Loyalty & Rewards

Drop Loyalty App Has 70,000 Millennials As Customers

Shortly after rolling out this summer in Canada, Drop, the mobile app that gives users rewards and access to loyalty programs, has more than 70,000 millennials as customers.

According to a report by Business Insider, the app has linked more than 70,000 credit or debit cards of millennials to the app, which works like others available in the marketplace by helping consumers collect reward points that can be used to claim gift cards from retailers.

What sets the app apart — and could be the reason so many millennials are using it — is the fact that users link their debit and credit cards to the app and collect points based off of either payment method. Using a credit card earns the customers double points. Drop is also different in that it collects different rewards programs in the app so customers don’t have to keep all the physical cards. Finally, Drop uses algorithms to serve up users with targeted offers and rewards that are based on their spending habits. There’s also that little thing that most Americans, and probably Canadians, will kill for: instant gratification. "All the rewards come to you immediately, and you don’t have to do anything,” said Derrick Fung, CEO of Drop, in an interview with Business Insider. "We think millennials — some call them lazy — but they want seamless experiences."

Drop makes money by charging companies to give offers to its customers. Drop has already partnered with retailers, including Zara, Forever 21, Amazon, Best Buy and lululemon. Those retailers' loyalty programs are consolidated into the app, noted the report. "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," Fung said. "In turn, we’ll allow marketers to target these people."

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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