Sometimes Mobile Loyalty Apps Can Hinder True Engagement

Understanding the impact of mobile app requirements on restaurant loyalty programs and exploring efficient alternatives for diner engagement.

Many restaurants have loyalty programs. And many have their app for their diners. But if a merchant’s mobile app is required to participate in a loyalty program, it creates additional friction during the acquisition process and a resulting Cost Per Install (CPI) that can vary between $2 to $3.* Once the app is installed, the user still has to go through the account creation process, requiring more user effort, resulting in an additional Cost Per Account Created (CAC). This includes the CPI + any other acquisition spend, such as a retailer value incentive.

Additionally, FSR Magazine notes that 78% of consumers prefer to keep only five or less food merchant apps on their mobile phones at any given time.

Mobile app requirements for loyalty acquisition create more friction (affecting conversion rates) and likely higher costs (CAC). And even if successful in signing up a diner, the app is in major competition for the mobile real estate and mindshare of the user.

With the SKUx digital incentive platform, a merchant can engage with non-loyalty diners to securely deliver a digital offer for merchant value via multiple distribution channels (email, SMS, QR code, etc.) to collect key customer data for future re-engagement activities.

By engaging with non-loyalty diners who may have not visited the merchant enough times to create loyalty, restaurants can drive behavior that increases orders, app downloads, foot traffic, and ultimately loyalty membership.

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