Boost Customer Loyalty with Innovative App Solutions

Customer Loyalty with Innovative App Solutions

Loyalty programs have been around for many years. Still, with the advent of technology, Loyalty App Development has become an essential tool for brands looking to connect with customers.

Although you can manually implement your customer loyalty program, we recommend using customer loyalty software.

This will allow your program to scale, stay organized and offer new features that rival national loyalty programs.


What are Loyalty Programs?

What are Loyalty Programs?

Loyalty programs are reward programs offered by vendors and retailers to retain customers and draw in new customers.

Loyalty Programs are more humane. They make customers feel like they belong to a family or a group that shares the same ethos and spirit as the brand.


What are Loyalty Programs?

What are Loyalty Programs?

Loyalty programs are designed to keep customers returning and engaging with your brand.

Customers who sign up for a loyalty program are then rewarded with rewards for making purchases.

These rewards can be in the form of points, discounts, or previews.

The Loyalty Program Dashboard will typically measure and display all metrics associated with the App.


Why do I need a loyalty program?

Why do I need a loyalty program?

Brands can reap the many benefits of loyalty programs. Here are a few:

  1. Assist with your customer retention strategy, building credibility and trust.
  2. You can gain valuable insights into customer behavior, such as purchasing patterns, frequency of purchases, and purchase history.
  3. You can easily access data about customer demographics like age, location, and income.
  4. With customer reviews and referrals, create a positive brand image.
  5. Loyalty programs are cost-effective because you can reach existing customers or those interested without needing to find new ones.

These are nine proven customer loyalty programs:


Know your customers

It is crucial to know your market before you start to build your customer loyalty program. A baby boutique customer might love to receive a free bottle when they spend $75.

However, this Rewards App Development would not work well for outdoor shoppers who shop at outside stores.

Your loyalty programs effectiveness is crucial. Participating in high-performing loyalty programs (programs that have positively impacted respondents behavior and overall satisfaction) is 80% more likely for consumers to choose the brand than competitors.

They are also twice as likely to recommend it to friends.

When creating your customer loyalty program, think about your audience and brand. When brainstorming new ideas or creating strategies, consider whether customers will enjoy your idea.

Is it something that will make customers want to return? What can I do to make my idea stand out?

TapMangos reporting tools allow you to test new ideas and identify strategies that work. You can monitor the performance of your loyalty program over time using A/B testing and real-time reports and make adjustments to ensure that it is most effective for your business.

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Kaldis coffee in action

Kaldis, a St. Louis-based coffee shop franchise, is Kaldis. Kaldis was able to locate its shops in areas near college campuses and walking communities.

This frequent shopper makes small purchases frequently and takes over a cafe table to spend the afternoon.

Kaldis developed a loyalty program using punch cards that gave customers a free cup of coffee for every ten purchased.

They also received a Kaldi mug when filling in three punch cards. Employees would also try to remember the names of loyalty cup holders and their regular orders.

This program was a huge success, encouraging frequent visits and brand loyalty. It also created a sense of community.


Keep your program on brand.

To build on the above concept, ensure your loyalty program matches your brand. This will create a seamless experience for customers.

This is more than just about appearances. Having your brand consistent across all platforms can help increase revenue by as much as 23%. Good branding will also help to reinforce your business image in customers minds and make it more easily recognizable in the future.

You want to ensure your CRM loyalty management program & branding are consistent with your brand voice and that your images reflect your brand image.


WeWoreWhat in Action

WeWoreWhat, a clothing brand growing fast, places a lot of emphasis on branding through its loyalty management & integration program.

Its brand represents a fashion-forward urban girl who is always fashionable and on the move. She may be called "the girl boss" by some.

WeWoreWhat calls all its members "babe", uses sassy messaging, and has a loyalty system that rewards large, frequent purchases.

All of this makes sense for WeWoreWhat. The programs tone is in keeping with the city girl aesthetic. Additionally, the rewards structure encourages big sales for the infrequent drops.


Go Paperless

The world is changing rapidly and so are peoples preferences. Customers dont want to have a loyalty card they need to carry around.

The modern shopper wants a digital experience. Physical aspects can be confusing or even a turnoff.

A loyalty program software can create a digital loyalty program.

Most software tracks customer points and rewards and lets you view purchase history and other information. Many software solutions have an integrated customer portal that allows customers to access their loyalty member accounts online and check their status.

