In the era of digital technology gradually mastering economic activities, Loyalty application also becomes an equally important factor. Let’s learn about Loyalty application with Twendee!
What is Loyalty?
Loyalty is understood as a description of the relationship between the business and the customer, through the level of interaction, satisfaction, and willingness to use the product or service of the business many times more than that of the customer. competitors.
Loyalty apps are mobile apps used by businesses to increase customer loyalty. Understandably, this is a customer care application on smartphones.
Best Features of Loyalty Program App
With its outstanding features, Loyalty application can help businesses build lasting relationships with customers and accelerate business growth.
- Rewards Program: Loyalty App has a rewards program that encourages customers to purchase next time. This may include point systems, cashback offers, or discounts on purchases.
- Personalization: Loyalty app must be personalized according to the behavior and preferences of each customer. Includes personalized promotions, recommendations, and special offers.
- Promotion Notifications: Loyalty app should have promotion notifications to keep customers engaged. Customers will be notified of new products, vouchers, and rewards.
- Social Media Integration: Loyalty app can integrate with social media platforms. To provide customers with a seamless experience across multiple channels.
- Analytics and reporting: Loyalty App will provide businesses with analytical and reporting tools. To track customer behavior, monitor performance, and identify areas for improvement.
- Referral Program: Loyalty App may include voucher packages that reward customers for referring their friends and family.
- Loyalty App Level: Loyalty App can categorize customers based on badge or level. To make the rewards program more engaging and enjoyable for customers.
What are the business benefits of a loyalty app?
- Increase customer loyalty: Loyalty apps increase customer retention rates, encouraging customers to return next time by providing rewards and incentives for subsequent purchases.
- Enhance interaction with customers: loyalty applications provide a platform for businesses to communicate with customers. In addition, the app also provides personalized promotions and gets product and service feedback.
- Improved data collection: Loyalty apps can help businesses collect valuable data about customer behavior and preferences. This data can inform sales and marketing strategies.
- Increase sales: by providing rewards and incentives through the Loyalty app, businesses can motivate customers to buy more and spend more money.
- Create a competitive advantage in the market and help your business stand out from the competition:
- Reduce ineffective advertising costs.
- Increase revenue from old customers, introduce new customers, and increase the customer lifecycle
Loyalty application selection criteria
To choose a suitable Loyalty application, businesses need to consider some of the following criteria:
- Customization Options: Look for a Loyalty App that can be customized to your business’s needs and branding. This may include the ability to create promotions, rewards, and personalized messaging.
- User Experience: Loyalty App should be user-friendly and easy to navigate for both customers and employees. It also needs to be available on multiple platforms, such as iOS and Android devices.
- Integration with other software: Loyalty App must integrate with other software your business uses. Such as point-of-sale software, distribution system management software (DMS), and customer relationship management software (CRM).
- Analytics and Reporting: Loyalty App will provide powerful reporting and analysis tools. To help businesses track operational performance, customer behavior, and other key metrics.
- Security and compliance: Loyalty App must be secure and compliant with relevant data privacy and security regulations such as GDPR or CCPA.
- Customer Support: Look for a Loyalty App provider that offers strong customer support. Includes technical support, setup assistance, and software management.
- Cost: Consider the cost of Loyalty App, including any setup fees, monthly subscription fees, and transaction fees. Make sure that the cost is reasonable and fits within the budget of the business.
What Are Loyalty Programs Used For?
Cosmetics is an industry that is growing rapidly as women become more financially independent and focus more on appearance, which is why this industry needs loyalty applications to attract and maintain customers.
One of the most successful cosmetic retail brands today is Sephora. By taking advantage of the Loyalty app, the brand is now present in more than 50 European countries and is gradually conquering the Asian market. Instead of merely offering rewards for purchases, Sephora created a community of beauty lovers out of the Beauty Insider program. This program allows customers to participate in the program divided into three distinct levels, from the lowest level (Insider) to the highest level (rouge).
What’s special about Sephora is that they offer benefits including birthday rewards, free beauty classes, and access to the Beauty Insider Community for new members. VIB and VIB Rouge members, also get to experience some of the perks offered by members of the basic Beauty Insider program.
In addition, this popular brand also enhances its loyalty app advertising with cool smart features like allowing users to try cosmetics on their faces before they decide to buy.
Besides Sephora, Ulta Beauty also knows how to take advantage of the Loyalty application to develop its name.
Ulta Beauty is a major chain of beauty stores in the United States. Similar to Sephora, Ulta Beauty also has a loyalty program with certain benefits and some other incentives such as double and triple points when buying certain items. They also use the FOMO effect for a time-limited method that uses reward points to increase engagement.
