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App users visit brick and mortar 41% more often than non-users

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App users visit brick and mortar 41% more often than non-users


What does a customer using your app get you?

About 41% more visits per year, compared to those who don’t. 

That’s according to a new study from mobile marketing platform InMobi which examined actual consumer behavior to determine the value of apps for the retail, CPG and QSR categories. To determine this researchers examined  aggregate app behavior and first-party data, app SDK data & survey data.

Here’s a breakdown by category of how much more often app users visited physical stores.

  • Retail: 37%
  • Big-box general merchandise: 24%
  • Grocery: 25%
  • Pharmacy: 27%
  • QSR: 28%

Consumers are generally very satisfied with them once they start using them. Users generally cited convenience as the most important reason for use. Women and people 55+ said this significantly more than the general population. For example in retail 36% of users overall cited convenience, compared to 43% of women, 60% of people 55+.

Getting people to use the apps. Still, it’s not easy getting people to use apps. For one thing, many still don’t know about them. Big box stores have the most awareness, but even there the numbers aren’t great. Only 29% of sector leader Home Depot’s customers knew about the company’s app.

The best solution to this is getting your customers to tell their friends, as that’s the top reason cited for both finding out about and using them. Until someone figures out a reliable way to make that happen it’s probably best to go with reason No. 2: Mobile advertising.

The report recommends this advertising pre-emptively address customer concerns. “The top reason consumers don’t have these brand direct apps is because they prefer making purchases in person, so it may be a good idea to show how the app supports or improves the brick-and-mortar experience.”

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See also  What is a digital experience platform?

Why we care: By improving customer experience apps further cement customer loyalty and increase the amount spent per visit. Additionally, they are a great source of information about customers, which is more important than ever with the end of third-party cookies and do-not-track initiatives on the rise.


About The Author

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.



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MARKETING

Martech failure? 50% say loyalty programs don’t offer much value

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Martech failure? 50% say loyalty programs don't offer much value

The goal of martech is to add value for business and customer via personalized experiences which increase brand engagement. Loyalty programs seem like the perfect channel for this. So why is there such a huge gap between customers’ expectations for those programs and what they get?

Half of all US customers say loyalty programs don’t offer much value, according to a report from digital insights firm Incisiv and Punchh, a customer loyalty services provider. This is a real problem, given the huge impact these programs have on customer retention, satisfaction and brand advocacy. Customers who sign up for them engage with that brand 70% more than those who do not. 


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The gaps. So what is it customers want and aren’t getting?

  • 70% prefer to manage loyalty programs via app.
    • 26% Top 150 retailers and restaurant chains have a dedicated loyalty app.
  • 67% expect surprise gifts.
    • 28% Retailers and restaurant chains send gifts, offers or discounts on special occasions
  • 75% prefer instant discounts/redemptions.
    • 16% Retailers and restaurant chains offer instant discount on purchases instead of reward points.
  • 72% expect personalized rewards.
    • 48% Retailers and restaurant chains offer some form of personalization.

Enough with the cards already. It’s 2022 and people have been irritated about physical loyalty cards for decades. In case your own experience isn’t proof enough: 43% of shoppers say physical cards are the biggest obstacles to claiming rewards. And, this shouldn’t be surprising, 57% of shoppers like to engage with loyalty programs on their mobile phones. This means a digital rewards card is the bare minimum if you don’t have an app. 

See also  Salesforce launches hybrid Content Management System built to integrate with other platforms

Read next: Leaning on loyalty, Chipotle orchestrates engagement across channels

If you do have an app, it should clearly provide more functionality and benefits than a card. The more it does that, the more people are likely to use it. Over 70% of shoppers are more likely to participate in a loyalty program that provides access to loyalty cards and rewards via its mobile app. However, only 4% of grocery retailers offer enhanced rewards or benefits on their apps.

Make members feel special. Joining a loyalty program signals that a customer values your brand (37% of shoppers are willing to pay to join or upgrade to a higher tier of their loyalty membership). Make sure they know you feel the same about them. Nearly 60% say loyalty programs don’t make them feel they are a part of an exclusive group. How? Well, 46% want premier or exclusive access to sales and promotions.

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Why we care. I can’t tell you how many websites I registered with and forgot about that send me an email on my birthday. I get them from a few loyalty programs as well. I’ve never gotten one with an offer or a discount. 

The bare minimum martech stack provides data unification, digitization and channel integration. A good one offers real-time analysis of customer behavior (past purchases, browsing history, etc.) combined with things like product attributes and availability to create an attractive personalized offering. For the customer, loyalty programs have to be more than a way to earn points. They have to give something unique and special. If your stack can’t tell you what that thing is, there’s something wrong with it.

See also  Facebook Loses a Million Daily Active Users, Posts Big Revenue Result for Full Year 2021

About The Author

Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.

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