A Canadian-made app that’s become a quick favourite among millennials is about to “drop” south of the border.
You’ve probably heard of Drop by now.
The popular rewards app – which rolled out in Canada this summer – targets millennials in their offerings of rewards and loyalty programs.
It’s taken off in a major way in just a matter of months, with over 70,000 millennials having jumped on the bandwagon. It didn’t take long for the app to reach the number three spot in the app store.
When users link their credit or debit cards to the app, they are able to collect rewards points from global retailers that can then be put towards claiming gift cards. The concept is simple and isn’t exactly revolutionary – but it’s designed for the modern millennial and is millennial-approved (which is all today’s marketers want to hear, right?).
As Business Insider points out, there are a few important differences between Drop and other similar apps. For starters, the app allows users to link both their credit card and debit card to the app, resulting in an increased accumulation of rewards. Of course, this also helps the cash-strapped set of millennials who have decided to give their credit card a little break (though credit card purchases do earn you double the points).
Eliminating the need for a wallet full of loyalty cards, the app collects your rewards programs on one app.
Another attractive feature is the app’s customization – because millennials love customization. It uses an algorithm to target users with rewards they’ll appreciate, as opposed to generic offers, based on their spending habits.
As Business Insider reports, however, the biggest draw of the app – according to CEO Derrick Fung – comes down to one thing: instant gratification. “All the rewards come to you immediately and you don’t have to do anything,” Fung told Business Insider. “We think millennials — some call them lazy — but they want seamless experiences.”
It takes about a month on average to redeem the reward, though some can be redeemed within one week.
From a marketing perspective, the app allows brands to target people based on what they are already spending money on, as it serves offers to people who are dropping their dollars on similar products or have spent on the brand in the past.
“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.”
Drop’s retailers include brands like Lululemon, Zara, Forever 21, Amazon and Best Buy.
The U.S. market was the next natural step, and the app is currently rolling out in private beta for some of our American friends. The company has plans to launch in New York City, San Francisco and Austin in the first six months of 2017.