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Why loyalty apps are booming, but loyalty is falling by the wayside

Even before many people take the first step into a shop, their gaze wanders briefly to their smartphone. Loyalty apps accompany this moment almost automatically and are a natural part of everyday shopping for many. 91% of consumers use at least one of them. Our study "Beyond loyalty apps: Why customer engagement needs more than digital loyalty programmes", in collaboration with IFH MEDIA ANALYTICS, shows, however: there is a clear gap between usage and genuine loyalty. The decisive factor is not the app itself, but whether offers are visible and relevant at the right moment.

Warum Loyalty‑Apps boomen, aber Loyalität auf der Strecke bleibt

Many apps, little loyalty

Nine out of ten consumers today use at least one loyalty app. At the same time, the average number of programmes per person remains constant. On average, consumers use 4.2 apps, the same as in the previous year. While heavy users actively use five or more apps, light users deliberately limit themselves to one or two.

However, the decisive factor is how these apps are actually used. 78% only open a loyalty app if the benefit is really worthwhile. Price is the strongest driver here. 75% switch providers for an attractive offer, regardless of which programme they use. This figure rises to 85% for light users and 80% for older consumers. This clearly shows that although loyalty apps are widespread, they rarely generate genuine loyalty.

Everyday life in the apps: little guidance

Loyalty apps are supposed to help consumers find relevant offers more quickly. However, many consumers experience the opposite. Around two thirds find push notifications annoying. As a result, just as many have to search for offers themselves. Almost half quickly lose track or hardly discover any new benefits. In addition, 41% state that they are not reminded of offers in good time. There is a clear pattern here for retailers. Even digital-savvy users do not perceive many programmes as support, but rather as additional effort.

Why traditional channels are still convincing

For this reason, many consumers continue to use traditional offer channels. They offer orientation and an overview without the need to actively search. 81% discover more new offers in printed brochures than in the app, 82% find their way around more quickly and 77% find them particularly helpful when saving money. In addition, 80% say that brochures are more likely to motivate them to visit a retailer. Online brochures and POS advertising are also successful alternative channels. For retailers, it remains clear that traditional channels continue to provide strong impetus and are crucial for price confidence and orientation.

What this means for retailers

Loyalty apps are an important component of offer communication, but are most effective in combination with other channels. As average app usage is stagnating and competition on smartphones is growing, retailers should reach their target groups via several contact points. Apps offer personalised benefits, brochures provide orientation and price transparency, and on-site advertising activates at the moment of purchase. Only the combination of these ensures that offers become visible and have a real impact.

How MEDIA CENTRAL provides support

MEDIA CENTRAL combines digital loyalty programmes with the channels that consumers reliably use in their everyday lives. We make offers visible where decisions are made, whether at home in brochures, on the move in the cityscape, directly at the POS or via other effective channels of offer communication. The result is offer communication that creates orientation, strengthens trust and makes the path from interest to purchase much easier.

 

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