Are Traditional Customer Loyalty Programs a Thing of the Past in Today’s Digital Marketplace?


Continuous customer engagement is the aim of every loyalty app. In contrast, traditional customer loyalty programs are slowly eroding in value. Loyalty apps have become a critical means of rewarding loyal customers. Amazing user retention strategies inspire users to come back on mobile apps time and again. Card and email-based loyalty programs are being replaced by mobile-first loyalty programs. Loyalty apps build a marketplace where customers can get everyday deals.

This holds true for brands as well. App-based loyalty programs work as an effective tactic when it comes to increasing customer lifetime value. In the past, small businesses and startups could not compete with well-developed rewards and loyalty programs gargantuan and massive brands and giant stores were bringing to the table. Thanks to web-based loyalty programs and third-party reward apps, mobile technologies have created a level playing field for all businesses, replacing the age-old punch cards or outmoded emails.

The Power of Interactive Loyalty Apps

A mobile app-based loyalty program offers a better environment where customers interact with your brand and see direct progress. It is simple to implement a progress bar atop the loyalty tab of the mobile app, representing the headway customers have made towards rewards. One can even change the desired reward levels. Different tiers of rewards make it easy to cater to different customer segments and niche audiences. Rewards should be relevant to products, brands and companies.  But they should also reflect what customers want. On account of the interactive nature of mobile phones, understanding the customer becomes easier.

The mobile app is the ideal place for loyalty programs because benefits work front to back. For expanding, mobile environments help the loyalty program to succeed. How do customer loyalty programs work better in a mobile environment? It is easier for users to observe the progress, improving commitment to continue shopping with the company and earning loyalty points. It is easier for users to access loyalty accounts, so the effectiveness of push notifications can be leveraged to notify customers when there are fresh rewards that can be achieved or bonus points that can be gained.

App-Based Loyalty On The Rise

Offering mobile-based loyalty programs can have a dramatic effect on how many downloads apps receive. It works to create a customer-focused incentive, as the app encourages more individuals to hit the download button. It also attracts customers who may not have downloaded the app before. The boost in usage of a loyalty program on account of mobile technologies is simply undeniable. This impacts app rankings and downloads, raising the chance of viewers organically discovering your brand.


From the earliest form, loyalty programs have a powerful impact on the ability to develop super loyal customers. Valuable and loyal customers are, in turn, more likely to promote brands and build word-of-mouth publicity. Mobile apps present an excellent environment to house loyalty programs on account of an interactive nature. Consumers desire brands willing to reward long-term loyalty constantly. From Starbucks to Shopkick, nearly every winning brand has utilized app-based customer loyalty programs to dominate in a digital marketplace.

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