What’s the most powerful indicator of your brand’s performance? Customer loyalty!
It’s a vital prerequisite for the success of your business and there are no two ways about it. It’s been proven by study after study that it is far more profitable to keep your existing customers than having to attract and acquire new ones. It’s quite obvious that the cost of acquisition is the reason why most of the brands work so hard to build relationships with their customers.
Loyalty not only increases customer lifetime value, it also improves brand awareness and bottom line. Customers who are loyal to your brand are the unsung heroes of your business because they interact more with your business and purchase more, and act as ambassadors for your brand by spreading good word about you to their friends and family. And loyalty programs are a great way to increase customer retention and loyalty. But the world’s moving fast and customer expectations are evolving, so you must leverage technology to keep up. Mobile devices are popularly known as the digital swiss army knife or should we rather say our generation’s most omnipresent technology? Customers love effortless and personalized experiences and mobile apps can help you achieve that. Mobile apps are a loyalty game changer!
Consider these stats:
- According to research, more than 80% of US customers are more loyal to brands that have dedicated loyalty programs.
- More than 70% of shoppers will prefer a loyalty program that they can easily access from their mobile phones.
Starbucks has one of the most widely used mobile apps and it’s so popular because of an engaging loyalty program. Starbucks rewards stars as in-app points. If you own a Teavana card and earn enough stars, you get a free beverage. The app allows users to transact through their phone, enjoy in-store refills and customized offers, and collect points for every dollar spent that can be further redeemed for food, beverages or merchandise. The app also keeps customers engaged with newest offers, personalized discounts and latest additions on the menu. Similarly Sephora’s mobile app lets customers discover new products, customize a virtual makeover, add tested products to their wishlist and browse apt content on makeup and cosmetics. Sephora has been able to increase retention and conversion rates because it optimized its user shopping experience with highly personalized content that comprises location-targeted promotions, regular updates, emails and push notifications. In India, Paytm encourages mobile customer loyalty campaigns too. Users can just scan QR codes to make payments via Paytm and in return get a cash-back in their Paytm wallet.
So, why should you bring your loyalty program on the mobile front?
- It’s easier to open an app than to find and pull a card from the wallet.
- Customers have a lot of loyalty cards in their wallets and it gets clumsy. Chances of card loss are negligible if it’s in their mobile.
- The existing mobile app can be easily synced with the customer loyalty program.
- Daily updates about your loyalty program can be sent directly to customers on their smartphones.
- Customers have their mobiles with them most of the time. A study by Kleiner Perkins Caufield and Byers states that the average user checks his or her phone close to 150 times per day.
- Customer shopping habits, preferences and journeys can also be monitored for insights.
- Having an easy to use, engaging and rewarding loyalty program on mobiles can convert loyal customers into brand evangelists.
Here’s how you can make the most of your loyalty program with a mobile app:
- Offer personalized, unique and relevant content that is easy to understand. At the same time, ensure that your onboarding strategies are brilliant and cater to all the right demographic groups. Then, once you have data, don’t forget to track, assess and tweak your loyalty program accordingly.
- The simplest and most effective way to boost mobile loyalty programs is to give instant incentives to users. If a customer gets some reward points every time he/she purchases something from your brand, or if points are granted when a customer recommends your brand, shares your content, leaves a product review, it adds much more to your value to the brand and to customers.
- Send your customers a push notification from a loyalty app when they are in a specific geographical area, for instance, in the vicinity. In other words, they’ll get your push notification at the moment when they are somewhere nearby and can avail the offer. This is also popularly known as location based marketing.
- It’s a great idea to send your high-valued customers personalized and bespoke coupons and vouchers like thank you messages, membership anniversaries and more within the app itself. Similarly drive strong emotional loyalty by offering programs characterized by experiential perks like birthday discounts, early product access, invitation to exclusive events and much more.
- Have an integrated checkout redemption in your customer loyalty program app to allow customers to view their rewards and redeem them at checkout. After all, what’s the point of collecting points if customers find it difficult to apply it to their purchases?
Having a robust customer loyalty program is a must-have for your business growth. Take your loyalty program to the next level with a compelling and easy-to-use mobile app.
Boost Mobile Customer Retention
Mobile communication is increasingly gaining importance in today’s times and it’s critical to tap into the power of mobile to reach potential customers more effectively. Dedicated mobile campaigns can strengthen branding efforts, improve customer retention and reduce churn leading to lasting success. Customer retention increases revenue and profits faster. Higher the retention, higher the app sessions, and higher the monetization. Studies show that improving customer service and retention by just 5% can result in a 25% to 95% profit increase. Retention positively affects the number of active users, engagement, CLV, payback period, and much more.
Excellent mobile apps open up a great opportunity for your brand to retain your customers by enriching their shopping experience. This also lets you stay connected with them which eventually leads to a positive image of your brand. According to Localytics, one in every four users quit using their mobile app after downloading. In order to boost mobile customer retention, an effective strategy is important. A great onboarding strategy lays the foundation for continued success.
You can measure your mobile app engagement with the following metrics:
- The more downloads you have, the better.
- Identify active mobile app users and then focus on retention strategies.
- Keep a track of how often a user opens and uses your mobile app and how long do they stay on the app which can determine stickiness. The longer the session, the better.
- Find out the total revenue you can earn from a user before they give up on your app.
There are many ways to boost mobile customer retention but some best practices are to simply let them know they are valued by acknowledging their feedback and using customer data insights to improve customer experience, use gamification to improve engagement, tailor your messages and content according to customer needs, focus on code, data, device, transactions security, share value proposition and offer multiple communication channels like email, phone, and social media.