The Role of Loyalty and Referral Programs in iHerb’s Customer Retention

iHerb’s loyalty and referral programs play a significant role in customer retention by incentivizing both existing customers and new users to engage repeatedly with the platform. Their referral program operates on a "Give 10% & Get 10%" model, where customers share a product link instead of a code, and both the referrer and the referee receive rewards—such as credits or discounts—when the new customer makes a qualifying purchase. This approach encourages word-of-mouth marketing and builds a community of loyal customers.

The loyalty aspect is reinforced through Rewards Credit, where customers earn a percentage back on purchases made by their referrals or themselves, fostering repeat buying behaviour. For example, new users get $5 in rewards credit, while existing users earn 5% back when their referrals shop. This dual-sided benefit creates a win-win situation that motivates customers to keep returning and sharing.

Additionally, iHerb integrates its referral program with cashback platforms like ShopBack, allowing customers to stack rewards and maximize savings, which further enhances customer retention by increasing the perceived value of shopping on iHerb.

In summary, iHerb’s referral and loyalty programs contribute to customer retention by:

• Encouraging sharing of product links that reward both parties.
• Offering rewards credits that incentivize repeat purchases.
• Leveraging cashback partnerships to increase savings.
• Creating a simple, accessible program open to all customers.

This combination effectively strengthens customer loyalty and drives sustained engagement on the platform.