Daily Insights

A Perfect Place for Loyalty

By: Mike Froggatt | Jul 18, 2019

Loyalty programs are a great way for brands to engage users, but they often suffer from low visibility and engagement, or even both. While not every brand needs to invest in an app unless it meets a broad set of needs, apps can be an effective way to drive engagement. 

32% of users reported they would be more likely to use an app regularly if it included loyalty program access. Apps can also help with visibility if brands list loyalty-specific features within the app store description–but 39% of brands with multifunctional apps fail to capitalize on this opportunity according to Gartner L2’s report on the topic. 

Once you get your shoppers to download the app, make sure your loyalty program is front and center. 74% of tracked brands offer sign-up within the app, but only 49% actually share the status of users’ loyalty accounts on the home screen. Leader brands take advantage of both and include the likes of New Balance, The North Face, and Aveda.

Another leader brand is department store Kohl’s and it’s Yes2You Rewards, joining other department store leaders like Macy’s, Nordstrom and JCPenney. Yes2You Rewards features prominently in the Kohl’s app, including on the home screen and main navigation, where users can actually see their points accumulated and how many they need to achieve their next reward. In 2018, Kohl’s also sunsetted the ability to use points for purchases, combining rewards into their super-popular Kohl’s Cash rewards that shoppers can spend online and in-store.

The app also highlights the brand’s omnichannel marketing, sending push-notifications as a reminder to use existing Kohl’s cash when a shopper enters within a specific distance from stores in the real world. When in-store, the app transforms into a guide and mobile wallet, even allowing shoppers to check-out with a unique QR payment code linked to both Kohl’s cash and any stored payment programs on the phone.

By incorporating the full suite of loyalty program capabilities into its app, Kohl’s includes both the utility and holistic support that users require to sacrifice their precious phone’s memory and home screen real-estate that removes pain-points from both the in-app and in-store shopping experience.