The future of loyalty lies in mobile payments (28 Dec 2015, The Wise Marketer)
The Wise Marketer - Home Subscribe to our RSS feed!   Share it!   
Email this page to a friend! Tweet this! Share this via LinkedIn! Share this on Facebook! Share this on Google Plus!
  Mobile Edition Tablet Edition
   The Wise Marketer          Customer Strategy Network             Log In          Register for Free   
  
Stay up to date with What's Hot in the world of Customer Loyalty and Marketing All the latest Customer Loyalty and Marketing News and Developments worldwide - just the facts Facts, Figures and Stats to support your Loyalty, Engagement and Marketing initiatives Opinion and Analysis from the world's most respected Customer Loyalty and Marketing luminaries
The Loyalty Guide - the only complete global Guide to Customer Loyalty, Engagement and Marketing Feature Articles and How-To Guides by the world's most respected Customer Loyalty and Marketing experts Details of the top Customer Loyalty and Marketing Conferences worldwide Search The Wise Marketer from top to bottom!
   The Wise Marketer   

Get your headlines by email every Thursday - Free!

The future of loyalty lies in mobile payments

   
Swap to the printable version of this page
Print!
 

Monday December 28, 2015                      Tweet this article

 


If you've read anything on the costs of customer acquisition vs customer retention over the last 20 years, you'll have heard that customer retention makes good business sense. And while the traditional loyalty card is dying out, loyalty itself is more alive than ever - but marketers need to take a different approach, according to myCircle.

Experts claim that it costs anywhere between 3 and 30 times more to get a new customer through your door than it does to persuade an existing one to return - even if that door is virtual, in the form of a website or mobile app. With figures like that, just imagine the increase in profit margin a business could make on something as simple as a cup of coffee… if it's customers loyally returned on a daily basis.

The traditional answer to this has always been the loyalty card, but the truth is, whilst loyalty schemes are more popular than ever, the loyalty card that you are so readily handing out… the one that your customer has just stuffed inside his or her wallet or put on a key fob, is dead weight. In an age where the world is moving toward an integrated online/offline experience, the loyalty card is inflexible, inconvenient and simply no longer fit for purpose. Cards get lost or forgotten, rewards go uncollected and the loyalty that you're expecting your card to deliver, will never arrive.

Even the modern day 'web-based reward card' has its limitations. After all, what is there to remind the consumer that your reward scheme even exists? There's no scratched up, faded card taking up space in their wallet and the email statements you helpfully send out on a weekly basis are either unsubscribed from or automatically filtered into the junk mail folder. And what happens as a consumer, if I come into your store, your cafe, your bar or your restaurant and I make a purchase? There's a critical disconnect between a web-based reward programme and the bricks and mortar experience, and that means, once again - the value of the loyalty scheme is lost.

So what is the answer? There's no question that customers can still be influenced to give loyalty - providing that we as merchants, reward them for it. The key lies in convenience and accessibility and this comes in the form of mobile payments. By enabling mobile payment functionality throughout your online and offline channels, you're able to integrate a loyalty programme into the payment system. In doing so, you're streamlining the purchasing process, delivering better service and immediately and conveniently rewarding customers for their loyalty.

Just imagine if your customers could pre-order a round of drinks or a meal-deal from a mobile app, pay and collect loyalty points, all in one smooth transaction. No need to fumble around in a wallet for a card, no need to check your points tally online and no need to go through your junk mail searching for the latest statement to see if you've got enough points for a free cappuccino. Instead, your customers are getting the instant gratification of being rewarded at the moment of purchase and that feels great.

So while the loyalty card itself may have had its day, a loyalty programme done well is more powerful than ever. The only question left is who's going to make the first move and unify the consumer experience across channels? Who is going to take it a step further and integrate loyalty with mobile payments - you or your competitors?


More Info: 

https://www.mycircleinc.com

> The Customer Loyalty Marketing Guide

Tell a friend about this article Tell a friend   or   Tweet this article

Have your loyalty news delivered - free.

Get all the most important customer loyalty and marketing news by email every Thursday, and it's still absolutely Free ...
Sign up!

 

What is The Wise Marketer?

We're the only truly unbiased, global source of news & research for customer loyalty and marketing professionals...   Join Free Here

Join nearly 13,000 other loyalty and marketing professionals and get our free weekly news roundups...

Sign Up For Free

See The Loyalty Guide 7 up close, and find out how to increase profits and market share with more effective loyalty marketing!

Subscribe and follow...

Get our free weekly newsletter
Follow us on Twitter
Access our RSS news feed

Hot off the presses...

What's been happening recently?

