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:
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?
Here’s how you can make the most of your loyalty program with a mobile app:
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.
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:
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.