98% of loyalty app users love using a loyalty app and want more features from it.
In September 2022, NACS published a report examining customer engagement with convenience loyalty programs. Unsurprisingly, customers feel most engaged, appreciated and valued by the stores to which they belong in a loyalty or membership program – nearly ¾ of the 1,000 individuals surveyed, in fact.
What Do Members Value Most?
Most customers sign up for a loyalty program for rewards and discounts. But, this report found that 77 percent said they feel more connected to a store if they get more than just rewards. Aside from discounts on fuel and products, members would like to have options for mobile payments (35%), mobile/contactless checkout (29%) and personalized experiences (19%) among other benefits.
What Do Consumers Do on Their Loyalty Apps?
According to the NACS survey, around 60% of members take advantage of the promotions received or redeem the points or offers that they earn through loyalty programs. This is an enormous opportunity for retailers to not only ensure rewards are attainable, but frequent with a low barrier to achieve. Recently, headlines have been made about large fast food chains in the U.S. who have done the exact opposite citing inflation and members – and the news media – weren’t too fond of their choices.
Further, almost half recommended said store to family and friends. It is wise to make those members happy and keep them happy in order to grow customer foot traffic.
Build a Smart Loyalty Program
Customers believe that a loyalty program should offer personalized recommendations. 58%, in fact, want informative personalization, though do not wish for the program to be intrusive. 7-Eleven stores in Denmark have used machine learning to learn their customers using purchase and behavioural data and it certainly has paid off in terms of repeat business and lessened staff time trying to read customers’ minds. According to NACS, a surprising 82% of customers are willing to share personal information if it means they are rewarded to their liking.
Members Really Love Their Loyalty Apps
Apps have been around for a while now, but convenience retailers are not fully on board with the technology. Nor are their customers and this is likely out of familiarity.
Just above half (56%) of loyalty members are accessed via app and many users – and retailers – still resort to physical loyalty cards and paper punch cards. But, of those customers who do use their mobile loyalty app, 98% prefer this method. Ninety-eight percent….that’s nearly all of them!
Recommendations for Retailers for Loyalty App Success
Most convenience retail loyalty programs are the same with discounts and points, but there are ways to rise above the fray.
Offering mobile checkout and payment through the same app that rewards reside is highly desirable by customers. And, to go one step further and offer different types of payment, especially ACH/bank debit, helps customers and retailers avoid costly credit card fees and charges.
Make it fun! Offer games and rewards that truly mean something to a customer. When they feel like they’re earning while having fun, the smile will translate to recommendations to family and friends.
Get personal. Take the opportunity to get to know loyal customers, but don’t go overboard with highly intrusive questions. Analyze collected data and make sure to apply what is learned.
Make Your Loyalty Program Stand Out in the Crowd
Liquid Barcodes offers a number of tailored solutions for retailers of all sizes and industries. Whether convenience retail, coffee shops, foodservice establishments or general retail, the expert developers can customize a loyalty app to fit your needs. Even if you already have a store app, plug-and-play apps from Liquid Barcodes can add gamification, digital stamp cards, mobile payment and more.
About Liquid Barcodes
Liquid Barcodes is a leading global loyalty and digital marketing technology company specializing in the convenience and foodservice industries. The proprietary, cloud-based technology platform allows retailers to create and manage their digital marketing campaigns with a process called the “customer connection cycle’ to engage, promote and reward customers’ activities in real-time across digital and media channels.
Liquid Barcodes loyalty platform is powering loyalty programs for industry leaders across several global markets, by offering unique subscription, mobile payment programs, machine learning, personalization, gamification, loyalty, and other capabilities.
Learn more about Liquid Barcodes at LiquidBarcodes.com.
About the Author
Carolyn Schnare, Chief Content Officer, Liquid Barcodes
Carolyn Schnare has been involved with the convenience retailing industry for two decades with extensive knowledge of customer engagement and marketing, sustainability, and community outreach. Prior to Liquid Barcodes, Schnare worked at NACS (National Association of Convenience Stores) in a variety of roles from event production to membership and most recently as Director of Strategic Initiatives and host and producer of the popular industry podcast, Convenience Matters. Schnare currently anchors the popular Shop Talk LIVE! video series produced by Global Convenience Store Focus media group.