Insight: Why digital ad spend is just another form of broadcast advertising - The digital marketing world was rocked last week by revelations that Facebook has been dramatically overstating the amount of time its users spent watching video ...
Survey: Luxury shoppers want omnichannel experiences - A new report from Boston Consulting Group (BCG) confirms that digital technology is heavily influencing the luxury sector, whether brands are ready for it or not. The implication: there ...
Survey: Mobile loyalty members prefer SMS - A new survey from 3CInteractive reveals that removing friction from mobile loyalty applications will become a top 2017 priority for marketers. Loyalty programme takeup likewise stands at the top of ...
Insight: Marriott surprises with early loyalty linkage - Marriott Rewards and Starwood Preferred Guests (SPG) members woke up Monday morning this week to find that, contrary to conventional wisdom and Marriott's own public statements, the ...
Research: Investing in customer retention leads to increased market share - From the research wire: A new study from Forbes and Sailthru gleaned from 300 global CEOs, media, and retail executives reveals that those brands that upped their ...
Special offer: Join our FREE Loyalty Academy beta test on September 27! - The Wise Marketer Group is pleased to announce the beta launch of the Loyalty Academy, the first-ever online certification programme for loyalty marketers. As you are ...
Insight: Is Apple Pay a threat to brand loyalty? - Mobile Commerce Daily has a column from Bond Brand Loyalty EVP Sean Claessen that raises some compelling questions about the role third-party mobile wallets such as Apple Pay will play in ...
Canada: American Express Canada launches pay-with-points option - Transacting in Canada just got a little more fungible: American Express Canada last week announced the launch of UsePoints for Purchases, a new capability that allows eligible ...
US: Marriott highlights Rewards members in new campaign - Here's a novel idea: A major hospitality brand actually giving life to the idea of customer loyalty by showing what actual loyalty programme members look like. That's the tact taken ...
Insight: Data-rich retailers lack customer identity capabilities - UK's Retail Times reports on a new study by technology consultant Amido that reveals a core retail challenge: retailers are awash in customer data but still struggle to ...
US: Office Depot rewards students for putting down the device - We all know how distracting our devices can be to our personal and professional lives. Head-down screen time interferes with our social interactions, our home lives, our ...
UK: British Airways to end Diamond Club in November - It's the end of an era for UK frequent-flyers: British Airways has announced that effective November 30, it will shutter the venerable Diamond Club loyalty programme. At that point ...
Survey: loyalty programmes influence retail holiday sales - eMarketer reports that ecommerce is poised to upend holiday shopping this year: while overall retail holiday sales are poised to grow by an anemic 1.8%, ecommerce retail holiday ...
News: AAdvantage members still fuming about programme changes - We're on record here as supporters of the Big Three U.S. airlines migrating their loyalty programmes from mileage-based to revenue-based earning structures. Grumbling and ...
Insight: How returns data can fuel customer relationships - Here at the Wise Marketer, our mantra is that a successful marketing strategy places all marketing in service of building sustainable, long-term customer relationships. Doing so ...
Insight: Measuring incrementality key to loyalty marketing success - One of the common critiques of loyalty marketing as a customer strategy is that programmes merely "subsidize" behavior, rewarding loyal customers for shopping habits they ...
Special offer: Join our FREE Loyalty Academy beta test on September 13! - The Wise Marketer Group is pleased to announce the beta launch of the Loyalty Academy, the first-ever online certification programme for loyalty marketers. As you are ...
US: Whole Foods to roll out loyalty programme nationally - The latest evidence that Wall Street analysts continue to consider customer loyalty a sound business investment: Over at Fox Business, Motley Fool commentator Bradley Seth McNew ...
Survey: Both digital and print coupon use on the rise - A new research study from Valassis Research reveals that, while consumers continue to use digital coupons in increasing numbers, print coupons are far from dead, with one-third of ...
Insight: Banks slowly adopting mobile loyalty - American Banker reports that consumer banks, while late to the game, have come to realise that they will need to join retailers and travel providers in digitizing their loyalty programmes and ...

  ... Never miss anything important - join nearly 13,000 marketing professionals and get our free weekly newsletter, written by marketers for marketers - sign up here!

 

See The Loyalty Guide 7 up close, and find out how to increase profits and market share with more effective loyalty marketing!
  
                          
   The Wise Marketer   
   Published By & Copyright 2016 Customer Strategy Network / The Wise Marketer. All rights reserved.   
The Wise Marketer - Home Subscribe to our RSS feed! Share this on Facebook! Share this on Google Plus! Tweet this! Share this via LinkedIn! Email this page to a friend!