Use points for purchases: This is an interesting point, it allows customers to use their points as money to make purchases, instead of limiting customers to only redeeming points for specific rewards.
Time Limit on Rewards Points: Although this can be frustrating for customers who don’t make frequent purchases. This is another great idea for cosmetics retailers because setting an expiration date for rewards points motivates shoppers to make purchases to spend their points.
Loyalty Levels: Once a customer has reached Platinum, they get more points for the same spend. An undeniable benefit is that at this level, the point expiration will no longer apply.
Convenient mobile app: This enhances user experience, members can use the app to check their points balance anywhere, anytime. Even use voice search to find your favorite products.
Tourism and Travel
The travel and tourism industry believed to be the first sector to accept associations with brands and partner businesses, is increasingly offering more loyalty programs.
By using loyalty applications, the industry can attract a large number of customers. If normally a business can only provide a discount for the next flight after flying a certain number of kilometers with the airline, then when associated with partners, businesses can completely give customers more interesting experiences such as free car rental, hotel room upgrade, and reduced bus ticket prices for attractive attractions.
Here are some successful loyalty applications in the travel and tourism industry:
Miles and More is the largest travel loyalty program in Europe, run by Lufthansa, Germany’s largest airline. At the same time, Lufthansa is also Europe’s largest airline, with revenues of about $320 billion when combined with its subsidiaries.
The Loyalty Miles and More program are designed to reward Star Alliance passengers with certain fares. Currently, this program is being used by 13 airlines in Europe.
To participate in the program, customers need to visit Miles and More’s website, then register for an online account. There is also a convenient mobile application for customers to use. This program is currently being implemented on both online and offline platforms.
Mechanism of action
The Loyalty Miles and More program is divided into four levels:
- Member (Standard Card)
- Frequent Traveler (Silver Card)
- Senator (Yellow Card)
- Hon Circle Member (Black Card)
The above levels depend on the distance the customer has traveled.
In addition, the Gold and Diamond levels also provide customers with many other incentives, such as giving away more points and the opportunity to receive free snacks and drinks at the hotel. Customers can also use the points. your rewards for participating in music events, sports, or travel.
Wyndham Hotels – Wyndham Rewards
Wyndhams Hotels & Resorts was founded in 1981 in the US by Trammel Crow. Wyndham is an international hotel and resort company and the parent company of Wyndham Hotels & Resorts, RCI, and several other brands. Currently, the company operates many hotel brands worldwide.
Wyndham Rewards is a loyalty program implemented by Wyndham, a hotel service company in the US. Wyndham Rewards is one of the world’s largest hotel loyalty programs.
Loyalty program is currently only implemented in an online form. To register, customers need to fill out a registration form on Wyndham’s website or mobile app. In addition, if conditions do not allow, customers can register directly when booking a hotel room.
Mechanism of action
Wyndham Rewards is divided into 4 levels: Green, Gold, Platinum, and Diamond. Customers have different ways to collect points, for example, they need to spend a certain amount or buy more points from the system. Or they can rent a car from Avios or Budget, then leave comments and reviews after experiencing the service here.
In addition, accumulating flight itineraries or participating in a program from a Wyndham partner is another way for customers to collect more points.
Wyndham Rewards has three levels of points:
Go free: If the customer reaches 15,000 points, they will get a free hotel room for one night.
Go fast: Customers will get 3,000 points and cash.
Go Get’em: Customers will get 1,000 points or 10 points for every 1 USD after every valid booking.
In particular, customers using Wyndham Rewards visa cards will have the opportunity to accumulate up to 30,000 points and can redeem them for 4 free booking nights.
Alaska Airlines – Mileage Plan
Alaska Airlines was founded in 1932. This airline ranks 5th among the largest airlines in the United States in terms of aircraft size, number of passengers, and number of locations on the route.
Mileage Plan is an Alaska Airlines Loyalty program for loyal customers. This program works for the purpose of rewarding its customers.
Like the two loyalty applications mentioned above, Mileage Plan allows customers to join the program at the website or on the mobile application. In addition, customers can also register when using the company’s credit card.
Mechanism of action
The mileage plan works by calculating mileage and membership levels. Customers can collect miles on any flight, even the cheapest flight. Or customers can also collect by shopping, dining, renting a car, booking a hotel, etc.
This loyalty program is considered to help customers reach premium offers faster than other airline loyalty programs.
Retail is the area that needs loyalty apps the most because loyalty programs are applied frequently. Any retailer needs to offer a loyalty program, or else the risk of losing customers to competitors is very high.
Carrefour – My Club
Carrefour is a retailer in France and has its headquarters in Boulogne-Billancourt. The company has more than 12,000 branches in more than 30 countries worldwide. It can be said that this is the largest company in the FMCG industry, with more than 400,000 employees.
My Club is a loyalty program by Carrefour. This program works based on the points accumulated by members, and it can be applied to all customer transactions, including online transactions on the website and offline transactions in stores.
Customers can register to become members of My Club completely free of charge by filling out the online registration form at the website or on the mobile application. On the interface screen of the application, it will display the accumulated points, the function of searching for promotions, and the ability to redeem points for gifts and discount codes.
Mechanism of action
When buying directly at the store or buying online at the website or mobile application, customers will receive additional points. After each transaction, the cardholder will receive 0.025 entry points for every 1 dirham (Arabic currency). Loyalty members need to provide their membership card before paying, or when shopping online, customers need to enter their My Club membership code before paying to make valid transactions.
Pampers is a leading global brand of baby diapers, founded by Procter & Gamble.
Pampers Rewards is a loyalty program by Pampers. Customers can accumulate points by scanning product codes or entering product codes when making purchases at Pampers. The accumulated points can be exchanged for discount codes or gifts specified in the Pampers gift catalog.
To participate in the program, customers need to register online on the website or download an application form from the mobile application. The program is currently being applied on both online and offline platforms and is completely free.
Mechanism of action
Members will receive points for each scanned Pampers product code they have purchased. Depending on the type of product and the number of products in the cart, the customer will receive the corresponding number of points. Each new member will receive 100 points when registering an account and 50 points for scanning the product code for the first time.
For cafes or restaurants, customer retention and customer expansion are extremely important to help the business grow. In today’s fiercely competitive food and beverage service market, loyalty programs are businesses’ most powerful weapon.
Vintage paper promotional posters in the form of “Buy 3, Get 1 Free” has long been popular and adopted by cafes and restaurants around the world. This is a simple and effective way to encourage customers to come back again and again.
However, in the era of rapid development of digital technology, people’s wallets are getting smaller and smaller. Many people don’t even carry a wallet, opting for e-wallets or simply a credit card clipped in their phone case.
Starbucks Rewards Program
The Starbucks Loyalty App is one of the most successful in the F&B industry and one of the best in the world.
What customers love most about Starbucks is that they can find rewards easily and quickly. Usually, the decentralization of customers is so that they are motivated to become VIP customers. However, Starbucks adopts a different kind of decentralized program: tiered rewards.
The Starbucks Loyalty Program offers small increments between rewards, which incentivizes customers to increase the frequency of their purchases to reach the next level sooner. If customers spend just $25, they can get a free coffee, and if they spend $125, they get a free lunch.
Sometimes, knowing you’re about to hit your next reward is the motivation to spend another. With this strategy, Starbucks Rewards has created a formula for success.
Maggie Louise Confections – Club Cocoa
Maggie Louise Confections is an example of a loyalty program for the F&B industry done right. This program uses premium bonus levels to motivate customers. Once customers reach that peak, they receive exclusive experience rewards, such as free use of new product launches and exclusive events.
These levels are the driving force that drives customers to shop more to achieve the desired hierarchy. Maggie Louise understands that sometimes the thrill of these hierarchical competitions is more appealing than the actual rewards.
The second area is how Maggie Louise uses her loyalty program to establish a sense of community. By selling chocolate online, Maggie Louise knew they were asking customers to trust their brand and products without tasting them first.
Although it is difficult for customers to trust companies without references at first, they actually trust other customers, especially their friends. Encouraging shoppers to share the brand with their acquaintances, generates more conversation about the product and provides potential customers with valuable social proof.
In addition, Club Cocoa provides points for product referrals as well as social media interactions and purchases. This community builds trust with new shoppers by providing proof that past customers love the product. As for the valuable rewards, Maggie Louise has made sure that this cycle continues with every new member of their program.
Beauty (salon & spa)
Another area that also needs loyalty applications to attract and retain customers is beauty. We’re all too familiar with seeing a stack of loyalty cards at the front desk when we walk into a hair salon, nail salon, or spa.
However, just like in retail and hospitality, loyalty apps are changing the way the beauty industry engages customers. Instead of generic models like get the 10th discount on service”, a loyalty application allows beauty businesses to offer customers a variety of promotions, rich customer care, and more personalization, such as appointment reminders, shampoo, and conditioner discounts when customers come to get their hair done on Wednesdays, etc.
Thus, it can be said that loyalty applications are gradually changing the battle for customer care in the digital age and becoming an indispensable element in many business fields. Through this article, Twendee hopes readers have an overview of loyalty applications.loyaltyloyalty appsloyalty programs