How to approach loyalty in the mobile space?
Loyalty programs have the potential to rewrite the rewards proposition and change the way people interact with a brand. Supported by advanced mobile technologies and services, a loyalty program can build a sense of affinity between consumers and brands, leading to greater customer retention, interaction and sales.
But the mistake made most often with loyalty programs is using it solely as a mechanism to get your customers to spend more.
Mobile loyalty programs will evolve to become mobile experiences and real loyalty is about showing your customers how much you love them.
SOME TRENDS:
- ONGOING RELATIONSHIP WITH THE CUSTOMER AT THE CENTRE
Taco Bell is introducing an in-application loyalty program with a gamification-heavy focus on rewarding customers for repeat ordering and engaging on social media. Customers who choose to link their social accounts will be greeted with puzzle pieces.
Users do not have to upload posts via specific hashtags. Taco Bell’s algorithm recognizes words and rewards users for cheering up.
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Starbucks is making Starbucks currency a new currency. Partners businesses could offer stars as rewards to their customers. Possible partnerships they are looking at: Lyft, Spotify & The New York Times.
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- MORE QUALIFIED SYSTEM PRIOR GETTING A REWARD
Starbucks members will earn two stars for each dollar they spend instead of earning a star per every transaction. The move is intended to speed the ordering and checkout process, but it also means some customers would have to spend more for the same benefits.
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Belly customers need to place his app QR card over the tablet camera (merchant’s app) which qualifies customers for rewards while also updating the merchant’s database.
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Marks & Spencer taps into the ‘psychology of gaming’ with a data loyalty scheme. M&S rewards shoppers for positive behaviours. Points have no monetary value but can be redeemed against hyper-personalised offers.
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- THE RIGHT TECHNOLOGY USED IN THE RIGHT WAY
Coca Cola is beaconing its vending machines creating a point of connection between the company and the customer: sending targeted messages & offering loyalty points in exchange of collecting transactional data.
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Dunkin Donuts are able to track customers’ behavior and engage with them on a one-to-one. They are segmenting customers by behavior and sending relevant offers according to this.
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Walgreens became the first retailer to integrate Its loyalty program with Apple Pay. When users go to pay, they need to hold their phone near the contactless reader with the finger on TouchID to scan the balance rewards card.
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Loyalty is big and vary that probably is complicated for companies to figure out how they can develop the loyalty scheme in the mobile space.
My recommendations for those that are starting are:
- THINK BEYOND POINTS
Loyalty programs are not just about earning and redeeming points. They are about building customer relationships and delivering added value. Lots of brands are working on non-traditional loyalty programs that create new opportunities to connect with their customers and at the same time creating a great value for the customers.
- AN OMNICHANNEL APPROACH IS A NECESSITY
Brands need to think about how to engage with customers on the website and mobile site. But how do they connect the mobile word with the brick and mortar? To answers that questions you need to know what your customers are expecting from you.
- LOYALTY IS NOT ONLY FOR CUSTOMERS
When we talk about loyalty we think about the belonging feeling from a customer to a brand, but what happen with partner or affiliates? We are seeing companies opening their services to others and doing partnerships that appeal their target customers. New and interesting different ways of loyalty are coming up.
- LOYALTY APPEALS TO BE A NEW CURRENCY
Loyalty points must been seen as a currency but sometimes it’s frustrating how much effort is required to redeem them. Make that easier is an existing challenge for most of the brands. Companies where redemption is solved are the companies that are monetizing their loyalty programs.
