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The Ultimate Guide to Retention for Shopify Stores
Gamify your customer experience to make loyal customers feel like VIPs
← Back to contents57% of shoppers are more likely to participate in rewards programs with VIP Tiers and exclusive rewards. Plus, 74% of customers are motivated to be loyal by the feeling that they are working towards a goal. VIP Tiers help you transcend your loyalty program from simple points and rewards to experiences that keep customers connected to your brand forever. Keep reading to find out how to structure VIP Tiers so that customers keep spending more and purchasing more frequently.
Limit yourself to three tiers - the more you have, the harder it is to manage and offer meaningful rewards.
Set a rolling 12-month tier duration. This activates when a customer enters a tier, ensuring that their tier status will be re-evaluated each year.
Regularly compare the average order value and purchase frequency of VIP Tier cohorts to understand whether your structure could be improved.
Follow the best practices below to create VIP Tiers that keep customers spending
The rewards available in your VIP Tiers should become more exclusive as customers progress through the levels. Each tier is likely to contain an element of transactional reward, for example, additional points per dollar spent or differing levels of shipping discount.
You may also give customers in your lower tiers basic experiential rewards, such as early access to sales, double points days, or new product lines.
As your customers progress through your tiers, you have the opportunity to offer them more exclusive experiences that are perceived to be of far higher value. We’re talking exclusive webinar or event invitations, free styling sessions, or the ability to join a focus group.
The more VIP rewards you offer in your higher tiers, the more likely your members are to spend and engage to get there. These exclusive experiences can also help you offer fewer discounts to your existing customers.
Customers in higher VIP Tiers typically purchase more frequently and have a higher average order value, so it’s imperative to discuss your tiers and the exclusive rewards within them whenever possible.
We recommend that your VIP Tiers are well represented on your rewards page, with the increasing value of rewards clearly shown.
We also suggest setting up triggered emails to notify members when they are close to moving up (or down) a tier. This typically prompts them to make their next purchase sooner to unlock or retain higher-value rewards.
Where possible, it’s beneficial to collect user-generated content or testimonials about your members’ experience of your VIP tiers. Use this content from your most valuable and vocal customers within emails and social media posts promoting your program.
If you’re a brand that sells products on a subscription basis, then subscriber churn is likely a regular headache. Setting up a specific Subscriber Tier can help you alleviate that churn and retain a predictable source of revenue.
Create a Subscriber Tier with exclusive benefits that regular shoppers can’t access. The rewards you include in your Subscriber Tier must be of enough perceived value that they outweigh the discount a customer could get from switching to a rival brand.
Integrating LoyaltyLion with tools like ReCharge can make it quicker and easier to maintain Subscriber Tiers.
Use secret Tiers to create the ultimate VIP experience
If you want to create a particularly exclusive experience for your highest spenders, advertise a secret Tier. Tell customers what they need to do to unlock this status, but don’t tell them what they will get in return. This will keep customers working hard to reach the ultimate level of exclusivity and get more people talking about your program.
Explore the most effective VIP Tiers
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The Tiers are a huge bonus and create a lot of excitement for users. They love being able to work toward the next Tier - a big step up from a traditional program.
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