How Are Loyalty Apps Adding Value to Your Organization?
Every businessman starts a venture with a dream. And what is that?
Greater consumer acquisition, larger customer base, and immense sales. Do you agree? Each entrepreneur runs to achieve these targets regardless of company type and size as well as industry domain. But, in the process of obtaining new customers, organizations ignore the existing ones knowingly or unknowingly.
“The probability of selling to an existing customer is 60–70%, while the probability of selling to a new prospect is 5–20%.” — invespcro
The statistic clears that pay more attention to retain the existing customers to gain immense business profitability and beat the growing competition.
To expand the business reach and engage more customers, companies are getting tech savvy. Adopting the latest technologies, startups to corporate are planning for mobile app development. But it’s not promising for building a great customer base. To keep customers coming back, organizations have to refine their business strategies by introducing the versatile loyalty program in the mobile app to retain the existing customers.
What is Loyalty Program?
According to Wikipedia, “Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially beneficial to the firm.”
How Does a Loyalty Mobile App Work?
With every purchase, loyalty app enables users with a few points. Buyers can scan the QR codes or discount codes through a smartphone or tablet and enter the code in the app to gain the points. They can use these points for any current purchase or save them for future purchase.
The loyalty program is popular amongst all sizes of enterprises who have adopted mobility as their primary business strategy. It helps businesses to track users’ repeat purchase, their shopping pattern, which product shoppers buy on the frequent basis, during what time of the day they visit the app, and how much money they used to spend.
Why Is A Loyalty App Essential for Your Business Growth?
No Price War
There are numerous marketplaces on the internet. If you compete with all of them by listing out the products, then there are chances you will find yourself nowhere. The online shopping giant like Amazon, Flipkart, etc. will win the race as they offer highly competitive pricing. To avoid such price war, startups and SMEs have to introduce a loyalty mobile app that involves exclusive gamification.
The study reveals that when people purchase a product that appeals to their desire and not a necessity, they buy it with high emotions. While they receive a bonus on the purchase, they feel delighted and happy. Here, they start feeling an emotional bonding with the brand. They would like to come again and again on the app and make a repeat purchase. It strengthens their loyalty and increases the profit of the organization.
Retain Existing Customers
As per a statistic, loyal consumers spend 67% more than the new ones. According to Charted Institute of Marketing, the customer retention costs less than customer acquisition. The 5% lift in customer retention increases the profit by 85%. These figures prove that customer retention is one of the most cost effective ways to generate tremendous profit.
Referral Reward System
It’s a general belief of the organizations that the customers who spend in their store are only real consumers. Companies design their reward policy by considering those new buyers. But apart from that, there are other customers who are not the regular shoppers but they play a key role in driving wider clientele to the businesses. They spread word-of-mouth amongst their friends, families, and colleagues as well as inspire them to make a purchase from the store. Thus, they are indirectly helping brands in generating massive ROI.
Don’t forget such loyal advocates of your brand while defining a loyalty bonus program. Plan out a reward policy for such customers too. Offer them reward points or discount on their purchase for referring your brand to other consumers. It helps in customer acquisition as well as maintaining the loyalty of your existing consumers.
Establish Long Term Relationship
To set up a long term relationship with customers, make them feel special by offering customized rewards. Organizations have to track users’ behavior to enable them with extremely personalized loyalty bonus. Keep checking day-to-day and month-to-month purchase pattern of the shoppers. Also, track the change in their buying behavior at a different location and in a different season. Sometimes, buyers’ personal circumstances also affect their purchase decisions.
Analyze their behavior closely and accordingly bifurcate them in various categories such as regular customers, people who make a monthly purchase, consumers that make a purchase in a particular season, festival or occasion, etc. Provide the personalized loyalty bonus and unique level of services to the customers so that they start feeling valuable.
Therefore, the loyalty bonus app is an unbeatable marketing tool and strategy to achieve tremendous business success. Intuz has proven experience and expertise in loyalty mobile application development that helps organizations in attaining immense growth, increasing customer retention, improving customer acquisition, boosting brand’s reputation, and more. We define a customized reward or loyalty program for your business by considering the changing needs of your clients so they love to visit the store again and again and make a great purchase every time.
This story is published in The Startup, Medium’s largest entrepreneurship publication followed by 292,582+ people.
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