Building astonishing customer engagement and experience in a world overwhelmed by tons of communication is a huge challenge. More and more companies use mobile apps to create dedicated channels of communication with their clients and establish a bond that can be something more than just messages related to customers’ purchases.

Here’s where loyalty programs with mobile applications come in!

Key takeaways

• Mobile loyalty programs serve as indispensable cornerstones in the mobile app industry by providing a nuanced array of benefits, both transactional and non-transactional, driving user engagement and overall app momentum.
• From compelling rewards, loyalty points, achievements, and scan-to-receive perks to traditional punch cards and mileage-based rewards, loyalty programs showcase a diverse array of features, reflecting their strategic adaptability.
• Mobile loyalty programs seamlessly integrate into diverse industries such as brand reselling, travel, food, retail with offline stores, and many more, affirming their strategic significance as enduring tools for sustained customer commitment.
• Whether you're running a big international company or overseeing a neighborhood retail store, incorporating a thoughtfully designed mobile loyalty program is recognized as a smart strategy to enhance customer connections and achieve outstanding results.

What is a mobile loyalty program?

A mobile loyalty program is a strategic initiative implemented through mobile applications to enhance the overall customer experience with a brand — this enhancement encompasses various aspects, such as shopping and customer care interactions.

The fundamental idea behind mobile loyalty solutions revolves around surpassing client's expectations, offering additional perks to users, and establishing a meaningful connection with customers through consistent and tailored communication.

The mobile channel is a versatile platform that enables brands to engage with their clients virtually and through various channels, especially when powered up by a top loyalty management system. Leveraging personalization techniques and carefully crafted push notification messages, brands can reach out to their customers precisely when needed and deliver messaging that resonates with them. As you might surmise, this direct and personalized relationship becomes crucial for brands that distribute products through multiple resellers, ensuring a seamless and unified brand experience.

One of the significant advantages of loyalty programs integrated into mobile applications is the wealth of behavioral data they generate. The insights gained from these programs empower organizations to make informed decisions, tailor their offerings to specific preferences, and refine the overall marketing strategy. In this way, mobile loyalty programs contribute to customer satisfaction and businesses' strategic development and expansion.

The importance of loyalty programs in the mobile app industry

Implementing mobile loyalty programs stands out as a key strategy to foster customer exposure, increase customer retention rates, and cultivate unwavering brand loyalty. The multifaceted value derived from loyalty mobile applications extends beyond mere transactions, encompassing tangible and intangible benefits for end-users.

Transactional benefits

Loyalty mobile apps offer a spectrum of transactional advantages directly tied to product or service purchases. The most prevalent among these are:

• Coupons - providing customers with discounts and exclusive offers.
• Codes - enabling members to access special promotions or savings through unique codes.
• Digital currency - facilitating seamless and secure payments through digital currency options.
• Free products/services - rewarding loyal customers with complimentary items or services.
• Access to pre-sell or limited offers - granting early access to exclusive product releases or limited-time promotions.

Non-transactional benefits

Beyond transactional perks, loyalty mobile apps add an extra layer of surprises unrelated to direct brand offerings. Some noteworthy non-transactional benefits include:

• No-receipt returns - simplifying the return process by eliminating the need for a purchase receipt.
• Dedicated customer care - offering personalized and responsive support services.
• Enhanced buying features - introducing features such as progress tracking or secure payment gateways for an improved purchasing experience.
• Invitations to exclusive events - extending invites to closed events or VIP experiences.
• Gifts unrelated to core offerings - providing unexpected gifts or rewards that go beyond the brand's primary products or services.
• Free samples - offering complimentary samples to showcase new or existing products.
• Educational materials - providing valuable content and resources to educate and empower users.

In essence, the customer loyalty program enables brands to deliver diverse values, creating an exclusive and enriching journey for buyers that transcends conventional sales and marketing channels. The mobile app channel itself becomes a conduit for accessing these benefits, eliminating the need for clients to carry physical loyalty cards and ensuring seamless engagement with the brand's offerings.

What are the most popular features in mobile loyalty program applications?

When delving into the realm of mobile loyalty program applications, it becomes evident that these apps come in various forms, each equipped with distinctive features to enhance user engagement.

