6 Ideas to Incorporate Loyalty Program in Your Mobile App
Retailers, salons, fitness centers, restaurants, grocery stores, airlines, cinemas and more depend on loyal customers and returning visits.
Loyalty program is an important focus for any company’s marketing strategy. Still, businesses often look after gaining solely new customers instead of keeping the existing ones.
Do you know that it costs a company about 6-7 times more to get a new customer than to keep an existing one?
Overall, returning customers spend 67% more than the new ones.
Technology has finally called time on old paper loyalty cards and costly advertising campaigns.
Note: Accessibility and ease of use are what customers like.
Below, you can find the benefits a business with an effective mobile loyalty program and their customers could win.
The use of mobile loyalty program:
Customers can store the points and redeem them for products or services. The biggest problems of forgotten or lost paper cards can be finally solved by using mobile loyalty membership.
The most successful example here is the rewarding program by Starbucks. It now has more than 12 mln active loyalty members in the USA, up 16% in comparison with the year of 2015.
Notifications and point assignment based on customer’s location. With the rise of geolocation data and positioning-based devices (e.g. Beacons) more information could be sent to customers. Alert them that a deal or discount offer is nearby.
Accessible and convenient payments with the app. What customers like is a possibility of fully functional wallets in their mobile phones. What they’d like even more if their bonuses, rewards and airline miles could be incorporated into those transactions.
73% of adults are more likely to join a loyalty program if points and rewards are automatically updated and immediately visible on mobile wallet loyalty cards (Urban Airship)
Customers send your brand’s coupons and gifts to the friends via the app. Thus, you engage new audience by means of the existing customers.
Reward the customers for their loyalty. Show your regular clients that you value them by sending them first notice of new products, congratulatory bonuses or member-only sales.
77% of smartphone users said mobile offers, exclusive content and special birthday messaging, have a positive or very positive impact on their brand loyalty (Vibes)
Engagement of newcomers. Encourage new customers to become loyal to your brand. Offer them initial added points for downloading and login to your app. Assign bonuses to person through which other member registers and so on.
What business gains from a mobile loyalty program
1. Better sales results
Existing customers are 50% more likely to try new products, and spend 31% more than new customers (Nielsen)
2. Reduce in operational costs
Mobile loyalty campaigns are easier and cheaper to maintain. Offers can be changed in just a few minutes and sent to all users instantly.
3. New stream of revenue by means of consumer product promotion, couponing, special offers and more.
4. Rich analytics data.
The embedded in a mobile app analytics makes it easy to measure the ROI of your campaigns, trace the behavior patterns, re-target users with push notifications and so one.
5. Messages and notifications are personalized and relevant.
In our previous article about the advantages of mobile business app vs mobile adaptive website, among the principle pros of a mobile app, we highlighted the possibility to send highly personalized notifications to the customers.
56% of consumers said receiving a personalized incentive would improve consideration of the brand (Virtual Incentives)
6. Digital loyalty programs offer a competitive edge.
Be the first one to stun your customers with a cutting-edge approach.
57% of members want to engage with loyalty programs on a mobile device (Bond)
In fine, the mobile loyalty program could help in deepening customers’ engagement and building stronger brand connection. Eventually, it will result in higher revenue and sales.
Implement the best of the above-mentioned loyalty features in your app and make your online business grow and touch new heights. Offer the customers a convenient experience with your brand and leverage multiple gains from it too.