Best Customer Loyalty Extensions for Magento
In today’s competitive marketplace, it is becoming harder to increase conversion rates, acquire customers and retain them using traditional methods. A merchant should have some type of loyalty/reward program to target existing customers, as well as convert new customers into loyal customers. Customer loyalty programs are designed to both increase the average value of each customer transactions, attract new customers, and improve the overall shopping experience of your product or brand.
“A study from Bain & Co shows a 30% increase in company value due to a 10% increase in customer retention levels.”
Good customer loyalty programs increase purchase frequency, average order value, and customer lifetime value by transforming a customer’s relationship with the brand from a transactional relationship to an emotional one. A customer loyalty program can reward customers for various events including, birthdays, account registration, social sharing, purchases and more. Offering multiple reward benefits not only increases sales, doing so also leads to increased customer retention rates! Customer loyalty reward program’s modules fall under two broad categories:
- Cloud Based
Self-managed customer loyalty programs are Magento ecommerce extensions that are installed on the site. Magento Enterprise has reward point functionality built into the system. Extensions providers like Magestore, MageWorld, and AheadWorks are offering great extensions for reward point. These extensions have a one-time licensing fee after which they can be installed and customized to suit your specific need. These extensions capture various customer actions including purchase, registration, and reward customers accordingly. Below are the top third party self-managed extensions in the market:
- Rewards customers for registration, newsletter signup, product review, tagging product, poll participation, and customer’s birthday.
- Referral system
- Advanced notifications
- Balance & transactions control
- Magento enterprise edition compatibility
- Specify rewarded points expiration date
- Limit maximum available points balance
- Limit points amount available to redeem
Price:$299 Compatible with Magento: Community: 1.4.x – 1.9.x and Enterprise: 1.12.x – 1.14.x
- Managing reward point transactions
- Adjust customer’s reward points in loyalty program
- Use points while creating order in backend
- Refund reward points
- Import/export reward points
Price:Start from $99 Compatible with Magento: Community: 1.7.x – 1.9.x and Enterprise: 1.9.x – 1.14.x
- Support flexible reward points rules and spending points rule
- Support different rules per customer group
- Support multiple stores
- Encourage referrals and sharing
- Easy to track and manage customer reward points
- Easy to customize the design, templates, icons, and style to match your site.
Price:$246 Compatible with Magento: Community: 1.5.x – 1.9.x and Enterprise: 1.11.x – 1.14.x
Disadvantage of Self-Managed extensions
- Self-managed extensions do not offer the full functionality cloud based loyalty programs provide.
- Self-managed extensions are not centralized, they are installed on a single website, so if a merchant has multiple platforms for product purchases and other customer events, self-managed extensions will not work.
- Self-managed extensions consume more server resource as compared to cloud-based extensions.
Cloud-based customer loyalty programs are independent systems. They are centralized and have their own admin panel with various tools to control reward points of customers. In cloud-based loyalty programs, one can create custom events on which he/she wants to reward a customer. The cloud-based loyalty program is managed by APIs. They do provide extensions for different platforms. In cloud-based solutions, customers can be divided into customer tiers so that customers can get reward points on the basis of their loyalty towards the brand. Following are the details of some of the Cloud-Based loyalty programs.
- Reward for purchases as well as pre-defined actions such as sharing on Twitter, LinkedIn, referrals, email subscription, writing reviews, and answering questions.
- Customizable loyalty actions can be added in just a few clicks
- Integration with third party systems via loyalty API
- Turnkey loyalty program, no programming necessary
- Loyalty dashboard that can be seamlessly embedded on your website
Price: Starts from $83.00/month
- The customer can earn reward points on their purchases, account registrations, social shares and follows (on Instagram, Twitter, Facebook, and other social networks.), customer birthday, reaching a VIP tier, and referring friends.
- The customer can redeem their points in $ off discounts, % off discounts, free shipping, and gift cards.
- SweetTooth is optimized for mobile, always making it easy for your customers to access your reward program.
- Integration with third party systems via APIs.
- Create own events by which customer can get rewards.
Price: Starts from $59.00/month
Disadvantage of Cloud-Based Solutions
Generally, Cloud-Based solutions come with monthly fees. While studies show that excellent customer service is the most important factor in building repeat business, a properly executed loyalty program can also aid in retention. This is why so many retailers have implemented customer loyalty systems; however, a poorly executed loyalty program can not only prove ineffective at building customer loyalty, it can actually negatively impact your bottom-line. Thus choosing the right loyalty solution for your online business starts with identifying which features and unctionalities are most important to you and fit within your budget.