International consulting and investments.

Loyalty Grows Up

BThe past fifteen years have brought consumers tons of loyalty programs, from airline and hotel chains to clothiers and big box stores.  The majority of them are seriously flawed and ineffective in garnering true loyalty, primarily because they’re tedious for the consumer and are offered begrudgingly. The general feeling is, “We offer a loyalty program because we have to, since the competition does. We don’t really wish to give anything for your patronage.”

Let’s face it, current loyalty programs are a pain in the ass. We get to the check-out counter and a cashier says, “Do you have a reward card?” We say, “Yes, but I don’t have it on me, can I give you my phone number?”  We go through this process which feels like a waste of time – because we have no idea how much the small print in our loyalty agreement will affect the size or frequency of our reward.  That’s if we even understand the reward promise at all.  Yet we don’t want to miss out on a something that we’ve earned with our patronage. So we go through the motions because someday we may receive a gift certificate or high value coupon in the mail that says, “You did it, you’ve hit the magical plateau and here’s your reward.”

Fortunately, this is all about to change.  Retailer apps that collapse loyalty accounts into our mobile devices will drastically alter the structure of the loyalty-reward relationship. Now that consumers are offered buying opportunities to be acted upon anywhere, at any time, retailers are about to compete at a whole new level for loyalty. Application push notifications make this so; and easy access to viewing reward status will force retailers to become transparent with earning and redemption processes. Retailers who play games with red tape rules and regulations will quickly lose ground to competitors who spell out meaningful rewards in simple mathematics.

The onus of responsibility will go back to where it belongs, on the business entity − to inspire loyalty and reduce friction associated with participation. Mobile purchasing opportunities place increased power in the hands of the consumer. More buying opportunities translate into greater rewards for businesses that develop real loyalty, and that means that retailers will no longer begrudgingly offer rewards at the register. They’ll instead eagerly rush to provide meaningful rewards via mobile application. Loyalty programs based upon competitive mediocrity will be replaced by true competition. Businesses that most quickly develop loyalty-reward programs that are simply stated, with significant benefits, easily tracked in a mobile app and able to be redeemed online or at physical shopping locations, will surely be the big winners in the mobile economy.

If your business is tired of talking about mobile strategy and ready to do business in the mobile space, Dasoph can help. As a strategic partner of Microstrategy, a world leader in business intelligence and mobile solutions, Dasoph will provide a branded state-of-the-art retail app, deployed in weeks, not months. Develop true consumer loyalty, sell more and secure your space ahead of the competition by landing your app installed on consumer mobile devices first. Contact us to learn about the latest solutions available from Dasoph.

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