Below, we'll explain in general terms some of the most popular functions that often find a place in these applications:

• Rewards and loyalty points - customers accumulate points through transactions or activities, unlocking rewards and incentives.
• Achievements and rewards - acknowledging user milestones or achievements with corresponding rewards to encourage continued participation.
• Scan and get rewards - leveraging QR code or barcode scanning functionalities to provide users with rewards seamlessly.
• Punch card - mimicking the traditional customer loyalty card system, users earn stamps or punches for each transaction, leading to eventual rewards.
• Miles - incorporating a mileage system where users earn virtual miles that can be redeemed for various benefits.
• Referrals - encouraging users to refer the app to others, often resulting in bonus points or exclusive rewards for the referrer and the new user.
• Points and payment - allowing members to use accumulated points as a form of payment, providing a tangible benefit for their loyalty.
• Levels and engagement - introducing a tiered system where users progress through levels based on their engagement, with each level offering enhanced rewards.
• Hidden offers - incorporating an element of surprise by unveiling exclusive and hidden offers, adding an element of excitement for loyal customers.
• Special offers - showcasing promotions, discounts, or exclusive deals that are specifically tailored for loyalty program members.

While the landscape of mobile loyalty apps is diverse, many patterns lean towards simplicity, often focusing on one or two core assumptions. Whether it's the straightforward accumulation of points or the gamification of user engagement through levels and achievements, these features collectively contribute to the success and popularity of mobile loyalty programs.

Examples of customer loyalty mobile apps

Tchibo

Tchibo (Tchibo – Mode, Wohnen, Lifestyle & Kaffee) mobile app is a combination of loyalty program and mCommerce app. It gives access to loyalty cards and personal vouchers, enables mobile shopping, and informs about offers.

Functionalities

• Online shop: Tchibo collections
• Online shop: coffee and accessories
• Discounts and promotions
• QR code scanner
• Tchibo card management
• Personal coupons
• Map of stores

Design advantages

• Customized shortcuts
• Access to important functions with no Internet connection

Presentation in store

Simple, characteristic icons and header pictures in Google Play make it easy to identify the Tchibo brand. Mobile app description is both satisfying to the user and correct in terms of ASO.

Dunkin’ Donuts

Dunkin’ Donuts – Offers (Dunkin’ Donuts perks and rewards) app provides DD Perks program members with rewards and loyalty offers, gift cards, On-the-Go Ordering with mobile pay, menus, and nutritional facts, as well as store locators.

See below how the Dunkin’ Donuts customer loyalty rewards program can increase customer retention.

Functionalities

• Coupons overview
• Menu and nutrition tables
• Map of stores with "near me” function and rich filters (hour of service, payment methods, special ingredients)
• Loyalty card management
• Order On-The-Go (order and pay from your phone)
• Emoji keyboard

Design advantages

• Registration isn't required to enter the app
• Informative tutorial by application first launch
• The look and feel of the app consistent with the brand's character
• Using custom graphics and loaders strengthens brand recognition

Presentation in store

The Dunkin’ Donuts app store presentation is rather good, with a clean photo, logo, and brand name. The characteristic icon and well-written descriptions are divided into sections. Custom graphics in Google Play strengthen brand recognition.

EQUIVA

EQUIVA's transformative journey in the equestrian world is underscored by its innovative approach to customer engagement through the introduction of the EQUIVA mobile app. From their humble beginnings in 2003, EQUIVA has grown into a prominent force with over 80 stores across Germany, Austria, and Luxembourg. 

The EQUIVA app, a cornerstone of the company's evolution, not only provides a convenient platform for equestrian enthusiasts to access a diverse range of products but also introduces a novel loyalty program — "EQUIVA Friends."

The described program, seamlessly integrated into the mobile app, allows users to stay updated on the latest offers and earn and accumulate "Hearts" with each purchase. These Hearts, serving as a unique currency within the loyalty framework, establish a bond between EQUIVA and its customers.

When users purchase at their EQUIVA store or the EQUIVA online shop, they'll earn two Hearts for every euro spent. As users accumulate more Hearts, they'll ascend through the bonus tiers, unlocking more significant savings — up to a 10% discount on all future purchases. Additionally, users can enjoy exclusive Friends discounts and a special birthday surprise for both them and their horses.

By leveraging the power of mobile technology and gamified loyalty, EQUIVA streamlined the shopping experience and created a more intimate connection with its customer base. The strategic combination of technology and personalized incentives underscores EQUIVA's commitment to evolve with the times and improve the overall equestrian experience for its loyal community.

Functionality

• QR code functionality
• Online store available in the app
• Horse profiles
• Coupons
• Built-in maintenance mode
• In-app messages with useful information directly in the app
• Intelligent push notifications that lead to offers, coupons, or to the online shop

Design advantages

• Good and clear UI
• Easy to use, short learning curve 
• No need to have a physical card

Presentation in store

The icon represents the horse to which the app is dedicated. The app preview consists of screenshots and comprehensive descriptions of the app's main functions.