You can cut down paper where possible and use digital options whenever possible. Sending text messages or emails is a better option than handing out flyers.

You should also have a digital points tracking system. Also, digital coupons can be distributed instead of physical ones. You can make customers lives easier and increase loyalty.


Safeway in Action

Safeways digital loyalty program is a great example. Safeway doesnt use physical cards like traditional grocers.

Instead, employees sign you up on their computers. Next, you must enter your phone number when you shop. This will pull up your account and give you access to your rewards.

Customers dont have to keep track of or complete paperwork with this program. Safeways loyalty program makes it easy to join and continue to receive rewards and deals.


To attract new members, offer first-time purchase discounts.

Customers feel motivated to shop at a new store when they can get a discount or special, which is why 80% of them do.

To help new customers overcome hesitations when shopping at a new store, offer a discount or special for their first purchase.

You can offer discounts to encourage new members to join your loyalty program. My boutique offered VIP members $10 off their first purchase.

This was a great factor in getting people to join our program. It also helped convert first-time customers into loyal customers.

For e-commerce stores, first-time offers are an important part of attracting new customers. Online products are difficult to experience, and shoppers cant touch them.

It is also hard to predict what they will get from unknown retailers. This creates greater buying hesitation, and there is a greater need for incentives to encourage people to try your shop.

Read More: Significance of Loyalty App Development in Retail Industry in 2023


In Action: Pampelone

Pampelone, an online boutique selling high-end womens clothes and knits, is a womens clothing store. Pampelone offers a $30 discount to new customers who purchase its high-end pieces.

This is a smart decision. This discount is generous and on par with its price point. It effectively boosts first-time sales and builds a loyal customer base.


Refer customers to earn rewards

Referral programs are another strategy you could use to build customer loyalty. Refer a friend to your store, and you will earn rewards.

Referred customers have 18% higher lifetime value, 13.2% higher spending rates, and 16% more loyalty than those who dont refer.

You can create a referral program by linking custom links to customer accounts. Customers can save the link to their account and share it with friends.

You can track the actions of that link and reward the customer accordingly. Custom links can be obtained through a customer Loyalty App Development Services

You can also give customers a discount code they can share with friends. Once their friends redeem their codes, they get a discount.

You can offer customers 20% off a code that they can share, and when their code is used, they, too, get 20% off.

Social media can be used as part of your referral program. It is possible to host contests in which people must tag their friends to win or to create links to your social media pages that customers can share with other connections.

Social media is a great way to reach new people and grow your business. Make sure you leverage it to increase your customer base.


In Action: Glossier

Glossier, a small skincare and makeup brand that had just launched a few years ago, was still relatively new to the market.

However, it grew quickly and is now one of the most successful independent beauty brands. This was due to its simple, straightforward referral program.

Glossier offers 20% off to anyone using a custom link to refer and convert customers. Its branding as a girls brand, and this 20% discount code made Glossiers name spread quickly as girls shared their links to get rewards.


To encourage spending, award points.

A points program is another way to increase customer engagement with your customer loyalty program. Points programs can be a great way for customers to spend more and build brand loyalty, with 75% of respondents saying they prefer companies that offer rewards.

Points can be redeemed for discounts, gift cards, or other special offers. The best strategy for your business will determine what you give points for.

There are many ways you can organize your loyalty points program.

  1. Spend-Based program: This program awards points based on dollars spent. This type of points program works best for companies who want to encourage larger purchases.
  2. Visit-Based Programme: This program offers points based on the number of customer transactions. It is ideal for small businesses that depend on frequent purchases.
  3. Loyalty Actions Program - A loyalty action program gives points based on specific actions. These actions could include reviewing products, commenting on social media posts, buying more than one item, and shopping on a sales day. It is up to you to decide what actions your customers want and which will benefit your brand most. Customers will start to act when you offer rewards or incentives.

Nordstrom in Action

Nordstrom offers a popular loyalty program called "The Nordy Club", which operates on a points system. Customers earn points based on how much they spend.

As they accumulate more points, they get cashback and exclusive access. This is a wonderful example of a points program that offers money-back benefits and allows exclusive access to help grow the program.

Nordstroms Nordy Club members earn points for every purchase. They can also reach higher levels to receive more rewards.


Tiered loyalty programs can create a sense of exclusivity.

The modern shopper is more interested in exclusivity than ever. 94% of Americans say they would accept an exclusive offer if offered one.

