how to create a loyalty program app

As a business grows, it focuses on acquiring new customers. However, there is a definite limit to the outreach of the company. Thus, the efforts made towards attracting new customers reach a saturation limit. At this point, the business needs to put more effort into retaining the existing customers. One of the options is to create a rewards program app

Loyalty reward programs are not a new notion in business. Businesses such as restaurants, salons, supermarkets, and more have always provided various offers to customers who buy their services a certain number of times. However, a loyalty program app adds convenience to the service. 

Imagine you are shopping at a local supermarket. Previously, you would need to scrounge your purse to find the physical loyalty card. However, with the ease of QR codes and smartphones, all you need to do is scan the code and avail of the offer. 

Easy, right? The easier you make the buying experience for your customers, the more loyal they will be to your business. A loyalty program app can be a step towards increasing customer retention. 

Why Do You Need a Loyalty Program?

Businesses, no matter the sector they belong to, understand the importance of loyal customers. These customers create a continuous income for your business. Also, they spend the most money on the products and services offered. Moreover, loyal customers recommend your brand, thereby providing you with free promotion. 

Thus, businesses create various loyalty and rewards programs to show their gratitude towards these customers. Here are some of the prominent reasons why your future business plans need the support of a loyalty and rewards app.  

1. Personalize User’s Experience 

Imagine a restaurant that knows your preferences. It offers you a free treat for your birthday. Also, it provides you with suggestions based on your favorites.

Indeed, you will be loyal to it as a customer. This is the approach that a loyalty program brings. It creates a deeper bond with the customer. Furthermore, with the loyalty program app, you can collect data and make the consumer feel special. 

2. Increase the Purchase Size 

When the customers can see that they are a couple of steps away from a reward, you encourage them to make more purchases. Psychologically, it is hard to resist any free perk. Thus, with every purchase, you enable the customers to buy more. Moreover, this strengthens the customer’s relationship with the brand.  

3. Engage with Customers 

With push notifications, feedback, and surveys, you can connect with the customers. You can get in touch with the buyers, even if they are not within the store’s physical reach. Furthermore, with messages that have tangible value, you can drive the customers towards your store. 

4. Gather Customer Feedback 

Most people, especially millennials, do not like facing negative interactions. With the help of a feedback system hosted on your loyalty and reward app, you can gather honest reviews and feedback regarding the services and products offered.  

Best Loyalty Program Apps 

You will find a wide array of loyalty program apps offered by top-notch brands of the world. The system followed for these programs may differ. However, the aim remains the same. All these programs strengthen consumer relations while encouraging them to purchase more. Customers worldwide can use these applications to get access to special offers and other services offered by the brand.

 

Brand Number of Users Launch of Loyalty App Features Offered 
Starbucks  16 million active users  2009
  • Earn free drinks, food items, add-ons
  • Pre-order and pay using the app
  • Free refills 
  • A free birthday gift 
  • Bonus rewards 
Sephora (Beauty Insider) 1.1 million app downloads  2016
  • the customers can earn points on every purchase
  • There are three tiers present in the loyalty program, Insiders, VIB, and Rouge.
  • A certain amount is to be spent each year to reach each level. 
Nike More than 10 million downloads  2010
  • Offers access to apps to different apps that help to track their activity, get new workouts, etc. 
  • VIP program to reward consumers after each referral. 

 

Features of a Loyalty Program App

We hope that the points above convinced you regarding the importance of a loyalty program app for your business. A rewards program app can also help you compete against big names in your industry. 

77% of customers are motivated to join a loyalty program if the benefits and features provided are communicated clearly. Click To Tweet

Here are some of the must-have features that need to be included in the app:

loyalty program app features

 

1. Onboarding

The onboarding process should be easy and as short as possible. The app should allow the users to sign in with their email or with a single sign-in option using their social media accounts. Additionally, they should also have the opportunity to sign in with their existing loyalty card number. 

2. Customer’s Profile 

Customers should be able to set their profile once they sign in. Here, they will provide their basic information such as name, date of birth, location, etc. 

If your existing customers sign up, extract their information from your database so that they do not have to refill it.  

3. Reward System 

If you have an existing loyalty program, all you need to do is move it to the mobile application. 

However, if that is not the case, then you can introduce different reward programs. Options such as discounts, bonuses, special offers, internal currency, etc., are traditional and successful. 

4. Integration of social media 

Most brands consider digital marketing an essential part of their campaign. Thus, they need to include social media in their loyalty and rewards app. You can offer customers special discounts for completing specific tasks related to your social media account. 

5. Push Notifications

Push notifications are the perfect way to reach out to your customers. Moreover, you can inform them about new bonuses, special offers, etc., with these notifications. The more exciting and intriguing these messages are, the more attention the campaign will gather.  

