When it comes to loyalty programs, one of the biggest mistakes with online rewards is offering rewards that customers simply don’t care about. A generic “5% off your next purchase” might seem like a safe option, but it really does not do the job . In the modern eCommerce landscape, where customers are constantly being chased by other brands, if you choose to use rewards make sure that they stand out, feel valuable, and align with your specific audience.
In this blog post, we’ll explore how to choose the right rewards for your online store, how to tailor them to your industry, and how to test and improve your approach over time. Whether you sell fashion, coffee, vape products, groceries, or pet supplies, crafting meaningful rewards can transform casual shoppers into loyal, repeat customers.
1.0 Why “5% Off” Might be an Insult!
Discounts can be useful, but they’re not always motivating—especially when they’re small.
A 5% discount might not even cover the cost of shipping, and your customers know it.
Don’t misunderstand, many customers will use it, and it will be a simple transaction and that is part of the problem; you risk training your customer to expect discounts without making an effort to build any real relationship or brand loyalty.
Instead of only chasing discounts, consider rewards that deliver emotional impact, have a practical value, or provide a sense of exclusivity. Loyalty is built when the customer feels appreciated, not just when they save a few pounds or dollars
2.0 Choose Online Rewards That Fit Your Audience and Sector
Every sector has its own customer behavior patterns, shopping motivations, and value perceptions. The best rewards tap into what makes your customers tick.
Fashion Retailers
Fashion customers love feeling “in the know.” Instead of a discount, offer early access to new collections, members-only pre-sales, or points they can redeem for limited edition items. These perks don’t just save them money—they make them feel like insiders.
Vape Shops
In the vape industry, where margins are often tight, a free accessory or refill after a set number of purchases or an amount spent is highly valued. You might also offer exclusive flavors or bundle deals only available to loyalty members.
Grocery Stores
Grocery buyers are practical and frequency-driven. Think about offering free delivery, surprise basket upgrades, or loyalty-only coupon bundles. My local store offers a free bouquet of flowers at the weekend if you spend over £100.00 ($12.00) A great gesture.
Pet Stores
Pet owners are highly loyal to both their pets and the brands they trust. Offer points that lead to free treats or toys, or create a birthday gift perk for their furry friend.
Coffee or Tea Retailers (D2C)
If you ship beverages or coffee-related goods, offer free shipping, bonus samples, or the option to earn points toward a “free bag” after every set number of orders.
The key takeaway here? What works for one store may feel irrelevant for another. Always think about what your customers care about most—convenience, exclusivity, value, or surprise.
3.0 How to Test and Measure What Your Customers Actually Want
Setting the online reward structure isn’t a one-time task. It’s something that should evolve over time as you learn more about your customers. Consider testing and refining your approach:
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- Start with a simple reward structure. For example, earn 1 point per £1 spent, and redeem 100 points for £5 off.
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- Survey your customers. Ask what types of rewards would excite them—gift items, discounts, VIP access?
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- Watch redemption rates. If customers are collecting points but not redeeming them, the reward may not be compelling enough.
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- Try limited-time reward campaigns. Offer double points for a weekend or launch a “free gift Friday” and see how your audience responds.
Data will guide you, but so will customer feedback. Look for opportunities to engage your audience directly and refine your offer based on their preferences.
4.0 Plug Loyalty Into the Checkout Experience
The best loyalty programs are seamlessly woven into the shopping journey. Your customers shouldn’t have to hunt around to find out what points they have or how to redeem them.
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- Show reward points earned on the on screen Loyalty Widget.
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- Include a reward summary at checkout.
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- Send post-purchase emails with updates on points earned and reward suggestions.
For example, if a customer just made a purchase and earned enough points for a free item, your post-purchase email should make that obvious—and invite them to redeem or browse again.
The easier it is for customers to use their rewards, the more often they will.
Final Thoughts: Make It Worth Their Time
A loyalty program should make your customers feel like they’re part of something special—not like they’re collecting a few pennies here and there. If your online rewards feel meaningful, your customers will engage more, shop more, and become strong brand advocates.
By choosing rewards that fit your audience, testing what works, and creating a smooth redemption experience, you can turn a basic loyalty feature into a true growth engine for your online store.
If you’re using or planning to use LoyaltyDog, we make it easy to build a program tailored to your business, with tools that let you track, customize, and grow customer loyalty without technical hassle.
