Loyalty programs have been around for some time and with good reason – they can be hugely successful.  With mobile increasingly becoming the channel of choice, especially for the most loyal customers, retailers need to bring forth another avenue in the world of loyalty programs – the mobile platform.

A brand’s mobile app is the perfect channel to integrate their loyalty program with.  Starbucks’ can attribute their loyalty success to their mobile rewards app.  Over one million Starbucks’ customers use their mobile rewards app to pay for orders, check their loyalty account information and to receive personalised promotions.  Likewise, NN4M’s client, The Body Shop, have made their iPhone app the go-to-hub for their Love Your Body™ Club loyalty program.  Members can accumulate and view their points and digital vouchers through the app or home screen widget and spend them online or instore.  They can also gain automatic promotions such as free delivery, donate to The Body Shop’s charity partners, add vouchers to their wallet app and be notified when they are passing the nearest store.

So what are the benefits of integrating your loyalty program into your mobile app? Well brands can drive a 52% conversion increase by providing their customers with a seamless customer experience – allowing them to maximise their loyalty benefits without having to remember cards, numbers or vouchers – that encourages engagement and participation across the online and offline channels.  By removing the traditional loyalty card (which we are all prone to occasionally losing) brands are focusing on the power of the always on and always available mobile channel, keeping them at the forefront of their customer’s minds and increasing engagement by 25%.

Mobile apps also have some pretty great features that can help to create an unparalleled experience for loyalty customers.  Adding a widget can show loyalty points or perks on the device’s home screen, encouraging engagement without the customer actively opening the app.  Push notifications give brands a channel to directly deliver messages to their customers instead of relying on them seeing an email or reading receipts to find out their loyalty bonuses. The app can also be used to communicate the brand’s loyalty values.  For instance, The Body Shop’s Love Your Body™ Club is centred on championing their core brand value of using business as a force for good.  That’s why they have given their members the choice to donate their reward vouchers to their charity partners through the mobile app.

There is no doubt that mobile loyalty is gaining traction in 2016.  Customers want loyalty programs available to them through their mobile devices and apps have the potential to transform the traditional into a value differentiator for brands.