10 Best Loyalty Apps For Small Businesses To Retain Customers
Ecommerce is an extremely competitive industry. To keep up, small businesses need to find effective ways to retain customers and build loyalty.
A powerful tactic that can achieve both is a well-designed loyalty program.
Creating one may seem like a challenge, but a loyalty app can change that, especially for small brands.
In this article, we’ll briefly introduce you to the advantages a loyalty program can bring you. Then, we’ll cover the top loyalty apps—focusing on those for Shopify and BigCommerce—and outline key considerations when looking for the right one for your business.
Read on to learn:
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Why should small businesses start a loyalty program?
Around 65% of a company’s revenue is typically due to repeat business from their existing customers.
A loyalty program then incentivizes those who make repeat purchases and hit certain milestones with your brand.
In fact, 75% of consumers say that, after receiving a reward, they’re more likely to buy again, producing a mutualistic cycle that benefits both members and your profit margins.
The specific advantages of a loyalty program include:
- Cost savings: Acquiring a new customer can cost five to 25 times more than retaining an existing one.
- Customer retention: A study from Bond found that 79% of consumers say they’re more inclined to buy again from brands who have loyalty programs.
- Word-of-mouth marketing: Meanwhile, 73% of people from that same Bond study stated they’re more likely to recommend brands with good loyalty programs.
- Better customer lifetime value (CLV), more revenue: Research by Accenture revealed loyalty program members drive 12% to 18% more annual incremental revenue growth than non-members.
- Easier data collection: Almost two-thirds (65%) of shoppers are willing to share their data in exchange for more personalized experiences, including loyalty programs.
- Competitive advantage: A popular loyalty program can help your small business stand out, making it more attractive for consumers seeking rewards and benefits.
Ecommerce brands with successful loyalty programs
The following brands illustrate the benefits of an effective loyalty program. You’ll see their loyalty offers, page designs, and can read about the results.
Soko Glam
Soko Glam, an online marketplace specializing in Korean beauty products, implemented a loyalty and rewards program that resulted in a sevenfold boost in ROI.
It’s designed to fit customers’ varying spending habits: Entry-level shoppers can earn redeemable points for every purchase, while more-involved consumers enjoy VIP-only products.
Brandini Toffee
A specialized toffee brand, Brandini Toffee has found greater success thanks to their omnichannel loyalty program.
Its terms are clear-cut to avoid confusion.
Additionally, shoppers can earn rewards through various actions, which they can accomplish via multiple online touchpoints.
All these elements enabled Brandini Toffee to achieve a 90% redemption rate and an 18% repeat purchase rate in only eight months!
PLAE
Customizable footwear brand PLAE overhauled their loyalty program, which, compared to the old incarnation, now generates a repeat purchase rate that’s 2.7 times higher.
It engages shoppers across the company’s website to highlight the value of their points, which they can exchange for various discounts.
PLAE rewards customers for reselling old shoes and referrals as well.
Smack Bang
The New Zealand-based pet brand Smack Bang reaps impressive rewards from their loyalty program, with a 100% loyalty engagement rate and a 38% reward redemption rate.
To realize these results, the company took the following steps:
- Revamped their program design
- Delivered rewarding omnichannel loyalty experiences
- Offered incentives like free shipping and discounts
Mpix
The photo lab Mpix launched a loyalty program that encourages customer participation through redeemable points, referrals, VIP tiers, and attractive discounts.
The brand even incentivizes actions such as social media sharing and reviews.
With various ways to earn rewards, shoppers are more compelled to engage, letting Mpix enjoy:
- 55% higher average order values (AOVs) from members
- A 26% boost in redemption rates
- An increase in Facebook likes (11%) and Instagram followers (70%)
Key features to look for in a loyalty program app
After seeing others’ success, you may be eager to launch a loyalty program for your Shopify or BigCommerce store, complete with an app.
Before jumping in headfirst, though, you need to search for an app that has certain essential features, which we’ve broken down below.
Diverse points and rewards systems
Your chosen loyalty app must accommodate a diverse selection of customer incentives. For example, it should offer a flexible loyalty points system and rewards, including but not limited to:
- Enticing discounts
- Free products
- Exclusive access to premium items
- Free shipping
Customization and personalization
A strong app candidate should let you design the loyalty program according to your brand’s unique needs and aesthetics.
It should also let you tailor incentives and the overall experience to your customers’ specific interests.
Integration capabilities and compatibility
Make sure your selection seamlessly integrates with your ecommerce platform—be it Shopify or BigCommerce—for seamless operation and data synchronization.
