Traditional loyalty isn’t evolving fast enough
Traditional loyalty programs really haven’t had a dramatic transformation over the last 20 years. What began as physical punch cards simply evolved into programs that are dependent on native apps – both of which only allow for one point of entry into the program.
Native apps are a barrier to entry
While there’s no denying that native apps are integral to a successful loyalty program, one problem stands out. Most smartphone users have become saturated with app usage. The average user engages
with 30 apps monthly, or about 9-10 per day. That means your loyalty app faces fierce competition to grab customers’ attention over the apps they regularly engage with.This highlights a significant barrier to entry for loyalty programs, negatively impacting member acquisition. In fact, when asked to download an app to complete a transaction, 62% of smartphone users will abandon the purchase. Even when users sign up for an app, 71% will churn after three months.
The burden of downloading an app often outweighs the value it delivers
Since the average smartphone has over 80 apps installed on it2, customers need a good reason to install
another app to join your loyalty program. The value must be clearly presented to them, or they won’t bother installing an app or completing a lengthy sign-up process.
So, how can convenience and fuel retailers combat the ever-growing problem of consumer app attrition while acquiring and retaining loyalty members?
Retailers should focus on making the onboarding process easier and less cumbersome, and expanding program reach beyond a native or mobile app. Here’s how you can do it:
1. Require minimal information to sign up
The more hoops people have to jump through to get signed up, the more likely they won’t complete the process. Make the sign-up process quick and frictionless by allowing users to join on the pump or POS with just a mobile phone number.
2. Offer a web-based experience
After users have joined with a mobile phone number, find ways to make the enrollment frictionless. Implement a loyalty program that puts mobile web and SMS first. Allow users to interact with your program through web and show the value it provides. After members have become active and engaged,
prompt them to download a native app where they can receive even more value.
3. Strategize ways to build a customer profile over time
As customers sign up for your loyalty program, start collecting actionable demographic and purchase behavior over time. As that data is collected, retailers can use it in real-time to segment customers to deliver 1:1 offers that incentivize incremental purchases. The result is an increase in sign-ups, retention rates, basket size, and visit frequency.
By starting small and making sign up easy, consumers will see program benefits over time. At PAR Retail, we believe a web-first approach is key to maximizing the number of users who join your loyalty program. At PAR Retail, our web-first approach has proven to drive a guaranteed 50% increase in both program members and transactions.
Get in touch today to learn more about how a web-first approach can help maximize the number of users who join and stay engaged with your loyalty program.
