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How a Consumer App Can Enhance Your Loyalty Program

Posted by Julia Morrissey on May 23, 2022

Consumers are becoming increasingly dissatisfied with retail brands’ outdated and unrewarding loyalty programs. As more consumers embrace mobile and prefer shopping in-app, it’s important to develop a mobile loyalty program that meets their expectations.

And many brands are doing just that. Mobile capabilities are now the most invested in technology for improving customer loyalty.

In this post, we discuss how mobile can help your brand reboot its loyalty program and win back customers.

How Current Loyalty Programs Fall Short

Retail brands not only want to acquire customers, but they also want to keep them. This is why there is a great emphasis on loyalty initiatives. The average consumer belongs to 16.7 loyalty programs, and in 2021, the global loyalty management market was worth $4.43 billion (predicted to surpass $18 billion by 2028). 

But the nature of loyalty has changed––traditional transactional programs are no longer the best option for brands. Research suggests that around two-thirds of established loyalty programs fail to deliver value (and many actually erode it). This is because brands are not living up to their customers’ expectations. One-third of consumers today dislike how difficult it is to earn rewards, and 27% say the rewards they do earn aren’t valuable enough

Customers don’t want loyalty schemes to be purely transactional. They want to feel like a valuable part of the brand and its community, and they’re willing to invest time and money with brands that recognize this. 

Brands that listen to and act on their customers’ desires to have more personalized loyalty experiences retain more customers. And a 5% increase in customer retention can increase company revenue by 25-95%.

How Mobile Loyalty Programs Hit The Mark

First of all, physical loyalty cards are out and mobile loyalty is in––and it’s about time. The shopping process has evolved far beyond paper receipts, and in 2022, there is no reason to make customers keep track of a plastic card. An in-app member card can be swiped, opened, and scanned in stores. Plus, by enabling QR codes to launch a loyalty App Clip, you can make membership sign-up effortless.

With a mobile loyalty program, the process of building deep and long-lasting relationships with your customer is simplified. Loyalty features from in-app messaging to vouchers that are automatically added to customers’ carts help to both reduce friction and personalize the shopping experience.

Mobile loyalty helps you acquire and engage customers where they prefer to be, positively impacting customer retention and loyalty. 

Mobile Loyalty Paired With Mobile Customer Service: A Winning Formula

Hard benefits (discounts, rewards, prizes) get customers through the door. But delivering a great experience through exceptional customer service keeps them coming back. With a mobile app, brands can radically enrich the store experience. 

Already, 70% of loyalty program members access their rewards using an app––but true mobile loyalty doesn’t just mean an end to plastic loyalty cards. Store associates can use the app to take clienteling and loyalty to a new level. With mobile loyalty you can send customers push notifications or highly personalized messages about new products, their orders, and rewards.

Brands can easily offer white-glove service in every store. And phenomenal customer service is critical to a brand’s success. Customers who have a strong emotional connection to a brand frequent its stores more often and spend more money. In fact, fully engaged customers represent a ​​23% premium in profitability, revenue, and relationship growth over the average customer. 

Create Omnichannel Loyalty 

Mobile loyalty makes extending your loyalty program across channels effortless. Brands that embrace mobile loyalty will not only delight their customers but drive brand growth. On average, loyalty leaders grow their revenue approximately 2.5 times faster than their peers.

Mobile loyalty is helping brands unify digital and physical retail. And by meeting customers where they want to be—in-store and in-app—you can further cultivate long-lasting relationships and increase engagement across channels.

See how a NewStore Consumer App can help you create higher lifetime value customers with mobile loyalty. Get a demo today.

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