Everything You Should Know About Loyalty Programs

Together with our partner from Yotpo we recorded a webinar where we discussed how to build a successful loyalty program for a Magento store.


Loyalty program is a powerful tool that can be used for user acquisition and retention. Yotpo, an expert in loyalty and referral programs, has shared their insights on how to turn your first-time customer into a loyal one.

Below you can find key takeaways from the webinar. If you prefer video over text, jump right to it!

The Importance of Loyalty Programs Today

Over the last few years, loyalty programs in eCommerce transformed from dollar value discounts and ‘buy one, get one’ into advanced programs with different loyalty points.

Customer loyalty also changed. Today, it is not limited to buying from the same sellers. Customer loyalty is about following on social media, sharing brand-generated content, recommending sellers to friends, and much more. Often, loyalty means that customers feel an emotional connection with their favorite brands. Loyalty programs should aim to build such a connection. It’s important to remember that today customers expect much more from brands than just discounts.

What a Good Loyalty Program Looks Like

One size fits all approach doesn’t work anymore.

Each brand should analyze its business objectives, target market, and customer behavior. Based on the collected data companies should tailor the ways for customers to earn loyalty points and the value of the points.

Today, loyalty programs should be omnichannel. You can reward customers for a number of actions and on different sales channels, e.g., for shares and likes on social media.

Turning First-Time Customers into Loyal Ones

Acquiring new customers is usually 25% more expensive than retaining existing ones. Loyalty programs for Magento can help increase the number of returning customers. Analyzing consumer behavior, you can identify how many purchases each consumer makes before turning to another store. Therefore, you can offer them discounts or gits for a certain purchase or action, encouraging them to stay loyal to your eCommerce business. This way, you will be able to create VIP customer tiers.

Staying Open to Something New

Even though sellers should know what they want to get from a loyalty program, they should always stay open to trying new things and exploring new referral programs. Brands that set up a loyalty program for the first time should be agile and ready to make changes and improvements based on the customers’ reaction to the program and its rules.

Yotpo provides a Magento 2 loyalty program extension. With its help, you can add the needed functionality to your website.

Don’t forget to check the video to learn all the details on the loyalty programs that we discussed during the webinar.

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