7 Ways to Turn a Loyalty App Into a Habit-Forming Product
The average U.S. consumer is enrolled in 17 loyalty programs, but here’s the real kicker: they only actively use about 8 of those loyalty apps.
That means nearly half the people who signed up for your program have already mentally checked out. They haven’t deleted the app. They’re just not coming back. The data doesn’t get more encouraging: only 59% of loyalty members buy anything at all in a given year.
The underlying problem is engagement.
The brands getting it right build loyalty into everything: pricing, product, service, support. We put together a full playbook on what that looks like. 12 strategies in total. We’ve put together a preview of just a few of those strategies for you in this blog.
Want the full breakdown? Download the Retail Loyalty App Playbook for the complete picture. Our playbook includes implementation guidance, real-world examples, and the metrics that will tell you what’s working and what needs reworking.
1. Prompt Engagement Beyond Checkout Moments.
If the only time someone opens your app is to pay, you’ve built a checkout tool. The apps that give people something worth opening between purchases are the ones that build habits that turn into loyalty.
2. Create Reasons to Return That Have Nothing to Do With Spending.
When every interaction requires a transaction, customers eventually notice the relationship runs one way. Programs that hold attention over time give people a reason to open the app even when they’re not buying anything. The playbook covers the non-purchase mechanics that make this work.
Related: Why Your Customer Loyalty Program is Failing and What To Do About It
3. Stop Sorting Customers Into Buckets. Start Predicting What They Want.
Most loyalty programs call their segmentation “personalization.” Most of it isn’t tailored to the individual and customers can sense that. Trading tier-based logic for behavioral signals changes both the offers customers receive and how those offers make them feel.
4. App Stability Is Part of the Experience.
A loyalty program is only as trustworthy as the app delivering it. When Mindgrub rebuilt the loyalty experience for Royal Farms — a convenience and restaurant chain with 200+ locations — mobile crashes dropped 60% in the first quarter. Fewer crashes meant fewer broken experiences, and that foundation made the 300% increase in sales during their flagship campaign two years in a row possible.
5. Use the Data You Already Have.
Most retail brands with an active loyalty program are sitting on behavioral data they’ve never put to use. Purchase histories, session patterns, and offer click-through rates all accumulate quietly and mostly go untouched. The complete playbook covers how to start putting it to work.
6. Treat Push Notifications Like a Tap on the Shoulder
Notification fatigue is a leading driver of retail app uninstalls, and it’s avoidable. Don’t message your customers just to message them. Send them notifications that reassure them they can rely on your app to keep important updates at their fingertips.
7. Stop Measuring Loyalty With Metrics That Don’t Track It.
App installs and enrollment numbers are participation metrics. They grow steadily, photograph well in slide decks, and tell you nothing about whether customers are coming back. The numbers that matter are different, and our playbook spells out which ones to watch.
The System Is the Hard Part
Most marketing and product leaders already sense their loyalty program needs to do more between purchases. Building the organizational will and technical foundation to change the system, instead of layering another feature on top of it, is where most programs stall.
Ready to go deeper?
Our Retail Loyalty App Playbook covers all 12 strategies in full, with implementation guidance, a real-world case study, and the metrics that separate programs people use habitually from ones they forget they’re enrolled in.