FAQs
What are the goals of the loyalty program?
The objectives of a loyalty program can vary depending on the specific program and the retailer's goals. ShopToken focuses on driving significant revenue growth by enhancing customer lifetime value (LTV) through membership sales and repeat purchases with competitive rewards. We confidently guarantee the performance of our program, or we will provide our revenue share free of charge in the first year. Additional benefits include improved customer retention, heightened customer loyalty, data collection, elevated brand recognition, and a competitive edge.
Why is a paid program better than free loyalty?
The main challenge with free loyalty programs is convincing customers to redeem their points. Free loyalty programs offer rewards for shopping with a specific brand, but paid loyalty programs offer immediate satisfaction and advantages that outweigh the costs from the customer's perspective.
This is why, according to a loyalty study by VISA, only 10% of eligible consumers activate and redeem free loyalty points. The remaining 90% of customers who do not make redemptions are 2.7 times more likely to defect from a program and join another.
We recommend paid loyalty programs because they perform better. By aligning interests between customers and businesses, both parties are happier with the results.
As per a Deloitte report, 67% of consumers would join a paid loyalty program if it offered significant benefits, compared to only 33% who would join a free points-based program.
How will the program be scaled and expanded in the future?
ShopToken continuously collaborates with your team to study customer behaviour and enhance membership benefits that appeal to your most loyal customers while increasing revenue for your business.
Additional benefits can include dynamic offers, a tier-based system, retention incentives, reactivation rewards, additional rewards for completing tasks, and soft benefits such as early access to deals and complimentary engraving.
You can also benefit from our customized upsells and post-purchase offers to boost your revenue further and advertise on our marketplace to acquire new customers at a reduced cost.
How will the program attract and retain customers?
We are in a subscription economy today. ShopToken provides rich, personalized, and immediately redeemable rewards that are easily accessible to customers at any time.
According to a study by McKinsey on paid loyalty programs, tangible benefits drive conversion, while intangible benefits foster retention.
We offer instant cashback on every purchase and complimentary shipping. Customers find more value in our program because they can apply the cashback towards their next purchase directly at checkout, without any forms to fill out, waiting periods, or minimum purchase requirements.
Additionally, we offer the ability for customers to earn cashback at a network of over 300 grocery stores, retailers, restaurants, and travel partners. Rewards earned on our marketplace can be used towards merchandise in your store.
How will the program be marketed and promoted?
ShopToken presents a membership offer on the order confirmation screen, providing post-purchase upsells that can result in double-digit conversion rates without the risk of cart abandonment.
To ensure maximum convenience for the customer, the membership can be purchased with a single click using the same payment method used for checkout.
There are no separate portals, registration forms or passwords to remember. We integrate loyalty features seamlessly into your storefront, so the experience is always familiar to the customer, and they never have to leave the store.
How will customer data be collected and used to personalize the shopping experience?
ShopToken collects, stores, and utilizes customer data responsibly and ethically while also personalizing the customer experience.
We comply with data privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).
Customer data is securely stored using encryption and firewalls to protect against cyber-attacks.
We obtain customer consent to collect, store, and use their data in our enrollment disclaimer and program terms, through clear and conspicuous opt-in mechanisms, such as buttons and checkboxes.
We only collect the necessary data to personalize the customer experience and do not collect unnecessary data.
How will the program be integrated with existing systems and processes?
We provide a comprehensive set of SDKs, APIs, and shopping cart apps to assist you in integrating ShopToken into your website or mobile application.
ShopToken's developer tools are secure and can be customized to meet your company's technological needs.
We offer versatile integration options for various environments, such as our BigCommerce and Shopify applications and our JavaScript SDK.
What are the costs associated with implementing and maintaining the loyalty program?
We provide a comprehensive set of SDKs, APIs, and shopping cart apps to assist you in integrating ShopToken into your website or mobile application.
ShopToken's developer tools are secure and can be customized to meet your company's technological needs.
We offer versatile integration options for various environments, such as our BigCommerce and Shopify applications and JavaScript SDK.
What are the potential legal and compliance requirements?
ShopToken's products have been thoroughly reviewed by legal and compliance experts with decades of e-commerce experience, to ensure compliance with regulations on data privacy, security, customer consent, and limited data collection and minimization.
We offer comprehensive opt-in disclaimers, terms and conditions, and FAQs that provide reassurance to your legal team while maintaining chargebacks within the lowest guidelines set by VISA and MasterCard.
How will the program's effectiveness be measured and tracked?
ShopToken offers secure, enterprise-level reporting to your senior leadership team in near real-time.
Our dashboard includes the following key performance indicators (KPIs) by default, but it can be further customized as required:
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Active members
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Sales revenue
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CLTV (Customer Lifetime Value)
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Conversion rate
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Cancellation rate
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Refunds
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Redemption rate
How will the program be different from those of competitors?
The primary distinction between ShopToken and our competitors is that we generate more cash flow by increasing revenue while also providing a lower cost per member. We focus on driving repeat sales, not just membership sales.
Our members find greater value in ShopToken because rewards are 100% automated and immediately redeemable in any quantity at checkout and with over 300 brands via discounted gift cards.
While our competitors require members to sign in to a separate portal, provide proof of purchase and wait up to 30 days to receive their rewards, ShopToken never asks members to leave your store. Rewards are always credited instantly, with no forms to fill out and no waiting periods.