loyal customer that keeps coming back for more.

     

    Ready to automate your marketing?

    Request Demo

    Redeeming loyalty coupons through a POS system

    ClockIcon  READ
    Learn how to activate loyalty coupons and customer loyalty at your in-store POS.

    Quick Links:


     

    On average, 65% of your revenue comes from your most loyal customers. Integrating loyalty coupons into your existing POS system lets you serve your best customers and reap the revenue rewards with ease! 

    Loyalty coupons are one of the best ways to encourage repeat buyers, increase the lifetime value of customers, and build the loyalty of your already happy customers. Customer loyalty strategies pay for themselves.

    By combining loyalty coupons and your eCommerce or POS system, you can target your marketing, identify your best customers, award coupons and turn your business into a loyalty-building machine. 


    Marsello-Redeeming-Loyalty-Coupons

    How do Loyalty coupons work?


    Loyalty coupons, also known as customer coupons, are effective at driving repeat and loyal customers. Repeat customers spend 33% more than other customers, so it is worth focusing your marketing efforts on them specifically. 

    So how do they work? 

    Simple. Loyalty coupons encourage already loyal customers to be even better customers by improving their shopping experience. You can either set up customer accounts to add points and vouchers or give people discounts automatically when they meet certain criteria. 

    The easiest way to start giving loyalty coupons or rewards points is to integrate it with your existing Point of Service (POS) system.

     

    Evermore Toys Points Reward System explainer page from their website

     

    For example, ethical toy company Evermore Toys has customers that buy online and in stores. To simplify their loyalty program, they integrated Marsello directly into their POS systems (Shopify and Cin7) so customers can redeem points no matter where they shop. Using Marsello, their simple loyalty program resulted in a 156x ROI and a 738.87% increase in revenue.

    You don’t need to reinvent the wheel to integrate loyalty coupons into your business!

     

    How does a POS system increase customer loyalty?

    A POS system increases loyalty because you can use customer details to personalize their shopping experience. An all-in-one system makes it easy for customers to use loyalty coupons no matter where they shop with you and therefore improves user experience and loyalty over time.

     

    1. By collecting customer data


    One of the main functions of a POS system is to collect customer data. This allows you to create targeted marketing campaigns, personalize customer experiences, and identify your most loyal customers.

    Your POS system is an opportunity to collect online eCommerce and in-store visitor details and turn them into repeat customers. The best way to collect details is in exchange for something valuable like in-store points and loyalty coupons.

    For example, Merrell NZ cleverly maximizes every opportunity to encourage customer engagement with their brand. Their website has a simple pop-up form that encourages shoppers to leave their name, email, and date of birth in exchange for promotions and exclusive discounts. 

    Merrell-Form


    This pop-up has a sign-up rate of 25%, a customer engagement rate that you miss out on if you don’t collect customer details with a POS system!

     

    2. By providing personalized promotion


    Once you have customer details in your POS system, you can create personalized promotions. The details you collect when a customer signs up mean that you can segment your marketing based on their behavior. 

    This behavioral segmentation is known as RFM segmentation, which stands for 

        • Recency – When the customer last purchased from you.
        • Frequency – How often they buy. 
        • Monetary – The amount they’ve spent.

    In other words, you can maximize your marketing ROI and increase loyalty by knowing more about them. 

    Modern streetwear brand Federation + shows this in action with their segmented email campaigns.

    Federations automated Welcome email overlaid on a black background

    When shoppers first create a customer account with Federation +, they immediately receive the “WELCOME TO THE FAMILY” automated email campaign. The eye-catching email offers customers 10% off their first purchase and uses a product recommendations email block to suggest current top-selling products. 

    This campaign has seen a 19% conversion rate in just over 5 months, and almost 50% of the total revenue generated by their automated campaigns is directly attributable to their welcome automation! 

    3. By identifying VIP customers and rewarding them

    75% of consumers say that they favor companies that offer rewards. Integrating a rewards program with your POS system will make it easy to identify and reward your already-loyal customers. 

    VIP programs are effective because they target customers who already have buy-in with your brand. Our Bralette Club runs an effective rewards program that makes this process extremely easy.

    Our Bralette Clubs membership loyalty tiers explainer webpage

    Through their all-in-one system, customers can sign up, earn rewards and in-store loyalty points and be part of the Peach Party community. The Our Bralette Club VIP loyalty program has an impressive reward redemption rate of 71% (in 2020) and has resulted in a 278% increase in revenue.  

    4. By providing a convenient customer experience


    According to a study by eMarketer, the only thing online shoppers like more than customer reward coupons is a quick and easy checkout process. 83% of shoppers marked this as their top priority for loyalty. 

