Loyalty schemes are big business. You only have to look at Tesco’s Clubcard, Boots Advantage and Nectar points to see how effective they are at drawing consumers in and creating brand loyalty on the high street.
But looking around the globe traditional loyalty models are being taken on by the mobile revolution. Brands using their mobile channel to target engaged consumers and deliver smarter, personalised deals are giving traditional routes a run for their money.
Fiddling about with coupons and cut-out offers at the till will soon be a thing of the past. Brands that have harnessed marketing to mobile, enhanced by mobile payment solutions, will smooth the way when it comes to redeeming offers at the point of paying.
Creating loyalty with consumers on mobile devices is a game-changer for the marketing industry. We live in an always-on society where more than 50% of the UK population (and rapidly growing) are accessing the internet on a smart device and these consumers want more from brands they interact with here.
In its recent whitepaper about mobile marketing ORM London, mobile and web specialists, states that we are witnessing a huge change in human behaviour as a result of mobile devices.
A new fast growing group of consumers, that interact and are highly engaged with their mobile, is emerging. As a result businesses that are changing to become mobile-first in their approach are striding ahead to win their loyalty.
Founder and design partner of ORM, Pete Gough, said in the whitepaper:
Marketers can now reach and connect with people in their pockets, at their desks and whilst they are watching the television. This everywhere and anywhere culture is what consumers are expecting.
You can use your analytics to give people what they want, when they want it. This is a great opportunity to connect the dots and follow these consumers across all channels to deliver consistent and relevant messages.
Geodata, mobile payments, social networking, gamification and responsively designed sites are some of the techniques in play with mobile loyalty schemes.
Here are five great ideas for how you can create loyalty with mobile users and ultimately give them what they want: better service, rewards for brand advocacy and, of course, money-off deals.
1. Offers and vouchers, tailored and targeted to the mobile user:
LevelUp, the US based mobile-payments-meets-loyalty program app, is tapping into and delivering what consumers really want – money off deals in a location near them, in real-time.
Using geolocation data the app alerts users to nearby businesses offering discounts to LevelUp customers. The promotions are applied when the consumer users the mobile app to make a payment.
Each purchase made through LevelUp is tracked and customers are automatically rewarded with credits each time they return to their favourite shopping haunts.
2. Location. Context sensitive, time specific, localised search
I want to personally thank the Addison Lee (the London minicab firm) app creator for making a Londoner’s life so much easier.
This smooth, seamless app allows account, cash and credit card customers to 'hail' a minicab on-the-go in under a minute is a fantastic example of understanding what its mobile customer wants.
The GPS means there’s no need to type in pick up address (which can be saved) its “find my location” button will find you no matter how lost you are (great for when the pub closes).
It sends an SMS to confirm it’s coming to collect you – and the beauty of this minicab firm is – you don’t have to give them directions to your home.
3. Rewards. Customer lifestyle insight for maximising advocacy:
South African health insurance company, Discovery, hit jackpot when it launched a rewards scheme based on healthy-lifestyle choices. The Discovery Vitality loyalty scheme gives you more points the healthier you are.
If you reach your target weight/fitness you’re given extra credits. Members of the club are rewarded for “good behaviour” with money off deals (healthy foods/healthclubs/airlines), cash back as well as fitness and nutrition support.
The Discovery Vitality app means you can collect, track and utilise points whilst keeping abreast of your health stats, goals on the go.
4. Payments made easy
Innovative mobile payment solutions, currently available on low-value items in places like Pizza Express, may soon be common place on the high street.
A great example of an app enhancing a customer’s experience with a brand is the Pizza Express iphone app powered by PayPal. It works by allowing iPhone users to, claim/redeem vouchers and, pay the bill on a smartphone.
The waiter hands over the bill with a 12-digit code that the customer taps into their PayPal account. The app sends the customer and the restaurant a receipt which you show to the waiter and you’re good to go.
5. Free in-store wi-fi:
Luxury London department store, Liberty, is one of many retailers experimenting with free wifi in-store for customers.
Recent research by Google and Nielsen found that shopping searches were twice as likely to be conducted in-store. The report highlights that this is a key opportunity for marketers to reach someone who is already ready and prepped to take action.
Pete Gough from ORM says:
Retailers shouldn’t be wary of mobile users. I regularly use my phone when I’m shopping. I take pictures of items I’m just about to buy and send them to my wife to ask if she likes them or not. Retailers should focus on how they can use wifi and mobile data to add value to the customer.