Merchants used to provide repeat customers with copper tokens that could be used to earn discounts on future purchases, and loyalty programs have been around since the 18th century. They recognized the value of a loyalty program even back then!
Since then, the notion of loyalty programs has mostly stayed the same all the way into the twenty-first century. Customers are frequently rewarded with “a free X with every fifth purchase” on paper punch cards (for example).
That is, until now…
The introduction of digital loyalty programs ushered in a new era of individualized consumer experiences, which has improved brand loyalty.
The introduction of mobile loyalty applications has improved the user experience even further, and the possibilities for what businesses can do with loyalty apps are virtually endless. Thanks to Customer Loyalty App Developers.
Here are just a handful of the unique ways you might benefit from a digital loyalty rewards app.
1. Personalized Experiences
The majority of customers keep their phones with them throughout the day. When a consumer signs up for an app and provides their phone number and/or email address, you have the chance to contact them directly. You can provide clients with a significantly more personalized experience with your brand than was previously available.
You may send a welcome email to your newest loyalty program member, inviting them to an exclusive VIP club and address them by their first name.
On their birthday, you may give them a coupon to redeem for a free present in-store, and you may check in with them through SMS and push notification if they haven’t visited the shop in a while.
These small acts create a one-of-a-kind relationship with the business, laying the framework for the next step.
2. Customized Rewards
The most important thing you’ll get out of digitizing your rewards program is answers to inquiries like “what are my consumers buying?”, “How much do my loyal customers spend?”, and “How regularly do they buy things?”
You may adapt your offers to appeal to each individual customer’s particular demands based on the responses to these and other critical pieces of information.
Why not send a push message to the customer who exclusively buys formal menswear? Offer him a limited-time 30% discount on all collared shirts, satchel bags, and dressy shoes purchased in-store or online.
Meanwhile, your other frequent customer who buys rings, necklaces, sunglasses, and other accessories from your online business on a regular basis may be eligible for free delivery on all orders placed by Friday.
3. To keep yourself “top of mind,” use spontaneous rewards.
Customers will feel valued and loved by your company if you provide extra features like the “Birthday Club” (where loyalty program members receive a free or discounted product on their birthday each year).
Meanwhile, secondary promotions like Scratch & Win campaigns (in which consumers are encouraged to “scratch” their fingers over their smartphone displays to reveal quick rewards) inject some fun and games into your program and keep customers engaged.
Remember that the Scratch & Win campaigns’ prizes aren’t nearly as essential as the enjoyment you’ll have playing the game.
Small gifts of thanks, such as a free coffee here, a discount there, or even inclusion in a draw to win something greater, are enough to thrill and keep your customers on their toes.
4. Ease of Use and Convenience
According to a 2018 CodeBroker poll of more than 440 millennials who participate in loyalty programs across a variety of sectors, 97 percent said they would actively interact with loyalty programs if they could access their rewards information immediately on their smartphones. Therefore, local business owners should take advantage of this by working with a trusted App Developer in Orange County to develop a Customer Loyalty App for their business.
Let’s not forget that millennials have the most disposable income of any generation. It’s worthwhile to pay attention to their wants and requirements… and then to give!
According to a recent Vibes survey, over three-quarters of smartphone users want all of their loyalty programs saved on their smartphones in one convenient location for convenience and simplicity of use.
We use our cellphones for almost everything these days. We don’t leave the house without them very often. It’s only natural for loyalty programs to develop into highly engaging mobile apps.
5. Customers’ Direct Communication
One of the most significant advantages of a digital loyalty program is that it facilitates communication between a company and its customers.
The majority of digital loyalty providers provide direct communication with loyalty program participants via the loyalty platform.
The Orange Web Group loyalty program, for example, allows shops to send Push Notifications and SMS to their customers with only a few clicks of a button, or even automatically.
This simple activity is a highly effective strategy because it allows businesses to send the correct messages to the right customers at the right time.
A digital loyalty program, for example, may be set up to automatically send the following text message to any customer who hasn’t made a purchase in the last seven days:
“It’s been almost a week, and we’ve been missing you!” We’ll give you a free cup of coffee if you come in.
When a consumer receives something like this, they feel recognized and valued, and the company is immediately at the top of their mind.
The list goes on and on.
There are endless ways for businesses to use a digital loyalty program to connect with customers in new and creative ways, but adopting these five guidelines will get you off to a fantastic start! If you are looking to hire an experienced Customer Loyalty App Developer, you might want to consider Orange Web Group, LLC. We are a Full-Stack Web Agency in the greater Los Angeles and Orange County area. We specialize in providing small-to-medium-sized businesses with mobile and digital solutions to help compete with large enterprises but at a price-point they can afford!
