4 reasons why your business needs to leverage a mobile loyalty program
In 2016, Nielsen reported that the average American spends 9.7 hours a day on devices.
If you ask me, I think that’s an awfully staggering (and partially gross) number.
For your business, that is a wonderful number — if taken advantage of correctly. According to the 2016 Bond Loyalty Report, 57% of loyalty program members would like to engage through a mobile device.
Pairing these numbers together, it’s fairly obvious how important and impactful it can be to have a mobile footprint. In this article, Ill outline the 4 reasons why your business needs a native app, paired with an exceptional loyalty program.
- Keep the customers returning
It’s no secret that businesses with loyalty programs give customers an incentive to return frequently. Why wouldn’t they? If I like your product, and I find out I can earn points towards a reward of some sort, of course I am going to go out of my way to visit or shop. Statistics back this behavior up.
81% of consumers said a loyalty program made them more likely to continue doing business with brands. Imagine if you can retain 81% of your customers who have debated going to a competitor — how much your bottom line would grow.
Now pair the above statistic with push notifications and a custom in-app experience. Not only are you allowing your customers to benefit from returning and spending more, but you also open a direct marketing channel to them. You can use that channel for special events, special offers, and much more. If having a loyalty program alone can make a consumer more likely to return doing business with you, adding the engagement of a native mobile experience can only boost that number higher.
- Maximize Customer Spend
Okay, so I already know If I go to Jenny’s Wine Outlet and spend my usual $50 a week on wine, I can earn 50 points towards the 20% off reward at 200 points. Ill reach that in 4 weeks. But Fourth of July is coming up next week, and it would be really nice to get a discount on the wine ill be buying then. The issue is, I only plan on buying $100 of wine for the Fourth. Maybe instead, Ill buy $150 of liquor/wine for the fourth, in order to get my 20% off coupon — and Ill save the rest for the next week. Win!
This is standard customer behavior when it comes to a loyalty system.
66% of consumers modify amount spent to maximize points. Adding a direct point of contact to a customer can only benefit this spend increase. If they are thinking of a competitor, and get a notification on their device letting them know you have a special offer for them, or scroll past your app and remember how great of an experience they had — they are much more likely to return and re-engage.
According to a Yopto survey done of 100K online businesses, only 14.77% of customers are returning customers, but they make up 33.33% of gross revenue.
When you think that less then a fifth of your customers make up a third of your revenue, it can be scary realizing that you haven’t been investing to keep them happy. Invest in your customer, and they will invest in you. After all: 92% of consumers believe recommendations from friends and family over all other forms of advertising (Nielsen), which leads me to…
- Word of mouth marketing
Let’s imagine another scenario for a moment. I eat pizza about once every two weeks. I go to my local pizzeria for lunch, and have a sensational pizza (as I usually do). I am asked by a friend where to eat for lunch a few day’s later, and recommend chicken fingers.
The Pizzeria Lost.
Let’s imagine a more ideal scenario, same setup. I am asked by a friend where to eat for lunch a few days after eating at that pizzeria, and remember that I can refer a friend to download their loyalty app (instead of the chicken finger place’s punch card) — and gain points towards my next pizza. Win. I recommend the pizza place to my friend, who happens to love it and starts earning points as well.
See what I am getting at here?
73% of members are more likely to recommend brands with good loyalty programs, and 74% of consumers identify word-of-mouth as a key influencer in their purchasing decision (Ogilvy/Google/TNS).
With this in mind, it would only be fitting that a strong loyalty program is paired with an easily accessible and fun mobile application to keep customers returning and spreading the word.
- Ease of use
Easy access to your company on a device people spend the majority of their time on gives you the best opportunity to capture and retain customers.
Regardless, a question remains: “Why do I need to invest in a mobile app, when I can invest in a website loyalty program for less?”
Out of the 19,000 consumers surveyed in the 2016 Bond Loyalty Report, Only 30% of members are satisfied with their program’s w ebsite experience.
As shown in the last few years, more people are ditching their computers for devices. Not only does a native app give you the ability to easily re-engage and reward, but it also helps define your brand, and makes you stand out from the competition. The Forbes article discussing this was written in 2014 and is even more relevant today.
What are my returns for hiring an agency to build my native application?
Here’s 2 big examples…
- Starbucks’ loyalty program/app currently has around 12 million members, who, according to the company’s CFO, already spend three times more than non-members and visit more frequently.
- Shop4Vitamins implemented a reward program with an exclusive focus on convenience and deals for their customers. It has led to a 35% increase in repeat customers. (here)
Your ROI depends on your business and your loyalty program. Considering that 23% are satisfied with the ways rewards/benefits can be earned, it is critical that you build a loyalty program that is fun, rewarding, easy to use, and easy to access.
With a well crafted app, and a well executed loyalty program — there are a few things I can personally guarantee it will do:
- Make your customer feel valued
- Increase your Customers Spending
- Increase your Word of Mouth Marketing
- Increase your understanding of your customer
- Reach more people
- Distinguish yourself from the competition
I hope I shed some light on how valuable a mobile loyalty program can be. As we continue growing mobile tech, the time spent on device and demand for ease of use will only increase.
In a day and age where everyone has a voice, It’s important to invest smart, and investing into those voices is one of the smartest, best longterm ROI’s you will currently find.
If you are interested in learning more about how your company can benefit from a custom mobile application, paired with a catered loyalty program, I would encourage you to reach out to me directly email@example.com, or visit our website https://www.loyaltechusa.com.