Modern loyalty programmes in clients' smartphones

Loyalty programmes take new forms in digital space and attract new clients through on-line traffic. Nowadays the ways of loyalty increase have nothing with paper blanks, teenage promoters, plastic discount cards. Learn about modern loyalty programmes and launch them for your clients.

What is loyalty programme?

This is abstract category that brings your actual profit. Loyalty programme is the events to attract new clients and hold the regular ones. Of course, the presence of client does not benefit in itself. That is why any loyalty programme goal is to increase the sales profit. Its core can be explained as follows:

  • you give bonuses and gifts for purchase
  • number of clients grows, they return to your shop more often
  • you increase average check, and the income of trade spot
  • you have many regular clients and stable high profit

To receive the money from clients, you need first to give them something as a gift. This is how consumer psychology functions. High competition, rivalry of on-line and off-line shops, advertisement personalization — customers are spoilt and even moody. It is nor bad neither good. This is just a fact to take it as it is and… increase your target audience loyalty.

Loyalty programme:

  • attracts new clients
  • increases trust in your company
  • functions as word-of-mouth: card is passed to friends for reward (referral programme)
  • helps in loyal customer pool formation
  • stimulates your clients to buy more in your store

What is special with modern loyalty programme?

Modern loyalty programmes are interesting for your customers and meet business demands. What attracts clients nowadays in loyalty programmes?

  • Information is received quickly: amount of bonuses left, discount card active or not, available promos right now. Account at shop web-page and information from it is not something convenient. Besides, shop needs to buy good adaptive layout for various gadgets: PC, tablet, smartphone. If customer has forgotten one's login, password, e-mail for registered account, forget about quick information receiving.

    Resume: modern loyalty programme should not be fixated on shop web-page. Mobile applications solve the problem of loyalty programme members privileges on-line monitoring much better.

  • Variety of privileges and stimulus. If you give points only, to buy the part of the next purchase, then you have not considered number of your target audience needs. Bigger is the choice of privileges and gifts for purchase, bigger is the chance that this client will come back. Modern loyalty programmes must offer few options of stimulation that suite your target audience:
    • accumulated points
    • one-time bonus for large purchase
    • partner discount (coalition loyalty programme)
    • personal discount on birthdays and celebrations
    • reward for activities in social nets
    • cashback
    • free delivery, guarantees, namely service advantages

    Resume: modern loyalty programme must be multi-optional for customers and flexible in managing for marketers.

  • Respect the privacy. Business created spam and became its victim. Nowadays fewer people read their e-mails and advertising leaflets from post boxes. Telemarketers face mass blockage of calling bots numbers. SMS about fire sales are deleted not opened. How can business survive? Do the opposite: respect your customers' privacy. It sounds strange but — lessen the mass of spam. 2-3 push-dispatches per week will benefit more than daily calls urging buying something, even something wanted.

  • Resume: spam get on target audience nerves and decreases its loyalty. Do not impose your services and products in aggressive way. Respect your clients' right on resting without calls from shop manager.

Statistics from Beeline: 10,4 million SMS with spam was received for 24 hours from external sources. It is 26% of external traffic for this period. On first anti-spam stage the operator filter blocked 8,4 million messages. Another 1,4 million SMS were blocked by next receiving platform. User got 600 thousand advertising SMS, that is 6% from the initial amount of spam.

Launch the loyalty programme in customer smartphone — this modern approach is a must for business development

Thinking about loyalty programme transfer to customer phone? Well done. Electronic bonus cards and interesting mobile applications displace the traditional tools of client attraction.

What is the loyalty programme in client smartphone?

  • refuse from plastic cards, paper catalogs, flyer outdoor distribution
  • direct communication channel with clients via push-notification
  • own mobile application or unified platform for various shops
  • quick access to statistics on clients, target audience segmentation
  • integration with till and CRM

Sea of possibilities is there! But why use them and change the brand promotion strategy if plastic cards do their job?

Mobile applications for loyalty programme will steal your clients in couple of years, then it will be much more difficult to take good position in your business segment.

What proportion of Russians uses regularly tablets and smartphones to connect to the Internet?

  • 41% aged 16-29
  • 30% aged 30-54
  • 9% older than 55

What does it mean? Huge amount of people in Russia run a business, pay for goods, make a life with smartphone. For example, to start the enterprise or to apply for marriage registration you do not need nor computer neither personal visit to institution. One needs to download the mobile application and fill in the form. There is entire business correspondence, communication with friends, entertainment, on-line shopping applications in your clients smartphones. By ignoring this fact, the business loses loyal and potential customers every day.

One more factor for loyalty programme transfer to on-line — cheap mobile traffic. Russia is in top ten of countries with the cheapest Internet in the world. Meaning, many people have the opportunity to be always on-line. The amount of global web new users grows yearly.

29% of smartphone holders around the world spend on their phones 3-5 hours daily.

26% user their smartphone up to 7 hourly daily.

Nowadays mobile application is the most optimal platform for loyalty programme launch. You offer to your clients the service they are used to:

  • Loyalty programme in convenient format. Download — launch — get bonuses. No need to take a plastic card with you everywhere and ask the cashier about bonus balance. If your friend needs bonus card, just send it via messenger. It reduces the amount of actions from customer and speeds up the decision on purchase.

  • Your dispatch hit the target. Sad-faced promoter distributes the flyers, they all are in trashcan around the corner. Something familiar? Paper catalogs, flyers, coupons have moved to digital space. You segment the audience in CRM-system yourself by filtering and launch push-dispatch. Push-notifications are shown on smartphone display even if it is blocked.

  • Clients share readily information on themselves. Let's say, you want to receive the discount card. Cashier gives you the form, but you have no pen. They find the pen, but there is already a line of customers behind you. There is no separate table for form filling. Familiar situation? In mobile application it will take 1 minute to fill in an e-form and receive the bonus card. No negative emotions. You receive the information for future personal dispatch.

  • You motivate the sellers to issue more loyalty cards to actual buyers. If there is plan of issue, are you sure that seller will not just issue the cards to non-existing clients and put a check in the report? Mobile loyalty programme with KPI for sellers excludes the possibility of fraud and card issue to non-existing buyers. Every client has the application with personal account, you monitor entire purchase history and your audience activity. Option of KPI for sellers motivates the personnel to issue more cards, and you get valid statistics.

Create your first promotion and bonus on VDcards platform for free and launch modern loyalty system in customer cellphone. DEMO rate is a wonderful chance to try electronic loyalty programme and VDcards mobile application. Send a request to our manager for consultation or register now in personal account and go to VDcards platform.

photoDiscount one or bonus one: loyalty programmes comparison
photoModern loyalty programmes in clients' smartphones
photoE-commerce in future: evolution of on-line trade