Why a Membership Program Can Help Build Customer Loyalty and Lifetime Value
How adding a Member Rewards Program to your Shopify Store Can Elevate Customer Loyalty
Building a strong membership program is one of the best ways to keep customers coming back to your Shopify store. When you reward your repeat customers with special perks and exclusive benefits, you’re not just encouraging them to shop more—you’re turning them into loyal fans who can keep supporting your brand. Loyalty programs can offer more than just features to encourage repeat purchases. Programs can give you a deeper understanding of what your customers by segment may value, helping you fine-tune your marketing efforts and product choices to better serve your most dedicated shoppers.
Building a Membership Program on Shopify
When it comes to building a membership program, the Shopify App Store offers a variety of options.
For example, the Loyalty and Membership Program app, OMNI Loyalty, provided by Wave Commerce, is an excellent option that meets these criteria.
To get more out of your loyalty program app such as OMNI Loyalty, a highly recommended approach involves using "customer tags" to segment out member tier and profile information and integrate with apps and solutions that work seamlessly with Shopify. This method allows for deeper membership analysis and continuous program improvement using external tools like ECPower.
OMNI Loyalty synchronizes customer membership information with Shopify's customer tags in the following format:
- Tier:
WVTier_Gold - Birthday month info:
WVBirthMonth_06
By leveraging these customer tags with ECPower, you can easily manage segments based on tiers, enabling more effective membership program management.
Recipes - Enhancing Your Membership Program's Effectiveness
Managing segments based on tiers using ECPower allows you to oversee the growth of your membership program, measure its revenue impact, monitor customer movement between tiers, and analyze purchasing behavior across different tiers.
Let's explore each of these in detail.
Managing Membership Program Growth
By managing tier-specific segments in ECPower, you can compare key metrics like customer count, repeat purchase rate, LTV (Lifetime Value), average order value, and average purchase cycle days across different tiers. One of the primary objectives of implementing a membership program is to increase overall LTV. While higher tiers generally yield higher LTV, it's crucial to understand whether this is driven by AOV (Average Order Value) or purchase frequency.
Moreover, ECPower automatically records daily trends in customer count and LTV. Tracking which tier saw the most growth compared to the previous month or how much LTV has improved is challenging with most tools, but ECPower simplifies this process.
Measuring Revenue by Tier
ECPower enables you to measure revenue generated from customer segments. Review the composition of your overall revenue by tier to identify which segments are driving the most sales.
Monitoring Customer Movement Between Tiers
Utilize the "Customer Journey" feature to monitor how customers move between tiers. Identifying bottleneck tiers that hinder customers from advancing to higher levels can help you refine your loyalty strategies.
Gaining Insights into Tier-Specific Purchasing Behavior
Examine the differences in purchasing behavior across tiers. For example, compare which products or brands are frequently repurchased by customers in each tier.
In one case, over a third of customers in the Silver tier repeatedly purchase from the Yume Matcha brand, while "Silver Leaf Tea" and "Ancient Brew" have significantly lower repeat purchase rates.
Check how this data compares across other tiers.
How to Configure ECPower Segments
Configuring segments in ECPower is straightforward. Depending on the Shopify app you're using, the customer tags that integrate with Shopify may vary, so be sure to check the specifications for each app. The following example uses OMNI's specifications.
🏅 Tier: XXX Customers
Segment Name: 🏅 Tier: XXX Customers
Description: Customers with membership rank XXX
Conditions: Customer tag includes WVTier_XXX
Create this segment (Link to ECPower's segment builder)
OMNI Loyalty - Recommended Loyalty Membership Program Solution
If you're looking to build a membership program, OMNI Loyalty, the Loyalty and Membership Program app from Wave Commerce, is one of the top choices. It integrates tier and profile information with Shopify through customer tags, enabling the kind of analysis discussed in this article.
OMNI is especially recommended for merchants who operate across multiple channels, such as online stores, physical retail locations. OMNI works with Shopify POS and also other POS systems if you’re looking to integrate your POS with Shopify to drive omnichannel retailing, for a unified online and offline customer loyalty experience.
With OMNI Loyalty, you can:
- Create VIP Membership Tiers: Reward loyal customers and drive spending with targeted prompts.
- Segment and Tag Customers: Deliver personalized rewards and tailored marketing.
- Offer Omnichannel Experiences: Provide a "VIP Anywhere" experience across all sales channels.
- Boost CLV and Repeat Purchases: Offer customized rewards to keep customers returning.
- Enhance In-Store Service: Equip staff with real-time access to customer data via Shopify POS.
- Drive Engagement Across Channels: Encourage interaction with both online and offline channels.
If you're interested in OMNI, contact them through this page.
Related: ECPower x OMNI Omnichannel Analysis Solution
