Why loyalty schemes are on their final lap

Most of us have used a loyalty card at some point in our life. Many of us may even have a wallet or purse, bursting at the seams with them. But it would seem that they are on their way, with consumers losing interest and the stores themselves looking for new ways to engage and retain customers. This was highlighted in the UK recently, when supermarket giant Tesco said that it was cutting some of its loyalty card (the Tesco Clubcard) rewards. Some customers did complain, and Tesco backtracked a little, delaying the cut until later in 2018.

But really it was symptomatic of a wider trend, where plastic loyalty cards are outdated. Aldi and Lidl, the UK’s two fastest-growing supermarkets, do not have loyalty cards. Customer loyalty to one supermarket is rarer than it was, and the concept of being ‘rewarded’ with points does not fit with the way modern consumers shop.

It’s clear to see that loyalty systems are struggling and hardly ever pay off. It’s not hard to see why. They don’t typically enhance the user experience; they are primarily driven to capture and build up an improved view of customer data, which is then subsequently used to drive old-fashioned mail-outs. They are not customer centric and offer limited real value to the consumer; awards can typically only be collected based on making purchases, not for anything else.

Many purchases are typically required before qualifying for any tangible rewards; consumers simply don’t see the value. Lastly, should enough award points eventually be collected, they typically can only be exchanged with the company that is running the loyalty system, severely restricting the value of your awards.

Apart from that, everything is fine with loyalty cards!

That’s why with the launch of the MobileBridge Momentum platform and Momentum token, we are redefining the world of loyalty. Companies will be able to use the MobileBridge Momentum Token or a company branded Token to reward their consumers for making purchases, for their loyalty, data insights, their attention, and for becoming a brand advocate or activist who is sharing with friends and actively engaging with the brand and the community.

The Momentum Platform offers companies endless ways and flexibility in which their consumers can be rewarded with Momentum Tokens, allowing companies to launch and reward users with their own branded rewards and loyalty token. This allows them to control the economic and financial model of their token eco-system and match it to their business goals and needs.

In an era of challenging times for marketers and changing ideas of the concept of customer loyalty, we are rewriting the world of marketing and loyalty and creating a world of incentive based rewards; understanding and assigning value to each contribution that helps companies sells more.

Want to learn more? Visit our website — https://momentumtoken.io