    This is why your POS system is so important for building customer loyalty! It doesn’t matter how good your discounts and loyalty program is if the user experience doesn’t deliver.

     

    Different ways customers can redeem loyalty coupons through a POS system

    Your POS system can encourage loyalty in many different ways. From in-store points to purchase order value increase, there is a loyalty coupon system to suit every business. 

    1. Through a points-based system

    A points-based system is one of the most common types of loyalty coupons for retailers. 

    A rewards point loyalty program encourages certain customer behaviors. They can earn points for things like 

        • Signing up for your loyalty program 
        • For every dollar they spend 
        • Sharing your brand on social media
        • On their birthday

    For example, boutique dog brand SmackBang has an on-brand widget for their loyalty program. It seamlessly integrates with their POS system and lets customers see how many points they have and how they can earn more. 

    Marsello-SmackBang-Loyalty-Widget

    Their points system has generated $8,200+ for the brand, sees a 100% loyalty engagement rate, and a reward redemption rate of 38%.

    Building loyalty with points systems works best when it benefits your customer as much as your business. Rewards create loyalty when you give your best rewards to your best customers. 

    2. Through an automatic voucher system


    An automatic voucher system is where customers automatically qualify for a voucher when they meet certain requirements. 90% of consumers use coupons so it is an effective way to increase loyalty and amount per spend. 

    For example, you could add an automatic voucher when someone has made a purchase, reached a certain threshold, or joined your loyalty program. 

    If you are going to use an automatic voucher system, it is best to do this directly through your POS system. Physical vouchers incur production and distribution costs, whereas POS systems allow customers to easily access vouchers without delay

     

    3. By providing discount vouchers

     

    Everybody loves a good deal! Discount vouchers can be a great way to entice new customers, reward existing ones, and boost revenues for a short period. 

    However, offering discount vouchers too often can actually have the opposite effect. It can make it seem like you are a discounted brand.

    For effective discounts, vouchers should:

        • Have a time limit or expiry 
        • Be combined with personalized or targeted marketing campaigns (e.g. for first-time customers) 
        • Be easy to use online or in-person (i.e. integrated with your eCommerce and POS system)

    Instead of just discounting prices you could also add value.

     

    Marsello-Sigi-Skin-One-Off-Email-Campaign

    For example, skincare retailer Sigi Skin ran an email campaign for Mother’s Day where instead of slashing prices they added a free makeup pouch. Their email campaign had an impressive open rate of 37% and a conversion rate of 19%, and, in the first 7 days since it was sent, the campaign saw a revenue increase on their usual daily sales of +48%.

    4. By purchase order value

     

    Loyalty coupons for purchase order value is a system where customers can qualify for rewards when they reach a certain amount in their cart or in-store. 

    24% of consumers would spend more to qualify for bonuses like free shipping. This benefits them as much as your revenue! 

    There are several ways you can use purchase order value as a loyalty reward:

          • $ amount off total cart
          • % off total cart 
          • $ or % off a specific item 
          • Get a free product 
          • Get free shipping 

    The best part? All of these loyalty rewards can be integrated directly into your eCommerce or POS system with Marsello!

    5. Through promotions

    Running a points promotion is a great way to get a boost in loyalty points and sign-ups. Even your best customers need a little encouragement sometimes! 

    Your POS system will allow customers to easily earn and redeem points earned during your promotion. This positive user experience maintains a positive relationship over time. 

    An example of a points promotion was the double points promotion run by bCode. This shoe brand started a loyalty program for their existing business and wanted as many people to sign up as possible when it launched.

     

    b-code-points-promotion-campaign

    When they launched the online version of their loyalty program, they ran a points promo called “Double Perks weekend” which enabled members to earn double points on all purchases over a three-day period.

    This resulted in a 94% increase in loyalty points spent by both new and existing loyalty club members.

     

    Final words on redeeming loyalty coupons through a POS system

     

    Loyalty coupons give your best customers even more reasons to rave about your brand. Whether you choose rewards points, loyalty programs, discount vouchers, or promotions, customer coupons will benefit your customers and increase your overall revenue. 

    Marsello lets you integrate simple, on-brand loyalty coupons and reward points directly into your existing eCommerce and POS system. Whether you sell online, in person, or a mixture of both, you can easily reward your most loyal customers with Marsello integrations!

    Creating effective customer segmentations through loyalty programs

    ClockIcon  READ
    With customer segmentation, you can create personalized marketing campaigns that appeal directly to customers based on their purchase behavior. Learn how!

