June 12, 2024

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Than a Food Fitter

Why food delivery apps need a customer loyalty program?

3 min read

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Holding the customer base is a crucial aspect of the food delivery business; these days, we see many food businesses making big efforts to build and sustain customer loyalty programs. Nowadays, many businesses even have loyalty apps to ensure customer loyalty.

It has become common among smartphone users to use loyalty rewards frequently. A recent survey by the National Restaurant Association found out that app-based reward programs work as a great strategy to build customer loyalty and increase retention. Another study by HelloWorld reveals that 61% of survey participants indicated that the best way to interact with customers is by surprising and rewarding them for being good customers. Comepting to win customers’ trust should be a main business goal.

In this blog, we discuss the loyalty programs that work best for Food ordering apps and their many benefits.

Types of loyalty programs to consider for food delivery app

1. Redeemable Points

Loyalty programs can be created by accumulating points in a customer’s account as per the amount a customer has spent on the app. The app users will collect reward points on a certain amount, like 1 point can be collected for every $10 spent.

2. Paid loyalty programs

This loyalty program allows customers to purchase a membership to access discounts and special offers. Businesses can identify the most engaged customers. These reward programs enable businesses to get a rapid return on investment.

3. Spend program

This program allows customes to access loyalty credits for a particular amount they have spent in a timeframe. Hence, in this kind of program, the loyalty credits’ benefits are directly proportional to spending, which encourages customers to spend more.

4. Referrals

Businesses that are particularly new om the market can benefit significantly from referral programs. It involves convincing people to invite their friends to the business in an organized manner. In return, they can get instant cashback, loyalty credits, and discount coupons that the customers can redeem later.

Benefits of customer loyalty program apps for food delivery apps

1. Stay in touch with your customers

Loyalty programs allow food delivery businesses to stay in touch with their buyers. Also, adding a push notifications feature makes it easier to bring their attention to important updates and news.

2. Personalized offers

A study revealed that 62% of US customers expect that brands send them personalized offers based on their purchase history. Also, the study found out that around half of customers purchased products that they initially didn’t plan on buying after receiving a personalized recommendation from sellers. As many food delivery businesses are also using loyalty program apps, these apps make it easy to analyze the purchase history and preferences of customers, allowing them to provide personalized offers and boost sales. At the same time, it helps clients to save time searching for new products.

3. Boosts growth

Loyalty programs can boost the growth of a business. Loyalty programs ensure repeat customers, leading to more sales and business growth.

4. Cost-effective strategy

Retaining a customer is 7 times cheaper than acquiring a new customer. In fact, by investing money in customer loyalty programs, businesses get more business from repeat customers. In the long run, loyalty programs are a cost-effective way to grow your business.

5. Creates brand advocates

Loyalty programs invite loyal customers, and these loyal customers are brand advocates who don’t just buy the products/services but also help promote the brand. For isntance, they may refer the brand to their friends, which, in turn, generates more sales.

6. Boost reputation

Loyalty programs don’t just make customers stay loyal to the brand but also ensure that they feel valued, which greatly increases the reputation of the food delivery business. Hence, loyalty programs are a useful way to make customers feel appreciated and valued and make them return for more.

Conclusion

In case you are an online food delivery business looking to enhance your market value, then it will be a great idea to invest in a loyalty program. To get a loyalty program developed for your online food delivery, you can get in touch with us to get a smart and seamless loyalty program system developed.

Hiring an app development company like Emizentech will make sure you get a fully operational and feature-rich app that fits your consumers’ needs. Reach us at the following email.

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