App-based loyalty programs help reduce churn

It is increasingly evident that having a proprietary application offers countless advantages for businesses, enabling customer loyalty more easily compared to their competitors. These apps have become more than simple reward tools. Today, they play a fundamental role in customer retention and reducing churn rate, strengthening the relationship between brands and consumers, thus ensuring recurring and stable revenue.

Companies and app developers recognize the importance of creating personalized loyalty experiences that encourage customers to return and continuously engage with the platform. In this context, a well-structured loyalty program, with exclusive rewards and customization, significantly increases repurchase rate.

According to Rafael Franco, CEO of Alphacode, the company responsible for developing apps for brands like Habibs, Madero, and TV Band, with incentives and advantages tailored to customer habits and preferences, brands can keep them active and satisfied, reducing churn rate. “Recent studies indicate that user retention in apps offering loyalty programs can be up to 20% higher compared to apps that do not have this type of strategy,” he comments.

By creating personalized offers and relevant rewards, these programs strengthen the emotional bond between the user and the brand, leading to the formation of a base of loyal customers, reducing the need for constant acquisition of new users and increasing the long-term value (LTV) of these consumers.

The advantages of personalized offers

Rafael Franco adds that loyalty programs based on the desires and pains of the public are essential to create a genuine and lasting bond. After all, brands’ own apps collect behavioral data that can guide campaigns. “By investing in personalizing rewards and active communication, we can increase usage frequency and build loyalty with our customers, ensuring a valuable relationship for both sides,” he points out. 

The combination of exclusive rewards, personalization, and efficient communication creates a differentiated experience for the user. By reducing churn, these loyalty programs ensure engagement and build brand image authority, conveying a sense of exclusivity and care that makes the customer feel valued. “As a result, in addition to promoting stable revenue, these programs solidify the business’s position in an increasingly customer experience-focused market,” he concludes.