    Quick Links:


    Have you ever wondered why marketers talk about why you should segment customers so much? 

    It’s because it can seriously boost your bottom line! 

    One of the best ways to help you segment your customers is with an engaging loyalty program. With detailed customer data pulled from your customer loyalty software, you can target different customer groups based on your marketing goals and individual campaigns. From your most loyal customers to infrequent shoppers who are at risk of leaving your brand community, you can develop a targeted, personalized marketing campaign for each customer group. 

    Personalization using segments drives sales and boosts loyalty. 

    A survey by Segment has shown that 49% of respondents have purchased a product they weren't planning to buy because of tailored suggestions, and 44% said they would become repeat buyers after experiencing tailored shopping experiences.

    If you’re ready to see why customer segmentation is so beneficial, what segments you should be targeting and how to keep customers coming back using loyalty programs, then keep reading. 

     

    What is customer segmentation?

     

    Customer segmentation, specifically behavioral segmentation, automatically groups shoppers based on their shopping habits. It shows you who your best customers are, which shoppers are more likely to make repeat purchases, which ones are slipping away, and more.

     

    A customer segmentation grid with a campaign for 'best customers' ready to be enabled.

     

    By using behavioral segmentation, your brand can easily identify your most valuable customers and focus promotional efforts on those most likely to purchase again. This is commonly referred to as RFM, which stands for:

    Recency – When the customer last purchased from you. 

    Frequency – How often they buy. 

    Monetary – The amount they’ve spent.

    Put simply, RFM looks at the overlap between when a customer last shopped with you, how often, and how much they spent. This allows you to target your best customers with greater accuracy.

    The most common segments are:

    • Best
    • Loyal
    • Promising
    • New
    • At-risk
    • Lost 

    Once you identify which category your customer is in, you can strategically market to them and increase the chance of them converting. 

    Want to know even more about what RFM is? Read this in-depth guide to customer segmentation with Marsello.

     

    Why segment your customers?

     

    One of the main benefits of customer segmentation is that you can put your marketing budget where it matters: your existing loyal customers. 

    Depending on what industry you are in, acquiring a new customer can be anywhere from five to 25 times more expensive than keeping an existing one. As Forbes put it, “acquiring new customers is important, but retaining them accelerates profitable growth.”

    As well as targeting loyal customers and rewarding them, you can capitalize on less engaged customers. By sending marketing campaigns at optimized moments in their journey, you can reduce customer churn rate and improve marketing ROI. 

    If you’re still wondering why you should segment, those results are just the beginning. 

     

    What are the benefits of customer segmentation?

    You will quickly learn that the benefits of customer segmentation positively affect your customer as well as your business. 

    Firstly, it is the easiest way to personalize their shopping experience.

    A Segment survey found that 71% of customers are frustrated that their online experience wasn’t more personalized. Consumers are craving connection and an elevated shopping experience, and segmentation does this for you automatically.

    Not only does segmentation improve customer experience through personalization; it improves your revenue. 

    yuccs uses Marsello's customer segmentation tool to send personalized marketing campaigns

    Take sustainable European shoe brand Yuccs. They use Marsello to create powerful email marketing campaigns that engage different customer segments and increase conversions. In just a year and a half of targeting different segments, Yuccs increased email marketing revenue by a whopping 1,733% (yes, really). 

    Those benefits speak for themselves!

     

    Defining your customer segments

     

    The first step of successful customer segmentation is defining your customers. Where are your customers in their buyer journey and what do they want? This will help you to personalize their experience and maximize the effect of segmentation.

    1. VIP Customers

    You can probably already identify your VIP customer segmentation. 

    Creating a VIP loyalty program not only rewards your best customers; it also makes it easy to segment them. 

    Carolina Lifestyle is a perfect example of targeting loyal customers. They are a lifestyle and fashion brand with an incredibly generous loyalty program (members automatically get 200 points just for signing up!). 

    Because they have a loyalty program that defines their most loyal customers automatically, they can send targeted campaigns. They send customers emails relating to their loyalty program, as well as beautifully designed One-off Campaigns to keep their customers up-to-date. 

    Carolina Lifestyle has a segmented loyalty program

    And it works – the company’s average customer lifetime value (CLV) is $716.94, and about a third of Carolina Lifestyle's customers return to shop again within two months.

    If you haven’t started segmenting your loyalty program members and other customer groups, this is your sign to start now.


    2. At-risk customers

    At-risk customers are your customers who haven't purchased recently. They are at risk of “slipping away” and forgetting about you. 

    Because they have already purchased from you (i.e. you are not acquiring a new customer) it is worth your time and money to target this group specifically. 

