{"id":2212,"date":"2021-08-05T08:55:19","date_gmt":"2021-08-05T08:55:19","guid":{"rendered":"https:\/\/ccbill.com\/kb\/?p=2212"},"modified":"2023-10-04T12:06:06","modified_gmt":"2023-10-04T12:06:06","slug":"loyalty-discount","status":"publish","type":"post","link":"https:\/\/ccbill.com\/kb\/loyalty-discount","title":{"rendered":"Loyalty Discounts Guide for Online Businesses"},"content":{"rendered":"<p class=\"h3\">Introduction<\/p>\n\n\n<p>Competitive prices and first-rate service do not guarantee customer loyalty. Online businesses need to provide incentives, such as loyalty discounts, to <a href=\"https:\/\/ccbill.com\/blog\/customer-retention-strategies\" target=\"_blank\" rel=\"noreferrer noopener\">retain customers in the long run<\/a>.<\/p>\n\n\n\n<p>Use loyalty discounts to motivate and reward <a href=\"https:\/\/ccbill.com\/blog\/repeat-customer\" target=\"_blank\" rel=\"noreferrer noopener\">repeat customers<\/a> and show them how much you appreciate their purchases.<\/p>\n\n\n\n<p><strong>Find out how loyalty discounts work and why they encourage customers to spend more.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"800\" height=\"400\" src=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/loyalty-discounts-guide-online-bussinesses.png\" alt=\"Loyal customer making purchase on mobile device.\" class=\"wp-image-2213\" srcset=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/loyalty-discounts-guide-online-bussinesses.png 800w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/loyalty-discounts-guide-online-bussinesses-300x150.png 300w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/loyalty-discounts-guide-online-bussinesses-768x384.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Loyalty Discount?<\/h2>\n\n\n\n<p>A loyalty discount offers reduced prices and benefits to customers who regularly engage with a store or brand. <\/p>\n\n\n\n<p>The discount acknowledges the customer's track record and persuades them to increase spending and buy products more frequently.<\/p>\n\n\n\n<p>Merchants typically reward loyal customers with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduced prices for reaching a predefined spending threshold.<\/li>\n\n\n\n<li>Discounts for <a href=\"https:\/\/ccbill.com\/blog\/membership-site\" target=\"_blank\" rel=\"noreferrer noopener\">registered members<\/a>.<\/li>\n\n\n\n<li>Expedited or free shipping.<\/li>\n\n\n\n<li>Early or exclusive access to new products.<\/li>\n\n\n\n<li>Gifts, vouchers, and other free services.<\/li>\n<\/ul>\n\n\n\n<p>Loyalty discounts also help merchants to retain customers, create a vibrant community around their brand, and turn casual shoppers into store advocates.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Benefits of Loyalty Discounts<\/h2>\n\n\n\n<p>Sophisticated marketing campaigns designed to attract new customers are expensive. Convincing existing customers to make an additional purchase is much more cost-effective.<\/p>\n\n\n\n<p>Using loyalty discounts to reward and stimulate desirable customer behavior results in:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Increased revenue.<\/li>\n\n\n\n<li>Customers feeling engaged and appreciated.<\/li>\n\n\n\n<li>Collection of valuable customer data.<\/li>\n\n\n\n<li>Improved <a rel=\"noreferrer noopener\" href=\"https:\/\/ccbill.com\/blog\/repeat-purchase\" target=\"_blank\">Repeat Purchase Rate<\/a> and Customer Lifetime Value.<\/li>\n<\/ul>\n\n\n\n<p>Loyalty discounts and programs enable merchants to acquire lots of data about customers and their preferences. These priceless insights are essential for creating personalized offers and unique experiences.<\/p>\n\n\n\n<p>It is straightforward to implement a loyalty discount, especially if your <a href=\"https:\/\/ccbill.com\/payment-processing\" target=\"_blank\" rel=\"noreferrer noopener\">payment processor<\/a> has a built-in feature, like <a href=\"https:\/\/ccbill.com\/doc\/promotion-and-discount-systems\" target=\"_blank\" rel=\"noreferrer noopener\">CCBill's Loyalty Discounts<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-vivid-cyan-blue-color has-alpha-channel-opacity has-vivid-cyan-blue-background-color has-background is-style-wide\"\/>\n\n\n\n<p><strong>Note:<\/strong> Read our guide to <a href=\"https:\/\/ccbill.com\/kb\/loyalty-fraud\" target=\"_blank\" rel=\"noreferrer noopener\">loyalty fraud<\/a> to learn how to protect your customers. <\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-vivid-cyan-blue-color has-alpha-channel-opacity has-vivid-cyan-blue-background-color has-background is-style-wide\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Examples of Loyalty Discounts<\/h2>\n\n\n\n<p>Smaller and mid-sized businesses cannot afford to attract new customers with \"out of this world\" discounts.<\/p>\n\n\n\n<p>Luckily, price points are not at the heart of loyalty discounts. Successful loyalty programs and discounts focus on long-term loyalty and emphasize common values. &nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">REI Co-op<\/h3>\n\n\n\n<p>REI sells outdoor recreational equipment. The company offers customers a lifetime membership (lifetime of the store, not the customer) for a one-time $20 payment. <\/p>\n\n\n\n<p>Customers instantly feel that they are part of a like-minded community and have bought into a lifestyle rather than becoming members on a website.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"800\" height=\"507\" src=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/rei-member-loyalty-discount.png\" alt=\"The REI loyalty program membership benefits.\" class=\"wp-image-2214\" srcset=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/rei-member-loyalty-discount.png 800w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/rei-member-loyalty-discount-300x190.png 300w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/rei-member-loyalty-discount-768x487.