#loyaltyapp

Unlock your business's potential with the right loyalty program app! Partner with a top-notch loyalty app development company to boost customer retention, drive engagement, and increase revenue.

Discover why building a loyalty app can skyrocket your customer engagement and satisfaction. Dive into the benefits and see how rewarding your customers can lead to long-term success. Partner with us to transform your customer experience and drive business growth through innovative loyalty app development solutions.

Different industries across the world are struggling with ways to evaluate their brand names, retain existing customers and boost profits. In the cutting-edge technology area, it can be said that nothing is better than a Mobile Loyalty App, which has completely transformed the whole market and changed it for the better. Not only serving big and famous brands, Loyalty App for Small Business is also becoming popular. To catch up with this trend, many businesses have searched for a reliable Loyalty App Provider to adopt this advanced technology. But which sectors can gain the most benefits from this software? Let’s find out in this blog!

         Related: 3 Reasons Why Businesses Need A Loyalty Program App

1. Retail

The retail market, which holds a huge number of daily transactions, is considered one of the leading industries. In the past, customers always relied on brick and mortar stores for essential needs, ranging from buying food to shopping for clothes. However, to serve customers' ever-growing needs, many retailers have turned to loyalty app development with their POS (Point of Sale) linked Odoo ERP software to stand out from the competitors as well as gain profits.

According to a study by E&Y, which was conducted in 2015, Digital Rewards Programs in the Loyalty App raised the annual revenues of large chains in the retail industry by approximately 18%. Besides, the profit margins also experienced an upward trend even though the advertising expenditures declined remarkably. To know more details about the significance of loyalty apps to retailers, here are some outstanding points:

Increase repurchase rate with Digital Rewards Programs: The reward-based and redemption systems are at the heart of the loyalty app, which acts as a huge motivation for your customers to come back to your store and use the rewards on the next order, hence increasing the repurchase rate.

Decline acquisition costs with a referral program: Word-of-mouth is no doubt the most reasonable but effective marketing strategy. According to Nielsen, 92% of consumers believe recommendations from friends and family over all forms of advertising. Therefore, a loyalty app development integrated referral program (eg. invite 5 friends, receive $10) would definitely significantly lower the acquisition costs but still increase the outcome of efforts by gaining lots of new customers and at the same time, creating brand ambassadors.

Increase the Average Order Value: One of the final goals of the mobile loyalty app is still to increase revenue and profits, and the most effective way is to raise the average order value (AOV). The loyalty app allows retailers to offer various perks, such as free shipping, for orders above $20 for instance, which motivates customers to spend more to gain this discount offer.

Many retailers have turned to loyalty app development with their POS linked Odoo ERP software.

An example of a successful retail mobile loyalty app is NikePlus, which offers a fully personalized experience, such as product discounts on customers’ special occasions or free presents after completing a purchase. The more frequently they reach the Nike mobile app, the more tailored to their needs their loyalty program becomes. Besides, this mobile app also offers many rewards, such as Free shipping, Free merchandise in their stores in exchange for points and Access to products available exclusively to NikePlus members,...

2. Food and Beverage (F&B)

These days, the number of restaurants or coffee shops has gone up dramatically, and customers always want to try new places, different cuisines and different types of drink. This creates a big challenge for such F&B owners, making them try many solutions and marketing programs to retain customers. Luckily, a Digital Loyalty Card App can tackle this problem by bringing about some conveniences for customers as well as brands:

Reduce the long order queues: The order feature in Mobile Loyalty App helps restaurants or coffee shops manage their peak business hours effectively as it allows users to place an order in advance and set the pick-up time.

Bring the brands closer to M-Commerce: Customers nowadays are more likely to make a purchase if brands provide them with a favorable cashless experience. Thanks to the various payment gateways in Loyalty App, customers can choose an appropriate one to suit their needs.

Run a highly specific marketing campaign: If customers have not dropped by your brands for a long time, you can send them personalized discount offers through Loyalty App.