    Identifying at-risk customers is also important because it is easier to win them back now rather than wait for them to become “lost” customers. 

    You can identify this segment by a few factors:

    • They have made a purchase before but you haven’t seen them in a while
    • They visit your website a lot but don’t actually make a purchase
    • They abandon cart more than once 

    This can be frustrating, but not all is lost! We will show you below how you can get these customers coming back.

     

    3. Lost customers

    Lost customers are people that made a purchase but have completely fallen off your radar. 

    Firstly, don’t feel bad. Churn rates in the retail industry are about five to seven percent per year. Some customers will naturally fall off. 

    However, it is still more cost-effective to win this customer segment back than bring in new ones. 

    This particular segment can be tricky. It’s not like a new customer who saw your product and it wasn’t what they wanted. If they have purchased in the past and aren’t now, it might mean that you are no longer meeting their expectation in some way!

    Like all customer-focused strategies, you need to put their needs first when you are trying to win them back.

     

    How to keep each of these customer segments coming back

     

    The best part about customer segmentation is that it encourages customers to come back. Repeat customers spend 33%, so these strategies are worth the effort. 

    1. Include tiered loyalty for VIP customers

    One of the best customer segmentation strategies is to leverage your loyalty program. You should always be rewarding the customers who already know, like, trust and rave about you! 

    A tiered loyalty program matched with segmented marketing is the ultimate combination for targeting engaged customers. 

    Let’s look at an example of VIP customer segmentation. 

    T.C. Elli’s uses segmented SMS marketing to target their Best, Loyal, Promising, New, and At-Risk customers. However, they take it one step further and segment their loyalty program customers called “TCE Honeys”.

    T.C. Elli's uses SMS marketing to grow customer loyalty and promote marketing campaigns

    The T.C.E team ran a promotion that allowed shoppers to get a free item with select purchases. They sent a promotional text to their “Best,” “Loyal,” and “Promising” segments to ensure that their top customers would be some of the first people who can take advantage of the deal. 

    Combined with their in-store promotions and stunning email marketing, they saw a 51x ROI from their initiatives. 

    Rewarding your best customers is a sure-fire way to keep them coming back.

    2. Connect with at-risk customers with email marketing

    Email marketing remains one of the highest-converting forms of marketing. You can make the most of your at-risk segment by speaking to them directly.

    The trick is to send them a non-invasive email that gives them a good, time-sensitive incentive to come back. We promise this strategy pays off! 

    For example, Yuccs shoe brand segmented their customers based on their purchase history and behavior for a Black Friday sale. Those who hadn’t purchased in a while received a different message than those who have joined the Yuccs mailing list but are yet to make a purchase. 

    This strategy enabled Yuccs to connect to subscribers which engaged them in unique and compelling ways while maximizing conversions and sales. 

    And Yuccs’ efforts paid off. During the week of the Black Friday campaign, the brand saw a 38% revenue boost!

    3. Win back lost customers with rewards and offers

    Winning back lost customers can be difficult, but not impossible. 

    Like your at-risk customers, you can target this segment with a no-pressure incentive to come back.

    One way to win back a lost customer is to offer them in-store points in exchange for a simple feedback survey. 

    This achieves several things. 

    Firstly, you can get feedback on why you might have lost them! This helps you improve your customer service. Secondly, it reminds them that you exist and that they can use points in-store. Thirdly, you can get back on their radar without asking them to make a purchase.

     

    Final words


    This is your sign to segment your customers. Not only does it increase conversion rates, but it also boosts revenue, rewards your loyal customers, and optimizes your marketing strategy by targeting existing and previous customers. 

    The best part? Marsello can automatically group your customers based on their purchasing history and behavior, so shoppers are already segmented automatically, making it easy to create these targeted campaigns. There’s no time like the present to boost your revenue and loyalty programs!

    Guide to creating free shipping rewards & boosting revenue for your business

    ClockIcon  READ
    Free shipping rewards are a powerful loyalty tactic proven to get customers shopping and boost revenue. Learn how to make the most of them for your...

    Quick Links:


     

    Free shipping rewards can be a fantastic strategy for boosting revenue in your eCommerce business. 

    According to Metapak, 47% of respondents ranked free shipping as their #1 consideration for most online purchases. In comparison, 60% of shoppers abandon their carts when extra costs are added, including shipping. 

    Offering shipping rewards removes friction for people that have already made the decision to purchase something. 

    We’re giving you the low down on why free shipping can boost revenue and customer loyalty, the benefits of free shipping for online businesses, and the pros and cons of the different types of shipping rewards you can offer.

