Customer Benefits of a Loyalty App

Nov 25

Customer Benefits of a Loyalty App

Why Loyalty Card Apps will win their way with your customer?

Small, medium and even large sized consumer businesses are starting to see the benefits Loyalty Card App’s over traditional paper based and plastic cards linked to point of sale systems. Simply put Loyalty Card Apps can provide all the benefits of expensive point of sale systems (and more) for the relatively modest cost of paper cards. However, the customer is also a big winner from this shift.

Smartphone use (iPhone & Android) amongst your customers has exploded over the last three to five years. Smartphone’s, once the domain of techie early adopters is now mainstream with pre-schoolers right through to grandparents using them. These same people are also your customers, so it makes sense for your business to engage with them through their phones.

Loyalty Reward programs on the phone is the perfect way to engage with customers and keep them coming back ………… they will nearly aways have their phone on them. Customers also love loyalty programs, but their effectiveness in the past has been reduced because most people find loyalty cards too hard to manage – they are either misplaced or lost, and for a lot of men, too much hassle to carry around. This problem with cards doesn’t help your business or the customer. Loyalty programs on Smartphones have solved this problem for the customer, because they make it much more convenient to always have your businesses loyalty program on them.

The second major advantage for the customer in having your businesses loyalty card on the phone is that the link between the Offer and the Reward is transparent. Loyalty App’s offer a much higher level of transparency over Plastic Cards because the customer can always see how far away they are before they receive a reward. For example, on the phone the customer can easily see how they are tracking to achieve their ultimate reward. ie. Collect 5 Stamps Get a Free Burger. This higher level of transparency can be a big motivating factor that gets the customer engaged in your program.

Whilst Plastic Loyalty Cards linked to POS (point of sale systems) are great at providing the business with customer data, they are not engaging for the customer. Popular Loyalty Reward programs such as Tesco Club Card, Boots, Nectar, Flybuys, Everyday Rewards, Myer One and Boost Juice are great at promoting the points that can be awarded for making a qualifying purchase. However, most customers find it difficult to put a value on the point and then link that point with the reward. For example, I recently earned 28 Qantas Frequent Flyer points for spending $58 at Woolworths. I have no idea how far those 28 points will go in getting me towards a flight because it’s not transparent. Subsequently, my engagement with that program is reduced.

In summary, if you are looking to win your customer with a loyalty program that is convenient and transparent, a loyalty card app is the way of the future.

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