The best way to turn a FTC (first time customer) into an LTC (long term customer) is to reward them for ordering with you and for spending more on orders. You can give customers points for these activities to encourage them.
Points are made in our system by using Generators
Customers redeem points by selecting from Rewards that you choose
Generators
There are two activities that can generate loyalty points in the system:
Dollars Spent: choose the number of points that each dollar spent is worth. For example, you could choose to give customers 1, 10, or 1000 points per dollar spent. This is calculated based off of the order subtotal.
Orders: you can reward customers for every order they make, for orders over a certain value, or both. You could give a customer an extra point for every order they place regardless of value, but also give "bonus points" for orders over $100.
Rewards
Cash Back
Flat Discount
Percent Discount
Free Product
With four different reward types to choose from, you can have flexibility in the perks you offer loyal customers. You can use cash back to let customers redeem points at a set value (for example, $0.03 per point, or 3% cash back if the customer is awarded 1 point for each $1 spent).
You can also set point values for discounts (flat $ amounts or % off the order total) and free products.
How should I set up my Rewards system?
How you set up your rewards system is up to you, but we can offer some suggestions. Ask your best customers about their preferences and test different ideas to see what works.
To start, the easiest way to reward customers might be a simple cash back approach: for each $1 the customer spends they get 1 point. customers can redeem these points for a value you set, say $0.03 per point. You can let your customers know that they get a 3% cash back discount by earning and using points.
Using tiers for Generators and Rewards
You can also use a more detailed approach, for example by creating tiered point generators or rewards. In the example below, we have three generators set up: one for dollars spent and two for orders.
If a customer places an order for $20, they would get 21 points (20 from dollars spent and 1 for placing an order).
If a customer spends $100, they would get 110 points (100 from dollars spent, 9 for placing an order of $100 or more, and 1 for an order of any value).
You can make multiple order tiers that award "bonus points" to customers when they spend more than a certain amount.
So if a customer is placing a $90 order, you can let them know if they add another item and hit $100 they get bonus points!
Tiers can also be used on the Reward side
Take the example below, where regular 1/8ths are 400 and Top Shelf are 500
If your mid-shelf products cost $40, the value per point to the customer is $40/400 or $0.10.
If a top shelf costs up to $55, the value per point to the customer is $55/500 or $0.11.
In the second example the points are worth 10% more to the customer, which gives them an incentive to earn and use more points!
Here's a short video showing how to set up a simple 3% cash back program:
