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How Online Loyalty Programs Are Changing the Way We Shop

Loyalty programs have been around longer than the Internet, but the volume of online consumer data lets retails cater to their customers better than ever before. And with good reason: loyalty programs influence buyer decisions both in-store and online. In a recent study, 50 percent of customers who participated in loyalty programs said these incentives drove their purchasing behavior.

Loyalty programs really are changing the way we shop. Here, we’ll talk about the ways loyalty program trends could change the way retailers manage customer relationships.

Smartphone app loyalty rewards are driving purchasing behavior

Users who shop using mobile apps make purchases 21-percent more frequently than those who shop using other methods. One of the biggest drivers of app-driven purchasing behavior are loyalty rewards programs. Smartphone users enjoying checking or using their rewards because this interactivity encourages them to engage with the real world through their technology.

Both brick-and-mortar and online shops are mimicking Amazon’s hugely-popular Prime

44% of American households have Amazon Prime, a $99-per-year loyalty program that offers free shipping on purchases and access to online music and videos. The popularity of Amazon’s pay-in loyalty program has caused other retailers to offer similar programs; for example, Bed, Bath, and Beyond recently unveiled its $29-per-year free shipping and 20% off-per-purchase program.

Loyalty members are becoming the only shoppers who can access in-store smartphone purchases

We’ve all heard about coupons that are released to shoppers in-store via smartphones. But releasing these coupons willy-nilly is not the best method; instead, retailers are experimenting with only releasing these coupons to shoppers who have both signed up for loyalty programs and already made a number of purchases.  

Long-term customer loyalty is being built using threshold and milestone markers

Modern customers like to feel unique. With this idea in mind, loyalty programs are moving away from generic, one-size-fits-all to personalized milestones based on purchasing behavior. As customers rack up milestones like time-in-program, number of purchases, or amount spent, the loyalty program app sends them unique rewards that build brand commitment.

Retailers can improve their relationships with customers by creating mobile apps that prominently feature loyalty programs. But your customers aren’t going to join loyalty programs – or be loyal – if your app is unattractive or difficult to use. A partnership with ELEKS on your mobile app design ensures this won’t happen. Our team offers thorough business analysis and award-winning UI/UX, so, at the end of our time together, you’ll have a professional, ready-to-use loyalty program app.

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