How In-App Loyalty Programs Can Boost Customer Engagement

As mobile marketing specialists we understand that different businesses have different needs and aspirations for developing a mobile app. For some clients a mobile app is a marketing tool to help businesses interact with customers and provide timely information that can be acted upon immediately via push notifications. For others, a mobile app provides the perfect platform to add an additional revenue stream for the business by incorporating mobile commerce as a key component of the mobile app.

However, one area that can benefit any business or mobile app user is through the development of an in-app loyalty program that can reward customers for repeat visits. With the mobile app industry growing month on month and forecasted to double to $101 billion by 2020, there has never been a better time to implement a winning mobile strategy. The focus of today’s blog is to highlight how in-app loyalty programs can boost customer engagement for every business.

There has often been a debate within the mobile marketing industry that centres on whether a mobile app should be considered a customer acquisition tool or a customer retention tool. The acquisition theorists would argue that a mobile app allows a business to reach out to new customers and grow their customer base. In contrast, advocates of customer retention would suggest that a mobile app allows businesses to reward customers for repeat visits or purchases which leads to long term, loyal customers that will have a greater sense of affinity with the business.
Our opinion is that a mobile app is a great vehicle to drive customer retention because of the opportunity it affords many businesses in terms of how they engage and interact with their customers. With buyer behaviour studies showing that customers are more likely to base purchase decisions on perceived value for money it is crucial that businesses understand the need for retaining customers over the long term. In addition, it is cost effective for many businesses to retain existing customers than to constantly acquire new customers.

There are three generally accepted methods of in-app loyalty programs that reward customers for repeat visits or purchases but are administered to customers in different ways. Firstly, we have the digital loyalty stamping card whereby customers collect stamps/tokens on each qualifying purchase or visit and redeem an offer once they have reached the target amount. This works well in many different environments but especially within the hospitality industry where waiters or waitresses often engage with customers throughout their visit. The digital loyalty program is a great way to boost customer engagement as it allows employees to interact with customers and build relationships with repeat customers.
The second type of loyalty program that can be integrated within a mobile app is often referred to as QR (Quick Response) coupons. A QR coupon or code can be seen on promotional literature you find in any busy high street or shopping centre and resembles a bar code in appearance. The QR coupon is redeemed when the customer qualifies for a scan through a purchase or visit and is presented with the QR code that is scanned using the camera of the mobile device within the mobile app. It is a fun and engaging way for customers to participate in their in-app loyalty journey and again allows front line employees to communicate with customers.
The final type of loyalty program that can be offered within a mobile app focuses on GPS coupons. Although similar to the QR coupons mentioned above, the onus is on the customer “checking-in” once they visit the business premises through the GPS feature within the mobile app. Although this type of loyalty program offers less interaction between staff and customers it is a great way to entice mobile app users to take ownership of their loyalty program.

There are a number of methods that a business can select when implementing an in-app loyalty program as seen throughout this blog. However, the effectiveness of any in-app loyalty program is largely dependent on the type of offer that is being promoted. Popular loyalty offers include a percentage discount after a certain number of visits or a free gift/item once the goal has been reached. It is vitally important that any offer created by a business is one which is appropriate and enticing to the audience. Furthermore, as discussed earlier within this blog post it is crucial that the loyalty program offers real, tangible value to the customer in order to boost customer engagement.
A popular method for adding value is to implement an in-app exclusive loyalty offer that can only be redeemed within the app. This not only offers value to the end customer but serves as a great incentive for customers to download the app initially.

As we have seen during the course of this blog, in-app loyalty programs can boost customer engagement for any business by allowing customers to take advantage of special offers or discounts that offer real value. By enticing customers with appealing and relevant offers a business is able to build a long term relationship with customers which will assist with profitability in the long term. In addition, it gives employees the opportunity to engage with customers and build affinity with loyal customers that are frequent visitors.
To find out how Eazi-Apps can help your business implement the right in-app loyalty program please contact the team today.