Card-Linked Technology
Supercharging retail acquisition and retention
It is well known that many people forget to bring their loyalty card when they shop at a retailer. This is a struggle that any loyalty operator will face when introducing a plastic card. But what is perhaps even more shocking is that according to research, as a nation the UK has £6bn of unused rewards! So for the times we make a conscious decision to swipe, scan or sign in, we are still struggling to benefit from our efforts.
The reason? A large number of loyalty programs are failing to make the experience seamless for the customer.
A recent report by Capgemini research found that 77% of loyalty schemes that required customers to make a purchase in return for points failed in the first two years. It concludes that organisations need to think beyond points and plastic and look at how they can develop more sophisticated means to engage.
There is also the issue of personal data and the willingness of consumers to share it. The first goal for organisations is persuading customers to give away their personal data in exchange for membership of a Loyalty scheme.
The majority of UK consumers are happy to sign up to Loyalty schemes. A report from YouGov reveals that British shoppers have “fallen in love with loyalty cards”, with a whopping three-quarters (76%) of consumers saying they carry between one and five cards with them at all times.
However, one in four (40%) view carrying a lot of cards as an inconvenience, and nearly a quarter (22%) say they “keep forgetting” to carry their loyalty cards with them.
The alternative to multiple loyalty cards is card-linked technology, enabling retailers to offer a seamless customer experience but also negating the need for the customer to carry multiple loyalty cards by simply linking them to a customer’s bank card. In return for this service the customer must share their card details for the retailer to recognise them in store.
But are customers happy to share their personal data? Especially their bank cards? How many would sign up their bank card? These are all the questions we get. Fortunately, the early adopters of card-linking have answered this question: YES. But the caveat to this is the experience needs to be designed all around the customer.
Just look at Uber Local Offers & Yelp Cashback Program in the US, both of which have opened up card-linking to the consumer and have enjoyed great success, by creating an experience that is memorable, tailored & effortless for the customer.
Seamless Customer Experience is Paramount
Anything that feels clunky regarding the interaction of the app and the in-store experience will create a barrier to usage. Customers don’t just want to see how they’ve totted up points. They want the option of collecting and redeeming, both in-store and online. They expect store staff to know exactly how the app works. Be single-minded about what the app does and make sure it does it well. Before you make any decisions about the experience based on tech possibilities and limitations, involve your customers in the decision-making process.
Omni-channel is Key
One in five retail apps are only used once so it’s important that you find a way to keep customers engaged, even if they’re not shopping often. Loyalty schemes’ success is founded on customer engagement in the formative early days of the relationship. Many schemes fail when customers join up to use on purchase, and then fail to use it again. After all, we only have so much space in our purses. A multi-channel approach to keeping new customers engaged is key. Even if it’s purely app-based, relying on notifications isn’t enough. Customers need to be prompted to come back in-store and keep collecting and to redeem their points as soon as possible so that they see a tangible reward.
FIDEL API
Fortunately the team at Fidel have now created an API where all of the above can be achieved. By integrating directly with the major Card Schemes, we can provide any company the ability to supercharge memorable, tailored & effortless loyalty and reward services.
As a developer you can start building card-linked applications in minutes by checking the documentation and creating an account today.
