4 Ways Mobile Technology Will Enhance Your Customer Loyalty
Posted by Megan Webb-Morgan on April 18, 2013 in Business Technology, Sales 2.0 [ 0 Comments ]
The Center for Retail Management at Northwestern University has reported that up to 15% of a business’s most loyal customers account for 55-70% of the company’s total sales (CRM Trends).
Given the exponential growth of mobile in the US – from mobile advertising to apps, websites, and more – it makes sense that mobile can also be harnessed to effectively enhance customer loyalty. Consider the ways your retail store can improve it’s use of mobile technology to improve customer loyalty.
1. Mobile Coupons
Sending customers mobile coupons that they can redeem in-store – no paper printout needed – can be an effective way to increase the amount of traffic that makes it through your doors. After all, mobile coupons are redeemed 10 times more than traditional and printout coupons combined. The number of coupons redeemed through mobile is expected to reach 10 billion in 2013 – a 50% increase over 2012 (Juniper Research).
2. Informational Apps
During the 2012 holiday shopping season, 72% of smartphone owners used their device within the store to gain extra information not otherwise available. 46% called a friend, 28% looked up product reviews, and 27% compared prices using their smartphone (Pew Internet).
Consider creating an app for your store that customers can use to look up product information and reviews. The app makes the search easier for customers to find what they’re looking for – they can even scan the product’s UPC code to be directed to the product page – while also enabling you to optimize their experience in favor of your business.
- For example, the Starbucks app enables customers to locate the nearest store, save customized drink combinations in a “drink builder” function, and look up nutritional information.
- A recent ABI Research survey found that 45 percent of smartphone users with a retailer-branded app visit the retailer’s store more often.
Your app can provide an “in-store mode” that pushes location-specific information to shoppers, such as interactive maps, mobile coupons, and deals relevant to the store they’re in. Customers could even use their app to request the assistance of a store associate based on their location within the store.
3. Loyalty Programs
Many retail stores utilize loyalty programs in order to retain customers over the long-term, and for good reason. Returning customers spend, on average, 67% more than first-time customers (Inc.). Loyalty programs can range from punch-cards to swiped cards that sync with your POS system in order to provide value to customers.
The newest wave of loyalty programs are now mobile-based. Customers can use their mobile device to track their points and redeem their rewards. The more visible and transparent your rewards program is, the more value customers will find in it – and mobile makes both easy.
4. Mobile Payments
Consider enabling mobile payments within your store. When they make their purchase over mobile, customers can skip the long lines at the register and get on with their day. This can be especially convenient for customers who don’t want to have to lug large items from the aisle, to the checkout line, to the door. Mobile payments simplify the process.
Your customers are loyal to your business because you provide them with tangible benefits – your products and services, the assistance of your store associates, and your location. They also value your intangible benefits, which include convenience, familiarity, and knowledge. Mobile can help you provide these benefits to your customers through apps, coupons, and mobile payments.