Most people are now connected to a mobile device in some fashion. So it makes sense for brands to wade into these same waters in search for the next key to customer engagement. To attract and retain customers, many retailers are linking existing loyalty program cards to a host of smartphone apps. This remains a viable option for those with existing loyalty programs, but brands in a position to design new schemes are starting forgo the card altogether in favor of streamlined digital options.
This is the path that Harvey Nichols is taking with the launch of a state-of the-art loyalty program app. The Knightsbridge, London-based luxury brand will completely subvert a physical card while allowing customers to collect rewards for shopping in every UK Harvey Nichols department retailer or dining establishment.
The design of this new program is an effort to give customers exactly what they want. When faced with the choice of using an app or finding room for another plastic card, more than 80% of customers favored an app.
Developed in conjunction with Ustwo, a digital product design firm, the new program will earn members one point for every pound spent. Points will be earned during every in-store visit and the range of reward options will be expansive. Customers can choose from something as small as a free drink to as luxurious as a dinner at the OXO Tower, an internationally renowned British dining establishment.
Furthermore, rewards will also include actual vouchers, which customers can exchange for in-store purchases. The value of these vouchers will be based on the number of points they earned during the previous quarter. 
"We want to give our customers more than just pennies for points,” Shadi Halliwell, group marketing and creative director at Harvey Nichols. “Rewards by Harvey Nichols is uniquely different to competitors’ loyalty programs, firstly because it’s an app, which we believe is the future of communication with our customers-instant, personalized and modern - and secondly it offers brilliant and indulgent experiences which will help our customers be fearlessly stylish."
As customers collect more points, they will move through four distinct membership levels including Silver, Gold, Platinum and Black. Each loyalty program tier will come with a host of unique benefits and exclusive offers. Additional surprise and delight initiatives will also help members readily rise through the ranks. These promotions will include reoccurring double point days, secret sales, and special discounts.
"To truly reward a customer for their loyalty a brand needs to know their customer inside out and offer a range of relevant and personal rewards, from experiences to gift vouchers and surprises in-between,” Halliwell said.