How to Build a Loyalty Program on WooCommerce:
4 Best Loyalty Plugins

Building a loyalty program is one of the most effective ways to boost customer retention and increase lifetime value in your WooCommerce store.

Building a loyalty program is one of the most effective ways to boost customer retention and increase lifetime value in your WooCommerce store. A well-structured loyalty program can incentivize customers to make repeat purchases, engage with your brand, and become long-term advocates. The good news is that WooCommerce offers a range of plugins that make it easy to create and manage a successful loyalty program.

In this article, we’ll walk you through the steps of building a loyalty program for WooCommerce and introduce you to the six best loyalty plugins to help you streamline and automate the process.

Why Build a Loyalty Program for Your WooCommerce Store?

Before we dive into the how-to, let’s highlight why a loyalty program is crucial for your WooCommerce store:

– Increases Customer Retention:

A loyalty program gives customers reasons to return to your store, increasing the likelihood of repeat purchases.

– Boosts Customer Lifetime Value (CLV):

By encouraging larger purchases or frequent orders, a loyalty program can increase the total value a customer brings to your business.

– Creates Brand Loyalty:

Rewarding customers for their loyalty can foster emotional connections with your brand, leading to stronger relationships.

– Encourages Referrals:

Customers who enjoy your loyalty program are more likely to refer others, helping you acquire new customers through word-of-mouth.

Steps to Building a Loyalty Program on WooCommerce

1. Define Your Program’s Goals

The first step in building a successful loyalty program is defining your goals. Are you looking to increase customer retention, boost average order value (AOV), or encourage referrals? Having clear goals will help you structure your program effectively.

Common goals include:
– Increasing repeat purchases
– Encouraging referrals and customer advocacy
– Boosting average order value (AOV)
– Reducing customer churn

2. Choose the Right Reward System

There are various ways to structure your loyalty program. Common reward systems include:

– Points-Based Programs: Customers earn points for each purchase, which they can redeem for discounts or free products.
– Tiered Rewards: Customers unlock higher rewards or perks as they spend more, encouraging them to reach new tiers.
– Referral Programs: Customers earn rewards for referring friends to your store, creating a viral loop for acquiring new customers.
– Cashback Programs: Offer customers a percentage of their spending back as store credit, which encourages future purchases.

3. Set Up Earning and Redemption Rules

Determine how customers will earn rewards and how they can redeem them. Set clear guidelines for:

– Point Earning: How many points do customers earn per dollar spent? Can they earn points for other activities like sharing on social media or leaving reviews?
– Redemption Options: What can customers redeem their points for? Discounts, free shipping, or free products are common options.
– Bonus Rewards: Consider offering bonus points for certain actions, such as referring friends, signing up for your newsletter, or reaching spending milestones.

4. Make It Easy to Join

Make sure customers can easily sign up for your loyalty program. Add clear calls to action (CTAs) on your website’s homepage, product pages, and checkout process to encourage customers to join. Consider offering a welcome bonus to entice new members.

5. Promote Your Loyalty Program

Promote your loyalty program across your marketing channels to ensure customers know about it. Use:
– Email Marketing: Send welcome emails, reminders to redeem points, and updates about the program.
– Social Media: Highlight the benefits of your loyalty program and encourage followers to sign up.
– On-Site Banners: Use on-site pop-ups or banners to advertise the loyalty program to new visitors.

6. Monitor and Optimize

Once your loyalty program is live, track key metrics like customer retention rate, average order value, and point redemption rate. Use these insights to optimize your program and ensure it’s achieving your goals.

The 4 Best Loyalty Plugins for WooCommerce

To automate and manage your loyalty program, you’ll need a WooCommerce plugin. Below are the four best loyalty plugins for WooCommerce, offering a range of features to suit different needs.

WooCommerce Points and Rewards is a powerful plugin that allows you to create a straightforward points-based loyalty program. You can reward customers with points for purchases, product reviews, and other actions. These points can then be redeemed for discounts on future purchases.

Key Features:

– Earn points for each dollar spent or for completing specific actions.
– Customizable points redemption options (e.g., set how many points equal a certain discount).
– Award points for customer sign-ups, reviews, or social shares.
– Integrates seamlessly with your WooCommerce store.

PROS

– Simple and intuitive to set up.
– Easily customizable point-earning and redemption rules.
– Ideal for stores looking for a basic loyalty system.

CONS

– Lacks advanced features like referral tracking or tiered programs.

Pricing:

– $129/year.

YITH WooCommerce Points and Rewards is a feature-rich plugin that allows you to create a highly customizable points-based rewards program. With this plugin, you can reward customers with points for every purchase, set custom conversion rates, and incentivize specific actions like social sharing.

Key Features:

– Award points for purchases, reviews, social media actions, or account sign-ups.
– Set custom conversion rates for points to discounts.
– Reward points for specific products or categories.
– Option to exclude certain products from earning points.

PROS

– Highly customizable with flexible rules.
– Great for offering targeted rewards based on customer behavior.
– User-friendly interface for both store owners and customers.

CONS

– No free version available.

Pricing:

– $149.99/year.

ReferralCandy is a referral marketing plugin that integrates with WooCommerce to help you set up referral-based loyalty programs. You can reward customers for referring friends and family, offering discounts or store credit to both the referrer and the new customer.

Key Features:

– Set up referral programs that reward both the referrer and the referred customer.
– Automated referral tracking and reward distribution.
– Detailed analytics to track referral program performance.
– Customizable referral emails and templates.

PROS

– Perfect for referral-based loyalty programs.
– Automates the referral process, making it easy to manage.
– Provides detailed tracking and reporting.

CONS

– Not a full-featured loyalty program (focused solely on referrals).

Pricing:

– Starts at $49/month (includes 30-day free trial).

MyRewards offers a gamified approach to loyalty programs by allowing you to create points-based systems, achievement badges, and tiered rewards. It adds an element of fun to the shopping experience, encouraging customers to engage with your store and earn rewards.

Key Features:

– Earn points for purchases, product reviews, and more.
– Create tiered loyalty levels and offer exclusive rewards for VIP customers.
– Gamify the shopping experience with achievement badges.
– Customers can track their points and rewards via a dedicated dashboard.

PROS

– Gamified elements make the loyalty program engaging and fun for customers.
– Offers a wide range of reward options and customizations.
– Ideal for stores looking to stand out with a unique loyalty experience.

CONS

– Advanced features can take time to set up and manage.

Pricing:

– Free version available.
– Pro version starts at $99/year.

Conclusion: Choose the Right Loyalty Plugin for Your WooCommerce Store

A loyalty program can significantly enhance customer retention, boost engagement, and increase repeat sales for your WooCommerce store. By offering points, rewards, or referral incentives, you can turn one-time shoppers into loyal customers.

The four loyalty plugins we’ve reviewed—WooCommerce Points and Rewards, YITH Woo

Commerce Points and Rewards, SUMO Reward Points, Loyalty Points for WooCommerce, ReferralCandy, and MyRewards—each offer unique features to suit different types of stores. Whether you want a simple points-based system or a fully gamified loyalty experience, there’s a plugin for your needs.

Start building your loyalty program today and reap the long-term benefits of stronger customer relationships and increased sales.