Check out a post from Mocapay today from our friends at Loyalty 360...
An important component to any merchants’ sales and marketing strategy is the implementation of a loyalty program to increase repeat visits and thank loyal customers. As technology evolves, so do the channels and tools that merchants use to reach consumers.
Mobile is the biggest shift in the way that consumers interact with brands by making information available anytime and anywhere. To take advantage of this shift, brands have begun making mobile a priority by creating mobile applications or by designing websites that are optimized for smaller screens.
While mobile price-comparison and research applications are popping up on many smartphones, these applications are missing out on tracking current customer purchases and rewarding them for their loyalty. Many brand or merchant loyalty programs are still using direct mailings, email programs, and loyalty collateral such as punch cards and keychain fobs to reach loyal customers.
An April 2011 Colloquy report found that of the $48 billion worth of customer loyalty points dispensed to customers, one-third or $16 billion are never redeemed. Consumers either forget about the programs they are participating in or have misplaced the materials needed to redeem. What about the missed opportunities for consumers who do not have their loyalty card or keychain fob with them?
Mobile solves these types of inconveniences by allowing consumers to collect and redeem loyalty points right from their mobile phone. Not only do consumers benefit from the convenience of mobile, merchants and brands are able to track redemption and send reminders of total points and offers.
Here are a few best practices to keep in mind when designing a modern loyalty program:
- Partner with a mobile loyalty provider to mobilize your existing program or to design a new one
- Develop offers that can be distributed through SMS or a mobile application
- Make signing up easy and provide an instant benefit to adopt.
With many customers carrying less and relying more on their mobile devices, brands and merchants can provide a better loyalty experience that increases store traffic, loyalty, and redemption.