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure><\/div>\n\n\n<p>Members get loyalty discounts on products, but the best deals are reserved for adventure classes, renting camping equipment, and bike and ski shop services.<\/p>\n\n\n\n<p>This approach shows customers that the store does not only sell products but promotes outdoor activities. Instead of selling a tent, they are giving a discount for the adventure of sleeping in one.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Verizon Loyalty Discount<\/h3>\n\n\n\n<p>Telecommunication companies know that customers are reluctant to switch mobile carriers. As a result, new customers often get better deals than existing users.<\/p>\n\n\n\n<p>Prepaid plans are an exception as Telco companies need to incentivize customers to utilize them for as long as possible. <\/p>\n\n\n\n<p>Verizon has a forthright loyalty discount for prepaid plans and discloses the benefit for long-term users. An on-screen slider shows customers exactly how much they can save for reaching predefined usage thresholds.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"800\" height=\"512\" src=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/verizon-pepaid-plan-loyalty-discount.png\" alt=\"A slider showing the benefits of Verizon's prepaid plan loyalty discount.\" class=\"wp-image-2215\" srcset=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/verizon-pepaid-plan-loyalty-discount.png 800w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/verizon-pepaid-plan-loyalty-discount-300x192.png 300w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/verizon-pepaid-plan-loyalty-discount-768x492.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure><\/div>\n\n\n<p>Regardless of which plan they use, customers get a $5 discount once they reach a 3-month threshold and an additional $5 discount for using a plan for ten months or more.<\/p>\n\n\n\n<p>Presenting the benefits of a loyalty discount clearly and honestly is as important as the discount amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dollar Shave Club<\/h3>\n\n\n\n<p>The Dollar Shave Club loyalty program is free. Registered members get free shipping, loyalty discounts, birthday gifts, and access to quirky products that are not available to unregistered users.<\/p>\n\n\n\n<p>Shaving is a private and intimate activity. However, the Dollar Shave Club needs to collect customer data to provide a highly personalized experience across multiple channels.<\/p>\n\n\n\n<p>The writing, content, and website design are engaging and funny. This lighthearted approach makes customers feel comfortable to share experiences they may be reluctant to talk about. <\/p>\n\n\n\n<p>Before becoming a member, the DSC asks customers to answer a series of questions to form a personalized profile.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"800\" height=\"490\" src=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/dollar-shave-club-loyalty-discount.png\" alt=\"A series of qustions DSC asks future memebrs in order to create a personilized profile.\" class=\"wp-image-2216\" srcset=\"https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/dollar-shave-club-loyalty-discount.png 800w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/dollar-shave-club-loyalty-discount-300x184.png 300w, https:\/\/ccbill.com\/kb\/wp-content\/uploads\/2021\/08\/dollar-shave-club-loyalty-discount-768x470.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure><\/div>\n\n\n<p>This is a great first step for any loyalty program. The customer feels that their personal needs are front and center from the get-go.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-cyan-blue-background-color has-vivid-cyan-blue-color is-style-wide\"\/>\n\n\n\n<p><strong>Note:<\/strong> Learn how to add <a href=\"https:\/\/ccbill.com\/kb\/woocommerce-quantity-discounts\" target=\"_blank\" rel=\"noreferrer noopener\">quantity discounts in WooCommerce<\/a>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-text-color has-background has-vivid-cyan-blue-background-color has-vivid-cyan-blue-color is-style-wide\"\/>\n\n\n<p class=\"h3\">Conclusion<\/p>\n\n\n<p>You know that loyalty discounts work. The examples in this guide prove that successful loyalty discounts need to be transparent, promote company values, and show customers how much you respect their judgment.<\/p>\n\n\n\n<p>Use them to create highly personalized offers and generate real value for your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This guide analyzes key loyalty discount concepts and explores 3 successful real-life examples.<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[12,13],"tags":[],"class_list":["post-2212","post","type-post","status-publish","format-standard","hentry","category-e-commerce","category-payment-processing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Loyalty Discounts Guide for Online Businesses | CCBill KB<\/title>\n<meta name=\"description\" content=\"Learn how loyalty discounts work and use them to turn casual shoppers into a vibrant and devoted customer base.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ccbill.com\/kb\/loyalty-discount\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Loyalty Discounts Guide for Online Businesses | CCBill KB\" \/>\n<meta property=\"og:description\" content=\"Learn how loyalty discounts work and use them to turn casual shoppers into a vibrant and devoted customer base.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ccbill.com\/kb\/loyalty-discount\" \/>\n<meta property=\"og:site_name\" content=\"CCBill Knowledge Base\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ccbillBIZ\/\" \/>\n<meta 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