Loyalty apps have become a mainstay across European retail markets. It is now the norm for large retailers to offer a digital app linked to a point system for loyalty discounts. Because of this, pioneers in the space are finding new ways to differentiate their digital propositions. 

New features are going beyond offering points or granting access to discounts. Retailers are leveraging digital space to build closer relationships with their shoppers, as well as furthering their own goals. In some cases, this is through personalised experiences and retail media. In others, digital capabilities are aimed towards missions such as sustainability.

Grabbing attention with gamification

Retailers have found gamification to be a powerful tool in brining shoppers’ attention to their digital ecosystems and keeping it there. Zabka does this particularly well, hosting special events where points and discounts can be won in-app. Partner rooms allow these to be turned into an engaging form of retail media, with branded games offering special prizes. The Polish convenience chain has even begun offering a digital controller for these games in its stores. 

Building relationships through personalisation

Data collected through loyalty apps creates an opportunity to transform retail media into a tool for building personalised relationships with shoppers. Lidl is a leader in this space. The discounter’s app is built to offer personalised offers and promotions based on users’ shopping behaviour. This goes beyond targeted advertising. Each personalised offer builds a relationship with the shopper, constantly renewing interest and driving loyalty.

In-app waste reduction schemes

Ahold Delhaize’s Albert Heijn banner has begun turning its mobile app to aims outside of driving loyalty. It has launched ‘Last Chance’ in the Netherlands, a feature allowing users to see which items have been given discount stickers in a chosen store. Stickers are applied when items are approaching their sell-by dates, cutting prices to prevent food from going to waste. The new system automatically communicates this to Electronic Shelf-edge Labels as well as in-app. Users can see what is discounted, by how much, and how many items remain. Ahold Delhaize is leveraging its digital ecosystem to make value-driven waste reduction more visible and effective.

Tying sustainability to in-app promotions

Kaufland offered a short-term promotion to Romanian app users to support uptake of the Deposit Return Scheme (DRS). For a limited time, all DRS coupons redeemed in-store were automatically doubled with an additional coupon in-app. Through this, Kaufland is promoting its sustainability and recycling goals. It is also encouraging shoppers to choose both its stores and its app for their bottle return and shopping missions.

Transforming digital shopper engagement 

Examples from across Europe show that loyalty apps are becoming more than just a value mechanic. Apps can be the most direct and attention-grabbing form of shopper engagement in a retailer’s arsenal. Gamification and personalisation are powerful tools in sparking and building strong relationships with customers. From this, digital capabilities can be turned towards furthering retailers’ other goals, such as reducing food waste and recycling. At the same time, opportunities for digital retail media are endless. 

Retailers aiming to improve their digital propositions should first ensure they are taking advantage of personalised capabilities. This will develop an engaged relationship on which other functionalities can be built. Once it is established, think about how digital capabilities and value mechanics can be utilised to engage shoppers with your core missions. 

For suppliers, knowledge of your customer is key. Personalisation and targeting are become more widespread. Ensuring you reach the right shoppers will make for more efficient use of retail media budgets and more effective communication.