How to set a reasonable member system for a merchant store?
Marketing
March 16, 2023
It has become the key point for sustainable growth of websites to enable the customers who have placed an order to repurchase and exploit the value of compounding and consumption cycle. As a result, More and more cross-border e-commerce merchants start building their own exclusive member systems and involving in affiliating marketing.
During this process, it will affect the overall performance if the management work is insufficient or ill-prepared. To better manage affiliating marketing, it is necessary to classify members into different levels, which allows the seller to maintain, manage and market to members based on their specific characteristics. Besides, a reasonable member system can increase user stickiness and loyalty to some extent and enhance their favorability of merchants’ brand and thus create more re-marketing value.
Membership Level · Concept
Membership level is a way to differentiate user types and divide them into different members on the basis of regular customers and then provide different products, services or offers to regular customers. For customers, membership is an important way for them to gain more product offers and product news. Membership level is a kind of external form of membership growth system through the change of growth value, which can help merchants to maintain their member system and promote the consumption conversion. The core of the member system is user segmentation while the core of membership is the system of entitlements.
Membership Level ·Functions
Pull-up mechanism for the first order: stimulating users to place their first order through the distribution of member gift packages.
Potential customer screening: use the member system to screen out a group of customers with potential or high value
Stimulating repurchase：incentivizing high-value customers through offers to improve their long-term purchasing power and brand loyalty.
Membership Level ·Suggestions
Level setting: 3-5 levels can be set for the common membership level.
Offer setting: the higher the level, the more members offers.
Principles for design:
Follow the “two-eight principle” that the priority focuses on 20% of key users.
The consumption threshold of each level should be determined by the purchase amount of the consumers.
Membership Level · Benefits
SHOPLINE Member System provides 5 kinds of benefits for merchants which helps merchants to set up a reasonable membership level.
Upgrade to get more points: merchants can customize points and please note that it needs to align with [Member System] > [Points]. It is recommended to follow the amount of merchantsr successful orders. For example, members can earn 10 points for $10 consumed, which means 10 points will be added to growth value.
Exclusive discount: merchants can customize their discount and set up some offer restrictions with the range of discount, such as specified consumption amount/specified quantity/specified product category and specific product.
Exclusive cash voucher： merchants can set up the discount for some/all products
Free shipping coupon: merchants can set up free shipping offers for all products/specified consumption order.
Note: it should be combined with the ease of level accession and the accounting of profit & cost space.
Birthday month discounts: it will be automatically issued on the first day of the month of birthday and expires on the last day of the month. The new-added offer will cover the customers who are at this membership level now.
SHOPLINE member system also supports privileges customization which can help merchants to provide exclusive rights to specific members.
Membership Level · Templates
Template 1
Main category: beauty and personal care
Per customer price: $165
Membership level:
Case analysis:
VIP1 Setting: $1 spent in the cumulative total enables one to be a VIP1 member and enjoy 2% off. The main purpose of VIP1 is to guide customers to place their first order.
VIP2 Setting: $400, almost two times more than the amount of each consumption of customers in the store, which means 3 times of consumptions can enable the customer to upgrade to VIP2
VIP3 Setting: customers who consume up to $2000 have basically purchased more than 10 times and they are the loyal customers for the store.
VIP4 Setting: the customers need to spend another $3000 to upgrade from VIP3 to VIP4, increasing the difficulty and limiting the number of customers who can reach it. This is used to screen the high-value customers of the store.
Template 2
Main category: 3c accessory
Per customer price: $240
Membership level:
Case analysis:
VIP1 Setting: driving potential customers who do not have a consumer need at the moment to sign up for membership and prepare for the following subsequent conversions.
VIP2 Setting: the consumers can be a member as long as they place an order so that it can attract customers to finish their first order.
VIP3 Setting: the customers who want to have the growth value of $800 need to place 3 orders at least.
VIP4 Setting: most customers who have placed more than 10 orders can get to VIP4 and this group of customers belong to loyal customers of the store.
Follow-up setting: if the number of customers whose growth value reaches a certain number, VIP5 setting should be set up to maintain this group.
Template 3
Main category: kitchenware
Per customer price: $200
Membership level:
`Case analysis
VIP1 Setting: most customers can be upgraded to members after the first order.
VIP2 Setting: for those who have accumulated a large number of loyal customers, the growth value required for the second level can be set much higher.
VIP3 Setting: customers who spend up to $5,000 in cumulative total have basically placed more than 25 times orders and are loyal customers of the store.
VIP4 Setting: customers who meet this condition are the most loyal customers of the store and rich rewards can be added to encourage their continuous consumption.
Template 4
Main category: high-end womenswear
Per customer price: $800
Membership level:
Case analysis：
The case is related to a store for mid-to-high-end stores and its membership level is characterized by member care and takes points redemption as the key of member offers. The point rewards vary from different membership levels which can be automatically exchanged into coupons.
