Mobile key to brand loyalty initiatives

With a decline in consumers using traditional loyalty cards, global experience design agency Foolproof is stating that mobile is key to future adoption of brand loyalty initiatives.

It’s new research highlights that UK consumers love loyalty, but have concerns regarding how their personal data is used, value vs. effort, as well as the simple fact that they don’t have the room in their wallets for the traditional loyalty card.

Foolproof’s research reveals that a more intuitive approach to loyalty that uses smartphone technology for delivery of offers, reminders and redemption is the key to future brand loyalty schemes.

The survey revealed that 85 percent of respondents had some kind of loyalty card in their wallet, however, 65 percent admitted to turning down additional cards, with 35 percent saying that they hadn’t anymore space in their wallet for more schemes.

The report did reveal that 50 percent of respondents stated that they would be more likely to use loyalty initiatives more if they were all housed on their mobiles and that brands need to look into alternative methods, as currently, 48 percent of consumers surveys use mobile loyalty apps regularly (at least once a week), while 46 percent of people said that they have used a mobile in-store as part of their shopping experience.

Brand loyalty cards should be mobile, according to new research

Peter Ballard, founding partner of Foolproof, said: “This survey clearly shows that the current state of the loyalty market has some serious issues that need to considered by brands, if they want to build a loyalty initiative that has a chance of standing the test of time.

“Over the last five years, our research has shown that consumers have adopted multi-channel shopping faster than brands have adapted to it. Shoppers are already using smartphones in-store, and the fact that 50 percent said that they would be more like to use loyalty initiatives more if they were all housed on a mobile, shows the opportunity for brands to capitalise on this behaviour.”

Ballard added: “With new mobile technologies emerging and facilitating smarter and more engaging experiences for consumers, mobile loyalty schemes should be providing incentives – beyond cost saving – to entice consumers to manage their loyalty accounts, facilitate payments and deliver ‘in-the-moment’ messages based on preferences, location and proximity to store.

“The smartest schemes will be the ones that can predict our shopping behaviours and patterns, and help deliver loyalty incentives ‘just-in-time’ to be one step ahead of us and enhancing our shopping experience in ways that genuinely serve us and reward us for our loyalty.”

Image: Marks and Spencer Sparks loyalty card