Drop, an easy-to-use app, lets you earn gift cards for the money you're already spending. Here's my Drop app review.
Drop is an intuitive and easy-to-use app that lets you earn gift cards for the money you're already spending. Derrick Fung, the CEO of Drop, created the app after he began to understand the spending habits of younger generations - like Millennials and Gen Zs.
He found that this demographic was spending more money on "extras" like gourmet coffee, organic foods, and Uber rides to their regular destinations. He also found that they're less likely to be brand-loyal if it meant saving money in some way.
Thus, Drop was born. The app doesn't care which card you use, and it pits merchants against one another to provide you with the best offers. I'll cover this in more detail in the review below, but let's first dig into why this app makes so much sense first.
Let's first geek out on some data
Remember the days when you had a bunch of loyalty cards stuffed in your wallet or hanging from your keychain? Those days are gone - and everything is electronic now. But that doesn't mean we're loyal to the companies we usually shop with.
A study done by the International Council of Shopping Center (ICSC) revealed that 74 percent of Millennials would go to another retailer if they had a bad customer experience. Furthermore, American Express found that this same group would spend up to 21 percent more money with companies that offered an excellent customer experience. And finally, SmarterHQ found that 6.5 percent of Millennials considered themselves brand-loyal.
But we still want rewards.
One survey shows that 63 percent of Gen Z are active in at least one loyalty program (this number jumps to 71 percent with Millennials), while almost 40 percent of them want to play a game to reward points. The survey also showed that 75 percent of this group (Gen Z and Millennials) would be willing to share their personal information in exchange for a more personalized experience.
Why Drop Makes so much sense for these generations, and how it works
So if the data supports the fact that younger people want to earn rewards, desire a personalized experience (and are willing to give their information for it), and they're very open to trying new brands and companies.
Drop hits every single one of those points on the head. Let's take a look at how it works.
1. Download the Drop app
This is pretty straightforward. You can download the app from iTunes or Google Play, or go to the Drop website and enter your phone number. They'll send a download link to your phone.
2. Sign up and link a card
Once you've downloaded the app, open it up and create a profile by entering some basic information. Then you'll be prompted to link a credit or debit card.
Drop works by lining up purchases you make on your card with offers you've connected to on the Drop app. It's a beautiful thing because you don't have to worry about reward cards or logging in anywhere. You just link your card and go about your business while Drop earns you points in the background.
3. Pick your favorite brands
After you've connected a card, you'll be prompted to choose five of your favorite brands. These are usually more prominent brands, like Wal-Mart, Starbucks, Trader Joe's, Uber, Target, and other places that people tend to spend a lot of money.
The most important thing to note here is you cannot change these once you select them, so choose wisely. I recommend picking brands or companies that you shop with the most. Keep in mind, you're going to get new offers all the time, but they may not be for places you shop regularly. So take this time to choose your favorites.
4. Choose a few bonus offers (if you want to)
Now that you've linked your card and picked your top five brands, you'll be prompted to sign up for a few bonus offers. This can be anything from a one-time offer to earn a lump sum of points by shopping with a particular merchant to sharing a link with your friends to sign up for Drop. You'll get types of offers regularly so don't worry if you decide to pass on them now.
Drop has a section of the app called "Bonuses" where you can complete tasks to earn extra points. These are things like linking a second card, getting a buddy to sign up using your referral code, or completing a certain number of purchases. It's kind of like a badge system to keep you engaged in using the app.
5. Start earning points
By now you've already received some initial points just by registering, linking a card, and choosing a few brands (they like to get you excited when you sign up). Now all you have to do is shop with your linked card at the brands you've designated and the points will pop into your account.
Depending on the offer, you can earn a one-time bonus lump sum of points or points per dollar spent. Points will show as pending for a short period until they're deposited into your account.
6. Start spending points
Once you've earned 5,000 points at a minimum, you can begin exchanging them for gift cards at various retailers. The exchange rate is consistent across the board - 5,000 points gets you a $5.00 gift card. You can exchange points in multiples of 5,000. So, for example, you can spend 40,000 points for a $40 Amazon gift card.
This may seem like a lot, but as you'll see in my experience below, you can find sweet deals that give you an absurd amount of points for things you were going to buy anyway. And remember, the goal isn't to spend a bunch of money to earn money back - that's crazy. The goal is to link your card and go about your daily routine then reap the rewards of doing nothing different with your spending.
Conclusion - is Drop worth it?
The short answer is yes. When Drop initially launched back in early 2017, they had some significant issues with their customer experience. Customers were complaining about how points were allocated and how they could use them. Luckily they've worked out most of the problems, and the app is a breeze to use.
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