How To Make Your Customer Loyalty Program Pay For Itself

Grocery margins are down and price sensitivity is up. Possibly more than ever, customers are shopping around for the best deals as the cost-of-living crisis continues to bite.

It’s safe to say, grocery retailers are under a great deal of pressure right now; to inspire loyalty in an increasingly disloyal customer base, and to find additional revenue streams.

To help retailers address these challenges, we’ve created a digital toolbox that makes your loyalty program pay for itself. It can achieve this by increasing revenue and cutting costs in a number of ways:

  • The app provides new monetisation opportunities with features like gaming and personalised shopping recommendations.  

  • Customer loyalty — which increases revenue — and repeat purchases can be encouraged through Loyalty Subscriptions and Buy Now Pay Later capabilities.  

  • It helps to cut costs by improving store efficiency with features like Scan & Pay. 

  • The app can fulfil the growing customer desire for more personalised experiences by facilitating a switch from mass to personalised promotions. This switch from mass promotions to personalised promotions also helps to cut costs.  

Today, retail customers expect innovation, and they want more
digital solutions that improve the shopping experience. This is precisely the demand Lobyco is dedicated to meeting. 

How Lobyco Enables Retail Innovation

App helps to create a much smoother, and more relevant shopping experience for customers. This in turn boosts loyalty and share of wallet for retailers. By giving advertisers access to attractive and engaged app users, retailers can also use the app to create new streams of revenue.

Because it’s a modular app, retailers can customise it in a way that suits them, or even integrate elements of the Lobyco solution into their existing app or loyalty program.

As a result of all this, we are already seeing some impressive results: 

  • The Lobyco app — originally developed by Coop Denmark — is the most popular loyalty app in Denmark, with 765,000 monthly active users. This is equivalent to 16% of the adult population.  

  • On average, customers increase their monthly spend by 14% after using the app for the first time. 

  • At least 92% of app users continue to use the app after the first month.  

As we mentioned earlier, as well as delivering these kinds of results,  our digital toolbox and App can also pay for itself, or help you make your existing loyalty program pay for itself.

Customer Loyalty Program that Pays for Itself?

Whether you choose to use the Lobyco digital toolbox App as a standalone solution, or integrate it with your existing loyalty software, it can help you make all the money back from your initial investment. The app makes this possible in a number of ways:


Increased Monetisation 

Lobyco provides retailers with new opportunities for monetisation by unlocking advertiser funding. Through the app, suppliers can pay to deliver personalised promotions to relevant and engaged customers, which means retailers generate revenue from the marketing efforts that entice customers into their stores.

By funding product prizes, suppliers can help retailers run profitable games through the app that engage customers at home and drive them to visit the store. Advertisers can also pay to feature products in search results and as shopping list recommendations, creating even more revenue opportunities for retailers.

So if youre a retailer using the app in these ways, big brands like Coca-Cola and Procter and Gamble will be part-funding your customer loyalty program.

(Profi for example, one of Romanias leading grocery retailers, had suppliers finance roughly 3 million product prizes during the first year of running games in the app). 


Cutting Costs and Increasing Loyalty 

 The Loyalty Payments features in the Lobyco digital toolbox and App also offer numerous ways for retailers to cut costs, increase loyalty, and therefore cover the cost of their customer loyalty program.

Real-time bonuses encourage repeat purchases by giving customers an instant loyalty bonus when shopping, which they can use next time they visit a store. The Buy Now Pay Later feature means customers on a tight budget are not turned away, and potentially lost revenue is saved. And the Scan & Pay feature increases customer satisfaction and reduces costs by improving store efficiency. The Digital Leaflet feature also cuts printing and distribution costs as it reduces the need for physical leaflets.

To really lock customers in, there is also a Loyalty Account option. This allows customers to automatically transfer money each month to an account accessed through the app, in exchange for special benefits. They will then use this account to make purchases exclusively in that retailers store; an absolute guarantee of repeat business.

If you focus your loyalty subscription benefits more towards your private labels, the continuous profits here should be even higher.


Switching from Mass to Personalised Promotions 

Lobycos advanced data science capabilities enable a switch from mass to personalised promotions, allowing for personalised offers, rewards, and entire shopping experiences. This helps to cut costs even further by reducing dependency on traditional media like television, radio, outdoor, and print advertising. It also means that retailers do not have to sacrifice margins across all customers with each promotion or discount they offer.

Marketing managers can use the intuitive tool to easily set up personalised or segmented campaigns that target relevant customers only; meaning happier customers, and more profitable retailers.

So Many More Useful Features

So far weve only covered some of the main ways Lobyco can help you create a loyalty program that pays for itself, but there are many more useful features that can help too. Weve not even mentioned the App Feed, Digital Leaflets, Stamp Cards, Recipes, and so many others.

If youd like to learn more about the features we have mentioned — and the ones that we havent — why not get a free demo today.

More To Explore

Let us help you create and maintain customer engagement 
across all touchpoints in retail.