Mobile Rewards Programs: Let Your Data Decide Which Is Right For You - Lift361

Our Thinking

Mobile Rewards Programs: Let Your Data Decide Which Is Right For You

By Ed Higdon. Posted in Uncategorized

November 05, 2014

Finding the Benefit of Mobile Rewards

By the end of 2014, it’s estimated that more than half of all small businesses in North America will launch customer service loyalty programs. The statistic is telling: more than ever, companies are realizing that loyalty rewards lead to customer retention and combat attrition. But even more exciting and noteworthy for businesses is the growing shift towards mobile rewards.

Instantaneous, clutter-free and environmentally friendly, mobile reward programs are slowly taking over. Customers have convenient access to such an abundance of these apps, in fact, that mobile reward programs need to be more strategically planned than any other kind of offer.

In order to make sure customers opt for one convenient mobile offer over another, the incentives rewarded need to more speak strongly to them – and perfectly reflect their habits and needs.

How Can You Choose the Right Mobile Rewards Platform for your Business?

There are currently several strong leaders in the mobile rewards market, and hundreds of new apps in development. Different apps facilitate different kinds of reward programs – such as punch cards for purchases, check-ins, or social offer redemption. For retailers, experimenting to find the right mobile platform can be daunting.

That’s where an experienced data analytics company comes in handy. Advisors know the mobile platforms available, and can help retailers pick one best suited to the habits of their specific clientele.

Some Noteworthy Mobile Rewards Programs

The App Belly offers one of the most popular mobile rewards programs out there, with more than 7,000 merchants using it in North America as of summer 2014. Belly offers an electronic punch card that lets customers rack up points, to trade in for a range perks, from simple small offers (Buy one, get one 50% off) to more extreme (50% off your entire purchase).

This app stands out for allowing retailers to offer wild, customizable rewards to different kinds of users, and offer various tiers of rewards based on habit. Users sign up with their email address, and the retailer accumulates a significant amount of personal data about each user and their habits.

Collecting user information is only half the battle. With data comes the need for analysis. By consulting data specialists, retailers not only ensure they’re using the best program, but that they’re leveraging the most from it. They can better understand which rewards to offer based on their customers’ purchase histories, and the popularity of different offers across their entire customer base.

Optimize your rewards

Front Flip is another example of a leader in the mobile rewards market, with more than 1 million users, and corporate clients such as KFC and Hooters. Front Flip is ideal for retailers looking for an easy-to-use, navigable platform to track customer purchase statistics and manage customized rewards.

Front Flip is hailed for its flexibility, allowing retailers to create fun and interactive programs for shoppers. The flip side of this, however, is that managing programs can become complex. With no guidance, it can be difficult to know which customers will respond to a monthly coupon, and what kind of coupon they might use. But using an analyst’s wisdom can shed some light on these questions.

Understanding why certain rewards attract certain customers, through a level of deeper analysis allows retailers to reap greater benefits.

Using the tools

Mobile apps are popular and gaining ground—the numbers show only increases in usage. But there’s no exclusivity attached to them: when customers see two coupons pop up next to each other for different companies, there’s no guarantee that they’ll choose yours.

Retailers want the customer to respond to the incentive in the rewards program. By making strategic decisions about which program to use and how, retailers can unlock a bevy of opportunities that apps alone don’t deliver.