Loyalty Programs Provably Increase SpendingBusinesses have attempted to master customer  loyalty in a number of ways, from paper punch cards to plastic card based loyalty programs. The latest approach? Custom mobile apps with built in loyalty programs that allow customers to further engage with the brands they love. Custom mobile loyalty programs, like those built by LevelUp, allow businesses to collect valuable insight about their customers spending habits. More importantly, operators are able to accurately track and monitor their return on investment; a major benefit over traditional loyalty programs.

Recent findings from LevelUp reveal that businesses with loyalty programs built on the LevelUp platform experience lift in spend, increased visitation frequency, and a positive return on investment:

  • When a customer is about to unlock their loyalty reward, they spend 39% more on average.
  • When customers redeem their loyalty reward, they spend 19% more on average.
  • On average, visitation frequency increases by 75% between a customer’s first reward and their tenth reward.

Organic Avenue, New York’s go-to provider of organic grab and go food and juice, recently traded their punch card program for a mobile loyalty program powered by LevelUp. As a result, Organic Avenue has watched customer spend per order increase and customer loyalty grow considerably, especially while the brand expands its retail footprint and creates tie-in incentives for customers in new locations. “We're extremely pleased with the results we have seen from our mobile loyalty program with LevelUp,” explains Jessie Gould, Vice President of Brand and Marketing at Organic Avenue, “Customers are spending an average of 40 percent more as they get close to unlocking their $10 loyalty incentive. The ability to collect that level of insight is really valuable for our brand.” 

But businesses in the healthy eating category aren’t the only ones seeing results. On average, coffee shops have seen a 50% increase in average ticket as customers are about to unlock their loyalty reward; businesses in the sandwich category have seen a 20% increase. These findings reveal that customers are anxiously willing to spend a bit more when a reward is within reach.

Mobile loyalty programs also provide businesses with additional opportunities to engage with their guests. LevelUp’s custom apps include progress bars and email receipts that remind customers just how close they are to unlocking their next reward.

Want to learn more about the benefits of a mobile loyalty program? Click here to access the full Organic Avenue case study.