Loyalty apps, when executed properly, and with the right brand, will have a massive impact on how you communicate with your customers, and how they perceive your brand.

Companies of all sizes should have a loyalty program of some sort. The more you see existing referrals, shares, and engagement, the more likely a tool like this will excite your customer base and drive positive revenue results. That being said, companies with low repeat purchases, low engagement, and low referrals will see a smaller impact with loyalty. Think of these types of tools as amplifiers of your brand excitement. You still gotta build the hype, they help get it in the hands of the customers.

In smaller companies this will be managed by the head of marketing, or store owner directly. As you grow you may put one person in charge of your loyalty program or even brand out a retention department underneath marketing. You could also build a customer experience department which bridges loyalty and customer service. Retention, especially in product subscription companies, is crucial to success, and therefore you should be thinking about how to put dedicated resources on improving this often undervalued component to any successful business.

When it comes to loyalty apps, you need them to be easy to use. The core metrics to pay attention to are:

• How many users are active on my loyalty platform?
• How many points have my users accrued?
• How many points are my users redeeming?

Yes you actually want users to redeem points, as this is a sign of a valuable program.

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And of course you are studying other things like lifetime value, average order value, and the impact on your overall margins.