    Smack Bang's loyalty widget with a free shipping coupon code added to an email campaign.

    What are the benefits of free shipping for businesses?

     

    Free shipping benefits are endless- if you have a strategic system for it. 

    Firstly, it could end up being more cost-effective than charging for shipping. Shippit research explains why free shipping could actually save you money: 

    “...offering free shipping could actually save you money. Think about it; free shipping could increase traffic to your site, lower your cost per acquisition and increase the quality of your customer; creating higher customer lifetime value…

    ...Or to put it another way, you will see 15-30% improvement in net profit.”

    Secondly, it boosts customer loyalty. Customers love to be appreciated and surprised. Adding free shipping to your customer loyalty program or as a special bonus for your best customers will only create more loyalty to your brand. 

    Other benefits of free shipping include:

    Keeping customers happy- 73% of customers want to see free shipping at checkout!

     

    Guide for businesses to provide free shipping while boosting revenue

     

    To create a free shipping program, there are a few things you need to be successful. If you offer it too liberally, you will lose revenue. However if you don’t offer it enough, you lose opportunities to reward loyal customers. Here’s what you need to do instead! 

    1. Set a minimum purchase amount

    A strategy you have probably seen is to offer free shipping on orders over a certain amount. 

    Red Door research shows that orders increased by 90% when a free shipping threshold was offered (e.g. “free shipping on orders over $75”). 

    This works for several reasons. 

    Firstly, you are targeting customers who are already in the process of buying from you. If they put something in the cart and then see a pop-up that tells them they are X dollars away from free shipping, you will see amazing conversions (like the Red Door study above). 

    Secondly, you can usually absorb the cost of shipping because the cart value increases significantly. 

    The pro of this approach is that it is super effective for increasing cart values. The potential downside is that free shipping is not considered an exclusive reward for loyalty. 


    2. Offer free shipping with an annual loyalty membership

    The best thing about rewarding loyal customers is that they become even more loyal. So why not offer eCommerce free shipping with your online loyalty memberships

    If you have a loyalty program, there are several ways you could offer this. For example, it could be an exclusive reward for your top-tier members (i.e. customers who have a certain number of points). It could also be available to anyone who is in your membership. 

    Smack Bang is a dog treat boutique where you can see this in action. They have a list of rewards that members can earn, including up to 20% off and generous free shipping.

    Smack bang's earn and rewards options from their eCommerce store's loyalty widget

    Shoppers clearly love participating in the program. Smack Bang has a 100% loyalty engagement rate and so far members have collectively earned over 300,000 points!

    3. Provide free shipping tiered approach which provides rewards based on purchase value

    One way to give out shipping rewards is to create customer tiers based on how much they spend. This both rewards your most loyal customers and makes free shipping exclusive. 

    The simplest way to do this is to implement a loyalty program. Loyalty programs are a powerful customer retention tool, and you can create a top-tier customer experience for your biggest spenders. 

    A prime example is the streetwear brand, Federation +. Their online and in-store loyalty program creates an inviting and easy way for customers to earn points and incentivizes customers to shop more by offering generous loyalty tiers.

    The tiers tab of Federations online loyalty explainer widget overlaid on their website landing page

    Customers can easily exchange points for free shipping rewards (and other amazing bonuses like discounts and free products!). They have silver, gold, and platinum tiers that all encourage customers to remain loyal and take advantage of free shipping and other bonuses.

    The clear positive of this strategy is that it makes your most loyal customers feel appreciated. Meanwhile, the con is that you need to have a certain revenue threshold to absorb the shipping costs. 

    4. To continue engagement offer limited-time free shipping

    To boost revenue fast, you could run a limited offer on free shipping. 

    Human psychology shows us that urgent situations force us to make decisions instantly. You can use this to your advantage with free shipping offers.

    For example, Merrell NZ celebrated the global brand’s 40th birthday by offering free shipping on all orders for a limited time. With a 15% repeat purchase rate and an average purchase frequency of 3.5x, you know that they must be doing something right with their email marketing! 

    Merrell NZ's loyalty program email promotion

    Limited time offers are also great for at-risk customers. 

    These are customers that have already purchased but you haven’t seen them in a while. Offering something great like free shipping for a limited time can be enough to entice them back. 

    One of the downsides to the limited timeframe of this approach is that you only get a cash injection, not long-term benefits. But on the plus side, it demands action from your customers!

     

    5. Increase signups with free shipping on first order

    Incentivizing email newsletters and loyalty membership sign-ups is invaluable for increasing customer lifetime value. You can use free shipping as a way to increase these signups.

