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Loyalty App Development - a smart business investment

Mobile Application Blog


In the current market scenario, mobile apps can be the best investment one is likely to make for customer loyalty and retention. Starbucks reward program, Groupon loyalty app and Shopkick’s mobile commerce app are some popular models to browse through if you’re planning to develop a loyalty app for your business.

According to InMoment , 61% of loyal customers go out of their way to buy from a specific brand and 60% will make more frequent purchases (70% for millennials) and 50% will purchase more products.

So, what causes a customer to fall in love with a brand?

You’ll agree that quality, reliability, consistency, predictability, and alignment with our world views are some of the major reasons we fall in love with and stay committed to the brands. But branding is no more restrained to the conventional brick and mortar market, especially in the contemporary scenario.

With 21.8% of the world’s population buying online, buying patterns and consumers world views are changing fast.

Millennials are everything about mobile, and in Q3 2018 alone, Smartphones accounted for 61% of retail site visits worldwide (Statista) and mobile accounted for 52% of traffic to retail websites during the holidays (Adobe Digital Insights, 2018). Moreover, as per Apptentive, 66% of companies that saw a decrease in customer loyalty over the past year lacked a mobile app.

This reflects a market trend towards the enhanced use of mobile apps and increasing in-app engagement. So, if you own a business, it’s high time you should plan for a loyalty app development to retain your regular customers and expand your userbase rather than relying on physical loyalty cards or offline retention tactics.

Loyalty App Models and Need for Loyalty App Development

Loyalty apps can be developed for an individual retail business, as a marketplace, or as a loyalty platform for brands

Loyalty apps for individual retailers are usually fruitful in case of high margin businesses where customer needs and expectations are quite clear, though exceptions exist. Such loyalty app programs can be based on points that can be redeemed later. Starbucks offers a revolutionary rewards program. Every time a user uses Starbucks loyalty card or a mobile app when buying something at a participating store, the user earns Stars.

Starbucks mobile app makes this loyalty program all-the-more useful. It helps to search the nearby Starbucks location and shows how many Stars users have earned in addition to allowing orders and payments right from their phone. Also, as customers check the app, they are greeted with some cool offers to add more Stars thus rewarding their loyalty and keeping them engaged. Loyalty and mobile accounted to an 11% year-over-year revenue increase with sales for coffee chain reaching to $6.31 billion in Q3, 2018.

Nando’s new mobile app for their PERI-peri perks loyalty program, LoyalBlocks app and Sweetgreen’s loyalty apps constitute some other successful endeavors reflecting the need for a loyalty app for customer retention and the shifting market trends.

Loyalty apps for marketplaces offering daily deals constitute yet another model. Groupon is a great example of the loyalty business model offering deals on the website and via the Groupon app. Groupon offers one coupon per day in each of the product categories it serves. From the Groupon app, users can search the nearby discounts that are both time-sensitive and rolling, and you’ll be amazed to know that 72% of Groupon sales were conducted using a mobile device as per 2018 data, and the number of downloads for Groupon’s mobile app reached 190 million in the same year. For merchants, Groupon includes customizable deal campaigns, credit card processing capabilities, and point of sale solutions.

Groupon is now becoming Groupon+, which unlike the traditional coupon offering will be credit card linked offering so when the card is used, customers will get a cashback. Groupon now wishes to expand card linked offers whether they are deeper discounts at a restaurant or Groupon’s loyalty programs where customers can earn airline miles or hotel points from a range of travel programs when they purchase Groupon local, travel or shopping deals. Besides this, there are brand loyalty apps too.

Finally, there are brand loyalty apps that work across a few retailers, offering rewards from a specific brand. Here, customers usually collect in-app points by making purchases at retail stores. This way brick and mortar stores get a loyalty platform without creating a loyalty app. However, the downside is that these retail stores do not get any brand promotion per se.

Shopkick is a mobile commerce loyalty app that offers kicks for walking into stores, buying items, or even simply looking at hot deals up for grabs. With over 150 brand partners and about 250,000 store locations offering kicks; Shopkick offers rewards in the form of gift tokens from the store customer walk-ins, item scanning and/or purchases. These apps help develop a relationship between customers and a loyalty platform.

Considering the above three successful loyalty app development models, you can safely choose the one that fits your business needs in the contemporary context.


In the contemporary scenario, customer-facing businesses need to offer a unique customized yet consistent experience to their customers, and mobile apps can be the best investment one is likely to make for customer loyalty and retention. The above statistics and the contemporary market trends help us to safely infer that loyalty app development  has the potential to multiply your company’s sale for your business. So, do not wait and begin the process.

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Konstant Infosolutions - Mobile App & Web DevelopmentKonstant Infosolutions
Category: Mobile App DevelopersCompany about: Konstant Infosolutions is a renowned name in the modern IT space, delivering inventive business-centric web and mobile app solutions across latest technology verticals. Our idea of building virtual interfaces and automated supplies, keepsutility and purpose at the core of it. Which resonates with the fact that we have successfully built over 3500 projects serving over 2800 customers in our 15 years of engrossing industry experience. Binding Virtues: Our practice of seeking the best of quality ...
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