Future of Loyalty Programs

Why would I download an app from my local bar, restaurant or hairstylist?

Sure, people might want to see what time you are open or where you are, but the information will be available from a company’s Web site, even if it is not optimized for mobile.

Social engagement?

Yes, people might want to see what your employee are up to and your latest news, but if they already “Like” and follow you on social networks are they not already engaged with you?

What can make the difference then?

Loyalty. Mobile apps, when used correctly can be used to replace your paper-based loyalty cards and the stamping that goes with it.
The features ingrained within smartphones can shift a low-tech loyalty scheme into a digital marketing pro¬gram for small businesses.

Facts about loyalty programs:

• Consumer spending is 46 percent higher with compa¬nies that offer loyalty programs
• Companies can increase profit almost by 50 percent by retaining 5 percent more of their customers
• 70 percent of people that come from higher income households are more loyal to companies that offer a re¬wards program
• Since the recession, 32.3 percent of consumers made their participation in loyalty programs more important

Terry McCusker

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