It should be compatible with your current tech stack as well.
Automations and scalability
For general ease of use, a robust loyalty app will automate certain processes of your program, such as reward distribution.
Scalability options are also a must, as they allow your program to keep up with your business’s growth.
Comprehensive analytics and reporting
Access to in-depth data will help you:
- Measure the success of your loyalty program
- Identify what does and doesn’t work
- Make informed decisions
- Implement any necessary adjustments
That information helps with personalization as well, since detailed consumer insights hone in on their behaviors and interests, as well as identify pain points or sources of friction.
Fraud prevention
Various forms of fraud cause problems for ecommerce brands around the world, and loyalty abuse is one of them.
In this scheme, fraudulent customers join your loyalty program, use stolen payment information to earn points, and then resell them.
To avoid that form of thievery, make sure your chosen app is equipped to defend against and counter them.
For example, your tool should be able to notice if multiple accounts are created from the same IP address or use the same email address (or variations thereof) or phone number.
It should also require and verify phone numbers upon sign-up, as it’s typically harder to fake multiple valid phone numbers than it is working email addresses.
Look as well for tools that can automatically detect suspicious behavior, such as logins from a new location or unusual account activity that may indicate the takeover of a once-authentic account.
If you want to take more advanced measures, you can adopt these ecommerce fraud prevention strategies.
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What are some common mistakes to avoid when using a loyalty app?
Using a loyalty app risks several blunders, which we’ve outlined below.
Lacking a clear strategy
Your loyalty program should encourage repeat purchases and improve customer retention. However, having no clear plan of action will stagnate these goals.
Incorporate a healthy mix of ecommerce marketing strategies into your program implementation and ask yourself the following questions before launching an app:
- Am I after retention and sales, or do I also want to weave in lesser-known items and improve awareness of my offering?
- Do I know my customers well and the rewards that’ll most interest them?
- At which stage of the buyer’s journey should my program engage shoppers?
- What incentives can my business offer? Are discounts and freebies financially reasonable?
- What devices do my customers typically use to shop?
- Will any of my current tools overlap with a loyalty app’s functions?
Poor program promotion
Your customers need to know about your program for it to gain traction. Promote your loyalty program through the marketing channels where your audience is most active.
With the buyer’s journey a key consideration, we suggest trying lifecycle marketing as well.
Lifecycle marketing applies strategies that give equal attention to each phase of your relationship with the customer.
Experiment with some of these promotional tactics for your store as well.
Irrelevant rewards
This point is straightforward: Avoid offering incentives customers won’t redeem. To find out what rewards will compel them to make more purchases or stay loyal in general, you can:
- Conduct surveys or interviews
- Directly reach out to customers via email
- Engage with them on social media
Failing to analyze and adapt
The success of your loyalty program isn’t a guarantee, so it’s important to take advantage of your loyalty app’s data and analytics capabilities.
Both help you gauge the program’s performance and gather valuable consumer insights and feedback.
That information identifies areas in need of improvement so you can make necessary, data-driven changes.
Neglecting analysis and adaptation is a commonplace error that often results in failure.
10 Best loyalty apps for small businesses to boost retention
With the essential features in mind, choosing the right loyalty app is easy. To further simplify your search, here are some of the top options available for BigCommerce and Shopify stores.
1. Yotpo
Yotpo provides a comprehensive solution for ecommerce retention marketing, empowering businesses and encouraging customer engagement through loyalty and rewards.
Rating:
- Shopify: 4.7/5 stars (2,461 reviews)
- BigCommerce: 4/5 stars (22 reviews)
Price: Free to custom pricing
Platforms: Shopify and BigCommerce
Key features:
- Diverse range of reward-earning actions (purchases, reviews, social follows, and more)
- Various incentives (coupons, discounts, free shipping, etc.)
- Subscription management
- Customer segmentation
- Campaign scheduling
Best for/Known for: Creating, managing, and measuring highly customized loyalty programs
Types of programs offered:
- Points-based
- Referral-based
- Tier-based
Tip: Shogun integrates with Yotpo to create hassle-free loyalty pages that drive signups.
2. Loox
Loox specializes in gathering and rewarding customer reviews, social proof, and referrals to boost trust, loyalty, acquisition, and purchases.
