Who should read this content:
- Business owners – Who wants to launch their own loyalty card app to retain customers and increase overall sales.
- Retail chains – Who have their stores at multiple locations and wants to start a customer loyalty program through a loyalty app.
- Entrepreneurs – Who wants to implement Loyalty rewards feature in their startup mobile apps.
Loyalty App is a win-win for both you, and your customers.
Today, people prefer to buy from the people they trust. And to establish this trust and make loyal customers for your brand, rewarding them is most important.
But what is the best way to reward them?
It’s simple: in the competition to win loyal customers, you should give them a head start.
Know that for any business to be successful, it needs loyal customers at every step to earn a perpetual profit.
Remember the pareto’s principle?
Only 20% of your customers can make 80% of your sales.
We all know that the times have changed. Most of the industries have adopted new technologies and entered digital phase. Today, the mobile app development has become a new key to attract customers and keep retain them. And this is where Loyalty card mobile app becomes useful.
Before we move forward, let’s see few statistics on importance of best loyalty card apps.
- 80% shoppers say that they’d switch brand if they’ve been offered a compelling promotion.
- 21% of UK consumers say that discount vouchers delivered to their smartphone would drive them into a store they weren’t planning to visit.
- Research by Rosetta Consulting says that customer engagement is what leads to customer retention. The engaged customers are 5 times more likely to buy from the same brand in future.
- According to advisory firm Bain & Co., Customer loyalty leads to higher profits. And increasing the customer retention by only 5% can boost a business profits by 25-95%.
So now that you know what really drives customer loyalty and how effective customer loyalty programs are, let’s talk about loyalty card wallet app.
Why should you invest in a loyalty card app for your business?
We know that there are different ways to win loyal customers. For example: you could run a campaign for short period to win loyal customers.
But, will they really stick to your brand for long time because of just one campaign?
The reason is because they know that they’ll not benefit from your brand in long run. So, what they do is they just take your offer for their benefit and then leave you high and dry when it’s over.
We both know that you’re not looking for something like that.
What you want is – long-time loyal customers.
And a loyalty app for your business can help you build profitable long-term relationships with customers.
According to VIbes, 66% of people would have a more positive opinion about a loyalty program if they could store and access information in a digital wallet. People nowadays want instant gratification, and that’s what you can offer with a loyalty reward app.
However, a customer loyalty rewards app isn’t just beneficial for customers. The cloud-based mobile apps are capable of collecting data and offering rewards based on what a user does in the loyalty program app.
Moreover, people are also willing to give up their personal information in exchange of better deals, according to Loyalty360.
In simple words, loyalty apps are a great tool to study customer’s behaviour.
Now to further explain why should you invest in a loyalty card app for your business, we would like to share 3 business benefits of it.
3 Business Benefits of Loyalty Card App
The essence of successful businesses are customers who expect to have an outstanding customer experience. Therefore, It’s necessary to first understand customers and their behaviors.
1 – Understanding Customers
Understanding customers’ buying habits and behaviors will lead to the understanding customers’ needs, which ultimately help you send them the right offers at the right time.
With push notifications and newsletters, at perfect time, will help you keep your customers more engaged with your loyalty rewards app.
Fully engaged customers with a strong attachment to a brand delivers 23% premium over the average customer in profitability and revenue.
2 – Get Ahead of The Competition
No matter how great your service or product is, a competitor will always be there, trying to draw your customers away from you. So even if you’re already ahead of your competitors, always differentiate your business as much as you can to stay at the top.
To achieve this, you can build a custom loyalty program app for your business to reward customers based on their spending, and create time & location based deals.
3 – Increased Sales Results
People love spending money on their favourite brands, and when those favourite brands offer loyalty programs, they become more and more loyal. Moreover, the trend of carrying plastic loyalty cards has been faded away. Cards are lost easily, and they aren’t practical for carrying them around in a wallet.
And if you’ve doubts that whether a loyalty card app for iphone will be beneficial for your business or not, then know that 86 percent of marketers rank the mobile loyalty apps as very effective.
Furthermore, 72 percent of customers would like to have a better access to rewards and ability to redeem their rewards more easily.
Not only that, but there are more ways in which a business can benefit from a loyalty card app.
- Increase Sales: An android loyalty card app for your business can affect both existing and potential customers. By sending right offer to your existing customers you can generate recurring purchases, and you can also attract potential customers and convert them into loyal customers.In your loyalty card app, you can collect insights from loyalty-based data to refine pricing and promotion for leading a consistent 1-4% increase in sales.
