Loyalty programs in apps help in reducing churn

It is increasingly evident that having an own application offers numerous advantages for the business, enabling customer loyalty more easily compared to its competitors. These apps have become more than simple rewards tools. Today, they play a key role in customer retention and reducing the churn rate, strengthening the relationship between brands and consumers and thus ensuring a recurring and stable revenue.

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

According to Rafael Franco's, CEO of Alphacode, a company responsible for developing applications for brands such as Habibs, Madero and TV Band, with incentives and advantages directed to customer habits and preferences, brands can keep it active and satisfied, reducing the churn rate. “Recent studies show that user retention in applications that offer 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, which leads to the formation of a loyal customer base, 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, the brand's own applications collect behavior data that can guide campaigns. “By investing in the personalization of rewards and active communication, we were able to increase the frequency of use and retain our customers, ensuring a relationship of value for both sides”. 

The combination of exclusive rewards, personalization and efficient communication creates a differentiated experience for the user. With the reduction of churn, these loyalty programs ensure engagement and create authority in the brand image, transmitting a sense of exclusivity and care that makes the customer feel valued.“As a result, in addition to promoting stable revenue, these programs consolidate the business position in a market increasingly focused on the customer experience”.