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How To Set Up A Great Loyalty Program

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The belief that their generation is less brand loyal than previous generations is shared by more than 70% of Millennials. Information firm Nielson also has shown from research that up 78 percent of customers are not consistently loyal to any given brand. Given the findings from this research, it is now more vital than ever for businesses to put forth a serious effort to win repeat business by offering savings or discounts to loyal customers. Loyalty marketing systems have been shown to be a proven way to achieve this. A recent customer loyalty survey by TechnologyAdvice, shows that individuals enrolled in a customer loyalty program are up to 82.4 percent more likely to shop at other stores that also offer similar loyalty programs. This very strongly suggests that once a customer is sold on what the benefits are to them by using a loyalty system, they will actively seek out other opportunities to benefit.

Unless you’ve chosen to have Brevard Apps build you a mobile app where we manage 100% of the integrated features for you – setting up a great loyalty program isn’t that easy. With the recent popularity rise of smartphones and tablets, and recent trends in gamification, businesses now face the choice between integrating a more traditional card-based loyalty program, or using a digital, smartphone-based system like you will find with Brevard Apps. Here are the results of our research to help provide more clarity for businesses wanting to weigh their options.

 

Card-Based Rewards

app developers cape canaveral flTraditional card-based systems are what originally started loyalty marketing way back when, and can also be easy to integrate into your marketing. The most simple version of a reward program is a punch-card, which is typically most often given out for free. When a customer purchases specific items (such as a a dinner meal) the card receives a hold punched. After a pre-set number of these hole-punches is acquired, a free item is given out. This form of a rewards system is normally used by smaller independent stores with more limited resources.

A more upscale version of an identical system is a Starbucks Rewards. Their program integrates the purchases of customers into an online platform. For most modern card-based programs this is typical, which utilize a card as a useful and convenient method for tracking customers buying habits and providing loyalty points or discounts. Another example are grocery store cards, although generally they encompass entirely discount-based system to attract customers.

According to research, 27 percent of consumers still prefer card-based loyalty programs over digital loyalty cards like you will find on a Brevard Apps custom mobile application. Several factors are likely the reason for this, including a systems familiarity, or the preference of having a tangible card that can be stored in the customers wallet.

There are downsides and limitation however to such programs. Unless the company with the card-based system also offers a smartphone or tablet app, they often are not able to successfully achieve targeted advertising, or offer location-specific discounts. Depending on the retailer’s customer demographics this could mean a big loss in potential revenue. Card-based programs however still remain the loyalty system of choice for about 1/4th of potential customers.

 

Digital Rewards

With the recent surge in gamification,  the latest trends in customer loyalty are digital loyalty programs.

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According to the research, around 2 out of every 3 customers prefer digital-based loyalty programs, making them more popular than traditional card-based ones. This suggests that consumers want digital features, and are becoming more accustomed to digital systems. However many stores are not equipped to handle smartphone programs because of the typical high costs or because of the relatively recent creation of such systems – just another reason to choose the easiness and affordability of a mobile application custom designed by Brevard Apps. As consumers become more exposed to digital programs and become more comfortable with highly-targeted advertising, digital loyalty cards will soon replace the traditional loyalty systems altogether for most customers and business owners.

It’s a fact – consumers now favor digital loyalty systems. The research shows that 59 percent of customers said that they would be much more likely to join a rewards program if it was on a smartphone app. Another 56.6 percent of consumers said they would be more inclined to participate in a system that offered exclusivity-based rewards. While this may be possible to achieve with a card-based system if there are different tiers available, a digital program is much easier to manage exclusivity-based rewards, where consumers have the ability to track their progress towards instantly unlocking new rewards.

 

Which Program Is Right for Your Company?

So it would appear that if your customer base is primarily made up of younger, digitally-savvy people, an app-based rewards program will be more successful. If your customer base is wider, or skews older, a more traditional card-based system might work well for you as well. Either way, to realize the massive potential of a successful rewards program – you need only to put one into action and reap the benefits!

 

Check out – Mobile Apps Embraced By Restaurants To Enhance Customer Service And Efficiency

 

Michael Callahan
(321) 676-8714 o.
6050 Babcock St SE
Palm Bay FL, 32909
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