How can you make your top 10% of customers generate 50% of your revenue? Answer: An automated loyalty program based on their value

Some people buy more, more often, and choose more expensive products. The problem? Most companies treat every customer the same. An automated loyalty program based on LTV changes the rules of the game. Instead of uniform promotions for everyone, it builds a reward system tailored to each user’s activity. See how to use loyalty tools in different industries.

Why don’t standard campaigns work?

You send a message with a 10% discount code to your entire database. A VIP who spends thousands of dollars every month gets the same coupon as someone who bought one product a year ago. The result? Your most valuable customers don’t feel appreciated, and your company wastes its budget on motivating people with low potential. You analyze the results and see that the average order value and purchase frequency haven’t changed at all. Why? Because everyone gets the same rewards regardless of their potential. Marketing Automation and LTV analysis solve this problem. The system automatically identifies customer activities and assigns points to them on that basis. In the loyalty program, you can highlight your most loyal customers and send them special rewards and higher discounts, or even notify them in advance about pre-sales or new products. 

Automate loyalty programs with iPresso

Forget boring campaigns that don’t engage anyone. With iPresso, you can create effective, automated loyalty programs that reward customers for their engagement and build strong relationships with your brand. See how it works step by step:

Automatic customer segmentation

The Marketing Automation system divides the database into segments based on the predicted lifetime value of the customer. The algorithm analyzes interactions with the brand, including email opens, link clicks, website activity, and demographic data.

In iPresso, you can create segments based on RFM reports. Based on purchase history, you can see which customers are the most active, regularly return to the store, and buy more expensive products.

An example segmentation may include premium customers, hibernating customers (inactive for several months), and cyclical customers who shop infrequently but at similar intervals.

Scoring-based loyalty program

iPresso allows you to create an advanced points system that takes into account not only purchases but also engagement. For example, a customer can get +5 points for clicking on a link, +10 points for adding a product to their cart, and +50 points for making a purchase. Did someone click to remove themselves from the subscriber list?

Or maybe they interrupted their purchase and don’t want to return to the store? Subtract points and send a message such as: “Hey Marcin! Would you like to receive a 20% discount on all products in our store? All you have to do is collect 500 points in your account! Click here to learn more about the rewards for silver membership.”

Offer different rewards depending on the status in the loyalty program (for example, gold, silver, and bronze) and send automatic notifications about accumulated points and their expiration date. For example, in the travel industry, the most active customers will receive a 25% discount on their next flight, silver level users will get 10%, and other loyalty program members will get 5%.

Introduce gamification elements, such as weekly challenges, where you add even more points for meeting certain conditions (for example, purchasing at least one product marked as “new”).

E-couponing and personalized discount codes

Generate codes and send discounts only to specific segments. Prepare a scenario that will send a different discount value depending on the customer. Personalize the message and include the code in an email or text message. Is it the user’s birthday next week? Generate birthday coupons and send them automatically on that special day.

With iPresso, you have everything under control and don’t have to worry about codes being repeated or someone receiving a used coupon.

Points aren’t everything—this way, you’ll also increase engagement

• Paid subscription model – premium customers expect exceptional benefits in exchange for subscriptions with access to unique content. Look at Amazon Prime and how it combines a subscription model with additional benefits when shopping on Amazon. Prepare a monthly VIP package in which, in addition to access to the streaming platform, you offer, for example, free delivery and the opportunity to purchase the latest products even several months before they appear in normal sales in your online store. Set up automatic reminders so that customers pay for their subscription on time.

• Hybrid program – combine free points with paid packages and exclusive events. For example, for customers of a cosmetics brand, prepare a loyalty program in which collected points can be exchanged not only for discount coupons for future purchases, but also for training and makeup courses at promotional prices.

• Rewards for values – reward customers for caring for the environment. For example, in the fashion industry, customers can bring old clothes to the store, go to the checkout, and scan the app. iPresso will automatically email a discount code for future purchases. This way, everyone can care for the planet and save money at the same time.

Check out our ideas for Marketing Automation for various industries

• Reactivate premium customers – Has a VIP who used to buy your most expensive home decorations recently reduced their engagement and lost their gold membership level? Send them a message and encourage them to come back. Offer a small discount on their next purchase and remind them of the attractive rewards in the loyalty program. Inform them about the benefits available only to gold members.

• Welcoming a newly registered member – appreciate everyone who has joined the loyalty program and, in addition to thanking them, add a few points to their account as an incentive to motivate them to collect more.

• The more, the better – is the user purchasing additional VOD packages? Send them a surprise gift – a discount coupon that they can use to access premiere content.

• New collection = more points – launch a campaign where additional points will be added for purchases of fashion products from the latest collection.

• Rewards tailored to status – has the customer already collected several thousand points in their account for purchasing body care cosmetics? They will be able to exchange them for a weekend in a luxury hotel with a spa. Has someone just placed their first order and earned several dozen points? Send them a 10% discount code for their next purchase of at least $100.

• Meetings with special guests – do you offer exclusive jewelry advertised by movie stars and celebrities? Send invitations to a gala event to all subscribers of your loyalty program, where they will be able to talk to famous people and see the latest collection of necklaces and rings.

Read case studies and see what else you can use Marketing Automation for – click here.

Summary

Automatically identify, reward, and develop relationships with your most valuable customers. Create a loyalty program based on scoring and LTV and see how much you can gain.
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