Loyalty reward programs are gaining ground in the mobile world as companies big and small set aside plastic cards and key-rings in favor of a more elegant mobile solution. This new spin on an old marketing concept is another way to loyal customers and bring big benefits to your business.

Why bother with a loyalty program at all? Every loyalty program is built around the idea of creating happy and satisfied customers. A satisfied customer that feels valued is more likely to come back, more likely to recommend you, and more likely to identify with your brand. Loyalty reward programs are an attempt to create happy and satisfied customers by rewarding their patronage with discounts, free items, or other unique benefits.

Mobile application developers have taken this concept and brought it into the mobile sphere with a variety of loyalty reward apps. These mobile apps provide several advantages to both consumers and businesses; here’s the breakdown:

Convenience
A mobile loyalty reward app removes any need for users to keep track of membership cards or burden their keyring with extra plastic. A single, cross-vendor loyalty reward app can put every membership card in once place: their mobile app. Now the user doesn’t need to worry about keeping track of many individual items – all that remains is the convenience of participating in your business’ reward program right from their phone.

Cross-Vendor Promotions
Your loyalty reward program can offer benefits beyond your own business, with the right application. By reaching out and partnering with multiple vendors, a single loyalty reward app can offer related goods and services to your customers, and market your own brand in participating stores. This is one way to expand your audience and reach out to new users.

Geofencing
The term ‘geofencing’ refers to data that allows you to make a decision or perform an action based on your location. Geofencing, and other location-based solutions, are becoming increasingly popular in today’s mobile apps. A loyalty reward app can utilize this technology to let users find nearby stores, track when your customers step inside and to push special offers to them as they leave – encouraging a return trip.

Targeted Offers
Deals and special offers that are tailored to an individual are much more likely to secure their patronage and grow your business. You can offer incentives to users based upon their previous habits – when they visit and what they buy. A good loyalty reward app will collect this data and allow you to push those relevant deals straight to a person’s phone.

Analytics
We love data, and a mobile loyalty reward application is a perfect way to collect information and identify trends that will help you and your customers. For example, you could track which of your services is most popular, when people most often visit, and even how often each user visits. Analyzing this data and then aligning your rewards program with the preferences of your customers is a great way to grow your business.

Engagement
Every business needs to think about how it connects with customers and builds a relationship with them, especially in the age of mobile apps and social media. A loyalty reward app is a communication channel for each of your customers that they carry in their pocket – it’s an incredible opportunity to reach out and interact with them regularly. You might send updates on your business or highlight new or seasonal products. Or perhaps you’ll send special, targeted offers to users during the lunch hour as they pass by your location. A mobile loyalty program offers greater engagement opportunities than a simple punch card.

Brand Loyalty
People like to identify with their brands – they value and promote the companies they love. Mobile applications, including loyalty reward apps, are a great opportunity for businesses to build a base of loyal customers. That kind of loyalty comes from making connections and engaging your users regularly; it comes from inviting your users to give feedback and making them feel valued. A loyalty rewards app is one possible option.

One of the most exciting aspects of mobile application development is renovating old systems and solutions, like a loyalty reward program, for a mobile world. Many of the advantages enjoyed by smartphones as a platform make it ideal as a vehicle for loyalty rewards. Mobile websites and apps are excellent ways to connect with your customers, engage your audience, leverage your brand, and gather useful data on your users. Can your business benefit from a loyalty rewards app?