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, so much in fact that during Black Friday of 2017 mobile sales rang in at a whopping 64% of sales. With mobile devices in people’s hands or at least not far from them, the continued growth of mobile presents an opportunity to create loyalty by optimizing incentive and loyalty programs for mobile use. While it might seem like a daunting task, even something as simple as providing mobile incentives such as e-gift cards or allowing program participants to sign up for your loyalty program through an email or an app is an easy way to improve participation and satisfaction.
Mobile incentives and loyalty programs
Utilizing mobile incentives means that instead of the traditional cash or coupon reward, you’re rewarding your participant through their mobile device. This could be done in a multitude of ways from e-gift cards, an email with a coupon, or an app where they can redeem rewards. In 2018, many companies are finding that the most efficient way to reach their program participants is through mobile incentives.
Why mobile incentives work:
Mobile devices live in people’s hands so what easier way for participants to receive rewards? By implementing mobile incentives it’s convenient for them to receive, track and redeem rewards, and it’s in one easy to access place. Once you adopt this new type of loyalty program, you’ll notice that because of the convenience and accessibility, you’ll be able to retain loyal participants and might gain some new ones 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 app and hit send.
2. Instant gratification:
There’s no better feeling than getting what you want when you want it. With an 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 loyalty program at the time of checkout will allow them to immediately receive their incentive in their inbox. So 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 participant!
3. Participants love being rewarded:
As studied by Cialdini, rewards such as e-gift cards or physical reward cards stimulate 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 a mobile loyalty program has some major advantages: increased loyalty and potential sales increase.
1. Increased loyalty:
It’s a well-known fact that retaining a customer is less expensive than acquiring a new one. 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 rewards presence, you are fostering a relationship with your consumers 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 stay and refer other great employees.
2. Potential sales increase:
Incorporating a strong mobile rewards presence 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 consumers 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 resulted in $100,000 in revenue.
The implementation of a mobile reward program made it easy for consumers to participate and earn their rewards, so much so that they realized an 80% increase in repeat purchases. Consumers are happy they’re earning rewards, and the company is happy it’s receiving exposure. Everybody wins!
However, mobile rewards aren’t only for retail
Because mobile is such a continually growing market, it can be used for every type of incentive program participant. The two most common areas after retail are channel incentives and employee incentives.
When dealers and associates are reviewing a company’s reward program, they’re looking for “Speed, ease of use, and immediately apparent benefits that will pique your partners’ interest in your channel incentives program”. 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 rewards program gives you the option to customize your rewards for different clients.
This is beneficial because different clients value different rewards, so being able to be flexible and customize rewards for them is a huge perk. For example, when you give your participants 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! Since cash rewards have now become the old school way of rewarding good behavior and are no longer working as well as new methods. For example, “tangible rewards like a gift card, merchandise, etc. are more valuable than the traditional cash reward because they involve social recognition, and are more distinctive and memorable.”
So by rewarding your employees through mobile, you’re giving them a choice, they gain social recognition from peers/coworkers and it’s going to be more memorable for them. The highlight of this method being memorable. When an employee is handed $5 for doing a great job, in their mind it immediately goes into their wallet and is out of sight out of mind. Therefore, that $5 isn’t going to be enough to continuously motivate them. However, if that $5 was turned into a gift card to a local restaurant, it gives that reward more value because it’s an experience. Even if employees say they’d rather have cash, studies like the one above, have shown that in reality, they’d rather have an experience. For a company that wants to retain their hardest working employees, mobile rewards are the way to go.
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 system is a convenient way to reward and launch loyalty programs. 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 rewards!
If you’re ready to retain loyal customers, grow your sales, or increase employee satisfaction but don’t know where to start, check out our rewards to see what incentives are right for your company.