Do you have a mobile phone app reward scheme currently for your customers? Or would you use one?

[Pendipidy]

Hi, I am currently researching the viability of this business. I have an app ready to go that enables businesses to customise the look of the app for their business which their customers can use to check in and claim rewards which the business have set up on the app. This is to engage their customers and increase customer retention and loyalty.
It is similar to a store card, like Sainsburys have, for instance, but any small business such as a florist, a beauty parlour, a hairdresser, an insurance broker or whatever can have this app and offer customers loyalty rewards. Not points, rewards like, buy three coffees, get one free etc.

The app also has a customisable web page which the business can use for customers to download the app, or they can scan a QR code on their phone whilst in the premises. The customer checks in each time they visit the business and when they have collected the correct number of check ins they can claim the rewards. The business can set up any and as many rewards as they want to.

The app could be either customised by myself or the business, and the rewards set up by the business or myself, although it has a very easy interface to use.

The cost of this would be on a monthly account, and would probably be around £25, depending on the number of customers the business wants to join. There are data analytics so the business can see who, what and where the customers have used the loyalty rewards, so they can analyse the data. They can also purchase text messaging credits so they can directly text all their customers with offers, if wanted.

Can i ask if this would be something that you may use as a business and a customer? If you had your nails done every fortnight, for example, would you welcome an app on your phone, (which everyone takes around with them) where you could just check in, like on facebook, as receive rewards for your loyalty to the business?

Any thoughts please? If you have your own business where this would work, can you tell me if you would welcome a phone call from someone asking for an appointment with you to explain how or it works, or not?

Thanks for reading this essay!!

Anyone?

Too expensive.

To make an app worthwhile, you need a free to pay model, where free is with ads or limited functionality and pay removes the ads, gives you more 'stuff'.

Have you done any market research on such an app? Other similar apps, i.e. groupon, are struggling as people just aren't spending the money right now. And £25 is a large monthly investment for most small businesses.

Hi tee ,

Groupon is struggling because businesses don't want to use them anymore as they have to make almost no money on the offer they put in, in order for people to buy them .and once a customer buys that offer , they don't go back to that company as they don't want to pay full price. A loyalty reward scheme retains customers, as the customer wants to collect the points in order to get the reward, so they use the same business frequently. Then they get a reward then they can collect again. It is for a company that they already use, rather than a new one.

Also , mobile marketing is the form that has the best take up rate , so pays for itself.

Thanks for your thoughts, any more?!