How to Create Your Own Rewards Program App for Your Business

Aug 27

How to Create Your Own Rewards Program App for Your Business

Customer rewards program app

The first sale, with a new customer, is always important. But, it’s the second, third, sixth, and 10th sale that should really get your attention. It is seven times more expensive to find a new customer than it is to keep one. As a result, continually chasing new customers will hurt your bottom line. One successful method for retaining loyal customers is with a customer rewards program app. 

A customer loyalty program builds a relationship with the customer where, if they provide repeat business, your company rewards them with a free item or discount. Not only does this help to increase customer engagement, but it improves sales, your business reputation, customer retention, and trust in your business. 

Your objective should be to create profitable customer relationships for the long term. And, you want to create a loyalty app that caters to your customer’s needs and wants. This is a generalization, but if your customers come in for your famous fried chicken, they might not be impressed with a reward such as a vegan burger. The rewards have to make sense for your target audience. 

They also have to be convenient and simple. Making your customers jump through hurdles, just to get your rewards, defeats the purpose. If you have no desire to understand your customer and meet their needs with your loyalty program, then you will fail. But, if you want to design a successful customer rewards program app, keep reading to learn more.

When you understand your customers, you can effectively sell more of your products and services. Furthermore, when you reach out to existing customers, you reduce your overall marketing costs. Yet, not every customer is created equal. Some customers are more loyal, and valuable than others. 

So, the most valuable use of your resources lies in understanding your loyal customers and offering relevant rewards when you create your own loyalty card app.

Tip #1: Understand your most loyal customers

It’s truly surprising how many companies fail when it comes to understanding their most loyal customers’ needs, wants, and pain points. They either never ask, or they ask the wrong questions. Here’s the caveat: If you don’t understand your customers, you can be assured that your competition will take the time to do so. If you want to create your own loyalty card app, then it’s important to consider that customers have motivations and self-preserving thoughts. 

When people are in fear, it’s because they are afraid of associated pain. When people come into your business–whether it be at your physical location or online–they ultimately ask this question: “What’s in it for me?” And, it’s a logical question to ask when they have a global variety of choices right at their fingertips. Put yourself in their position. 

When you purchase something from a business, aren’t you concerned with your instant gratification and received benefits. When you understand this, then you can use it to design a relevant customer loyalty app. Another piece of the pie is understanding your customers’ major pain points. 

When you understand what frustrates them the most, then you can design rewards that offer the right solutions to their problems. Yet, customer discovery should also become an ongoing process. Wants and needs can change over time. The market can change too–as can your products and services in response. 

Three decades ago, McDonald’s was the world’s most popular hamburger chain. Now, there are more Starbucks stores than there are McDonald’s eateries. Consumer tastes change, so, your app should reflect that as well when you design your system and rewards. Always let the customers’ needs and pain points guide your loyalty app design.

Tip #2: Review your loyalty objectives

What do you expect to receive out of your customer rewards program app? A loyalty app can be quite powerful for converting first-time customers into loyal patrons and advocates for your business. Nonetheless, you need to have a goal in mind such as improving customer profitability and/or to acquire new customers who are most likely to become loyal customers. Other objectives to consider include:

  • To bring back former customers.
  • To increase the profitability of existing customers.
  • To provide more relevant marketing campaigns after collecting important data from your loyalty app. 
  • Using your loyalty program to increase up-sell and cross-sell opportunities.

If you want a successful loyalty program, it’s important to offer a wide variety of options that cater to your customers’ tastes and preferences. You can do so when you incorporate the ability to collect data on your customers such as their lifestyles, purchase choices, purchase history, interests, and motivations. 

This type of intelligence gives you more of the right data to further engage and interest your customers. And, you are better equipped to achieve your loyalty program objectives.

Tip #3: Provide relevant coupons

When a customer downloads your app, you must give them a reason to use it. It won’t make sense to your customers if they can get the same incentives without your app. So, when you create a rewards program app, offer coupons exclusively on your app. For instance, you might bring in new customers with $15 off their first food order. 

Then, you might even offer weekly coupons, right on the app. Through coupons, you can increase loyalty and trust with your customers. Other types of coupons might be a free appetizer for eating at your restaurant on a Tuesday or a slower day. Another option is a free dessert with a $25 purchase. The possibilities are endless. What’s most important is your customers want to use the coupons–that they are relevant to their needs. 

Naturally, with coupons, they should also have an expiration date so that it offers the incentive for customers to use it right away. And, make sure to enter important details along with any necessary disclaimers and policies such as one per customer and/or only one of this coupon can be used every 30 or 60 days.

Read more about how to create a successful offer for your rewards program app.

Tip #4: Offer a point system 

A revenue-based point system is one where customers earn points with every purchase. On the other hand, they can also earn points by simply logging onto your site. It might be a tiered point system where they earn more points for purchases and fewer points for a site visit. 

Either way, they can accumulate points to use on free products and services. The point system works because it is simple, and easy for customers to understand. Again, making your loyalty program is essential for success. In addition, earning and accumulating points can be fun. 

Customers will check their points balance to see what they can get. It increases customer engagement with your company too. And, when they use their points, they truly feel valued by your company.

Read more about points offer types.

Tip #5: Incorporate celebrity or pop culture trends

Whenever a blockbuster movie comes out, you can find several fast food chains offering themed menus and even collectible items such as cups and toys. To illustrate, Denny’s has offered a special menu when The Hobbit and Star Wars movies were released. It’s fun, and it’s a great marketing tactic. 

Other trends can include famous celebrity looks. If your company sells makeup, you might offer a makeup bundle to recreate a Kim Kardashian look. Then, there are other trends or events such as the NBA playoffs or the Stanley Cup. Customers are already excited about these types of events. 

If you understand your customer’s interests, then you know what types of trends to incorporate within your loyalty rewards.

In conclusion

When you create your own rewards program app, you are invested in improving customer retention, trust, satisfaction, and value. As you take the time to understand your customers’ interests, then you can ensure you provide relevant offers that attract profitable customers for years to come.