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2024 Guide to Mobile Loyalty Program: A Customer-Centric Approach

Apoorv Bhatnagar Apoorv, Sr. Digital Marketing Manager at CleverTap, drives digital marketing strategies. Expert in SEO, analytics, and channel marketing. Previous roles at Freshworks, excelling in organic SEO, lead generation, and CMS activities.
2024 Guide to Mobile Loyalty Program: A Customer-Centric Approach

Mobile loyalty programs are strategic initiatives that leverage mobile apps to boost customer engagement, retention, and lifetime value. These programs use the convenience and ubiquity of mobile devices to engage users, encourage repeat business, and provide value to the customer through means like rewards, incentives, gamification personalization and more. A key factor for any brand’s success in this dynamic mobile market is customer retention and loyalty, but most brands overlook it. According to a report by Statista in 2021 the number of mobile devices operating worldwide was almost 15 billion and is expected to reach 18.22 billion by 2025. These numbers clearly indicate that a smart mobile device can be considered an extension of one’s arm, always available with an app for every need from education, entertainment, shopping, productivity, business and more. With this increasing reliance on smart mobile devices, brands can’t afford to ignore the significance of mobile loyalty programs. These mobile loyalty programs exploit the omnipresence of mobile devices and provide brands a direct opportunity for personalized engagement, real-time communication, and the creating lasting brand connections.

User retention is the linchpin of a brand’s success. 80% of a brand’s future profits come from a meager 20% of the existing customer base and the probability of selling to an existing customer is 60% to 70% as  compared to the probability of selling to a new prospect that is just 5% to 20%*. Mobile loyalty programs with tailored rewards and incentives play a pivotal role in retaining customers and turning them into trusted advocates of the brand.    

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Benefits of Mobile Loyalty Programs

Mobile loyalty programs offer many advantages over traditional loyalty programs, like:

Convenience: The need for physical cards, vouchers or coupons is eliminated with mobile loyalty programs as they allow users to access and redeem rewards and incentives with just a few clicks on the smart devices. Brands can remind users of the benefits they are entitled to by notifying them through the devices making it a convenient alternative for both the brands and its users. 

Personalization: Mobile loyalty programs enable brands and marketers to collect user data and analyze it through segmentations. Segmentation by demographics, past behavior, feedback and preferences can be leveraged to tailor offers and customer experiences keeping their needs and interests in focus. 

Engagement: With mobile loyalty programs brands can access multiple touch points and channels to interact with the users like push notifications, email, sms and other. These channels can be utilized to deliver timely and contextual information, reminders, incentives and more to the end users and help keep them engaged and loyal to the brand. 

Measurement: Mobile loyalty programs enable marketers to measure and track the efficacy of the loyalty campaigns, KPI’s such as open rates, click-through rates retention and revenue can be tracked to check if the campaign has performed as expected or needs to be tweaked and optimized for better results.

How to Design a Mobile Loyalty Program

The mobile loyalty program best suited for a brand depends upon its goals and target audience. There are many kinds of mobile loyalty programs like tier based, point based, referral, gamified or hybrid. Regardless of the type there are some common features and best practices to consider while designing a mobile loyalty program which provides value to the user as well as the brand. 

Value proposition: A mobile loyalty program should offer clear and compelling benefits to the end user like discounts, free goodies, exclusive previews, sales or recognition. These rewards should not only be relevant, attainable and advantageous for the users but also aligned with the identity and values of the brand.  

User experience: Right from registration to redemption an ideal mobile loyalty program must provide a smooth and seamless experience. The loyalty app must be easy to use, navigate and comprehend along with a consistent and appealing design. It should be easy to integrate with other channels and platforms offered by the brand to provide a unified omnichannel experience

Customer feedback: Brands must incorporate feedback through reviews, rating, surveys and suggestions to consistently optimize the strategy to the mobile loyalty programs enhancing customer satisfaction. Brands must also devise a method to acknowledge user feedback to show appreciation and gratitude to loyal users. 

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Leverage Clevertap to Create and Manage Mobile Loyalty Program

Clevertap, a powerful customer engagement and retention platform helps brands drive growth with personalized customer experiences. Clevertap, allows brands and marketers to:

Understand: Collect and analyze customer data and gain in-depth insights into customer behavior, preferences, and needs.

Optimize: Experiment and test different loyalty strategies, like rewards, offers, messages, and channels, and optimize them for superior customer engagement and retention.

Engage: Tailor and deliver personalized customer experiences, like push notifications, in-app messages, emails, and SMS, based on customer data, behavior, and feedback, and drive customer loyalty and growth.

Clever.AI: Clevertap helps marketers make smart and quick decisions with insightful, empathetic, and prescriptive intelligence, such as predictions, recommendation, and notifications, powered by artificial intelligence. 

To harness the potential of mobile loyalty programs, brands must adopt novel strategies that resonate with the discerning mobile consumer. By finding the right balance between seamless user experiences, personalized rewards, and real-time engagement, mobile loyalty programs become the cornerstone of a successful customer retention strategy for a brand. Learn more about Clevertap and how it can help brands and marketers craft and run mobile loyalty programs with ease, schedule a demo.

Last updated on May 15, 2024