    This is a super simple way to win over people who need to cross the know-like-trust threshold. 

    Pros of free shipping on sign-up: You can grow your list of new customers and then segment them once they have made a purchase with free shipping. You are also rewarding them off the bat. Cons? You have to absorb the cost and these customers might not have as much buy-in as customers who buy without the free shipping incentive. 


    6. Build trust with free returns

    Offering free returns can help build trust with your customers. According to UPS, 68% of online shoppers check your return policy before buying. 

    Good return policies are usually a good indication of good customer service. It shows your customers that you care about them and believe in the quality of your product and their experience. 

    If you are going to offer free returns, there are a few things you should remember: 

    • Make your returns policy super clear for people when they are purchasing 
    • Create an FAQ page 
    • Decide what your guidelines are for free returns- is it no questions asked? Is it exchanges only? 

    The drawback of this policy is that there is always the potential for customers to take unnecessary advantage of it. However, the positive side is that you build trust and credibility, and remove a big hesitation for someone shopping online. 

    Final words


    This is your sign to segment your customers. Not only does it increase conversion rates, but it also boosts revenue, rewards your loyal customers, and optimizes your marketing strategy by targeting existing and previous customers. 

    The best part? Marsello can automatically group your customers based on their purchasing history and behavior, so shoppers are already segmented automatically, making it easy to create these targeted campaigns. There’s no time like the present to boost your revenue and loyalty programs!

    Common traits between the best customer loyalty programs

    ClockIcon  READ
    We’ve done the research and reviewed the common traits that all the best customer loyalty programs have. Want to be one of them? Keep reading

    Quick Links:



    Ever wondered how other brands are killing it with successful loyalty programs? Don’t worry; we hear that all the time. 

    Customer loyalty programs are ingenious marketing strategies that help businesses increase customer retention and boost revenue creatively. They mix rewards with brand interaction which improves the customer experience overall. 

    Successful loyalty programs serve both customers and your business margins. Win-win! 

    We’ve done the research, and there are a few common traits that all the best loyalty programs have. Want to be one of them? Keep reading

    Marsello-Common-Traits

    Common traits of brands with best loyalty programs


    The most successful loyalty programs all feature similar traits while simultaneously managing to stand out to their customers. Let's dive in and break down some of these.

    1. Simplicity for customers
    One essential trait of a good customer loyalty program is simplicity. 

    57% of internet users will not recommend a business if the website is poorly designed. The same applies to your digital loyalty program!

    The aim of using customer loyalty software is ultimately to help the customer. If you prioritize being clever over clear, you will lose people along the way. 

    Design features you might want to think about for your loyalty program include:

      • Seamless integration between your online and physical stores/POS so customers can redeem rewards no matter where they shop
      • Single Sign-On option so returning customers can quickly log in from any device
      • Apply discounts automatically if they qualify (e.g., discount for spending a certain amount) 
      • Make your website or app extremely mobile responsive (85% of adults think that a company’s mobile website should be as good or better than desktop). 

    2. Desirable mix of great experience and good rewards

    Reward programs provide a huge benefit to your sales. However, the top loyalty programs prioritize excellent customer experience and great rewards. 

    You want your customers to be EXCITED to shop with you! You want to motivate specific customer behaviors by automatically rewarding points for purchases, referrals, product reviews, and social media activity. 

    Any time they shop or interact with your brand should be an opportunity to connect.


    Our Bralette Clubs loyalty widget on a light pink banner

     

    For example, the size-inclusive lingerie brand Our Bralette Club (OBC) offers both discounts and freebies with their loyalty program. OBC’s customers can use their rewards to score great deals (like $10 or 20% off entire purchases), or they can opt to get cool freebies like pocket mirrors and tote bags. 

    The results speak for themselves. By creating little enjoyable moments with freebies and discounts, OBC increased their revenue by 278% through their program members alone.


    3. They have an emotional connection with the brand

    Inviting customers to connect to your brand emotionally is a powerful marketing strategy. Not only does it add to the customer experience, but it also creates customer buy-in. They want to support you and tell everyone about you. That kind of referral is every business owner’s dream!

    And psychology backs this up. According to PsychologyToday, customers are more likely to connect with the emotional parts of ads than the written parts. The most effective emotions to use are things like happiness, the feeling of friendship or inclusion, and inspiration.

    Big-name brands like Nike are stand-out examples of businesses using an emotional connection to appeal to shoppers. Nike uses cleverly developed phrases to connect to customers’ feelings of pride and leadership with slogans such as “the first ones” and “just do it”.

