As mobile becomes the front door to brand experience, apps are no longer just a convenient touchpoint, they’re becoming the central hub for loyalty innovation, personalised experiences and Direct-To-Consumer (DTC) engagement, says Sarah Toms, Retail Growth Director at Apadmi.

Our recent research confirms this shift: 24% of brands now rank mobile apps as the number one channel for CRM responsiveness, making it the standout channel ahead of email, social media or even in-store experiences. 

That’s not surprising. Apps offer a direct, data-rich and always-on connection to the customer, making them an effective platform to build, nurture and scale loyalty in 2025 and beyond.

Why are apps overtaking traditional loyalty tools?

For years, loyalty programmes centred around points and plastic cards, but the way consumers interact with brands has changed. They expect speed, relevance and minimal friction, which is exactly what optimised mobile experiences allow brands to deliver.

What makes apps so powerful is their ability to combine multiple touchpoints including payment, promotions, personalisation and customer service, into a single, seamless experience. They act as a digital HQ for customer engagement, capturing real-time behaviour and enabling brands to respond immediately and meaningfully.

Most crucially, apps can gather data that other channels simply cannot. From in-app browsing to purchase frequency and location-based behaviour, mobile offers a rich stream of first-party data. This data allows retailers to provide deeper personalisation and more effective segmentation, enabling brands to move beyond generic offers and serve customers more tailored, individual value.

From points to behaviour-based engagement

The shift to mobile-first loyalty is also driving another transformation; the move from transactional loyalty to emotional and behavioural engagement.

It’s no longer enough to reward customers just for spending. Instead, leading retailers are building loyalty through experience – recognising actions like social sharing, product reviews, app usage and brand advocacy. Mobile apps are perfectly placed to capture and incentivise these behaviours, creating a routine  and relationship that strengthens over time.

It’s a win-win situation. Consumers feel more connected and valued, while retailers gain insight allowing them to enable smarter strategies and stronger ROI.

Integration is everything

One of the biggest advantages of mobile apps is their ability to unify key functions into one cohesive journey. Today’s best apps promote loyalty with integrated payments, personalised offers and content, real-time notifications, location-based functionality, and in-app browsing or ordering.

This integration simplifies the experience for users whilst boosting conversion and retention. A seamless user experience keeps customers within the brand’s ecosystem, reducing the temptation to switch and increasing frequency of engagement.

Integration is also key not only in terms of app features, but also the integration of an app itself into a brand’s overarching omnichannel strategy, ensuring that mobile is providing a clear, consistent bridge between online and in-store experiences. Brands are now thinking “mobile-out”, considering what can be learnt about customers from their mobile products, and using this data to inform overall digital strategies, to implement more effective a/b testing and make incremental changes. 

Mobile loyalty for all

Mobile loyalty experiences aren’t just for the big grocers or the ecommerce giants. When well-researched, designed, developed and optimised, mobile apps can deliver significant ROI for a variety of retailers.

Poundland is a brilliant example of this – they wanted to create a mobile experience that aligned with their brand and proposition. The result was an app that makes  loyalty simple, accessible and rewarding. In October last year, we launched the “Perks” app together; a mobile-first loyalty platform that finds new ways to reward customers whilst driving in-store visits.

Built with simplicity at its core, the app offers exclusive deals, gamification and rewards, all tailored to customer behaviour whilst creating a digital bridge between in-store and mobile experiences.

The result? A fast-growing base of over 2 million engaged users who open the app regularly, return to stores more frequently and feel a stronger sense of connection to the brand. 

Next-generation mobile in retail

Whilst some retailers are still catching up in building and optimising their mobile products, others are now looking ahead to next-generation mobile and how emerging tech can further elevate customer experience whilst driving revenue.

At Apadmi, we’ve begun exploring how display tech, including consumer-grade augmented and mixed reality headsets, as well as more specialised “light AR” implementations could be leveraged by retailers. 

These could include virtual try-ons for clothes, furniture and makeup, the likes we’re already seeing from brands such as Charlotte Tilbury and IKEA, AI-driven holograms showing users trying items on across retailers or smart shopping journeys with in-store AR overlays for product info, eco-credentials, and reviews.

What retail leaders need to consider in 2025

For retail leaders reviewing their loyalty strategies in the year ahead, mobile must become a core component.

Some key considerations for building a mobile-first loyalty model include, prioritising utility, not just reward. Ensure your app delivers value even when customers aren’t making a purchase. Features like store locators, product scanning, exclusive content and gamification all enhance stickiness and drive routine usage.

Consider how your mobile experience should and could continue to evolve along with emerging tech – stay ahead of the trends wherever possible to avoid missing valuable opportunities.

Commercial modelling of a loyalty proposition is also really important, and allows you to avoid costly mistakes that some brands fall victim to, such as discounting too much and making a loss

A lasting competitive edge

For retailers who embrace this continuing shift, the rewards are significant: greater engagement, deeper insight, stronger retention and more resilient growth. Brands willing to act now will enjoy a lasting competitive edge in a market that demands more from every interaction.