There’s a good chance that if I bet you ten dollars that your phone was within a 2 feet distance of you, I would be ten dollars richer. Now, this isn’t to say that it’s a bad thing that most people always have their phones on their person. In fact, it’s completely normal nowadays for us to have our phones be our main resource. Whether it’s for communication or entertainment, our phones are pretty powerful. People are relying less on physical means, such as a wallet, and are choosing a more digital route. With applications such as Apple pay and Venmo, everything is right there in the palm of your hand.
With all that being said, businesses should take advantage of mobile apps and loyalty programs. Since consumers constantly have their phones in their hands, it’s smart and efficient to appeal to them through their devices. In fact, more than 70% of shoppers are more likely to participate in a loyalty program if they can easily access it from their mobile phones.
These programs are extremely effective and beneficial for your business. It helps you stand out from competitors by offering something that they might not have. With targeted offers, your customers are more likely to spend and secure their patronage. Tailoring deals to them and offering customer support shows that you care about what they need and want. This will increase engagement, which ultimately will strengthen customer loyalty, a very important factor to focus on when running your business.
In this article, we’ll cover why customer loyalty is so crucial, as well as the benefits of loyalty programs and mobile apps, and how they can improve sales and promote your business.
A big contributor to a successful business is to have loyal customers. Customer loyalty essentially is shoppers’ willingness to interact and purchase from a business on an ongoing basis. Without the consistency of these customers, your business is in a constant state of unpredictability. They are responsible for the main portion of a company’s profits. In fact, loyal consumers shop 67% more on products and services than new customers, and they provide up to 80% of the revenue.
Consistent customers drive repeat business. With stronger customer loyalty, it can help your business increase revenue. Using the 80/20 rule, it suggests that 80% of your company sales come from 20% of your customers. So with better customer loyalty, it can ultimately boost your bottom line. Loyal consumers are also more willing to defend your brand against competitors. Since they know your products and services, it’s easier for them to promote your business over another.
It seems quite obvious that customer loyalty is vital to running a company because without consumers, there is no business. So, what exactly does this have to do with mobile apps and loyalty programs? Well, these programs help keep customers loyal, and may even increase the number of devoted consumers to your business.
By focusing on existing customers instead of trying to constantly appeal to new ones, businesses can expand their customer loyalty. For example, more than 80% of US customers are more loyal to brands when they participate in dedicated rewards programs. These statistics are important because, through these apps and programs, businesses can gather data and use this information to personalize a shopping experience for their customers. It isn’t just for the benefit of shoppers; it helps a brand build a relationship with its audience.
One of the ways a mobile app for your business can improve customer loyalty is by offering instant rewards. By rewarding your customers every time they choose your brand, it gives them an incentive to continue shopping with your business. Through a mobile app, they can collect points every time they shop with you and in turn, exchange them for rewards, such as discounts on goods.
Another way to utilize a mobile app is through product recommendations and promotions. Through your app, you can study how customers interact with products and their shopping behavior. After analyzing this data, businesses can implement different strategies to appeal to specific shoppers. For example, the app can offer relevant products that the customer may be looking for or tailor specific coupons and promotions for goods they are interested in. This could help increase conversions and as well as boost brand loyalty.
Lastly, these programs allow you to interact with your customers on a more personal level. Through messaging and push notifications, it encourages users to communicate and leave feedback. This could provide important information regarding your business, such as whether you’re lacking in customer service or something that your brand has excelled in. Also, interacting with customers through the app encourages them to share their experiences, like the rewards they’ve received or referral codes to spread awareness about their positive experiences with your business.
Developing a relationship with consumers is especially important because it shows that your business isn’t just looking for financial gain, but they genuinely care about their shoppers and their shopping experience. By showing you care, it gives customers a reason to continue supporting your business.
It’s clear that by implementing these mobile apps and loyalty programs, your business can increase customer loyalty. However, there are ways to promote sales beyond just relying on these customers. These programs can help grow your business faster.
With a mobile app, it can help your business with geofencing. Geofencing is data that allows you to make a decision or perform an action based on your location. Through an app, businesses can utilize this technology to find nearby stores for customers, track when they enter and leave a store, and to push special offers to them as they leave. This will encourage a return trip for those customers.
Another way mobile apps can help your business is through analytics. It’s essential to know and understand your customers’ shopping habits and preferences, as well as different shopping trends. By consumers using your app, it makes it easier for your business to track which services of yours are popular and well-received and which ones need improvement. It can also track how often shoppers visit your store and when they visit. Collecting this data allows companies to target weak areas in their service that they can work on. By doing so, it not only helps to grow your business, but also prioritizes the customers as well.
Starbucks is an example of a company that has implemented a rewards program that has advanced their business. In fact, their loyalty program helped generate 40% of their revenue, which led to a 7% increase in sales in 2019. When done adequately, a mobile app that encourages loyalty through rewards and incentives can be what differentiates your business from competitors.
Ultimately, it all boils down to a happy and satisfied customer. By implementing loyalty programs and mobile apps for your business, it tailors a shopping experience that’s unique for each customer. Obviously, one of the main goals for your business is to promote sales and increase your bottom line. But, none of this is possible without consumers.
Everything that these programs and apps offer is connected to your customers. By encouraging communication and feedback, it builds a relationship with them on a deeper level. Knowing what your consumers want and look for in a shopping experience is how you continue to grow your business. Without them, a business may remain stagnant. Mobile apps and loyalty programs will only further a company’s success.