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Mobile loyalty software

by 
 
March 6, 2020

What is a mobile loyalty program? How to create a successful mobile loyalty program? Best in-app loyalty program examples.

Why should I offer a mobile loyalty program?

In this article, we cover the advantages of mobile-based loyalty programs, compared to web-based programs, research the best in-app loyalty programs and show you how to create your own mobile loyalty program.

Table of Contents

1. Screen time using mobile devices is growing.

2. Website-based vs. mobile-based loyalty.

3. Best mobile loyalty program examples.

  • My Starbucks Rewards app.
  • Dunkin’ Donuts DD Perks.
  • Designer Shoe Warehouse (DSW).

4. How to create your in-app loyalty program with Voucherify?

5. Example of an in-app loyalty program with Voucherify.

6. Summary.

Screen time using mobile devices is growing

Running a loyalty program is a great way to reach and engage more customers. People are using smartphones more often than ever. The following statistics speak for themselves:

  • 81% of Americans use a smartphone daily.
  • 20% of smartphone owners use only phones to surf the internet. 
  • 81% of American adults go online every day, including 28% who are constantly online.
  • Nearly half of the 18-29-year-old generation is constantly online.
Most of the Americans go online daily (Source)

Thanks to the recent trends of digitalization, technological development, and change of lifestyle, the aforementioned numbers are continuously growing. Read our blog post to learn more about mobile app marketing.

Website-based vs. mobile-based loyalty

Smartphone users are easy to reach through applications. The whole consumer journey can be completed on an app, from browsing products until the check-out.

Web-based and mobile-based solutions can exist simultaneously. Having a loyalty program and rewards in the pocket can add value to the customer and your business when customers purchase in-person.

Compared to solely a website-based loyalty program, an in-app reward program has a lot more to offer to your customers and your company:

Collect data

Knowing customers’ location enables you to send push notifications at the right moment which contributes to a more personalized experience.

Collect feedback

It is possible to ask for the customers’ feedback immediately after they purchased products in your store. This valuable feedback will help you to get to know your customers better and provide you with data to improve your products and services.

Provide a smoother customer journey

You can send personalized offers and vouchers which can be redeemed by the customers immediately. Customers enjoy collecting points and redeeming rewards seamlessly, without having to have a separate loyalty card with them.

Engage and retain your customers

Retaining customers is much cheaper than gaining new ones. If you can make shopping easier, more efficient and fun, your customers will come back to you and purchase again and again.

Accessible solution

An increasing number of customers want to have everything accessible via their smartphones. A mobile-based rewards program will enable them to access their order history, points, special offers, rewards and loyalty cards digitally.

Physical loyalty cards are a thing of the past. Your customers might forget them at home or lose them. They also take up space in the wallet. Points collected in an app are more accessible. If the customers have your app downloaded, it is easier for your brand to stay on top of their mind.

Best in-app loyalty program examples

Now that we know the advantages of mobile app loyalty, let's look at some examples. We collected the most popular in-app reward programs to show you the potential of smartphone loyalty applications.

My Starbucks Rewards app

My Starbucks Rewards is a successful in-app rewards program, mainly thanks to its design and functions:

  • A minimalist design where the collected points, tier level, and all other functions are immediately visible. This clarity contributes to smoother customer experience.
  • The app has an order-ahead (skip the line) option that lets loyalty members order ahead of normal customers. This option saves them time and gives a touch of exclusivity.
  • Customers can place orders and pay digitally, without human interaction, which makes the process more efficient. 

Advantages compared to regular loyalty programs:

  • Customers can access points anywhere and auto-refill their Starbucks digital wallets.
  • It is possible to redeem gift cards and to order ahead in the coffee houses.
  • Upon enrolment, customers can immediately access all the above-mentioned features.
Starbucks Rewards
My Starbucks Rewards, source: Starbucks

Dunkin’ Donuts DD Perks

The DD Perks loyalty program is integrated into the mobile app. The app has over 5 million downloads on Google Play and 4.7 stars on Apple Store. DD Perks is offering the following features:

  • Personalized rewards.
  • Customers can order and pay through the app even before entering the café. This leads to an improved speed of order reception.

