The 80/20 rule is still very much true in retail. 80% of a retailer’s sales come from 20% of its customers. So, it’s no wonder that retailers are searching for ways to increase loyalty to push that 20% upwards to reach loyalty utopia. There are many creative ways to do this including offering your users an app.
If you don’t offer an app but your competitor does, you run the risk of being forgotten. Having dedicated space on a user’s home screen means they’re more likely to shop there first, before searching through a sea of mobile browsers. Therefore, people that download your app are more likely to become more loyal and up that 20% figure for your business.
According to Apptentive, 66% of companies that saw a decrease in customer loyalty over the past year don’t have a mobile app. Retailers not offering an app are really feeling the pinch. However, retailers acing their loyalty game are improving the overall customer experience and therefore, boasting better retention rates. Apps on the Poq platform have maintained a returning user rate of 67% for the first half of this year. Which is more than 2x that of mobile web and desktop. Giving further evidence that when offered with a choice of retail experience on mobile, users are more likely to return to the app version than the mobile web.
There are certain in-app features that you can utilise to reach loyalty utopia. Here are 3 tried and tested ways to increase loyalty when offering an app.
Offering a loyalty card, whether it’s a physical card or on your mobile, is a great way of retaining and creating loyal customers. By positive reinforcement and rewards, customers are likely to be swayed to purchase from your brand rather than a competitor offering no reward.
However, shoppers are constantly finding themselves turning up to a store just to realise they don’t have their loyalty card on their person. Shoppers very rarely leave the house without their phone.
By merging your loyalty scheme into your app, a last-minute trip to your store will still result in rewards rather than putting off the purchase until they can get their hands on their loyalty card. By having an online card, you can connect the dots to gain a single customer view. Ensure your scheme centres on your customer rather than their card.
The House of Fraser Recognition Reward loyalty scheme is a large part of its business strategy, it’s incredibly focussed on rewarding its customers for loyalty. It was fundamental that the loyalty scheme could be merged into its new app when it first launched on the Poq platform. Michael Langguth, Co-founder and COO at Poq commented, “That’s a great reason to download an app. They want to see their points in real time, and they want to shop in store and get lots of benefits.”
The biggest challenge retailers face when launching an app is how to get downloads. But once this has been achieved, they’re acting as a brand advocate. To ensure the user makes the ultimate use of your app, they need to be educated on the different functionalities that it offers.
Add onboarding screens to your app that promote specific features that you want users to use or that are exclusive to your app. Use this functionality to demonstrate the value your app offers that sets it apart from your other channels and keeps them returning.
Urban Airship found that app users that opt-in to notifications are retained at double the rate of those who opt-out. Therefore, if you give users a good understanding of what kind of push notifications they can expect and deliver true value, they’re more likely to opt-in and remain loyal.
Evidently, offering a transactional mobile app is a sure-fire way to improve loyalty and therefore future-proof retention. Ensuring the customer experience is adapted for your consumers preferred device to become more engaging and personalised can in turn, ensure that your consumers are truly devoted and loyal to your brand.
Download our latest ebook explaining how an app can help you improve your overall Customer Experience. Discover how to improve personalisation, engagement and loyalty with case studies and expert opinions.
Reported by Natasha McGowan