- Reduce Costs: Mobile loyalty apps are easier to maintain and offers can also be customized in just few minutes and sent it to your existing customers instantly. This means, less time and less funds are needed to be invested in mobile loyalty app than in paper based loyalty campaigns.
- Improve Customer Service:A loyalty program app offers a direct communication channel between your business and its customers at every stage, including pre-sale, checkout, and post sale process. In fact, there is also one survey which reveals that 79 percent of customers would take their business to a competitor within a week of experiencing poor service.So, to learn and understand your customers, you need to decide which metrics you want to track and what is the goal that you want to achieve.Every business has different goals, and to help you determine your loyalty app goal, here are few useful tips.
Tips to Create Your Own Loyalty Card App For Business
To take full advantage of your loyalty card app, there must be a clear-cut goal explaining – what is it that you’re trying to achieve with a loyalty app for your business?
1 – Set a Clear Goal
If you want to have a strong initial impact, then the number of app downloads is the best metric to track. And as we mentioned in the beginning, you should give your customers a head start to make a strong impact.
If your goal is to get customers to keep using your app, then the percentage of active users will give you insights for understanding the behaviors of your customers to define a strategy.
Maybe you only want to monitor the amount customers spent on purchases, and track deal redemption to create your next campaign based on metrics. Or, you might want to make your customer loyalty app to explode on social media and go viral. In that case, tracking the number of social media shares of your app’s content can help you understand what type of content performed well. And based on those findings, you can plan your future campaigns.
2 – Decide How Customers Will Make Progress
We feel that this is the step many businesses get very wrong. Besides from defining a goal for your loyalty program app, you also have to be careful about choosing which behavior you want to reward.
Purchasing more items makes perfect sense for progression and applies widely to many industries, but when businesses tries to force their products / services use as the action, they usually end up creating misaligned motivations with their customers.
So to not to be lost in choosing customer action, you can have the new customer referral to be the end-goal. Many popular mobile apps such as Dropbox reward their loyal customers when they refer their app to their friend.
This basically doesn’t hinder their usage of the product and encourages them to promote it to get rewarded, which is ultimately, a win-win for both business, and its customers.
3 – Pitch Advancements as a Bonus
This is the most important point that we’ve already mentioned twice. It is to give advancement to give your users a head start.
However, this advancement won’t work as a tactic if you just give out the reward points for no reason.
But on the other hand, the reason can be quite simple. For instance, you could position the advancement as a reward for new signups. This works for every type of mobile app having a customer loyalty program, regardless of the industry.
So when a new user signs up, a simple message or notification explaining that you’re giving them bonus points to help them get started is all you need to justify the process.
And while a loyalty card app is a win-win for both your business and your customers, but there are certain points to keep in mind for your loyalty app development.
For example, you need to make sure that you can customize your app up to every point and is tailored for your business only. This is where Space-O can help.
How Space-O Can Help in Developing a Custom Loyalty Program App For Your Business?
When it comes to mobile app development for any industry, Space-O always makes sure that you have full control on your mobile app. And the same goes for your loyalty program app.
Here’s how we make sure that you loyalty app is tailored for your business.
1 – We Develop Your App From Scratch, Just For Your Business
You may already know that there are already many readymade solutions out there in the market from where you can create loyalty card app at very low cost. But usually, you may not be able to associate your brand with those readymade solutions.
At Space-O, from app icon, to checkout page, we develop your app from scratch which is tailored for your business only.
You’re the only one who has access to change anything and everything in your loyalty app.
2 – You Can Customize Everything
Again, from app icon to home screen, points, and rewards, you can customize everything the way you want it to be.
You choose which actions you want to reward your customers, whether it’s simple content sharing or referring a friend or making real purchases. It is completely up to you, when you hire Space-O Technologies for developing your loyalty app.
Not only that, but every single detail, from name, design, and colors, we take your inputs in every single part of app development process.
3 – You Can Add Personalized Content To Your App
After you’ve your users downloaded your loyalty app, you can add personalized content as you please to increase engagement. There is no limit on the type of content you share. We can build a loyalty app for your business that supports a large number of content types and also make it easy to publish or sent push notifications.
Push notifications is the ultimate tool to inform your loyal customers about new offerings to attract customers on a slow day by offering rewards.
We Love Creating Innovations That Improve Everyone’s lives!
As we mentioned that no one loses here, we believe that our mobile app development service can take your business to a completely new level and use the benefits of mobile technology to grow business to even further.
To discuss ahead, fill out the below form with your requirements, and we’ll help you take your business to a completely new level.