Mobile Apps: The Centerpiece of Modern Brand Loyalty

“Loyalty program is synonymous with apps. It should be the best experience of your brand” 

- Ashley Travis, Sr. Director Media, Loyalty, Digital Merchandising, Pizza Hut

In today’s mobile-first world, apps have evolved into the heartbeat of modern brand loyalty. With users spending an average of five hours daily on mobile devices and dedicating 90% of that time to apps, the role of mobile apps in shaping consumer behavior has reached unparalleled significance.  

Apps are no longer just transactional tools; they are the digital gateway to omnichannel brand experiences. Advertisers that succeed in this space understand that an app is more than a product—it is a bridge to deeper, more meaningful relationships. However, while people are spending more time than ever on their mobile devices, they are installing (12% decline) and opening fewer apps (7% decline) per month (2023 vs. 2020). At the same time, session lengths are increasing, suggesting that while users engage with fewer apps, they do so more deeply. This makes it even more critical for brands to focus on sustained engagement beyond just the initial install. 

This shift indicates that users are becoming increasingly loyal to their preferred apps and have less appetite to discover new ones. As a result, brands must focus on delivering sustained engagement beyond just the initial install to maintain their place in users' daily routines. 

Challenges in the Modern Loyalty Landscape 

While mobile time spent continues to rise, privacy-first frameworks like Apple’s ATT and SKAdNetwork have disrupted traditional data attribution methods. This has forced performance marketers to reimagine how they measure app success while respecting user privacy. For example: 

• On iOS the users opt in rate to ATT when prompted has improved year on year, with gaming (37%), F&B (34%), and e-commerce (34%) leading the categories. However, this still requires marketers to clearly articulate the value exchange. Cross-promotion continues to be a powerful tool in increasing opt-in rates, especially within the hyper-casual gaming sector. Although it already has the highest opt-in rate across networks for games, this figure rises significantly to 59% for installs driven by cross-promotion. 
• AI/ML technologies are increasingly used to bridge the gap created by limited real-time feedback, enabling predictive analytics and personalized experiences. 

Why Mobile Apps Are Critical to Loyalty 

Mobile apps have become the most direct and consistent touchpoint for consumer engagement, enabling seamless and on-demand interactions. With 9 out of 10 mobile minutes spent in-app, advertisers must leverage this opportunity to build deeper relationships with their users. However, retention remains a challenge – Day 14 retention rates have declined by 15% year-over-year. This highlights the need for brands to prioritize meaningful, loyalty-driven engagement that extends well beyond the initial download. 

The key lies in delivering hyper-personalized experiences, powered by data-driven insights and AI-driven optimizations. 

Mobile apps offer unparalleled opportunities for brands to deepen customer relationships. Successful programs like MyMcDonald’s Rewards (over 175 million active users within a 90-day period across 60 markets) show the power of app-based engagement and how loyalty programs drive retention. 

In the Food & Beverage industry, the adoption of loyalty programs has significantly increased, leading to a surge in app installations and user engagement. For instance, Chipotle's loyalty program, launched in 2019, has grown to over 40 million members by early 2024, contributing to substantial increases in digital sales. Similarly, Starbucks' Rewards program boasts nearly 34 million members, accounting for 60% of the company's sales.  

These examples highlight how well-implemented loyalty programs can enhance customer engagement and drive sales. 

• Loyalty-driven engagement works: U.S. consumers held an average of 17.9 loyalty program memberships in 2023, actively participating in 50% of them.
• First-Party Data Utilization: Apps provide valuable user insights, purchases, preferences, and behaviors enabling optimized loyalty strategies. 
• AI & ML for Predictive Insights: Advanced analytics help anticipate user needs and refine marketing efforts. 
• Omnichannel Strategies: Integrating AI-powered personalization with media planning ensures seamless and effective engagement. 
• Adapting to Privacy Regulations: Balancing user privacy with personalization through privacy-safe attribution and contextual targeting is key. 

The evolution of app loyalty is unfolding rapidly, and staying ahead requires continuous adaptation and innovation. From AI-driven optimizations to omnichannel execution, brands that harness the full potential of mobile apps will set the benchmark for success in the digital era. 

"At InMobi, we collaborate with leading brands to elevate their loyalty programs, ensuring seamless user acquisition and long-term retention. By leveraging data-driven insights and AI-powered personalization, we help brands build deeper, more meaningful connections with their customers—turning one-time users into lifelong loyalists." 

- Abhinav Mohan, VP & GM- Global Performance Revenue, InMobi  

Join Us on the Journey 

This series is your guide to navigating the dynamic world of mobile app loyalty. Whether you are looking to refine your app strategy, design innovative loyalty programs, or leverage data to its fullest potential, there is something here for you. 

Do not miss out – subscribe now to stay updated as we reveal strategies that will define the future of mobile-driven loyalty.