Loyalty apps are now firmly established in the retail sector. However, while usage is high, there is a key challenge: not every installed app is actively used in the long term. Retailers must therefore ensure that their loyalty apps remain relevant beyond the initial download in order to retain users in the long term.
Widespread, but limited space on the smartphone
70% of consumers actively use loyalty apps and access 4.2 apps on average. The PAYBACK app, which EDEKA and Netto have also been using since the beginning of the year, is the most frequently used loyalty app at 49%, followed by LIDL Plus and REWE Bonus. However, the limited space on smartphones makes it difficult for retailers to hold their own in the long term. Heavy users in particular - young, digitally savvy and with a high household income - use more than five apps, but this raises the question: are they really loyal or just looking for the best offer and comparing corresponding app offers with each other?
Drive-to-store measures as the key to downloads
A key finding of the study: offline touchpoints such as POS advertising, brochures and recommendations from employees are the strongest drivers for downloading loyalty apps. Around a quarter of users state that they were motivated to install an app by in-store advertising - a significantly higher figure than for online advertising. However, this creates a paradox: those who do not enter the shop may not even discover the app. Retailers therefore need to think beyond owned media and use targeted drive-to-store campaigns and an interlinked media mix to activate customers for their apps.
Long-term use requires clear added value and a smooth user experience
Installing the app is only the first step - regular use is crucial. Consumers expect financial benefits above all: 77% use loyalty apps to collect points, 75% for discounts and vouchers. At the same time, ease of use (77%) and a clear structure (62%) are essential.
Non-users: Is it worth activating this target group?
30% of consumers deliberately refrain from using loyalty apps. The most common reasons: too few benefits (67%), data protection concerns (66%) and the use of too many different shops (61%), which makes a large number of apps unattractive. This group tends to be male, over 50 and less digitally savvy - a potentially difficult target group to convince. Retailers are therefore faced with the question of whether trying to win over this group is worth the effort or whether it would be more efficient to activate existing users more strongly and reach non-users in other ways.
Conclusion: Loyalty apps as part of a smart media mix
Overall, the study shows that loyalty apps are widespread, but their long-term use is not a sure-fire success. Retailers need to ask themselves how they position their apps in the competition for limited smartphone space, what measures they can take to ensure long-term use and whether it makes sense to invest in addressing non-users. One thing is clear: without targeted dovetailing with other media measures, a lot of potential remains unutilised.