5 Customer Loyalty Statistics to Know in 2022
Customer loyalty is an ever-changing phenomenon, as every loyalty marketer worth their salt knows. It’s always changing to keep up with new technology, industry trends, and customer preferences.
Global events have moved brand loyalty into a fully digital environment in recent years, which has been strong evidence of this. Customer loyalty had already evolved beyond transaction-based activities and was increasingly concerned with the customer’s experience even before the pandemic.
Given the ever-changing world of brand loyalty and client retention, here are some intriguing customer loyalty statistics to consider as you plan your 2022 loyalty marketing strategy.
1. Email marketing is still king.
Approximately 4 out of 5 organizations still primarily rely on email marketing to help them maintain a high level of client retention.
If the value of email marketing wasn’t clear before, this customer loyalty number from 2022 should hammer it home. Email marketing and loyalty programs, oddly enough, go hand in hand.
You can quickly develop a newsletter list by asking for a customer’s email address as part of the loyalty program registration process, which you can then use to spread the word about exciting new goods, industry news, special deals, and other engaging content.
This not only helps to establish your company as a recognized and trustworthy expert in the field, but it also helps to build a loyalty program community. With gamified features like leader boards and badges, it sends users updates on their loyalty status.
2. Customers are down with data tracking.
In exchange for more personalized incentives and brand experiences, over 90% of Americans are prepared to have different aspects of their activities recorded (Bond Brand Loyalty).
According to research, most customers aren’t just apathetic about firms collecting data on their buying habits; they actually want brands to track their data if it means a more personalized experience.
Digital loyalty programs (specifically, digital loyalty applications) are the single most effective way for a business to acquire important customer data and adapt each customer’s experience to their specific requirements and preferences.
With a good mobile rewards program, you can deliver targeted messaging, personalized offers, recommended items, and more to your most loyal customers. If you’re a local business owner, finding an App Developer in Orange County with years of experience in this field can definitely help you achieve your goal when it comes to digital loyalty applications.
3. Good public relations are a result of good corporate citizenship.
Brands that are seen as relevant and contributing to a better world beat the stock market by 134 percent (Vivendi).
Whereas excellent products, exceptional customer service, and value for money used to be the most important variables for customers when buying, this 2022 customer loyalty data reveals that there’s now another one to consider: corporate social responsibility (CSR).
Your customers want to know that you’re doing your part to help the community. They’ll go somewhere else if you don’t. Again, loyalty programs are a useful tool for executing CSR efforts and demonstrating your brand’s underlying values to customers.
For example, MAC Cosmetics’ “Back to MAC” recycling program offers discounts and loyalty points to customers who return their used lipstick containers and other makeup packaging to MAC stores for reuse. MAC Cosmetics reported recycling or repurposing 24,000 kg of obsolete products in 2019.
See how this method supports recycling while also displaying the brand’s values and encouraging loyalty program participation? Clever!
4. The quality of brand-created material isn’t up to par.
60% of branded content falls short of expectations (Havas).
So, what are your options in this situation? Enlist the help of your consumers to produce high-quality content for you! How do you go about doing that? Reward them for their efforts! Simple.
User-generated content (UGC) is information about a brand or its products that is not created by the brand. This is UGC, for example, if someone creates a YouTube lesson on how to assemble an IKEA bedside table. The same may be said for a blog post about a flight with Singapore Airlines or a podcast about the latest Apple iPhone.
Most customers nowadays trust peer reviews more than traditional advertising, and this is where user-generated content (UGC) becomes a vital tool for increasing brand recognition and building consumer confidence in your company.
You may create an ever-growing pool of quality content that can be shared in newsletters, social media sites, and other channels by providing consumers with loyalty points and other incentives for generating UGC that promotes your products and services.
5. If customers detect a better price elsewhere, they will jump ship.
Consumers in the United States report that 50% of them have left a brand they used to be devoted to because a rival better matched their demands (InMoment).
Make no mistake: your consumers aren’t as devoted to you as you’d want. In 2022, this may be the most essential customer loyalty metric to remember.
How can you address the demands of a customer if you don’t know what they are? You need to strengthen the bond between brand and customer to truly grasp who your customers are and what they desire.
How? The most efficient method is to use a digital loyalty program, which offers a direct channel of communication with each consumer. It takes their engagement with your company beyond in-store or online to practically being in their pocket, with features like:
- Offers tailored to them based on previous interactions
- Increased involvement with gamified functions
- Prizes for birthdays and other significant anniversaries
Top-rated App Developer in Orange County
Orange Web Group is a Customer Loyalty App Developer that provides companies of all sizes and shapes all over the world with a highly engaging and straightforward mobile rewards application that acts as a quick substitute for traditional “Buy X, Get Y” paper punch cards.
Please contact us to chat with a friendly member of our expert staff about how Orange Web Group may help your company retain more customers and increase brand loyalty.
