So what is mobile loyalty and why should you consider a mobile loyalty solution for your business?

Since establishing Scrummy Club back in 2014, we have spoken to literally hundreds of business owners and their customers. Some of these businesses are still trading, but a huge number aren’t. To succeed, providing customers with high quality products served by friendly and engaging staff is a given, but that’s not enough. Over the years we have seen how the most successful traders focus on creating and maintaining strong customer relationships.  

If you’re serious about building great customer relationships, here are 6 reasons you should be considering mobile loyalty:

1. Your customers want (and expect) rewards for their loyalty.

Most business owners recognise that a good customer is easier to hold on to that it is to attract a new one, and that 80% of their revenues will come from 20% of their customers. But did you know that a good loyalty scheme can increase your revenue by 5-10%?

And did you know that loyal customers have been proven to spend up to 10 times more?

You already do so much to look after your customers through great product and service, but rewarding them is a really easy way to show them that you care. Taking a little time to reward your customers is worth it.

Do you want to be known as a business that loves their customers? Most of your customers want and expect rewards for their loyalty, and the fact that your competitors are already rewarding them should speak volumes.

2. Rewards offer an easy way to show customers that you love them, and a step toward delighting them

Delighted customers are 5x more likely to plan on repurchasing than merely satisfied customers, but how do you do create a delighted customer?

Customer delight is all about exceeding your customers’ expectations to create a positive emotional reaction, and word of mouth recommendations.

This begins with rewarding customers for their loyalty, a crucial step toward building deeper relationships with your customers. Done well, in addition to developing a devoted customer base, the right solution can generate positive word of mouth even help to bring lapsed customers back in store.

Ultimately delighting your customer should result in a genuine ‘wow’ reaction, making them feel valued and wanting to talk about you – in a positive way of course.

To achieve the heady heights of customer delight however, your customer delight strategy must start by addressing any customer pain points quickly: including the hassle of paper loyalty!

3. Paper loyalty sucks. Yes, it sucks.

You may already have a paper loyalty scheme up and running, and that’s a great step in the right direction but in this day and age unfortunately it’s not enough. And it certainly won’t be working as well as you think for you or your customers.

For example, do you find that your customers often get frustrated because they have lost or forgotten their cards? And while they’re trying to find those elusive cards, do they end up taking longer to complete their orders (and therefore slow down your queue) while they’re trying to find the right paper loyalty card?

6 reasons your business needs mobile loyalty

Does this scene look familiar?

And how do you monitor the success of a paper loyalty scheme? If you’re counting each and every redeemed card and/or adding each customers’ details to a database manually, how much time does that take and who does that?

Finally, have you considered how much your paper loyalty scheme costs you? Our research shows that, once you factor in design and printing, the cost of running a paper scheme is in excess of £150 per year. And, as it’s almost impossible to monitor performance, what ROI is your paper-based loyalty is giving you?

4. Mobile loyalty isn’t just for big business.

No doubt you’ll have spotted that pretty much every one of the large chains - Starbucks, Interflora, Domino’s, Marks & Spencer, and more - all have their own mobile apps. But mobile loyalty isn’t just for big business.

Did you know 75% of all smartphone users are interested in interacting with loyalty schemes via their mobile phones?

Most of your customers have smart phones, or will do soon, and cards of all kinds - loyalty, membership and even payment cards - will all be obsolete within a few years.

5. You really don’t need to create your own app.

Having your own branded app may sound appealing. But it can be expensive to scope out, design, build and maintain - particularly with hardware & operating system upgrades to keep on top of (we know this from experience!).

Also, there’s so much competition for space on your customers’ smartphones - apps, photos, videos, music, social media, etc. - that they simply don’t want an app for each and every business they shop at.

In fact, recent research concluded that 80% of people never use an app after installing it, and most will uninstall it within 90 days.

6. Don’t be afraid of teaming up with other independent businesses.

Believe it or not, a collaborative approach to your loyalty scheme - even with your local competition - can be a healthy thing. And by being part of something larger than you it opens up the possibility of discovery, helping new customers find you.

We have found that by working with other local businesses – even including competitors – our traders are helping to level the playing field between themselves as a group and that of the larger competitors on the high street.

Some traders are even partnering to offer co-promotions to Scrummy Club shoppers so, for instance, people getting their hair cut at one Scrummy Club trader gets a deal on coffee from another Scrummy trader next door.

7. Paper loyalty won’t dramatically grow your business (BONUS!)

Ok so we have one more rather significant reason you should consider mobile loyalty!

Building an audience of loyal customers with the right mobile loyalty solution can open up additional growth opportunities.

Imagine being able to encourage your best customers to come back once or twice more each week. And imagine being able to attract more of those ideal customers by encouraging your best customers to bring their friends along.

What difference would an increase customer visits, alongside loads of customer referrals make to your bottom line?

In conclusion

The fact is that your customers will always come to you for the things that make you unique: your product, your service and your location.

Through rewards and more, a decent mobile loyalty and rewards solution can help you to keep them coming back.

Don’t forget however that your customers don’t want, need or have room on their phones to have an apps for every single business they shop at, so don’t think that they’ll download and keep your app forever!

Scrummy Club helps the best small and independent traders bring new customers through their door and keep them coming back more often. Grow your business with Scrummy Club.