Tags: Incentives & Rebates
Create Reward Programs that Work for You and Your Customers or Employees
Consumers, sales channels, and employees alike are highly reactive to the right incentives, so it is no surprise that loyalty programs are popping up everywhere! No matter what your company goals are, a mobile loyalty program might just be the tool you are looking for to boost sales and drive loyalty.
The Importance of Mobile
The mobile market is booming, especially during the pandemic when online shopping increased by 252 percent. According to a Mckinsey study there is a strong shift towards online shopping with 65 percent of consumers reporting that they will continue with their new shopping habits. With mobile devices at an arm's reach for most people, the continued e-commerce trend presents an opportunity to increase customer retention by optimizing loyalty program software for mobile use.
While it might seem like a daunting task, even something as simple as providing mobile incentives and allowing program participants to sign up for your customer loyalty program through an email or mobile app is an easy way to improve the customer experience.
Mobile Incentives and Loyalty Programs
Utilizing mobile incentives means that instead of the traditional cash or coupon, you’re rewarding your participant through their mobile device. This could be done in a multitude of ways from an e-gift card, email with a coupon, or a mobile app where they can track reward points and redeem rewards. Many companies are finding that the most efficient way to increase customer engagement is through mobile loyalty rewards.
Why Mobile Incentives Work
Mobile devices live in people’s hands so what easier way for participants to receive rewards than by implementing mobile incentives. Mobile apps are convenient for consumers to receive, track and redeem reward points, and it’s in one easy to access place.
Once you adopt this new type of customer loyalty program, you’ll notice that because of the convenience and accessibility, you’ll boost customer retention and might gain some new customers in the process. It’s also more efficient on the backend. Instead of worrying about cash or coupons getting distributed or lost, everything is digital. Just design your email, coupon or loyalty app and hit send.
2. Instant gratification:
There’s no better feeling than getting what you want when you want it. With a mobile loyalty app or email rewards system, that’s exactly what happens! For example, when running a $100 e-gift card promotion to acquire new customers, signing them up for your mobile loyalty program at the time of checkout will allow them to immediately receive their incentive in their inbox or mobile app. So the mobile does all the work and your business gets to sit back and reap the benefits. And as an extra perk, this immediate satisfaction makes for one happy and loyal customer!
3. Participants love being rewarded:
Rewards such as an e-gift card, physical loyalty card or loyalty app points stimulates the pleasure center in the brain. In other words, being rewarded makes them happy, and happy customers turn into loyal customers, and loyal customers will tell everyone how great your business is.
Benefits for a Company
The implementation of mobile loyalty programs have some major advantages: increased customer retention, brand loyalty and potential sales increase.
1. Increased loyalty:
It’s a well-known fact that retaining an existing customer is less expensive than acquiring a new customer. As a matter of fact, 40% of an e-commerce store’s revenue is created by only 8% of its customers. This shows that loyal customers account for a large portion of your business. So when you create a strong mobile loyalty program, you are fostering a customer relationship by encouraging them to spend money on your brand.
This theory also applies to sales channels and employees. If your sales professionals love the incentives you offer, they will feel motivated to push your brand over your competition. Similarly, great rewards and incentives help keep employees interested and feel appreciated. Satisfied employees are more likely to thrive in their positions and contribute to a productive work environment.
2. Potential sales increase:
Incorporating a strong mobile loyalty program can potentially increase your sales. This idea was put to the test by the temporary tattoo company, Inkbox.
Inkbox launched a mobile rewards program that offered Inkbucks to consumers who shared their brand on social media. Inkbox made it especially easy on their customers by allowing the flexibility to either share their purchase on their personal Facebook page or on Inkbox's page. In return for the exposure, participants would earn points redeemable for discounts and company swag, so all the consumer’s social media efforts really pay off! Within the first 30 days, an impressive 70,000 members joined and results in $100,000 in revenue.
The implementation of a mobile loyalty program made it easy for customers to participate and earn their rewards, so much so that they realized an 80% increase in repeat purchases. Customers are happy they’re earning rewards, and the company is happy it’s receiving exposure. Everybody wins!
Mobile Rewards Aren’t Just for Retail
Because the mobile market is continually growing, it can be used for every type of loyalty program participant. The two most common areas after retail are channel incentives and employee incentives.
When dealers and associates are reviewing a company’s loyalty program, they’re looking for speed, ease, and instant gratification. By giving your sales channel the option to receive mobile rewards, it fulfills all their requirements and provides your company with flexibility. Providing flexibility within your loyalty program gives you the option to customize your rewards for different clients.
Customization is beneficial as different clients value different rewards, so being able to be flexible and create unique rewards for participants is a huge perk. When you give your loyalty members the choice to pick out their own rewards, you’re increasing their sense of value and also helping them separate a tangible “thing” from a cash reward. Thus making mobile rewards their preferred type of incentive.
In order to maintain high employee performance, you need to make sure they feel valued and motivated. Luckily, a mobile rewards program can help you do just that! Cash rewards are a thing of the past. People want tangible rewards like a gift card or branded merchandise instead.
Tangible rewards implemented through a mobile loyalty program offers employees a choice as to what reward they’d like best. All of which contributes to a more memorable reward. For a company that wants to retain their hardest working employees, mobile rewards are the way to go.
Rewards When and Where You Want Them
Whether you are rewarding consumers for shopping their favorite brands, trying to boost channel sales, or congratulating an employee on a job well done, implementing a mobile rewards program is a convenient way to reward and launch loyalty incentives.
While it might come as a huge change for some companies, it is imperative to adapt in order to stay relevant and competitive in every industry. Welcome to your new biggest weapon, mobile loyalty programs!
If you’re ready to retain customers, grow your sales, or increase employee satisfaction but don’t know where to start, check out Group O's rewards to see what loyalty solution is right for your company. Call a Group O expert today 866-476-8761 to learn more.