Simplify Reviews: F&B is an industry that customers tend to find reviews most. Therefore, instead of making them surf for various websites or apps, businesses can build review sections and encourage users to leave some thoughts. This would let new customers easily reach such reviews as well as help the brands acknowledge the existing customers’ experience, then improve the services and products.

To highlight the necessity of a Loyalty App Development in the F&B Industry, Starbucks Digital Rewards System, which is considered one of the best software, contributed to 41% of their revenue increase. The Starbucks app, which has had 16.3 million active members recently, offers great incentives for continued use, such as free drinks and cakes, early access to new products, and custom offers based on personal preferences. Also creating a sense of urgency to prompt customers to keep coming back, Starbucks only gives them 12 months to earn or use “stars” to reach the next tier or stay at the top tier.

       Related: Loyalty App: An Incredible Method To Gain Huge Revenue

3. Travel and Hospitality

The travel and hospitality sector which incorporates several services such as hotels, airlines, car rentals,... is one of the most wide-ranging industries in the world, with the retail value of hotels alone adding up to more than $495 billion. Besides, according to a report by Deloitte, two-thirds of frequent travelers stay at the same hotel brand for most of their travel days, regardless of location. Therefore, to prioritize the customer experience and gain ROI, a Mobile Loyalty App is an appropriate answer.

Attract customers by associating with partners: The travel and tourism industry is said to be the first sector to accept other partners to enrich their Digital Loyalty Programs. Normally, businesses can only offer customers a discount on the next flight after flying X km with the airline. However, when connecting with partners, businesses can give their users a pleasant experience such as free car rental, hotel room upgrade, reduced ticket prices, and etc.

Stand out from the competitors: Actually, Loyalty App Development in the hospitality industry is still limited in number due to lack of its advantage awareness. However, 85% of consumers of this field responded that they are more likely to choose a venue that has a rewards program. Therefore, having your own Digital Loyalty Card Apps to create a whole ecosystem for customers would put your brands a step ahead of your competitors.

Break language barriers: What would you do if the majority of calls you received in a day were from international tourists who do not speak the same languages as you? Such inconvenience can be avoided thanks to the Loyalty App. Users can easily switch between languages to fit their knowledge by providing multilingual features within your brand’s mobile loyalty app.  

An example of the most rewarding Loyalty App in this sector is Hilton Honors, a hotel booking app with over 5 million downloads. This software development not only delivers loyalty programs and rewarding points but is also integrated with many features to enhance customers’ experiences, such as allowing users to View and manage their reservations, Use your device as a room key and check-in/ out from the app,...

Mobile Loyalty App allows using your device as a room key.

4. Final Thoughts

There is no doubt that Mobile Loyalty App is gradually changing the battle for customer care in the digital age and is essential in many business fields. The sooner you spice up your brand with a Loyalty App, the better it would be.

Customer Loyalty is a battleground various businesses want to master. According to research, acquiring new customers costs five times more than retaining the current ones. Besides, existing customers are 50% more likely to try your new products as well as spend 31% more than fresh ones. Therefore, how to retain loyal customers is always a top priority of every business. Among various ways, launching a Customer Loyalty App, which can encourage users to return and purchase products, is a worth-trying solution. To learn more about this Software Development, do not skip this blog!

1. What Is A Loyalty App?

A Loyalty App, which can track and record all users’ activities, is a modern version of the traditional loyalty card. Thanks to this Customer Loyalty Software, it can be easier for businesses to plan and optimize campaign reward programs at selling centers. Referral tracking is also made possible via a central dashboard to integrate and improve such programs. Moreover, an effective customer loyalty software brings about opportunities for businesses to manage several reward tools per customer at one go, including gifts, loyalty cards, and rewards. Being considered as a CRM or a customer engagement tool, Loyalty Software can offer multi-mode deployment, be it web-based, cloud-based, or an on-premise solution.

Another significant function of the Loyalty App is improving customer engagement. This is mainly because customers can easily leverage the loyalty program benefits by using their phones and simply scanning the QR code at checkout to update their loyalty status. Besides, this software development helps the customers to stay relieved of the hassle involved in looking out for the physical loyalty card when requested by the staff for payment.

