Retaining Holiday Traffic Through Loyalty Programs

2016 Holiday spending keeps rising!  30% of annual retail sales occur between Black Friday and Christmas alone.  With the increased spending, online stores are seeing more traffic than ever before.  

We’ve previously written about the importance of retaining customers and how it leads to long term business success, but let’s drill down on one of the most effective ways of turning one-time shoppers into repeat revenue year over year: Loyalty Programs.

Loyalty programs will keep your customers coming back for more, and more!  In fact, 57% of brands report that they will increase loyalty program budgets in 2017.  Time to ramp up your efforts as well!

Here are a few ways of retaining holiday traffic through Loyalty Programs:


Think credit cards, but for shopping purchases occurring on your site.  Obviously one of the main attracting factors for consumer credit cards is the ability to get money back for the dollars you spend.  By implementing the same value proposition, without the commitment of a credit card, you can entice browsers to purchase and keep on purchasing.


Cross promotion is a no-brainer for businesses starting out, and also for businesses that are established. It works at every scale.  In offering free or discounted products to another site in a similar vertical or popular within the same demographic, you can leverage other brand’s products to increase traffic to your own site and get shoppers excited about purchasing.  Who doesn’t love a great partnership?


Incentives, incentives, incentives!  Entice your customer base by offering free products, free shipping, or discounts after they’ve hit a predetermined spending threshold.  


Think about Amazon Prime and its huge success.  By charging a fee up-front Amazon is able to capitalize on increased transactions on their site from those same loyalty members.  Prime members end up spending about $1,000 more per year than non-prime members as they are incentivized to shop on the marketplace more often by the rewards program they have already bought into.  


Although this isn’t a traditional “loyalty program” customer experience is arguably the most important promotion you can offer.  To this point, 86% of consumers say loyalty is primarily driven by likeability and 83% of consumers say trust.  Provide your customers with a seamless experience and watch your brand loyalty grow.  


These are a few great ways of retaining holiday traffic through loyalty programs.

Any other tips?  Feel free to comment below.