73% of shoppers say they are more likely to join a loyalty program that automatically displays their points balance. The message for brands is this: physical loyalty cards are outdated, it is time for mobile loyalty wallets or app-based loyalty programs. The reason? In the digital era, there is a mobile app for practically everything you can possibly imagine while payments are getting contact-less.
Think movie tickets, car rentals, social networking, shopping, apps, and wallets are fast and convenient for customers and provide brands greater efficiency.
However, as an ecommerce business owner, you need to think about the value you want different customer segments to get from a mobile-based loyalty program. Let’s take Gen Z, for example. As digital natives, they are more likely than the average customer to use mobile loyalty programs. But, they are quick to uninstall an app they do not find valuable.
A study by Rokolabs found that 69% of young users deleted apps that they rarely used. To win over Gen Z, the user experience of your mobile customer loyalty program needs to be simple, personalized, and location-based.
If you already have a mobile loyalty wallet or app, adding new features alone is not going to be enough to connect with young customers. You need a strategy that takes their expectations into account as well as business goals. After all, a mobile loyalty program is a big investment to make. Moreover, marketing budgets continue to shrink across the world and a mobile loyalty program can be a perfect way to increase customer engagement.
With an app or digital wallet, you can engage with customers without being influenced by ads from competitors. The result:
- Increased sales,
- Competitive advantage, and of course,
- Dozens of loyal customers.
5 Proven Mobile-Optimized Loyalty Program Ideas for Gen Z Customers
Here are 5 proven strategies you can use to optimize your mobile loyalty program for Gen Z customers.
1. Sign-up bonus
Gen Z customers like brands that demonstrate integrity and honesty. In other words, they want proof that a brand means what it says. Adding points to their mobile wallet as a ‘joining bonus’ can give them instant confirmation that your mobile loyalty app is worth using. A sign-up bonus avoids the need for a new subscriber to start with a zero balance.
Some brands go a step further and offer extra points for writing reviews or referring a friend. This helps them to engage customers the moment they download and install the app.
Result: Long-term retention and better revenue potential.
2. Automatic balance updates and alerts
Push notifications providing real-time rewards balances and redemption options are a great way to keep Gen Z engaged in your loyalty program. Many e-commerce loyalty apps provide product recommendations on-page with one-click redemption. As young customers are competitive by nature, you can also display the number of points needed for them to claim their next reward.
Other options can include displaying the number of points that can be earned for actions like posting online reviews, social media likes, and follows or referrals. Depending on your top KPIs, you can even allocate bonus points for one or more actions so that customers can get faster rewards.
3. Personalized offers:
The magic of geo-location is allowing retail brands to tailor offers based on customer location. However, this does not have to be limited to location alone. E-commerce brands can use push-notifications to boost sales and engagement at different stages of the customer journey. For example, customers who have a very low usage frequency can be offered a special 10% discount. Based on the search history, you can also identify customers who may be interested in a certain product and offer a promo code on it.
There are other benefits to in-app offers. According to research, online coupons have a better redemption rate than physical ones and they are cost-effective too.
Gen Z cannot resist a challenge and gamification concepts are perfect to harness this behavior and reward it. Quizzes, trivia, and different types of contests can boost the popularity of your loyalty program among young customers. Unlock benefits based on successful completion of specific activities such as social media shares or reviews. Assign badges with quirky names to make them fun and memorable.
As users perform theme-based activities, upgrade them to the next level and include sharing options so that they can be shared on social media. This will trigger brand loyalty and engagement, boosting lifetime value.
5. Integrate in-app payment options
The Starbucks Rewards app has greatly elevated customer experience for the brand because it lets you pay for your purchases from within the app. Ecommerce stores are already using payment integrations to allow customers to pay instantly at checkout. This is significant because mobile payment volumes are currently at an all-time high.
According to Statista, the total value of mobile payments in 2021 is estimated at $274.4 billion up from $214.7 billion last year. This feature can be useful for reducing cart abandonment rates and improving the average order size per session.
6. Privacy and security features
Gen Z may be more willing to share their personal information with brands for personalized offers, however, they are conscious about privacy and data protection. It is important for your loyalty app to have built-in encryption for securing credit cards and other data. The threat from phishing attacks, spoofing, and denial of service attacks have grown exponentially in recent times.
Ensure that your loyalty app is equipped with the latest security features to boost customer confidence.
Gen Z typically has high expectations from the brands they buy from. This includes seamless customer service across multiple devices on an on-demand basis. If the cost of 24X7 support is a deterrent for you, using an expert customer support partner like Helplama can be the answer.
Our team of experts can help you scale your customer support team within hours instead of weeks and months. Our flexible plans ensure ROI without the hassle of long-term contracts.
Moreover, our Zero-Risk Guarantee has you covered in case your expectations aren’t met. Contact us today for more information.