2. Top 03 Key Features To Include In Customer Loyalty Software

If your businesses are pondering on building A Loyalty App, here are some features that should be taken into consideration:

a. Easy Registration

The sign-up form is one of the most important features of the app because it plays a critical role in keeping customers. A poor or complex one may make users jump through hoops, and to make matters worse, such users can delete the app immediately without thinking twice. Therefore, the Loyalty App should offer a smooth and easy sign-up process without any friction.

To facilitate registration, placing the social login options or emails on the sign-up page can be a good idea. After that, if you already have information from your CRM system, link it right away so that customers do not have to provide it again. If there is a new customer, prompt them to fill in their name, date of birth and phone number. Pay attention not to exploit too much to avoid creating uncomfortable feelings. Do reward new users with some points upon successful sign-up as well to gain a good impression.

b. Push notifications

Push notifications, which bring ROI (return on investment) as high as 3500%, are extremely important for almost all Mobile App Developments, and Customer Loyalty Software is not an exception. Such notifications act as a reminder prompting users to have access to your app to keep track of the latest promotions, coupons,… However, let’s keep in mind that overuse may be counter-effective because customers may consider it spam and turn off this feature or even remove the app. Adequate notifications can foster the touch between brands and their customers, hence bringing businesses maximum revenues. Starbucks, for instance, leverage location-based push notifications in their loyalty app to send targeted offers to the users. Its principle is based on a user’s location, their purchase history, and whenever they pass by a Starbucks store, they are sent a notification of an offer so they could claim it by visiting the nearby outlet.

To make it clear, this feature relies on API Integration. In case you wonder “What is API?”, here is the answer: API (Application Programming Interface) is a software intermediary that allows two applications to talk to each other. In a push notifications system, two used APIs are Notification API and Push API. The former allows displaying notifications to the user while the latter lets a service manager push messages from a server, even when the app is not being used by the user. Both APIs are built on top of the service worker API that acknowledges the push messages in the background and passes them on to the mobile app. With the right tools integrated into a system, the product owners can identify customer segments who possibly have not been engaged (not using the application enough or not utilizing their rewards). There are provisions to filter out the correct segments and the product owners can only send reminders or special offers to such users.

c. Reward-based and redemption system

The Loyalty App needs to mix a variety of rewards, such as Discount codes, Vouchers, Gifts or Convert to consumer money, depending on the choice of business. Rewards can also be in the form of badges. Based on the user’s purchases or activities over time, badges can be upgraded and would be linked with the user’s profile. In order to receive the aforementioned rewards, businesses can offer many forms for customers to accumulate points:

Ordering: The most common form, customers earn points based on order value.

Write reviews, review products: Commonly used on e-commerce platforms or review sites.

Other forms: Log in every day, Play games, Perform tasks (invite a friend to make an order,…)

Remember to integrate the checkout redemption as well because the rewarding points mean nothing to customers if they can’t easily apply at the checkout time. Whatever points users collected over time, allowing them to use those points at the payment time by automatically subtracting the rewarding value from their bill can bring a sense of happiness and enhance their whole experience. This would encourage the users to purchase and engage more so that they can collect various rewards to get discounts the next time, hence, increasing the returns for businesses.

3. How To Create A Loyalty App?

To process a Loyalty App Development, keep in mind 3 main steps. The first and foremost is  Developing and Testing an interactive Prototype. At this point, it is necessary to line up all possible user flows to draft wireframes – rudimentary screen visualizations. From these low-fidelity designs, you continue to have high-fidelity mockups representing the application’s screens as they will look in real life. Once the interactive prototype has been brought into shape, it’s time to translate the designed screens into code. Besides the mobile application, the software providers would code the back-end (database, server-side logic, etc.) and a web platform for your staff to manage the app and its content. It would be better if you choose an outsourcing team with Agile Methodology as any issues or bugs get caught very early on in the development process. Finally, launch this app to the public and keep an eye on its performance to modify if any.