The easiest way to increase revenue without spending a fortune is through customer retention and word of mouth. This concept is not new to national chains; Starbucks has been encouraging customer retention through its mobile loyalty app since its launch in 2009. Starbucks has reported to have seen an average of 7 million mobile loyalty app transactions per week which represents 16 percent of their total sales.
According to a study conducted by BIA/Kelsey, 54 percent of small and medium sized businesses (SMB) are currently offering loyalty programs, but are primarily using paper-based loyalty programs. While this is a great start, using a mobile loyalty app that is integrated with the merchants payment processing system will help to reduce operating costs, boost revenue, and is proven to bolster the number of visits made by customers and increase word of mouth advertising.
WHY YOUR COMPANY SHOULD HAVE A MOBILE LOYALTY PROGRAM
Consumers are savvy shoppers, they want to diversify how they shop, whether it’s making purchases online or receiving customer shopping incentives.
A mobile loyalty app has the ability to provide you with context around the entire purchase decision. You can control the consumer checkout experience and drive a seamless consumer centric in-store shopping experience by tailoring offers based on past purchase history, the consumer’s exact location, or featured in-store deals. A mobile loyalty app gives you a permanent branding opportunity and “always on” connection with your customers.
In BIA/Kelsey’s ongoing study of local commerce, it was discovered that SMBs using a loyalty program estimate 17.7 percent of their total business will be generated by customer retention and acquisition programs.
Interested in taking the next steps to having a mobile loyalty app, but aren’t sure what your options are?
There are a few options available:
- You can either hire or contract a mobile app developer to create a custom app for your business. This tends to be costly both in up front expenses and ongoing maintenance and updates.
- There are also numerous stand-alone mobile loyalty service providers you could use for your business. The challenge with this option is that you run the risk of your app not integrating with your loyalty program and payment system, which creates more work for your staff and you lose the ability to tightly couple ROI to your program.
- The final option is to look for a payment and point of sale system that is all-encompassing and includes an integrated loyalty app.
OFFERS IN THE CLOUD, THE NEW MOBILE LOYALTY PROGRAM ON THE BLOCK
A mobile loyalty app will help to enhance customer experience, further your brand proposition, and help your company to remain competitive in a consumer driven commerce world. The key to mobile loyalty app success is finding a program that is hosted on the same platform as your payment services.
Beanstream, a Digital River Company, has recently released sproutPOS, a mobile point of sale solution designed for SMBs in-store and on-the-go. A notable feature of sproutPOS is the ability to accept debit and chip and PIN cards on-the-go, which allows you to capture a sale no matter what payment method your customer wants to use.
What sets sproutPOS apart is a feature called Offers in the Cloud, which allows loyalty and marketing apps to integrate right to the point of sale terminal. Offers in the Cloud opens the door to a plethora of Beanstream partners who specialize in customer retention, loyalty, acquisition, and greatly extends the value your business receives from your point of sale solution.
Using an integrated loyalty module, you can easily deploy a customized mobile loyalty app for your store. When customers download your store’s loyalty app, they are able to sync their credit and debit cards with the app so when you swipe the customer’s card, your point of sale automatically recognizes eligible offers and redemption occurs at the touch of a button.