The Work and Resources Required for a Successful Shopify Loyalty Program

This post is your guide in outlining the cost of a successful loyalty program. Bookmark it, print it out, and definitely forward it to your team.

Why?

Time and again, we hear the same story from prospective customers: they’ve previously worked to establish a loyalty program with one of our competitors…only to be blindsided by the upfront and ongoing costs.

Of course they knew that implementing and maintaining a successful loyalty program would require work. But in the process of investing in a loyalty platform, they were never prepped for the amount of time and resources it would take.

No one likes a hidden fee.

Whether it’s a sneaky service charge or unexpected time commitment, we believe everyone should know the full cost of every investment they make, before they make it.

There are two ways to close this Expectation v. Reality gap for our customers:

1. Flaunt’s Managed Service: We heard customers loud and clear: they want a loyalty platform. They understand the value. They also see the enormous benefits of letting the experts (us) take the reins from Day 1. Our managed service provides both the benefits of Flaunt’s platform and custom concierge servicing from conception through launch and management.
2. Total Transparency: We don’t see any reason to hide the work involved in a successful loyalty program. We know that the value of a well-run loyalty program vastly outweighs any cost. What’s the point in downplaying the work when the rewards everyone reaps will be so great?

This blog post is a resource for anyone thinking about making the smart investment in a loyalty program. Learn about the planning and resources required.

The Loyalty Legwork

Let's break down the major pieces of prep work required in launching any successful loyalty program:

Program Incentives Design:

This is one of the most critical (and custom) pieces of the upfront work required in any loyalty program. Successful loyalty program design is akin to gamification; there are levels of engagement and multiple options to suit different customer types.

The key is to design a rewards structure that motivates customers without eroding margins—in other words, to balance value to both you and your customer.

Flaunt’s bread and butter is creating custom programs tailored to your brand and business goals. There’s no one-size-fits all approach when designing the nuts and bolts of your program, and our customers find that the guidance of seasoned experts is often a massive help.

Flaunt customer Barefaced opted to include features like ‘badges’ alongside points that can be earned through purchases and engagement-based quests or “challenges” in their “No Sun Club,” designed with Flaunt. Badges unlock additional benefits and status within the program.

• Their incentive structure also tiered perks, where climbing tiers unlocks more exclusive discounts, offers, and experiences.
• They offer non-monetary incentives like priority access to product reveals, exclusive events, and sales. Different rewards will speak to different customers and the variety is crucial to listing engagement with the program.

Other tasks that fall under the design umbrella are:

Program Branding: Developing a cohesive brand identity for your loyalty program that aligns with your overall brand strategy.

Copywriting: Creating compelling content for program descriptions, emails, and promotional materials.

Campaign Designs: Developing engaging campaigns to drive program adoption and ongoing engagement.

Email/SMS Implementation: Integrating your loyalty program with your existing communication channels.

Technical Implementation: Ensuring seamless integration with your e-commerce platform and other tools.

Go-to-Market Strategy & Execution: Planning and executing the launch of your loyalty program.

This is the work that happens before launch. As an extension of your brand, many of the systems to create these workflows and collateral are probably already in place. And, as your partner and sounding board throughout the process, Flaunt is here to help at whatever tier you choose.

Once those pieces are vetted and ready to launch, we transition into the ongoing maintenance and optimization involved in making your loyalty program as successful and profitable as possible.

Maintaining Your Program

A truly successful loyalty program isn’t a set-it-and-forget-it system. There are insights to be gained from the data and reporting that can influence initiatives across your entire brand, and your loyalty program will only ever be as meaningful as the effort expended to maintain it.

In other words, be good to your loyalty program and it will be good to you.

To keep things running like the well-oiled profit center it should be, you will need to dedicate some attention and resources to ensuring all is well. That includes:

• Financial Reporting: Tracking the ROI and financial impact of your loyalty program.
• Data Analysis and Insights: Continuously analyzing program data to identify trends and opportunities.
• Campaign Ideation: Regularly coming up with fresh ideas to keep members engaged.
• Campaign Execution: Implementing and managing ongoing loyalty campaigns.
• Customer Service: Addressing member inquiries and issues related to the loyalty program.

Flaunt: The Managed Service Solution

So that’s the work involved – not insignificant, we know. But, as promised, we’re going to explain how Flaunt can help.

We recognize that not only does a loyalty program take effort, but also that there’s a learning curve. We want our customers to reap every single benefit of their hard work, Day 1. And analyzing the data, generating new concepts, and gleaning brand-wide insights takes expertise.

So we developed an offering that goes beyond just providing a platform. Our managed service is effectively an extension of your team, handling all aspects of your loyalty program from design to ongoing optimization.

Here's how Flaunt is different:

1. Custom-Built Programs: Unlike cookie-cutter solutions, Flaunt designs loyalty programs tailored to your brand and business goals. Our Certified Loyalty Marketing Professionals (CLMP™️) ensure that your program is built to drive incremental profits.
2. Hands-On Management: We don't just set up your program and leave you to figure it out. Our team handles ongoing optimization, campaign management, and even customer support related to your loyalty program.
3. Strategic Consulting: Monthly sessions with our experts offer actionable solutions based on key business insights, ensuring your program evolves with your brand and market conditions.
4. Creative Support: Our copywriters and designers create thoughtful content and creative assets that resonate with your brand identity and delight your customers.
5. AI-Enabled Optimization: Leveraging AI technology, we continuously optimize your program to maximize engagement and ROI.

Real Results: The Barefaced Success Story

To illustrate the power of a well-managed loyalty program, let's take a closer look at Barefaced, one of Flaunt's clients. Their "No Sun Club" loyalty program exemplifies how a thoughtfully designed and actively managed program can drive significant results.

Key elements of Barefaced's program include:

• Community-Centric Approach: The program positions members at the heart of the brand, encouraging collaboration and feedback.
• Unique Collectibles: Instead of traditional points, members earn collectible badges that unlock additional benefits and status.
• Tiered Benefits: As members climb tiers, they unlock more exclusive discounts, offers, and experiences.
• Exclusive Access: Priority access to product reveals, events, and sales creates a sense of exclusivity and value.

By implementing these unique features and continuously optimizing the program, Barefaced saw a 17% increase in sales driven by their loyalty program.

The program was meticulously designed for Barefaced’s exact customer base, incorporating language, structures, and benefits that speak to their community. As their partners, we’re constantly finding new ways to engage the Barefaced brand loyalists and also to apply learnings from the program across the company.

The Flaunt Difference: Your AI-Enabled Loyalty Team

We know the costs, both seen and unseen, of loyalty programs are real. We also know that the benefits are so vast and wide-reaching, it’s a no-brainer for most brands.

When you partner with Flaunt, you're not just getting a platform – you're getting a dedicated team of loyalty experts. Here's what that means for your brand:

• Focus on Your Core Business: While we handle the intricacies of your loyalty program, you can concentrate on other critical aspects of your business.
• Continuous Optimization: Our AI-enabled approach means your program is always evolving, capturing new opportunities and addressing challenges in real-time.
• Reduced Reliance on Discounting: We help you move beyond simple discounts to create meaningful, value-driven loyalty experiences.
• Measurable Results: With our focus on driving incremental behaviors, you'll see tangible improvements in key metrics like LTV and customer engagement.

Ready to transform your approach to customer loyalty? Book office hours with our team to discuss your unique loyalty needs and discover how Flaunt can help you drive growth through meaningful customer relationships.