How Push Notifications are Revolutionizing Loyalty Programs

May 19

The rise of online businesses has made it increasingly difficult for companies to capture and retain customers' attention. To combat this, businesses are exploring new and innovative ways to communicate with their customers. One such method is push notifications, which have become the most relevant communication channel with customers. Push notifications are also revolutionizing loyalty programs, and here's why.

Personalization

One of the main advantages of push notifications is their ability to personalize messages to each customer's unique needs and preferences. By analyzing customer data such as purchase history, browsing behavior, and demographic information, businesses can tailor their notifications to offer personalized rewards, offers, and incentives based on each customer's unique needs and preferences. This personalization leads to increased customer engagement and loyalty towards the loyalty program.

Real-Time Updates

Push notifications can provide real-time updates to customers about a business or its products and services. This means that loyalty programs can quickly adapt to changing customer needs and preferences, ensuring that their communications remain relevant and effective. For example, if a customer reaches a certain milestone in their loyalty program, the business can send a push notification congratulating them and offering them a unique reward or incentive.

Convenience

Push notifications are convenient for customers as they can be received and viewed on their mobile devices without requiring them to take any action. This makes them an easy and accessible way for businesses to communicate with their customers. For loyalty programs, push notifications can inform customers about their rewards, including the number of points they have earned, any upcoming promotions, or any personalized offers available.

Increased Engagement

Push notifications can increase customer engagement by providing timely reminders or alerts about a business or its products and services. For loyalty programs, push notifications can encourage customers to engage with the program by reminding them of upcoming promotions or events and notifying them of any updates or changes to the loyalty program structure.

According to a study by Localytics, push notifications can increase app engagement by up to 88%. Furthermore, a study by Mobile Marketing Association found that push notifications can increase user retention rates by up to 10 times. These statistics demonstrate the effectiveness of push notifications in engaging customers and driving loyalty program participation.

A study by Leanplum, showed that push notifications have a 9.6% higher open rate compared to emails and a 3.5% higher click-through rate. Additionally, a study by Localytics found that personalized push notifications have a 4.5x higher open rate compared to non-personalized notifications. These statistics further demonstrate the effectiveness of push notifications in engaging customers and driving loyalty program participation.

What to avoid with push notifications

While push notifications can be a valuable tool for loyalty programs, businesses must be careful not to overuse them. Here are some tips on what to avoid with push notifications:

Too many

Sending too many push notifications can be overwhelming for customers and lead to them ignoring or even disabling notifications from the business. Businesses must find a balance between keeping customers informed and not overwhelming them with too many notifications.

Irrelevance

Push notifications should be relevant to each customer's unique needs and preferences. Businesses should use customer data to personalize their notifications and ensure that they are timely and relevant. Sending irrelevant notifications can lead to customers ignoring or disabling notifications from the business.

Wrong time

Sending notifications at the wrong time can be just as bad as sending too many notifications. Businesses should consider factors such as the time of day, day of the week, and the customer's time zone when sending push notifications.

Forget a call to action

Push notifications should include a clear call to action that encourages customers to take action. This could be a link to a product page, a discount code, or a request for feedback. Forgetting the call to action can reduce the effectiveness of the push notification.

Sources:

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