Gamification:

  • Dunkin’ has a strong social media presence. The company is offering money prizes for social media shares and other performed actions. (e.g. The 2millionth DD Perks member received a free trip to Dunkin’ Donuts’ Headquarter office.)
  • The company introduced the option to share loyalty points with other program members through its app.

Advantages compared to regular loyalty programs:

  • Members can set up auto-refill for their digital wallet.
  • Members can access their points and redeem vouchers offline.
  • The digitalized order and payment improves the efficiency of the buying process. Products are ordered and paid in the app without human interaction,  therefore faster and more cost-efficiently.
Dunkin' Donuts loyalty app
Dunkin’ Donuts DD Perks, Source: Dunkin’

Designer Shoe Warehouse (DSW)

The DSW mobile app is a great success with over 500,000 downloads in Google Play and 4.9 star rating in Apple Store.

  • Customers can find the nearest store or check the number of loyalty points on the starting page.
  • Customers can scan barcodes of products to access information about stocks and product reviews.

Advantages compared to regular loyalty programs: 

  • Customers can access their points anytime on their smartphones.
  • Customers can redeem vouchers using the app without using any physical coupon or card.
  • Members receive personalized offers before, during and after shopping in DSW stores.
DWS app
DSW App, Source: DSW

How to create your in-app loyalty program with Voucherify?

A web-based loyalty-program is often not enough for a business. If you are still undecided about extending your loyalty program to mobile, calculate your loyalty score and evaluate the performance of your program.

You can set up the program in 7 easy steps, explained in detail here:

  1. Set up project details.
  2. Add a product.
  3. Create a loyalty campaign.
  4. Create a landing page for the loyalty campaign.
  5. Create distribution for the loyalty campaign.
  6. Create distribution for the gift card.
  7. Use Voucherify mobile app to redeem gift cards and coupons.

Example of an in-app loyalty program with Voucherify

MonkeyPub (a fictional example) decided to start its loyalty program as the company wanted to retain more customers and improve engagement. The company found Voucherify’s services appealing in the free trial period and signed up for the STARTUP plan.

The environment in their bars is perfect for a mobile-based loyalty program: customers order and consume at the bar, they usually have their smartphones with them and they are locals.

Voucherify loyalty program scenario for a bar
MonkeyPub loyalty program, Source: Voucherify

How does the MonkeyPub loyalty program work?

Customers join the program on a landing page that is accessible via the internet or on a designated tablet in the bar. The landing page is fully customized to reflect the brand style of the bar chain.

Voucherify loyalty program landing page
MonkeyPub landing page, Source: Voucherify

After subscribing, a new member receives a unique QR code by email, which functions as his/her digital loyalty card. The welcome email is also set-up following the needs of MonkeyPub. Whenever a customer orders at the bar, the bartender scans the QR code using the bar’s smartphone and the Voucherify mobile app. At the same time, the customer collects points for each purchased beer.

Loyalty program welcome email message
Welcome email with QR code, Source: Voucherify

In the MonkeyPub loyalty program, customers collect points after purchasing beer. After each drink, a member receives 10 points. After collecting 1000 points, the member gets an automated email with a voucher of $100. It is easy to check his/her balance anytime in the app, in the customer cockpit.

Customer cockpit
Gift voucher, Source: Voucherify

Whenever a customer wants to use his/her voucher, the voucher’s QR code is read and the balance of the voucher is used for the payment. The voucher can be used until the customer spends its value completely. The same Voucherify mobile app is used to redeem customer’s vouchers.

Voucherify mobile app
Voucherify mobile app, Source: Voucherify

The new program brings numerous advantages to MonkeyPub:

  • Improved brand engagement.
  • More new customers.
  • Higher retention rate for existing customers.
  • Increased sales of products included in the loyalty program.
  • Decreased consumer price sensitivity thanks to offering points and vouchers.

Summary

Most of your customers have smartphones with them, therefore you should definitely consider having an in-app loyalty program. Mobile-based loyalty programs have several advantages, recognized by the market leaders. Going mobile opens up a great number of opportunities for both customers and businesses. With Voucherify, you can create an in-app loyalty program that can be customized to your needs, in no time. Boost your sales, improve your brand engagement and retain your customers.

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