A tiered membership structure can help you capitalize on this desire to be exclusive in your loyalty program.

This model allows customers to engage more with your business and access special deals and offers. It is similar to The Nordy Club.

Shoppers are encouraged to spend more at your business and return. This will increase their status and make them more exclusive.

Tiered programs typically have at least three levels, and they are linked to a points system. The number of points you have will determine which membership level you are eligible for.

This simplifies the membership process, makes it easier to track and implement, and helps you keep track of your progress.


Sephora in Action

Sephora, a major makeup retailer, offers a tiered loyalty program called "The Beauty Insider Program." Members can choose to be an Insider or Very Important Beauty, depending on how many points they have.

Members who climb up the ranks get better deals, more discounts, and access to exclusive freebies, events, and other benefits.

They also get earlier access to Sephoras rare sales and a better discount. Sephoras loyalty program is driven by exclusivity, and the Beauty Insiders program incentivizes spending.

Read More: Why is the mobile app development company important?


Exclusive Deals for Members Only

Offering members-exclusive deals is one of my favorite ways to increase loyalty program interest. Not only will it create an exclusivity that will encourage people to sign up, but it will also be a way to increase spending.

When trying to convert customers, highlight your member offer in all promotional materials. People should know what they get when they sign up for your program.

These offers are also exclusive, so you can promote spending in a specific area. You could, for example, slow discount sellers or hot products depending on what you are looking to move quickly.


In Action: Inspyre Boutique

Inspyre Boutique, a Denver-based womens clothing franchise I have managed for many years, is located in downtown Denver.

We had a loyalty program we called the VIP program. Members got the IOM deal and access to the Item of the Month (IOM). We would choose a category of items, such as hats, sweaters, or shorts, and offer a 20% discount to VIPs for one month.

IOMs were not only a selling point for our program but also a great incentive to purchase our discounted products.

We had to occasionally run out of IOMs, so we held monthly contests to determine which associate would sell the most. It was a great strategy to drive sales and increase interest in our loyalty program.


Gamify your loyalty program to increase engagement

Gamification has become a key part of retailers marketing strategies as the world becomes more distracted and harder to engage.

Eighty-seven percent of North American retailers plan to use gamification to engage customers over the next five years.

Gamification is a way to make your loyalty program more fun.

  1. VR: Engage customers in a fun and interactive way with your brand using VR technology.
  2. Contests - Contests with prizes increase your engagement. You might offer a discount to top monthly point holders or a raffle in which every referral counts. You can get people to be creative and offer prizes they care about.
  3. Prize wheels: Customers can spin a wheel that offers different prizes and discounts. Either create a prize wheel for your website or place a physical version in your store. You will get people involved in any way you choose.
  4. Scratch-off: Make a scratch-off game for customers who buy more products. You could add a scratch-off sticker to your large coffees. Customers who get three of the same can win a large beverage and a pastry of their choice.

In Action: The throtl

throtl, an eCommerce site selling parts and gear for cars, uses giveaways to encourage people to spend and increase engagement.

To become a VIP member of throtl, you will pay $10 per month to access your exclusive rewards and offers. The $10 you spend counts as ten entries to the car raffle. Every dollar spent is equal to one entry in the contest.

The possibility of winning a car thus incentivizes customers.


Future of Loyalty Program Application Development

Future of Loyalty Program Application Development

Given the increasing adoption of Apps by brands who wish to offer Loyalty Programs via a mobile app, the future of Loyalty Programs Mobile App Development looks very bright.

Mobile Apps offer the opportunity to increase engagement with loyal customers through virtual and augmented reality innovations.


Success Checklist

Success Checklist
  1. Get a mobile app developer who is affordable and has experience
  2. Make and publish a fully functional loyalty program app
  3. Promote your loyalty program app and onboard users
  4. Use the data to your advantage
  5. Explore the Insights
  6. Learn, Grow, and Profit

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Bottom line

Loyalty programs are a great way for customers to retain them, build loyalty, and increase sales. Your time and resources will determine whether you choose to implement the program manually or through a software program.

These strategies will help you design a practical and profitable program for your business.

Mobile apps will continue to grow in popularity as the digital age progresses. A Loyalty Program Mobile App is essential for anyone who wants to keep up with the digital age.


References

  1. 🔗 Google scholar
  2. 🔗 Wikipedia
  3. 🔗 NyTimes