The Perfect Retailer Loyalty Program App

Max Bantsevich, CEO
Max Bantsevich, CEO
Aug 1, 2024
10 minutes
Contents
Here we discuss how businesses can better implement a loyalty program, and why it’s worth doing in your own mobile app.
Let's start with some statistics
• 16.7 is the average number of loyalty programmes per US adult customer;
• 52% of global brands are investing in mobile technologies such as digital wallets as part of their loyalty strategy;
• 61.5% of consumers who participate in loyalty programmes have an income of $100,000 or more.
And these are the trends that we can expect to see in loyalty programmes in 2024
1
Revenue-based levels: the amount of money spent will affect the rewards and status the customer receives.
2
Gamification: the process of earning and redeeming bonus points is made even more engaging through the use of game-like elements, such as time-limited promotions and year-long bonus point opportunities.
Here is our example of implementing gamification in mobile app.
3
Personalization: using data analytics and machine learning, the retail brand can provide each loyalty member with relevant offers based on their purchase history, browsing behavior and location.
4
In-app solutions: it should only take a few seconds and a few clicks to open the application and perform the necessary operations.
5
Sharing and gifting: family membership allows customers to earn more points and flexibly distribute their gifts and discounts.
6
Crossover partnerships: major brands will strengthen their offer by launching joint marketing campaigns in a complementary product promotion.

Why Is It Worth Making a Loyalty Program in a Mobile App?

In addition to eliminating plastic cards, which saves a lot of money from issuing them and saves the planet from pollution and people’s wallets from being bloated, the app allows you to get rid of the following:
• No need to constantly explain the loyalty system to salespeople
• No need to make people think and count how much is left until the next level, etc. It can be visualized and turned into a game: ‘Spend 50$ this month and move to the next cash back level’.
• No need to produce unnecessary generic promotions; you can make personalized offers, based on data about the buyer. This is how we encourage them to make unplanned purchases.

What to Add to the In-App Loyalty Program to Make It More Attractive?

Put the Users into Family Groups

When plastic cards were popular, it was not very classy to give them to each other. In some cases, it could take away the privileges of the card holder. They were replaced by discounts by phone number. Exchanging bonuses became a little easier, but it was necessary to request a confirmation code from the discount holder. One of our clients, John Dory, the large chain of stores selling fish and seafood, took a different path. In its loyalty program, you can and should join family groups to save and spend bonus points together.

Variability of the Loyalty System

There are many options to improve your loyalty program. And one of our clients, a huge chain of beer stores in St. Petersburg, decided not to limit the choice of their customers, and offered them a permanent choice to use a fixed discount now or use cash back to pay for their purchases later.

Calculating the Route to the Destination Point

Just showing a map with stores isn’t enough anymore. A person will still use a navigator to get a route. This is why it is now possible to find out how long it will take to get there, and then open the route on Google Maps right in the apps such as John Dory or Pivtochka. In addition, there is an opportunity to filter stores by hours of operation or availability of the desired hop drink.

Chat with the Support Team

The 21st century has long ago moved all communications online. Writing to support to resolve an issue is 100 times easier than dialing and calling. That is why chats appear more and more often in the apps. You can use it to find out if there is a particular item in the nearest store, write about what you liked, or, on the contrary, complain about some problems. In short, you get closer to the brand.

Service or Product Quality Evaluation System

We are used to ratings helping machine intelligence learn our interests and show us more personalized content. But it turns out that it’s also a very effective feedback channel. As of the end of July 2024, there were more than 250 000 customers registered on the Pivtochka app. There are 26,000 people actively using it and leaving feedback.

Wishlist

In the Pivtochka beer store chain app, you can add items to the ‘Tried’/’Want to Try’ category and leave comments for yourself to remember if you liked the variety.

Purchase History

To avoid arguments, keeping your purchase history in the app is one handy solution. You can see how many bonuses, for what and when they were credited or deducted.

Supply Calendar

This allows you to plan your purchases, keep track of when fresh items go on sale. It is convenient, especially if you are in the deli business.

Special offers

Pushes are not something new, but they can be configured, for example, by geolocation and send notifications when a person is in close proximity to the store. Or if there was an update of the product in one of the places added to favorites.

Shopping Cart

If an app is a full-fledged m-commerce, there is a cart by default, but sometimes you can use it to place pre-orders, for example, or to pay for items that you have chosen in the store at a discount.

Discount Amount If It Is Dynamic

Some loyalty programs allow for variations depending on the amount of your purchase. And it seems like a regular customer knows about it, but why constantly keep in mind unnecessary information? It is much more effective to visualize it and encourage people to spend more money.

Search for Products by Barcode

Imagine that you go to one of the big chain stores, you find a shirt you like, but your size is not available. Of course, you could go to the checkout, wait for a salesperson to look in the system (and sometimes call) other outlets and figure it all out. Or you can scan the barcode in the app and look up (or reserve) the size and color you want in a nearby store.

Availability at a Store Nearby

If you are the kind of a shopper who always knows exactly what you want before you even get to the outlet, this feature will make you very happy. You will not have to drive all over the city looking for your favorite beer/wine, etc. For example, in the Pivtochka app, the amount of beer (even on tap!) you have at hand is calculated in real time. And you will always know exactly whether to go to the store near your home or have to walk further away.

Delivery

Some companies that produce or sell their own product (service), such as John Dory, Dodo, Dominos, Papa John’s, and Burger King prefer to use their own delivery service. This allows them to influence the quality of service, preserve the commercial appearance and freshness of products/dishes, reduce costs, and manage logistics. So, of course, having your own app makes it easy to integrate delivery there as well.
We tell you about delivery trends and fashions in the article.

Why Do Retailers Need Their Own Mobile App?

Answering the question, ‘Why should I download this app?’, the first arguments that come to mind are extra bonuses/promo codes for downloading, installing, or inviting friends. But, as we listed above, there are many other features that cannot be tied to a plastic discount card, some of them influence customer loyalty and thus increase their number. Others gather marketing information to influence the average bill. Others allow the business owner to control the quality of food produced, the level of service, and monitor performance indicators.