Rating: 4.9/5 stars (12,374 reviews)
Price: $14.99 to $299.99/month
Platforms: Shopify
Key features:
- On-site, post-purchase, and post-review referral widgets
- Fraud detection
- Adjustable rewards
- Plug-and-play design
- Analytics and various integrations
Best for/Known for: Leveraging customer reviews and referral programs
Types of programs offered:
- Referral-based
Tip: Shogun integrates with Loox so you can easily create dedicated pages for loyalty, rewards, and referral programs.
3. Smile.io
Smile.io offers a flexible platform that streamlines the creation of engaging and tailored loyalty programs for your brand.
Rating:
- Shopify: 4.8/5 stars (5,117 reviews)
- BigCommerce: 4.5/5 stars (499 reviews)
Price: $49 to $999/month
Platforms: Shopify and BigCommerce
Key features:
- Various types of loyalty programs
- Branded rewards panel
- Admin dashboard
- Integrations with Shopify, BigCommerce, Wix, Omnisend, Privy, and more
Best for/Known for: Designing diverse, yet personalized loyalty programs
Types of programs offered:
- Points-based
- Referral-based
- Tier-based
4. LoyaltyLion
LoyaltyLion provides a comprehensive loyalty solution with advanced features that drive customer engagement and retention.
Rating: 4.5/5 stars (494 reviews)
Price: Free to custom pricing
Platforms: Shopify
Key features:
- Various rewards options
- Emails and notifications
- Advanced analytics and segmentation
- Integrations with Shopify, HubSpot, MailChimp, and more
Best for/Known for: Creating personalized loyalty experiences through advanced segmentation
Types of programs offered:
- Points-based
- Referral-based
- Tier-based
5. Antavo
Antavo is an API-centric loyalty management platform primarily designed for scalability. Its customizability makes it accessible for small to large businesses alike.
Rating: 4.3/5 stars (15 reviews)
Price: Custom pricing
Platforms: Shopify
Key features:
- Wide selection of program types
- No-code engine
- Personalized rewards and offers
- Loyalty artificial intelligence (AI)
- Reporting and integrations
- Online and in-store capabilities
Best for/Known for: Building and creating scalable, yet tailored, loyalty programs and experiences
Types of programs offered:
- Tier-based
- Referral-based
- Paid
- And more
6. ReferralCandy
ReferralCandy is a highly automated platform that specializes in streamlining referral marketing and offering compelling rewards for loyal customers who engage with potential ones.
Rating:
- Shopify: 4.9/5 stars (2,023 reviews)
- BigCommerce: 5/5 stars (32 reviews)
Price: $59/month + 3.5% commission fee to custom pricing
Platforms: Shopify and BigCommerce
Key features:
- Instant integrations with Shopify and BigCommerce
- Referral program automations
- Custom rewards
- Audience segmentation
- Analytics and fraud prevention
Best for/Known for: Automated, user-friendly referral program creation and management
Types of programs offered:
- Referral-based
7. Capillary Loyalty+
Capillary Loyalty+ provides an intelligent solution for building worthwhile rewards programs and engaging omnichannel experiences.
Rating: 4.4/5 stars (20 reviews)
Price: Custom pricing
Platforms: Shopify
Key features:
- Wide range of program options
- Loyalty platform
- Program management framework
- AI-powered predictions
- Advanced data collection and analytics
Best for/Known for: Streamlining and automating the creation and management of loyalty programs
Types of programs offered:
- Engagement-based
- Tier-based
- Partnership-based
- And more
8. Rise.ai
An all-in-one solution, Rise eases creating and managing programs that involve loyalty cards, referrals, rewards, and more.
Rating: 4.9/5 stars (1,015 reviews)
Price: $19.99 to $599.99/month + $0.20 to $0.05/order exceeding monthly limits
Platforms: Shopify
Key features:
- Loyalty cards
- Flexible store credit
- Trackable rewards programs
- Automated workflows
- Fraud protection
Best for/Known for: Maximizing CLV through programs for in-store and online experiences
Types of programs offered:
- Credit-based
- Referral-based
- Tier-based
9. Marsello
Marsello helps construct tailored loyalty program experiences, especially for brands with online and brick-and-mortar stores.
Rating:
- Shopify: 4.6/5 stars (357 reviews)
- BigCommerce: 4.5/5 stars (13 reviews)
Price: $100/month to custom pricing
Platforms: Shopify and BigCommerce
Key features:
- Automated rewards for specific actions (i.e., purchases, referrals, and reviews)
- VIP tiers
- Omnichannel sales tracking and customer insights
- Personalized marketing campaigns
- In-store and online experiences
- Customization options
Best for/Known for: Simplifying the process of building personalized omnichannel loyalty experiences
Types of programs offered:
- Points-based
- Referral-based
- Tier-based
10. Stamped.io
Stamped.io’s loyalty solution is primarily designed for ecommerce brands looking to develop and manage their own rewards programs.
