Identify your challenges in customer retention with Shopify Analytics
Loyalty Program is one of the ways for us to increase returning customer revenue. On Shopify Analytics, see what insights you can gain.
You may want to explore:
You may also want to utilise Shopify Segments to address questions such as:
- How many and what % of your customers have made 2nd, 3rd, etc. purchases at your store?
- How many customers have spent over $500, $1,000, $1,500, etc. at your store in the last 365 days?
Looking into these data will help you understand your current retention performance and set a goal you want to achieve. The key goals you set for the loyalty Program will shape the program details.
In this tutorial, I use my development store as an example. The store name is DemoPeak which sell winter sports items (password: loyalty). Please note this store doesn't exist. Please feel free to simulate a successful transaction to see loyalty related customer touchpoints, however, you will not receive an order when you place a test order on the store, of course.
Let's say I identified the following insights:
- Only 15% of DemoPeak customers come back for their 2nd purchases. I want to tailor the loyalty program to increase the number of customers who place their 2nd orders.
- AOV is $1,000
In the next step, I will use the data to tailor DemoPeak's loyalty program - SnowSquad Club.
Tailor a Loyalty Program
You've done analyses, set the goals you want to achieve with your loyalty program and now you are ready to design a loyalty program.
Use loyalty program offer and its eligibility criteria wisely to achieve your target.
See the DemoPeak's loyalty program for the details. What I want to highlight is the tiered program.
Based on the insights above, I know that my DemoPeak customers spend $1,000 on average, hence I set its 2nd tier to be total spend of $1,000 in the last 365 days. With first purchase, most of my DemoPeak customers can reach SnowSquad Leader tier. By reaching the tier, they become eligible for 15% welcome-to-leader-tier discount code. This promo will be a strong factor for them to come back for their 2nd purchase. By setting an expiry date on the code, I may be able to improve purchase frequency as well.