Millennials Love This Canadian App… And It’s Coming to the U.S.
In its short time being available, the Drop app, which was founded by Derrick Fung and launched in the summer of 2016, has already amassed 70,000 millennials users and ranks #3 in the App Store. Considering that millennials are the largest online shopping demographic worldwide and are now flocking to the Drop app to collect reward points from global retailers with every purchase, this is could be great news for brands and retailers – including you.
How the app works
Drop is perfect for mobile shoppers as their loyalty points kick in immediately and the instant gratification of the rewards process is particularly appealing to millennials. The hassle of tracking multiple loyalty programs by keeping physical membership cards on hand at all times (which tends to crowd the wallet) is eliminated – users can simply link their credit and/or debit cards to the app, and collect points after each purchase. Drop also uses a special algorithm that tailors offers to each user so that they receive rewards they’ll like based on their spending habits, as opposed to being bombarded with more generalized options. According to Fung, “Part of this is the fact that it’s a big idea, and our vision is to change loyalty as it is today. If you look at some of the programs in the market today, they haven’t really evolved as tech evolved.”
He’s right – loyalty programs generally work on the premise of spending (with a specific brand or retailer, rather than many) and accumulating points per dollar spent. Once a certain amount of points are accumulated, a reward is offered – be it a free product or a percentage off on a future purchase. This system appeals to shoppers, as they see the instant benefits of spending their money with brands who reward them. In the consumer’s mind, each dollar works two-fold: first, to make the initial purchase and secondly, to accumulate points and receive rewards from their favorite brand or retailer.
Why add your brand to Drop?
Drop has taken loyalty program concept and updated it, successfully capturing millennial shoppers because of how seamlessly it gathers rewards points all in one place, indicating a clear gap in the market. Retail partners using Drop already include Zara, Forever21, Amazon, Best Buy, Starbucks, and Lululemon (just to name just a few). As per Fung, “It makes no sense for brands to continue to build their own [loyalty program] and we think it’s time for a consolidated program to bring together all the rewards and loyalty programs into one platform. In turn, we’ll allow marketers to target these people.”
As a business partner, Drop does the bulk of the work, providing a fast and accessible loyalty program experience with rewards that don’t expire or take years to redeem. The best part? The U.S. is next, as Drop looks to launch in New York City, San Francisco, and Austin, TX within the first half of 2017.
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