    One clever way to create emotional buy-in is to name your loyalty program members. It makes people feel like they are “part of the club”. For example, Our Bralette Club uses a play on slang to playfully name their program the Peach Party, and international outdoor-wear brand Northface calls its loyal customers the VIPeaks.

    How can you use a loyalty program to create a sense of connection and inclusion?


    4. Strong communication with the customers

    One of the loyalty traits for top customer programs is to stay in touch.

    To be top of mind, you need communication to be timely and straightforward. A great marketing strategy will communicate the following with customers:

      • when there is an exciting event or sale on
      • when they have just bought something
      • to stay in touch and add value.

    A combination of all three will mean you can stay in their minds.

    In action, communication with your loyal customers might look like this:

    1. You send out an email to promote a special members-only sale and remind members that they can use their loyalty points.
    2. Once they have bought something, send another email to thank them and update them on how many points they earned with their recent purchase (the best time to touch base is right after they have purchased).
    3. Send them an update with their total points balance and add more value to the message by including deals such as a new member-only product or an exciting email related to your niche.

    Did you know that you can seamlessly automate all of your customer touchpoints, email campaigns, and loyalty notifications with Marsello?

    Book a demo


    5. Digital optimization is at the forefront of their strategy

    You need to optimize your online presence now more than ever. 

    A clunky mobile browsing experience could be hurting your business more than you know. No matter how good your product, business, or marketing strategy is, you could lose up to 80% of shoppers who leave bad mobile sites. Remember, consistent branding and good user experience matter!

    Successful customer loyalty programs focus on user experience as well as product development and sales.

    Marsello-SmackBang-Loyalty-Widget

    For example, New Zealand-based dog treat boutique Smack Bang has a beautiful brick-and-mortar store. However, they also use Marsello for their simple, eye-catching customer loyalty widget. It is easy to use, encourages customer behavior by telling them exactly how to earn points, and is 100% on brand with their colors. 

    Customers can easily spend points online and in-store, and Smack Bang sees 100% engagement with their loyalty program. By ensuring that they have a loyalty program connected to their eCommerce and brick-and-mortar stores, the team at Smack Bang can provide their customers with a consistent, rewarding shopping experience no matter where they shop. And that bonus of earning seamlessly across all sales channels also helps protect Smack Bang Big-name in the event of more lockdowns as customers reap the benefits even while shopping from home.


    6. They do not treat customer interactions as transactional

    Customer loyalty programs do precisely that – they build loyalty. They help foster interactions with customers that aren’t just transactional. That’s what sets successful loyalty programs apart. 

    So how do you do this on an individual level while still scaling? Doesn’t it cost a lot to put a lot of time into customers individually? 

    Actually, improving customer service and experience might be MAKING you money. There are a lot of long-term benefits of growing lifetime loyalty and adding extra touchpoints to make sure your customers feel appreciated. 

    For example, Forbes suggests that to improve interactions, you should be personalizing experiences wherever possible. They also suggest letting customers define how they want to interact with you rather than pushing it on them. 

    Instead of pressuring people to join your loyalty program, create something fun and desirable that invites them in. This is all part of creating a thriving community around your brand!

    Examples of brands with stand-out customer loyalty programs


    Let's take a look at a few established brands that have really found their feet with loyalty marketing.

    1. Merrell NZ’s loyalty program builds long-term relationships with customers

    Merrell NZ Tiers loyalty widget


    Internationally renowned outdoors brand, Merrell, has a strong presence in New Zealand, with the NZ chapter of their business operating as the longest-running distributor of Merrell’s products. In the wake of COVID-19, Merrell NZ’s marketing team knew they needed to bolster eCommerce sales and maximize customer loyalty. 

    After creating a solid foundation using Marsello to power their email marketing strategy, Merrell NZ developed a tiered loyalty program to elevate customer experience, build meaningful relationships with shoppers, and foster a team of brand ambassadors. 

    With three tiers, emails promoting their loyalty program, and inviting earn and rewards options, Merrell NZ’s customers have welcomed the loyalty program eagerly. 

    José, sales and marketing manager at Merrell NZ, had this to say about their new loyalty program:

    “[…] the Merrell Rewards program powered by Marsello means a lot to us – it gives us the opportunity to link customers from our retail and web stores, work around customer retention and automate email marketing flows in a really clever way.”

    In the first month since launching the Merrell NZ VIP loyalty program, they saw their VIP customer list grow to 123 members! Customers are also turning around a 15% repeat purchase rate and an average purchase frequency of 3.5x, which just goes to show that Merrell NZ’s customers are already proven loyal regulars.

