Loyalty in the Palm of Your Hand: Smartphones as the New Loyalty Platform
Ritesh Bhavnani, Snipp | July 07, 2016
Smartphones are fundamentally disrupting traditional loyalty programs in big ways and small – and the impact of mobile on loyalty is nowhere near fully realized yet. Marketers have been slow to embrace the full set of capabilities afforded by mobile; most have simply provided “always on” access and management of customer loyalty points through mobile apps. According to Capgemini, while 79% of loyalty programs make use of mobile, only 24% let customers actually redeem points on their mobile phones, and only 9% offer points redemption across all channels.
Smartphone features create new possibilities for brands designing loyalty programs today: GPS location data can reward browsing and create highly-targeted offers; mobile wallet integrations enable seamless payment and points accumulation; camera integrations allow for coupon scanning and receipt-based purchase validation; gamification and social networks increase the effectiveness and reach of programs while inspiring deeper engagement.
In this article, I will examine some of the key benefits and impacts to be had by tailoring loyalty programs around a “mobile-first” mindset. This is the first of many trends explored in my first column, ‘The Next Generation of Loyalty: Key Technologies and Trends’.
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