5 Common Mistakes of an App based Customer Loyalty Program
Sushant Gaonkar
IT Delivery, Operations & Cybersecurity Leader | GRC Practitioner | Generative AI enthusiast l Best Selling Author | Mentors Experts, Leaders & Entrepreneurs on Writing & Publishing Books | Keynote Speaker
Mobile app based loyalty programs have gained significant acceptance in recent years, especially among the younger generation. However, businesses are still finding it difficult to keep customers engaged with a loyalty app. There are five possible reasons why a loyalty app based program is not working in the long run:
- App is difficult to use: If a customer is not able to figure out how to use the app within 5 mins of downloading it, you have lost him/her instantly. Accumulation & Redemption of points should be made very easy and should happen in just one or two clicks.
- Points are based on frequency of visits and not on actual spend: Customers get bored with loyalty programs that give points or rewards based on frequency of visits even though it is very easy to understand. Consumer psychology is that if you spend more you should get more in return and hence a loyalty program based on actual spend will find more traction in the long run.
- Loyalty program is dependent on staff: An app based loyalty program will fail if it seeks inputs from staff for data entry. Instead it should be fully user driven with minimal staff intervention required only for processing accumulation or redemption of points.
- Not marketed effectively: Merely offering a loyalty program to customers is not enough. A loyalty program and its benefits need to be effectively communicated on an ongoing basis via various marketing channels like email, sms, posters, billboards etc.
- Too many loyalty apps: If a business owner signs up with multiple loyalty vendors, it just ends up confusing the customer. Instead they should opt for a single loyalty program that is based on actual spend.
r-Rewards is a multi store loyalty program that is delivered over both mobile and web. It has been developed with a vision to bring all local SMBs like restaurants, supermarkets, retails stores, pharmacies, spa & salons etc. on one common loyalty platform. The app is very easy to use, points are based on actual spend and it is fully user driven i.e., no need to walk up to the billing counter. The app can be downloaded from Appstore or Playstore.