A GUIDE TO MOBILE LOYALTY Boost Sales & Retain Customer Value

• Loyalty programs are a great way ofadding value to customer visits andgiving them a reason to return in thefuture.

• To create loyal customers who alwaysuse your business over your competitorsyou need to acknowledge their loyaltyand reward them for their business.

INTRODUCTION

95% of US consumers appreciate customer loyalty programs

LOYALTY STATISTICS • 90% of mobile users who

have joined mobile loyaltyprograms feel they havegained value from them

• 62% of consumers don’tbelieve that the brands theyare most loyal to are doingenough to reward them.

• 95% of people who enrolledin a mobile loyalty programsaid they were likely tocontinue using it.

EVOLUTION OF LOYALTY • From stamps, to cards and now with

the saturation of smartphones ineveryday life, comes the emergence ofMobile Loyalty Apps.

• Smartphones have opened up anincredible opportunity to replace andlighten wallets and handbags byoffering a Loyalty Card that can beaccessed via an App.

• As mobile technology continues togrow, retailers are increasingly lookingto provide customers with a seamlessshopping experience.

DEVELOPMENT of LOYALTY SCHEMES within RETAILERS

In total, how many loyalty cards do you own? Results from a consumer survey by SAS, all figures are percentages. 95%

of consumers own at least one loyalty

card

TYPES OF LOYALTY • Buy 10 get one freeThe traditional punch-card is popular with independent businesses like coffee shops, greeting card stores and beauty salons.

• Points for purchaseCustomers earn points based on how much they spend via their App, which can be applied as credit against future purchases.

• Points for checking inCustomers can earn points every time they check in to a business location and share their status via social media.

VALUE OF LOYALTY It doesn’t matter what the consumer benefit is (be it money off, holidays, or a free coffee), the real prize here for the retailer is big data.

LEARN FROM LARGER RETAILERS

• Companies such as Tesco andWaitrose need to attach purchasehistory to an individual, and learn asmuch as they can about that person tohelp their marketing efforts.

• Retailers use big data to turn customersinto big spenders.

• Big data enables companies to createcomprehensive customer profiles,precise product recommendations andone-click checkout.

RISE ABOVE THE COMPETITIONFor small businesses, it can be difficult to compete with the larger brands considering that they have more resources and a higher budget for marketing.

However, a good customer-loyalty program is an easy way for small businesses to :

• Gain trust

• Show their personal side

• Hold their share in the market dominated bybig businesses.

VALUE OF LOYAL CUSTOMERS On average, Loyal Customers will spend 10X more than regular customers

These people here are your loyal customers. They account for 20% of your customers

Those 20% drive 80% of your total revenue…

…and 72% of total visit to your business!

NEW vs. LOYAL CUSTOMERS

NEW CUSTOMER

• Are more price conscious

• Probability of getting a sale from newcustomers is 5-20%

• Over 50-60% of new customers don’tcome back after the first visit!

• The average conversion rate (actualsales) from promotions sent to newcustomers is less than 1%

• Less than 20 of daily dealscustomers will return and pay fullprice for items.

LOYAL CUSTOMER

• Have a greater lifetime value.

• Spend more over time and generatemore revenue.

• The probability of making anadditional sale or upselling, is60-70%

• Loyal customers like to hear fromyou. 65% want stores they visit toemail them with offers and discounts.

• A loyal customer will recommend youto others via word of mouth andsocial media.

FIVE RULES TO LOYALTY SUCCESS

1. OFFER REAL VALUE

Offer Small Business Benefits!

Customers are often being a sold a significantly worse deal from larger companies.

• Take Tesco for example, for every dollar spent earns the customer 1 point, 100 points is equal to $1 saved. That’s a rather sad 1% return.

• Now consider your local coffee shop who may offer a free coffee for every 9 purchased. If a coffee costs roughly $2.50, that’s a healthy return of 11%.

Which would you prefer?

2. DEFINE YOUR MOST LOYALCUSTOMERS

• Analyse your data and learn whoyour most loyal customers are.

• These are the customers you want totarget and create the most incentivesfor.

• Rewards to encourage repeatbusiness are different to rewards youoffer to encourage new business.

3. BE PERSONAL…

• Learn about your customersspending habits. What timethey shop, what they buy andhow frequently.

• Use this information to createpersonal offers tailored towardsyour customers preferences.

… AND RELEVANT

• 94% of loyalty members prefer to receivecommunications from their programs.

• Yet only 53% describe the communicationsthey receive as relevant.

- Maritz Loyalty Report

4. TIMING MATTERS• Make sure you promote your

offers at the most appropriatetimes.

• There is no point notifyingcustomers of a special offerwhen your business is closed,or of a time sensitive offer if theyaren’t nearby.

• Use scheduled PushNotifications and create GeoFences to target your customersat the right time.

5. MAKE IT SIMPLE,YET SIGNIFICANT

• Be clear to customers on how theycan earn points and redeem points.

• The first 4 to 6 months of any loyaltyprogram launch are critical, so besure to let new members collect lotsof points as quickly as possible forexcellent traction.

• Create QR codes that App users canscan for points upon payment atcheckout.

• Enable users to earn points throughin-App payments.

37% of retailers believe “retaining customers” will be the number-one contributor to revenue growth in the

next three years. -KPMG

LOYALTY PROGRAMS ENCOURAGE SALES

•Nearly 60% of global consumers saidthat loyalty programs were availablewhere they shopped.

•A whopping 84% of those said theywere more likely to visit those retailers.

- Nielsen

BY OFFERING LOYALTY RETAILERS CAN..

• Increase the number of repeat customers

• Increase the amount spent by repeat customers

• Drive sales

• Understand more about customers shopping habits

• Boost revenue

LOYALTY PROGRAM = CUSTOMER RETENTION

• A 5% increase in customer retention can double yourprofits.

• The average business loses 10-30% of its customerseach year.

• A Loyalty Program can help to reduce this number,especially when thinking about the lifetime value ofeach customer.

GROW YOUR BUSINESS

Something as simple as a Mobile Loyalty Program can literally be the easiest way to grow your business!

Make a positive change to your business that both you and your customers will love…

INCLUDE MANY OTHER FEATURES

• FOOD ORDERING• PRODUCTSHOPPING

• DIRECTIONS• GALLERY

• IN-APP FORMS• ONE CLICK CALLING• SOCIAL MEDIA LINKS

• VIDEO DIRECTORY

• AUDIO STREAMING• BOOKING FORMS• EVENT LISTINGS

• MESSAGING• QUIZZES• UNLIMITED HTMLPAGES

• and MORE!

aNeed4Apps PRICING • App Design & Set Up Fee: $400• Monthly hosting Fee: $50• Available on Apple AppStore and GooglePlay Store• UNLIMITED Push Notifications

• UNLIMITED App Downloads

GET STARTED • Contact us from 9-5PM by calling

• Tel: 707-247-5410

• Or email us at time at: sales@aneed4apps.com

• For more information visit our website at: www.aneed4apps.com