Benefits for businesses
The most obvious reason why merchants offer mobile loyalty programs is to give customers incentives to return to their businesses. But there are a number of other perks, too, including:
- Increased sales — Customer retention is always good for boosting the bottom line, but studies have shown that a mobile loyalty program can also boost extra sales among loyalty customers. Kohl’s loyalty customers, for example, average two additional trips to the store and spend $80 more than nonloyalty customers over the course of a year.
- Differentiation from the competition — Loyalty programs are an excellent way to stand out from the crowd. And having a mobile loyalty program gives you an even bigger edge in the marketplace. Consider what your competitors are doing for their loyalty programs and figure out a way to make yours even better.
- Cost savings – Mobile loyalty programs require less operational management than paper-based programs, and that advantage will ultimately lead to reduced operational costs.
- Improved customer service – Consumers want their experiences to be enjoyable, and they want to feel valued. Loyalty programs help make both of these goals possible. They open the door for more communication between retailers and customers during checkout. And they give loyal customers rewards for their patronage, making them feel appreciated.