Consumer sentiment is divided on loyalty apps
When Amazon acquired Whole Foods, they introduced a new perk exclusively for Prime members: a 10% discount at checkout via scanning a barcode on their mobile app. It was a high-profile example of how loyalty programs and mobile apps are slowly but surely integrating.
For larger brands, tying membership benefits to app usage can help increase adoption among their most valuable customers. Smaller retailers, lack the resources and infrastructure to design a loyalty program, and might need to turn to an app-based third-party solution.
However, when surveyed, we found that most consumers don’t like being forced to use an app to enjoy the benefits of a loyalty club.
Would you download an app to join a loyalty club?
Only 32% said they’d be willing to download and install one. Most respondents chose “no,” but only by a slim majority (37%). Another 30% were unsure, hinting that, although opinion may be split, many consumers can be swayed towards adoption – and the ease of accessibility of loyalty perks is only one reason.
Retail apps make it simpler for shoppers to get promotions, make payments, receive location-based discounts, and generally stay more engaged with a brand. If retailers can determine which features are most important to their customers and create a high-quality app that includes them, adoption can be smoother and more successful.