Reasons Loyalty Apps Fail(and How to Fix Them)

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Agenda

Why Loyalty Apps are Valuable

Reasons Loyalty Apps Failand How to Address Them

Contact Us to Learn More

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Greg NgVP of DigitalPointSource

Stephanie TrunzoCOO & Chief Digital OfficerPointSource

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Loyal Customers Deserve a Dedicated App

Engaged Loyal Customers:• Spend 3-4x longer with your brand and visit 2x more often• Have increased ticket sizes by 30-40% • Spend 2.5x more money• Cost 5x less than other customers to maintain• Deliver 23% more wallet share, revenue

and profitability

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To Be Successful, Loyalty Apps Must…

Identify

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To Be Successful, Loyalty Apps Must…

Identify

Reward

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To Be Successful, Loyalty Apps Must…

Identify

Reward

Incentivize

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Reasons Loyalty Apps Fail

No Wallet orPassbook experience

PROBLEM

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Reasons Loyalty Apps Fail

Starbucks• Allow your users to easily integrate

their existing payment preferences and provide enhanced user experience.

SOLUTION: Enable Passbookand Wallet integration

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Reasons Loyalty Apps Fail

Sephora• Allow your users to quickly see your

rewards status

SOLUTION: Enable Passbookand Wallet integration

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Reasons Loyalty Apps Fail

No in-storeintegration

PROBLEM

In-storeExperience

MobileApp

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Reasons Loyalty Apps Fail

Wegmans• View frequent purchases and create

lists that can be shared with other family members.

SOLUTION: Offer useful tools for in-store experience

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Reasons Loyalty Apps Fail

h.h. gregg• Product scan and price comparison

tools provide an experience customers are already looking for and enhances the in-store experience.

SOLUTION: Offer price comparison tools

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Reasons Loyalty Apps Fail

Store associatesare unarmed

PROBLEM

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Reasons Loyalty Apps Fail

Finish Line• Train and enable associates to

showcase the app’s value at each stage of the customer journey.

SOLUTION: Make your associates app ambassadors

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Reasons Loyalty Apps Fail

No clear pathto purchase

PROBLEM

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Reasons Loyalty Apps Fail

Barnes&Noble• Enable purchases directly

from the app in the ways youneed it most.

SOLUTION: Design an intuitive purchase experience

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Reasons Loyalty Apps Fail

Customers haveno reward redemption

PROBLEM

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Reasons Loyalty Apps Fail

Finish Line• Consolidate rewards system within

the app and design a simple user experience for redemption at any point of purchase.

SOLUTION: Provide reward trackingand redemption

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Reasons Loyalty Apps Fail

No contextualexperience

PROBLEM

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Reasons Loyalty Apps Fail

Cartwheel by Target• Create a personalized shopping

experience with geo-spatial data integration.

SOLUTION: Offer location-based promotions

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Reasons Loyalty Apps Fail

The app onlyfocuses on rewards

PROBLEM

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Reasons Loyalty Apps Fail

Finish Line• A user experience that delivers value

throughout the user journey will increase engagement and loyalty.

SOLUTION: Include features that address your users’ needs

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Reasons Loyalty Apps Fail

No notificationstrategy

PROBLEM

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Reasons Loyalty Apps Fail

Amazon• Enact a solid and responsible notification

strategy that provides value in signal and not desensitization in noise.

SOLUTION: Filter the signal from the noise

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Reasons Loyalty Apps Fail

No predictivetriggers to identifymost loyal users

PROBLEM

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Reasons Loyalty Apps Fail

Cartwheel by Target• Track purchase history and loyalty points

to strategically reward and incentivize return business.

SOLUTION: Integrate analytics and CRM

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Reasons Loyalty Apps Fail

No system forcollecting data toinform businessintelligence

PROBLEM

Product demand

Promotion performance

Business decisions

Purchase history

InventoryRevenue

Foot traffic

ROIProduct performance

Web traffic

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Reasons Loyalty Apps Fail

Finish Line• Data collection through features that

provide customer value and in-turn inform product demand, inventory needs, product placements and more.

SOLUTION: Integrate app architecture with systems of record

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FOUDATIONAL FEATURES

Foundational Features & Custom Features for Loyalty

Accountinformation

Digital rewards card

Reward tracking & redemption

Storelocator

Customer service

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Detailed product pages

Shopping cart & checkout

Price comparison tool

Product release calendar

Product recommendations

Push notification, couponing, emails

In-store shopping experience

And more…

CUSTOM FEATURES

Foundational Features & Custom Features for Loyalty

Accountinformation

Digital rewards card

Reward tracking & redemption

Storelocator

Customer service

FOUDATIONAL FEATURES

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Detailed product pages

Shopping cart & checkout

Price comparison tool

Product release calendar

Product recommendations

Push notification, couponing, emails

In-store shopping experience

And more…

CUSTOM FEATURES

Foundational Features & Custom Features for Loyalty

Accountinformation

Digital rewards card

Reward tracking & redemption

Storelocator

Customer service

FOUDATIONAL FEATURES

Thank youContact Us to Learn More

Greg Ng | Greg.Ng@PointSource.comStephanie Trunzo | sltrunzo@PointSource.com