The rise of e-Commerce has created convenience for us in a manner that we couldn’t imagine. Thinking about the times when one would have to wait for someone to bring something from abroad, wasn’t the most efficient way to order. In the times of a digital space where e-Commerce has taken over the physical retail space by storm, the adaptability to the new digital services has increased drastically since the pandemic.
Businesses are working towards changing their marketing trends which are followed by the users. Attracting new customers in a digital space having no ground presence has been nothing but challenging for businesses to operate. Making a marketing mix of social media, OOH, DVC, TVC or etc. is not the only way to attract footfall in the digital space. E-Commerce platforms have started developing rewards or loyalty points to engage the customer.
With the evolving tech space, companies have invested in exploring new ways of engaging the customers with the limitations of having limited access to on-ground activations. To improve the customer experience, many product experts have worked on creating a life-like experience for customers shopping online to engage with them. Terms like Reward Points and Loyalty Points are used liberally by many online businesses to increase engagement and retain existing customers.
A well-functioning rewards system is a must-have to guarantee customer loyalty and increase revenue through repeat purchases. But, many companies are working on models of incremental engagement where the customers do not have to spend to shop. These methods of effective engagement play a major role in keeping the customer’s interests alive when they are on the online platform.
But, how does it work?
To understand how it works, we take an example of the newly launched Daraz Coins. Being an industry leader in the growing tech space of the rising South Asian market, Daraz has taken a rather unique approach to engaging with the customers. Where on other platforms, the limitations to “Become a Gold Member” or “Spend a minimum to avail free shipping or discount” is the mechanics to get rewarded or earn loyalty points the e-commerce platform is offering Daraz Coins on the basis of engagement too.
There are 3 ways how customers can earn Daraz Coins:
- Daily Check-In: Customers can claim coins by checking in the coins page of Daraz App for consecutive 7 days. For each day, the customer would get:
Day 1: 50 Coins.
Day 2: 100 Coins.
Day 3: 250 Coins.
Day 4: 250 Coins.
Day 5: 300 Coins.
Day 6: 300 Coins.
Day 7: 500 Coins.
If a customer misses a single day, they need to start it all over again.
- Daily Missions: Customers can earn by completing daily activities/mission which are set for them. These missions are time sensitive and the customer has to complete these timely to earn coins. Following are the list of activities:
Follow Store: 300 Coins
Visit Page: 200 Coins
Make a Search: 100 Coins
Share Items: 500 Coins
Add to Cart: 100 Coins
- Purchases: For every transaction done on Daraz app, customers can earn coins. The mechanics of how one can collect coins are as follow:
Collection Exchange Rate: ->1 Coins = 1 Rs.
Max Collection Limit: 1000 Coins.
After Earning the Coins, how can you use Coins?
Customers can claim vouchers in exchange of coins while purchasing something from Daraz. At the time of checking out, they will get a discount for using that voucher redeemed by their earned coins.
Improving customer retention and using incremental engagement as tools to engage the customers on the platform are fairly new additions to the world of shoppertainment. With the launch of DarazLive and now Daraz Coins, it will be exciting to see what new technology will be introduced in years to come which will improve the customer experience in the booming industry.