Using LoyaltyLion for Customer Retention

LoyaltyLion has become the tool for customer retention as the platform. Turning one-time customers into repeat purchasers is essential to your brand’s sustainable growth....
PAASE LoyaltyLion Partnership

Using LoyaltyLion for Customer Retention 

The value of customer retention lies at the heart of the company. Business is built on your customer community, and if you don’t have repeat customers, you don’t have a business. But, which eggs do you put in what basket? 


The debate of acquiring over nurturing has become quite the topic. Do you know it’s five times more expensive to acquire a new customer than it is to retain one? In this blog, we look at how you can drive customer retention through repeat purchase, referrals and subscriptions.

Customer Retention: How to turn first-time buyers

Firstly, the importance of customer retention lies in the facts. Increasing your customer retention by 5% can boost profits by as much as 95%. So why nurture customers after their first purchase? Well, the likelihood of customers making a second purchase is close to 30%, and then jumps to 50% making a third purchase. 


From there, you have a loyal brand advocate who will be part of your brand’s community. And it doesn’t stop there. 81% of shoppers who feel emotionally connected to a brand will not only promote the brand among their family and friends, but they also spend more.

Driving retention with LoyaltyLion and Klaviyo

Introducing LoyaltyLion, a data-driven loyalty and engagement platform, helping fast-growth ecommerce merchants power longer-lasting relationships and sustainable growth. Their combination of best-in-class technology and dedicated loyalty expertise empowers Marketers to drive more revenue from highly-engaged, highly-valubale customers. Proven to increase customer lifetime value, LoyaltyLion is trusted by thousands of ecommerce merchants worldwide.

Choosing LoyaltyLion as your eCommerce loyalty platform

Work with LoyaltyLion to build relationships that go beyond points and rewards

  • Increase customer lifetime value via a fully customised, on-brand loyalty program
  • Drive repeat purchases with more personalised shopping experiences
  • Drive cost-effective acqusition via brand advocates in your Insider Customer community
  • Work with a team of over 100 loyalty specialists
  • Seamlessly integrate your loyalty program with your favourite marketing tools and technologies, such as ESPs (e.g. Klaviyo), reviews providers (e.g. Okendo), helpdesks (e.g. Gorgias, Zendesk) and more

Klaviyo customer engagement strategies with LoyaltyLion

Use Klaviyo and LoyaltyLion together to power your email marketing – studies show loyalty emails have a 44% open rate and a 20% click-through rate. There are numerous types of automated emails when it comes to a loyalty program, including: 

  • ‘Welcome to the loyalty program’
  • ‘Rewards available/monthly reward reminder’
  • ‘Points expiring soon’
  • ‘Refer email’

Utilising LoyaltyLion’s insight functionality, you can segment customers according to whether they are loyal, at risk, or in need of winning back. Harnessing Klaviyo, the omnichannel platform can send trigger-based emails to respond to customers’ actions. 


For instance, you can create a double points campaign for loyal customers to reward them and make them feel valued. Customers acquired through referrals spend 200% more than those acquired via other channels. Utilising the cohesive integration between Klaviyo and LoyaltyLion, you can encourage customers to refer a friend via email with very little effort.

Customer retention strategies

The strategies are split into three; points, subscription, and referrals. It can be as simple as A/B testing – 77% of customers would join a loyalty programme if the benefits were clearly communicated. 79% of customers said they’d be loyal to a brand if they could unlock exclusive benefits. 67% feel positive about brands that let them contribute to a charitable cause that’s aligned with their values.

LoyaltyLion Loyalty Points

A points scheme allows a customer to collect points based on their order value, products purchased and engagement with the brand eg. Email sign up, birthday, social media engagement.

52% of customers will prioritise brands they have existing points with, therefore consumers are loyal to a brand based on their propensity to attain and collect points with them. Although, as we said before, it’s all about communication – 57% of loyalty programme members don’t know their points value. Imagine the return on investment if customers knew how many points they could spend! This highlights the importance of implementing those aforementioned loyalty-specific communications, such as the reward available reminder email, or a monthly points statement.

In terms of how customers can redeem their points, 77% of customers feel good about brands that award them loyalty points which they can use on future purchases. This could be in the form of a percentage or fixed-amount discount, or points can be made redeemable against exclusive products or experiences.

66% of people would be motivated to join a loyalty programme with experience-based rewards.

Furthermore, 81% of customers feel positively about brands that offer free or discounted shipping, a reward easily created within LoyaltyLion that can be made available to all loyalty program members, or reserved for top-tier members, as part of a tiered structure.

LoyaltyLion Subscription

A subscription-based loyalty program benefits a company due to predicted revenue, better customer relationship management and lower retention spending. When starting a subscription model, look to experiment, scale and leverage. These processes will allow you to really understand subscription, product-market fit, pricing and more.

When tied together with a loyalty program, you can:

  • Improve retention with meaningful rewards that customers can use on their future subscription orders
  • Grow your subscriptions by rewarding customers with loyalty points that they can use on future purchases
  • Increase reward redemption and spend by automatically placing customers into an exclusive, subscriber-only tier

LoyaltyLion Referrals

Acquiring new customers to your store is becoming increasingly difficult and more expensive. With changes such as GDPR, iOS updates and impending cookie limitations, ecommerce is entering a new, opt-out era and it’s becoming harder to get new customers onboard.

Referrals help to soften this blow. By leaning on your Insider Community, you can leverage established brand advocates to bring new custom through the door. With a well executed loyalty program, you’ll also keep these new shoppers onboard!

By leveraging referrals alongside loyalty you create a win-win scenario for your brand and your customers:

  • The existing customer wins, as for every successful referral they make, they’ll be rewarded in kind
  • The newly acquired customer wins, as they’ve come onboard with a free gift in hand and the opportunity to join a brand that values it’s customers so much, it’s created an amazing loyalty program for them and they can see a host of fantastic rewards available to them on the horizon
  • You win, as you maintain your valuable relationship with your Insider customer, as well as gaining (and retaining) a newbie!

Putting referrals into a business perspective, a 10% increase in WOM recommendations translates between a .2 and 1.5% increase in sales, so you don’t want to be missing out!

… And because they tie in so well, a quick note on reviews.


Shopping online, everyone looks at them. If you don’t…you’re lying. As a matter of fact, 88% of people trust online reviews written by other customers. 83% of customers are willing to refer to a brand after a positive experience, yet 29% actually go on to do so (shocking right? )This is a another key point at which you should leverage your tech stack and the data available to you.

Customers leaving positive reviews should be encouraged to refer – they’ve had a great experience with your brand, so lean on them to spread the word further. Creating a “Reviewer to Referrer” email is key here to ensure those positive reviews are maximized upon. Let it be said though, your positive reviews aren’t the only set that should receive attention.

Keep on top of all star ratings and have an action plan for each. Someone sitting on the fence with a 3-star rating? Or, someone’s gone in hard, perhaps due to poor delivery? Make sure you respond accordingly at all levels, to help not only maintain your brand’s reputation, but also ensure you continue the customer experience and do all that you can to transform it into a positive one!

*All facts are supplied by LoyaltyLion

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