They help grow your business with referrals
The first stage of operating a successful business is chasing and maintaining customers. Without them giving you their money, your business ceases to exist. The second stage is one that, sadly, many businesses never get to getting current customers to bring in more customers.
Having a loyalty or rewards app turns all of your users into unwitting referrals. Think about it — what do you do if you like a particular restaurant, or store, or even a type of shoe? You tell your friends about it. With an app, it’s easy for one customer to summarize and set up their friends for your business, effectively warming up the sale for you. Having a rewards app won’t seal the deal, but it will add credibility and make the new customer see the thing all shoppers want: the potential for free stuff.
Referrals cost you nothing and often do a better job of bringing in new business than the best marketing campaign can because human beings trust authentic people’s word over any sort of advertising. Once referred, they’ll come to you with the app already installed, some amount of trust already in their minds, and a higher willingness to spend their money.
They give you invaluable customer data
Finally, let’s discuss the real value of adding a loyalty app, or any tech-enabled component. When you have an app, an email list, or a texting list, you have access to valuable customer data that allows you to gain further insight into the demographic breakdown of your audience.
How often do top users engage with the app? What’s the most popular reward? How often are specific customers making a purchase? What’s your most popular product? What products are your top-dollar customers buying? What is the breakdown of your customer base by age, location, and job role?