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POV: Developing a loyalty program app strategy
Mobile has rapidly emerged as a significant channel for loyalty programs to engage with their members. Americans have rapidly integrated smartphones into their daily lives, with over 77% of Americans now owning one (source: Mobile Fact Sheer. Pew Research Center, February 5, 2018). But while Americans might love their smartphones, they don’t necessarily have the same affection or commitment to mobile apps. In fact, according to Localytics data on app usage, since 2012, the percentage of users that have abandoned an app after just one use has ranged from 21 – 25%. So while being able to interact with customers on the move has become increasingly important, app development has still not significantly reduced attrition. While every brand should have a mobile strategy, not every brand needs an app. Understanding the benefits and costs of an app will enable marketers to best determine the appropriate mobile engagement strategy for their loyalty program.
Determining if an app is appropriate
While the right app with the right loyalty program can be a powerful combination, not all programs can justify the development and added ongoing expenses. Rushing into developing an app or releasing one that is subpar can actually do more harm than good. Negative reviews and scores can be brutal to a brand’s mobile reputation. According to the App Attrition Index 2017, 80% of consumers deleted an app because they did not perform correctly and 53% have deleted an app after just one attempt due to problems with performance.
Before embarking on developing an app, several key elements must be considered: