Features to Include While Developing Loyalty and Rewards-based App

Updated on Jun 2nd, 2022

Features to Include While Developing Loyalty and Rewards-based App

Loyalty management is a growing aspect which is expected to create a revenue of $7.305 billion in the coming years. That’s why more than 38% of the companies use loyalty mobile apps to send personalized offers to their customers.

In business, loyalty and reward apps are one of the most effective methods for improvising revenue and inspiring customer quality. Around 84% of customers are more likely to stick to a brand that offers a loyalty program. And according to 66% of consumers, the ability to earn rewards change their spending behaviour. As it is well known, doing business with existing customers is a lot easier than acquiring new clients, and therefore, companies need to invest judiciously in this program.

Besides, regular customers are more likely to spend on your upgraded services than new customers. And if you don’t provide any rewards to these loyal customers, then they might turn to your competitors. Therefore, customer loyalty is very crucial to business growth. And utilizing an automated reward app is undoubtedly the best way to tackle the loyalty issue. Besides rewarding your valuable customers, these loyalty apps also gather essential data about your customer’s preferences, shopping habits, and past purchases. 

Let’s look at some benefits of Rewards and Loyalty Apps to get a more precise understanding of the points mentioned above. 

What are the benefits of Rewards and Loyalty App for Business? 

An online Loyalty Program is a structured marketing strategy to retain customers. It is an effective method of boosting sales and is very much adapted by retailers who are looking to give a new spice to their businesses. Below are some benefits that Loyalty Apps provide to marketers.

  • Boost Growth

The market today has got plenty of customer loyalty apps, each offering different results. However, one thing is common to each of them, the ability to boost growth. These mobile apps play a crucial role in retaining existing customers. And customer retention is a great way to maximize profits simply because a loyal customer has more trust in your brand and therefore, will spend more.  

  • Increases Customer Lifetime Value

Another benefit of loyalty app is that it helps to calculate the exact CLV for each of your customers. It provides vital information that can be used to create robust strategies to retain customers. Besides that, it also offers delight points and rewards to your loyal customers on special occasions.

  • Create Brand Advocates

Loyal customers are not only those who spend more on your products or services; instead, they are the ones who help you generate more revenue. Your valuable customers are more likely to refer your brand to their friends and family. In fact, they don’t just refer to them; they make sure that their friends purchase from your store. And like that your trusted customers act as your brand advocates. 

  • Gather Valuable Data

57% of customers are willing to share their data to get more personalized offers and discounts. A loyalty app helps you with that. It helps you in gathering valuable customer data to create a more personalized customer experience. Besides that, you can also use that data to frame targeted marketing campaigns and increase your bond with customers.

  • Attract New Customers

A good reward app can attract new customer very quickly. For instance, if you offer reward points for a signup, you will automatically be able to add new customers to your list. Also, if any customer sees a good loyalty program where reward points are within reach, then he is more likely to purchase from that place. In short, a good loyalty app helps you earn more loyal customers. And yes, don’t forget about your already satisfied customers. They are also likely to suggest your brand to their known persons.

What are the benefits of Rewards and Loyalty App for Users?

Besides business, Loyalty and Reward apps have enough for the customers too. So let’s break it down.

  • More Convenience

A great feature of mobile loyalty app is that it eliminates the need for the user to keep track of their membership cards. Instead, these mobile apps help in simplifying that task so that user can easily access individual items right from their phone.

  • Better communication

Loyalty and Reward apps offer seamless conversations of users with the marketer. And this can be particularly useful in the case of an emergency. In addition to this, these loyalty apps also showcase special offers and discounts directly to interested users.

  • Targeted offers

A good loyalty reward app collects relevant data and pushes specific deals straight to a person’s phone. In this way, the users stay updated to new offers and discounts, that helps them in their purchasing. Also, the user gets incentives based on their purchase history.

  • Simple and Streamlined Process

The mobile loyalty app, besides providing immense benefits to the user, also offers seamless usability. That is, users can operate and maintain the app easily. Also, it helps the users to interact with the marketers at the time of need efficiently.  

So, by considering the above points, we can say that a loyalty app aims to create a personalized experience and retain customers. 

Now, you too wish to employ this program in your organization and wondering what sort of functionalities needed to be embraced? No worries!

With the tried and testing approach, we have picked some points that one must take into consideration while designing a loyalty-based application.

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Must-have features in a Rewards and Loyalty App

Now arrives the last yet the most significant aspect of this article, i.e. features to be kept in mind while designing a reward-based application. Here is a comprehensive list of the same. Let’s break it down


  • Loyalty card management

If a claim is offering loyalty cards, it should simplify the method users manage them. For example, Starbucks keeps its app connected to the existing cards that are already familiar to users. Consumers can pay for a coffee, give a tip, and refill their cards via their smartphones. 

  • Location-based pushes

One can utilize location-based notifications for providing highly targeted offers. For instance, the Starbucks app tracks a customer’s location and buying history. Whenever a user passes by a Starbucks coffee store, they receive the notification of an offer.

  • Smooth Payments

Ensuring a stable and faster payment option within a loyalty app is a must. Many companies provide a one-touch mobile payment system, which makes it easy for users to pay for their products and reduce in-store queues. To make payments, users only need to scan an on-screen barcode at the register. 

  • Instant Incentives

One of the robust features of a customer loyalty app is that it rewards the buyers with credit points whenever they purchase something from your brand. Moreover, they also get reward points when they either review a product or recommend your brand to someone else. And these points can be redeemed after a specific limit.

  • Integrated checkout Redemption

There is absolutely no sense of rewarding credit points to the customers when they can’t apply it at their checkout. That’s why integrated checkout redemption is an essential feature in loyalty apps. It allows users to view their reward points and redeem them at the time of their checkout.

  • Repeat and Recurring Purchases

To persuade customers to purchase more, you can add some necessary yet useful features to simplify their future purchases. Like, for instance, you can provide the user with an opportunity to save the items they buy regularly. They may also create their wishlist to checkout easily during rush hours. 

  • Feedback 

Taking feedback from consumers on a new product before you launch it gives them a sense of importance. That could lead to higher sales and positive word-of-mouth recommendations.


  • Easy Registration

The app should make it easy for the users to register or sign up. Moreover, to increase customer benefits you can also provide some offers or reward points on successful registration of the user. 

  • Search Bar

Geolocation-based search facilitates users in finding rewards and coupons in the nearby venues. Taking help on the Starbucks geolocation feature, a customer can easily find the closest Starbucks location, go through its menu, and even place an order to be served upon arrival.

  • Place Order

Besides easy registration, the app should also offer its users to easily place an order from single or multiple brands using a single platform. Moreover, it should also offer various filters so that customers could filter out the unwanted articles from their search results.

  • Social Referral

The loyalty app should have a feature that offer reward points to the users whenever they refer someone. On successful installation of the app through referral that user should be rewarded some points. That’s a great way to encourage users for referrals.

  • Collect Points

This particular feature facilitates easy collection of all the reward points that the user has earned through various purchases and referrals. That way the user can stay updated about his total earnings.

  • Redeem Rewards

There is no aspect of collecting reward points when the user cannot successfully redeem that. And hence the loyalty app should have feature to offer easy redemption of earned reward points.

  • Rate and Reviews

At last, the user should have that access to rate and review the products purchased by him. These ratings can help your business a lot in increasing your brand awareness.

Cost and Time Estimate CTA

Like for any other software/mobile app development, the time and cost estimation for developing a Loyalty and Reward App will depend upon some factors. Those factors are-

  • Complexity in the Project( the features opted)

  • Platform Selected ( either iOS or Android)

  • UI/UX Development

  • Website Connectivity

  • App store submission, and so on

Apart from the above-stated factors, the physical location of the Development company and the developer’s cost also play a significant role in cost estimations. 


Wrapping up!

Over the last decade, reward and loyalty programs have proven to be a very effective way of driving customer retention, boosting value, and encouraging loyalty. Though the low-key punch card has its place for some companies, a truly innovative approach in designing loyalty programs can create massive value for retailers. Still, if you have any doubt, you can request a quote today.

So when are you introducing a reward app in your business?

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