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In competitive markets, loyalty is a key element which keeps a business’ survival mode on. A loyalty program is an effective path to success while competing with rivals to achieve customer allegiance.

A loyalty program is a structured marketing strategy revolving around 4 core goals:

  • Reach
  • Recognize
  • Reward
  • Retain

Mobile is revolutionizing the way these four items are approached, and provides new ways to reward though discounts on purchases or allocating points for future shopping.

Traditional vs Modern

Traditional loyalty cards are paper or plastic and similar to credit cards or business cards. The loyalty program member has to carry around the card in her wallet in order to get the benefits. If she doesn’t have it, she doesn’t get the rewards.

With changing times, customers prefer mobile loyalty programs over a thick wallet of store-specific cards.

According to a 2013 report from Maritz Loyalty Marketing, 73% of smartphone users engage with loyalty programs through their devices. Also, 91% of smartphone users download loyalty program apps, increasing consumer enrollment.

Why this inclination?

– Know your customers –

Each consumer is different and has changing preferences. Through a loyalty program app, you can build a customer database with their purchase history to determine the profitability and lifetime value of every customer. With your customers’ data in hand, you can also present personalized rewards and let them choose the type of loyalty program they prefer: appreciation items, reward credits, rebates, etc.

– Increased Sales Volume –

In the 1930s, researchers made an interesting discovery that a person puts in more effort when he is closer to a goal. Motivate customers to cash in their rewards by sending an alert through your app so he can see his progress and not lose his credits. This increases sales by driving more purchases in a shorter time frame.

– Social Quotient –

With the help of an app, keep track and identify your consumers who bring business to you through social networks by suggesting your brand to their friends and families. Rewarding some extra points to these special customers can be a good and motivating idea.

– Convenient –

Collecting points becomes easier with a loyalty program app, as there is no need to carry around a bunch of cards. All customers have to do is scan a QR code reader to accumulate points. This ease keeps the consumers happy and converts a one-time customer into a regular one.

– Timely Updates –

Keep your customers updated about freshly launched products and new services available. Use e-mails or text messages to send newsletters and other promotions.

– Points collection –

Not every customer wants a free cup of coffee or 200 airline miles. They might want to redeem the collected points via books, toys, mobile accessories, etc. A loyalty program app gives your customers the option to collect points and spend them according to their preferences.

Customers are actively using their smartphones for everything from communicating with friends to finding their favorite stores. Engage more customers with the a loyalty program app and improve your sales.

Click here to read more about utilizing mobile for retail solutions. We also have a free downloadable report.

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