6. Pre-Ordering 

Pre-ordering is the perfect addition to your list of services. A rushed life requires every minute to be saved. The option of pre-ordering to the customers on the app will enable them to avoid standing in the line.

7. Payment Gateways

Offering various methods of payment on your app eases the ordering process for your customers. Choose a suitable processor that can make the entire process seamless.

8. Personal Offers 

Loyalty programs are based on personal offers. After all, these are fundamental ways to show your consumers that you care about them. Use the information that you have gathered from reviews, feedback, and order history to create special offers for them. 

9. Purchase History 

Purchase history helps in the personalization of the offers provided to the customers. They also help the customers keep track of their orders.  

10. Spending Categories 

If your brand offers a varied array of products, you can include the categories section in the loyalty program app. You can sort the categories as per the spend analysis of the consumers. 

11. Analytics

Offering a loyalty program is not the end of the campaign. You need to continually analyze whether the loyalty app is considered favorable by the consumers. Here, the analytics can help you make changes in the program.  

12. Maps and Geolocation

You can provide better offers to your customers based on their location. For instance, you can send push notifications to them when they are near the store.  

13. Gamification

Gamification is the strategic process in which game elements such as points and badges are included to increase user engagement. Along with increasing users’ interest, it also increases in-app time. 

How to Create Your Rewards Program App?

Now you know the features that one must have in a rewards program app. This provides a clearer idea of what your strategy should be to prepare such an app. Here are the steps which can work as a guideline for you while creating a loyalty program app.

how to create a loyalty program app

 

1. Create a Strategy

While creating a strategy for your loyalty program, you should first understand what your objective is. Develop a clear plan that details how the program will convert regular customers into loyalty members. Moreover, make sure to mention the aspects through which you can measure the success of your program. 

2. Design and Development 

Secondly, you should create a design that represents your strategy. The format of the loyalty program app should be accessible through different channels. Furthermore, it should also be influential enough to affect the purchase decisions of the users. Additionally, you will need to ensure that the development mirrors your long-term objectives.   

Also read: Free Wireframe Tools For Stunning UI/UX Designs In 2021

3. Develop an MVP

Next, you will develop the MVP of the loyalty program app. An MVP is the version of the program that will include enough features that validate its idea. Your MVP should reflect the aim of your brand. For instance, it could be location-based features that help the users locate the nearest stores. You can also send them notifications about limited-time and special offers when they are nearby.  

4. Invite Existing Customers for Beta Program 

Once the development is complete, you can now launch the beta program. Invite your existing loyal customers to try the app and provide their feedback.

Additionally, it will be better to use a real-time feedback tool. Make sure that you collect the data and implement the changes as suggested by the users. When you promptly act against their feedback and complaints, you can increase the retention rates. 

5. Launch the App

Lastly, you can launch your loyalty program app. Make sure that you proactively gather customer feedback during and after the launch

6. Promote 

After launching the app, the biggest struggle will be to attract customers.

You first need to provide incentives to current customers to convert them into loyal customers. Moreover, make sure that the offers you provide are personalized based on the spend analysis of the customer. 78% of customers show their loyalty to a brand that recognizes them individually. 

7. Track User Engagement 

Launching the app is just a step towards achieving our objective for the loyalty program. Now, you will need to assess user engagement. With different tools, you will need to locate the customers’ commonly occurring issues and the features they are expecting from the app. 

Cost of Creating a Rewards App

The major two factors that can affect the cost of building a loyalty program app are the features you choose and the rate of the development team.

The rates charged by the development team varies as per the region they are in, the experience they have, etc. For instance, the US and Australia have the highest per-hour rates. On the other hand, Eastern Europe and Asian countries have the lowest average per hour rate. 

Consequently, you will first need to estimate the time to program each feature you want to include. For example, push notifications can take 2 to 5 days, gamification will take 3 to 6 days, on average. 

Once you know the time it will take to build the app, you can estimate the cost of creating a loyalty and rewards app. 

In Conclusion

People now want to have everything on their phones. Thus, loyalty program apps have become another addition to the required apps one needs to have. An effective loyalty program can be the best way to ensure that you can retain customers. It also boosts your brand against other competitors in your field.

Contact Us - Idea Usher

A loyalty and rewards app is an essential addition to your marketing campaign. If you want to develop a loyalty program app from scratch, get in touch with Idea Usher’s development team. Moreover, you can engage in a free consultation call to know your options and the best approach to create your loyalty program app. Translate your ideas into dynamic mobile solutions with our experienced team.  

FAQs

1. By how much can loyalty programs increase sales?

As per a study by INVESPCRO, it was found that loyalty programs can generate 20% of a company’s profits. 

2. How can one build customer loyalty?

Customer loyalty can be built when you provide exceptional customer service, as for feedback, and show your appreciation with a loyalty program. 

3. How long does it take to create a loyalty app?

The time depends upon various factors. It can take from two to six months, based on the features included in the app. 

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