Rating:
- Shopify: 3.8/5 stars (122 reviews)
- BigCommerce: 1.5/5 stars (2 reviews)
Price: $59/month to custom pricing
Platforms: Shopify and BigCommerce
Key features:
- Fully customizable
- Various reward options
- Mobile-optimized
- Integrations with Klaviyo, Meta, Gorgias, and more
Best for/Known for: Building points, referral, and VIP reward systems, primarily for online stores
Types of programs offered:
- Points-based
- Referral-based
- Tier-based
Small business loyalty app FAQs
For our last stop, we’ve provided answers to questions people typically have about loyalty program apps.
What is a customer loyalty app?
Simply put, a customer loyalty app is a piece of software designed to help businesses assemble and manage loyalty programs for their online store.
Its features make it easy to incentivize repeat purchases, as well as overall customer engagement and retention. These include:
1. Points systems
2. Rewards
3. Referrals
4. Analytics
5. Automations
What is the average cost of a loyalty program?
Loyalty program costs vary on a case-to-case basis, so it’s difficult to find an average. But, to give you a rough idea, these are some of the major factors that affect it:
1. Incentives: Rewarding customers entails spending money or lowering your profit per purchase (imagine giving discounts, coupons, and freebies).
2. Your chosen app: The price you’ll pay depends on the features you need.
3. Marketing expenses: Will you use some form of paid promotion to spread awareness for your program?
4. Development costs: Unless you take the DIY route, building a loyalty and rewards system may require help from hired experts.
What are the main types of loyalty programs?
Ecommerce brands typically employ three main types of loyalty programs:
1. Points-based: This type lets customers earn points or some form of store currency, which they accumulate through actions like reviews, social media shares, etc.
2. Referral-based: Referral programs are straightforward and focus on rewarding customers who refer family, friends, or people within their network to your brand.
3. Tier-based: This entails having customers progress through different levels—via repeat purchases or other earning actions—for more premium benefits. It capitalizes on the allure of exclusivity.
Additionally, there are paid or subscription-based loyalty programs that charge a monthly fee for exclusive benefits, but these are more common in larger brands.
What are the top loyalty apps for small businesses?
Given their low pricing, yet feature-rich offerings, we recommend these apps for smaller brands:
1. Yotpo
2. Smile.io
3. Rise.ai
Can a small business use a loyalty app without any technical knowledge?
Yes, anyone without technical know-how can use loyalty apps; most of them are designed to be user-friendly and accessible.
They typically have easy setup processes and intuitive user interfaces, making overall control and management simple.
Are there any free loyalty apps suitable for small businesses?
Yes, Yotpo and LoyaltyLion offer free plans that provide the necessities for a small business to build their program. Keep in mind, however, they do have limitations, and additional features come at a cost.
What are the best Shopify loyalty apps?
Your specific circumstances dictate that answer, so we’ll provide some suggestions for certain situations:
1. LoyaltyLion’s free plan is great for those with a tight budget.
2. Growing businesses should choose Antavo for its scalability.
3. Capillary Loyalty+ is perfect for crafting omnichannel loyalty experiences.
What are the best BigCommerce loyalty apps?
The same applies when choosing apps for a BigCommerce loyalty program. Choose based on your needs, but some general recommendations are:
1. Yotpo’s free plan is great for those just starting out; having no costs leaves room for experimentation.
2. Marsello’s automation, customization, and personalization options maximize ease of use.
3. Smile.io excels at building comprehensive programs that offer points, referral rewards, and VIP perks.
Accelerate your customer retention with a loyalty program app
A loyalty program can be a game-changer for small businesses, as it helps retain customers and nurtures long-term relationships.
Loyalty apps, meanwhile, simplify and speed up program creation and management. When choosing one, remember to take into account:
- Your customers and their interests
- The rewards you can afford to offer
- The app’s compatibility with your tech stack
- Its ease of use and fraud protection capabilities
- The data insights it provides
Be picky with your selection to find the right complement to your program. With the right combination, you’ll be one step closer to cultivating a loyal consumer base.
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Rachel Go
Rachel is a remote marketing manager with a background in building scalable content engines. She creates content that wins customers for B2B ecommerce companies like MyFBAPrep, Shogun, and more. In the past, she has scaled organic acquisition efforts for companies like Deliverr and Skubana.
