As the upselling and cross-selling pools start drying out for loyal customers, it’s best to turn to a more “feel special” approach—a VIP program that enables you to continuously reward your loyal customers.
Assuming you’ve already set up your VIP program through Froonze Loyalty & Wishlist, it’s time to use our VIP automatic tagging feature to create customer segments, reward those segments with ongoing discounts, and increase your sales and profit.
Enable VIP auto-tagging in the Froonze loyalty app
To kickstart the ongoing discounts for your VIP members, you’ll need to first add a customer tag value to each VIP tier you created.
To do so, follow these steps:
Navigate to our app’s Loyalty ➜ Program ➜ VIP tab, and access the desired tier by hitting the “Pencil icon” button.
Find the “Tag” input under the “General settings” section.
Add your desired value and hit the “Save” button that appears after adding the value.
Note that the auto-tagging functionality will not affect customers who are already in the tier, unless they are downgraded or upgraded. It's necessary to manually add the tag to those customers.
Keep in mind not to modify the tag value after setting it up, as the system won't handle the change. Updating the tag or deleting the tier will not remove the tag from customers to whom it was already assigned.
After a customer enters a VIP tier that has an assigned tag, you can view it in the Shopify Admin ➜ Customers section by accessing any customer.
Create a Shopify customer segment based on VIP tags
Add the following formula: customer_tags CONTAINS ‘custom_tag’ in the filters editor. Remember to replace ‘custom_tag’ with the value of the tag you added to your VIP tier.
Once happy with the filters, hit the “Run query” option.
Once redirected to the page with all customers who have the specified tag, hit the “Save” button at the top.
Give the segment a name when prompted by the pop-up window and hit the “Save” button one last time.
With the new VIP tag-based customer segment created, the next step is to create an ongoing discount.
Create a Shopify discount for the VIP customer segments
Additionally, merchants can choose from 2 methods for each discount type:
Automatic discount
Code discount
The focus is not so much on which discount type to create (they’re self-explanatory), but how to configure each method for the customer segment we set up earlier. For the sake of example, we’ll default to an “Amount off order” discount.
In both cases, you’ll want to follow these instructions to create the discount:
Select the desired discount type. We’ll go with the “Amount off order” discount, for the sake of example, as explained earlier.
Once selected, you will be redirected to the discount creation page.
Once in the discount creation page, please refer to the steps in the sections below to configure each discount method.
1. Configure a Shopify automatic discount
Select the “Automatic discount” option from under the “Method” section
Select “Specific customer segments” from under the “Eligibility” section.
Search the customer segment you created for the VIP tier in the previous steps.
Fill in the other fields for the discount, such as a descriptive title, the type and value of the discount, whether the discount can be combined with other discounts, and so forth.
Once everything is set accordingly, hit the “Save” button.
Now, with the automatic discount created, the VIP members within the defined customer segment will see the discount applied automatically to their cart and checkout page.
2. Configure a Shopify discount code
Select the “Discount code” option from under the “Method” section
Select “Specific customer segments” from under the “Eligibility” section.
Search the customer segment you created for the VIP tier in the previous steps.
Fill in the other fields for the discount, such as a descriptive discount code, the type and value of the discount, whether the discount can be combined with other discounts, if there should be a minimum purchase requirement, and so forth.
Once everything is set accordingly, hit the “Save” button.
Now, with the discount code created, the VIP members within the defined customer segment will need to manually insert the discount during checkout.
Keep in mind that Shopify limits the number of discounts applicable to the same order. You can add a maximum of 25 automatic discounts, including app-based discounts to the same order. Discount codes are limited to a maximum of 5 per order, and shipping discounts to 1.
TIP OF THE ARTICLE:
While we won't tell you how to set up your discounts, we'd like to share with you that, according to Harvard Business Review, precise discounts have the potential to increase your sales. Essentially, opting for a 6.8% discount instead of a rounded 7% can bring your store more money.
Inform VIP members about the ongoing discount perks
Now that everything is in place, the only thing left is to inform your VIP members about the ongoing discount they’ll now benefit from.
The easiest way to do that is by adding and configuring a VIP tier perk. To add a perk, follow the steps outlined in our VIP program setup guide.
For automatic discounts, you need to let customers know that the discount will be applied automatically to their purchases.
For example, you could describe the perk as "Enjoy an automatic 10% off discount with every purchase!"
For discount codes, ensure that you mention the code that customers must use.
For instance, the perk description could be "Enjoy 10% off with every order by adding the VIP10OFF code during checkout!"
In both cases, don't forget to mention any limitations you might have set for the discounts.
Ready to create ongoing discounts for VIP members with Froonze?
You’ve seen how easy it is to reward your loyal customers through our VIP program’s auto-tagging feature. We recommend that you give our Froonze Loyalty & Wishlist app a try if you haven’t already. If it’s your first time installing the app, you’ll benefit from a 14-day free trial!
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