    It’s no wonder that Merrell’s customers feel welcomed into the brand’s community; their loyalty is rewarded with enticing rewards and engaging communications about causes that interest them!

    Read their whole story to learn more about Merrell NZ’s marketing.

    Read Merrell NZ's Success Story

     

    2. LEGO Certified Store’s customer-centric approach to loyalty rewards

     

    LEGO Certified Stores' loyalty widget on a bright yellow background


    When looking for loyalty program inspiration and reward development, look no further than LEGO Certified Stores (based in South Africa).

    Whether shopping in-store or online, customers earn 1 point for every R 1.00 spent. They can then redeem their points for cash-back and exclusive gifts that encourage customers to shop time and time again!

    It’s no secret that the LEGO community is internationally dedicated! With somewhat of a cult following, LEGO is no longer considered just for children, and LEGO Certified Stores’ loyalty program helps them build customer relationships for the long term.

    Through combining their loyalty program and other marketing efforts, LEGO Certified Stores build a community around their brand and connect their customers through LEGO.

    One thing has remained essential for the LEGO Certified Stores team: seamless customer experience no matter where they shop. They had this to say about their Marsello-powered loyalty connected across both their Shopify and Vend-powered stores.

    "Marsello offers a single integration into our POS and online store for our email database. The nature of our retail offering revolves heavily around our loyalty program and the exclusive gifts that customers can redeem from us. 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."

    Read LEGO’s full customer story here to learn more.

    Read LEGO's Success Story

    3. bCODE’s point promotion campaigns encourage customer engagement and buy-in


    bCODE's "double perks" points promotion email on a banner of a woman modelling blue sneakers


    When looking for a stand-out loyalty promotion strategy, look no further than Nigerian shoe brand bCODE!

    The launch of any marketing campaign can feel like a daunting task when so much often hinges on its success. When bCODE expanded their loyalty program from just their brick-and-mortar store and launched it online, they knew they needed to do so with a bang!

    What better way to do this than offering customers double points over launch weekend and promoting the offer through emails and social media?

    With a spend threshold and a set time frame, bCODE (then known as THE BCODE) encouraged increased sales, loyalty program sign-ups, reward redemptions, and more! In fact, just before they sent the above email (with a captivating GIF included), bCODE encouraged customer sign-ups by sending an email campaign that detailed how shoppers could sign up to the newly expanded loyalty program and earn points in the lead-up to the weekend’s promotion. 

    After launching their double points campaign, bCODE saw an astounding 94% increase in loyalty points spent, and over one year later, their loyalty program is thriving both in-store and online!

    Read bCODE’s customer success story.


    Read bCODE's Success Story

    4. Anna Beck’s inviting loyalty program entices all types of customers


    Anna Beck's loyalty widget on a background showcasing some of the brand's jewlery

     

    The team behind well-loved designer jewelry brand Anna Beck knows that a low barrier to entry is one of the fastest ways to encourage loyalty program sign-ups and grow customer loyalty. When they developed their loyalty program, they kept it simple, beautifully on-brand, and undeniably enticing. 

    As soon as customers join, they are rewarded with a 10% discount. And within their next shop, they can earn their next reward – a free cleaning cloth. By generously rewarding customers early into their brand experience, Anna Beck creates gratifying customer experiences that build loyalty from the earliest stages. Those customers are then much more likely to remain loyal and even become vocal brand ambassadors.
     

    “​​Through the data, we’ve found that we have incredibly loyal customers. Once they make their second purchase, they are highly likely to be lifelong customers. Marsello allows us to easily reward those loyal customers for sticking around; it was a no-brainer. Anna Beck has only been an online retail brand for a handful of years, and a loyalty program was the natural next step.”

    We’ll let you in on a secret, too: Anna Beck experimented with including tiers into their loyalty program but decided that keeping it simple was best for their brand. Experimenting, looking at the data, and then drawing data-driven conclusions that best benefit your business is an essential part of marketing success. There’s no one-size-fits-all approach to customer loyalty, and we love that Anna Beck was able to find a loyalty program design that suits their business and delights their customers. 

    Interested in learning more about Anna Beck’s marketing?


    Read Anna Beck's Success Story

     

    Final words

    The number one similarity between successful loyalty programs is a customer-first approach. Keeping it simple, branded, and customer-centric will naturally benefit your revenue as much as your customers. Put them first and you will reap the rewards organically.

    Looking for an easy way to reward your customers? Marsello is the all-in-one software for simple in-store and eCommerce loyalty programs! 

    Subscribe to the Marsello Blog

    Everything your business needs to grow, delivered straight to your inbox.