Starbucks

The Starbucks app is a convenient way to pay in-store or skip the line and order ahead. Rewards are built right in, and the customer collects Stars, for which he or she can earn free drinks and food with every purchase.

Building a customer loyalty program based on the loyalty app connected with payments can strengthen the bond with clients.

Functionality

• Multiple payment forms
• Map of stores
• Gifts (artworks) to share
• Making an order and menu with good quality photos and order subsections: Featured, Previous, and Favorites
• Music: integration with Spotify
• Inbox
• History
• Profile settings: Personal info, Payment methods, Linked Accounts, Passcode, Touch ID, Notifications
• Apple Watch app available
• iMessage available

Design advantages:

• 0 taps to see the account status
• Nice visualization of current loyalty status and points still needed to reach the next status
• Good onboarding
• Usable navigation with the "Add to basket" function
• Attractive visually – clean with good quality product photos

Presentation in store

Good app store presentation with a clean coffee photo accompanied by a brand name. Characteristic icon and well-written description.

Pampers Rewards

Parents App (Pampers Rewards: Saving & Gifts for Parents) is linked to the Pampers Rewards loyalty program. It enables customers to join the program and grants them 100 points just for signing in. The app's primary function is to scan promo codes available on Pampers products and exchange them for personalized rewards.

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Functionality

• First launch tutorial
• Offers section
• Notifications management
• Promo code scanner
• Charity donations
• Rich Profile section with reward points status, contributions, favorites, and baby names

Design advantages:

• Good forms validation
• Help and contextual tutorials available

Presentation in store

App icon consistent with brand look and feel. Informative application name and description. Preview screenshots contain a description informing loyalty members about core functionality.

Huggies

The Huggies Rewards mobile app enables scanning and uploading receipts using a smartphone. Customers can also earn extra Huggies Rewards Points without purchasing products, just by reading helpful parenting articles, watching videos, and viewing personalized bonus offers.

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Functionality

• Receipt scanning
• Huggies reward: earn by scanning the receipt
• Redeem section: redeem reward with rich filters
• Buy section: product catalog linking to the external shop
• Personalised Child profile
• Digital loyalty cards management

Design advantages

• Good forms validation
• Optional personalization: "Tell us about your baby"

Presentation in store

There's a rich description of the application and good-quality screenshots of the application preview, each of which describes the promotion of basic functions

7-Eleven

7-Eleven is a simple app created to collect and manage points. A customer is rewarded for buying the food and drinks in 7-Eleven stores. Earned points can be exchanged for rewards of various types. The app also offers access to available promotions and coupons.

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Functionality

• Loyalty account status (number of points, number of cups)
• Barcode to scan instead of plastic card
• Bonus Offers
• Deals: Promotions and Coupons
• My Rewards
• Map of stores with rich filters
• Customer Profile: the profile, my stores, preferences, 7Rewards Cards Design advantages: 

Design advantages

• Graphic indicator of loyalty point status
• 0 taps are needed to see account status and barcode
• Usable bottom navigation
• Rewards are grouped according to the number of points needed, easily accessible from the tabs

Presentation in store

The icon is very informative thanks to its characteristic logo labeled with the brand name. App preview contains screenshots with descriptions, clearly presenting the app's core functions.

Super-Pharm

Super-Pharm's application consists of all kinds of offers available in Super-Pharm stores. The customer can access a complete list of current coupons and promotions, a map of stores, and personal shopping lists.

Functionality

• Offers: personalized coupons, coupons, promotions, sales
• Shopping lists
• Map of stores
• Favorites
• Code scanner
• Vision testing sign-up
• Newsletters

Design advantages

• Characteristic icons for each offer type

Presentation in store

An easy-to-identify icon presenting the Super-Pharm logo, consistent with the header picture. Available app preview screenshots include a description of the main features of the app.

Tesco

Tesco Clubcard mobile app gives users access to vouchers on their phones and allows them to manage the Clubcard account on the go. Customers can collect points with the Clubcard app by scanning the phone instead of a card.

Functionality

• Offers
• Tesco card code to scan
• Vouchers
• Coupons
• Tesco promotions: categorized with filters available: members-only promotions and standard
• Loyalty account status
• Apple Wallet and Android Pay integration

Design advantages

• Bottom navigation
• Not mandatory registration
• Access to search function from every app level

Presentation in store

The presentation includes a clear icon with the brand's logo and the name of the benefit program. App preview contains screenshots presenting main functions.

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