Why Mobile Loyalty Works

After nearly two years of incorporating some form of loyalty programs into apps we offer, we are seeing some astounding results.  I wanted to share some statistics of not just our app, but the mobile loyalty world, in general, to help you draw some of your own conclusions about these types of programs, and as always, my team and I are at the ready to help you set your own program up, or refine the one you have.

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Before I dig into how our apps are doing, let me share some about mobile loyalty programs in general.  

Customers have choices.  Whether it is where they get their coffee each morning, what they are doing for dinner, which hotel or airline they will travel with, or which golf course they will play regularly - loyalty can be a make or break proposition for a business of any size, but in particular a small to medium size business like a golf course.  When a company with a brand as strong as a Starbucks, Jersey Mike’s, or Marriott International that can live on its brand alone is recognizing the importance of rewarding loyalty, if you are not doing the same in your golf course, you are likely missing out daily.

Further, when a low margin business like a Starbucks (maybe making $1 per purchase per customer at times) is willing to provide a discount or freebie for loyalty - you have to stop and take notice of that when you are reeling in sometimes dozens of dollars in profit per customer per purchase.  

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But it’s not just the fact that brands are winning with rewards programs now - it is the fact that consumers are becoming accustomed to them and traffic to the businesses offering them is following.  In 2017, 64% of businesses that offered a loyalty program reported an increase in memberships over 2016. The majority of those cited the fact that mobile components of their loyalty programs were the largest contributors to that growth.  

Getting the program onto the device that is attached to their hand constantly works!

In a study recently, customers reported they would be further engaged in loyalty programs if they were simple to join and easy to access.  Having the program on their phone is the easiest path to satisfying that requirement.

Our statistics reinforce this:

  • In one year of offering points programs for loyalty within our apps we have had 74 clubs employ them.  These 74 clubs have accounted for over $5.3 million in spending within the programs, an average of over $71 thousand per club.

  • Further, the number of users in those programs averaged $483 each in their spending within the loyalty program

  • In addition to this, within our punch programs, 159 clubs have added one of these programs or more and they have accounted for an average of 98 participants each with nearly 33,000 punches recorded.

  • In the punch programs, 22% of the programs have been completed, meaning 1 in 5 people have been engaged enough to earn a reward, and that is early in the season that I am writing this - you can imagine what that number will be by the end of this golf season!

I could continue to ramble on about this and share more and more stats, but the bottom line is this - add a program if you don’t have one.  Promote the ones you do have if you do. Consumers are looking for them, and they are producing significant results - plus you already have the best tool to deliver it to them with your app!

Let us know how we can help!  support@gallusgolf.com