We believe the loyalty card has been usurped by the increasingly ubiquitous, functional and connected smartphone as a way of uniquely identifying customers.
But does a loyalty “app” amongst thousands of other apps have less value than a physical card in a wallet?
Not at all. Bottom line is about convenience. I envision not carrying a wallet in a few years. My phone will be my wallet.
ReplyDeleteThere's an obvious value saved in the production of physical plastic cards vs. the creation of a digital application. However the true value of the digitalization of the loyalty token will come in an organization's ability to link transactions made in the physical world to online behaviour. Going digital with a loyalty token provides the ability to create a level of information about consumers that brands could only dream of a 5 years ago. The challenge will be not only in forging links between digital 'streams of behaviour' but also how to generate actionable insight to drive value in decision-making.
ReplyDeleteI'll still want to collect points as they are valuabel to me
ReplyDeleteDo you really think that senior people use mobile apps as much as the younger generation? A digital application wold be great but I feel that a physical card would equally be of importance especially for senior peole who show more loyalty then the younger generation
ReplyDeleteThe challenge will be in differntiation, more consumers are becoming loyal to programs and not the retailer. Organizations need to really get creative in how they deliver value to the consumer to develop loyalty whether that be digital or plastic...
ReplyDeleteI hear what you're saying about seniors and the use of iPhones. They are using them more an d more I think though.
ReplyDeleteApps in general need to be relevent or they get deleted. If it makes my life easier, it's relevent. And not having to carry a bunch of cards makes my life easier. Frankly I have a few cards sitting at home I never use that I might if it was on my phone.
ReplyDeleteI can never find them when I need them, consolidating to an app or QR codes would be the best thing.
ReplyDeleteTo use a personal experience, a local frozen yogurt shop recently made the switch from loyalty cards, not to an app but to mobile-based text messages that send an update of points-per-dollar each time a purchase is made, and then a coupon when a certain number of points are reached. No need for a card or app, just your phone number. Not too shabby. Personally, I also like the idea of not having to carry extra cards on my key chain or in my wallet. It would be great if grocery stores adopted something similar.
ReplyDeletehaving loyalty cards on mobile will resolve the problem of not finding them when you need them. Apps will replace Cards, true for payment as well.
ReplyDeleteFollowing on from Pierre's comment; when do you think the right time is for a big box or grocery retailer to start seriously getting into the mobile app space as a means to replace a plastic card?
ReplyDeleteSome great points of view being shared here. It's clear that any mobile application needs to fulfill a set of criteria of which relevancy and usefulness are key. Before diving into this space, companies need to think about how mobile fits into their overall customer proposition, otherwise there's a danger that an application will be developed in a one-dimensional fashion without consideration of how it enables an organization's ability to deepen it's connection with consumers.
ReplyDeleteFollowing on the thread around when Big Box and Grocery Retailers need to get into this space; it's right now. Get alignment on your customer proposition vision, understand what you need to develop to reach it and map out how to get there logically; preferably doing so with the support of a partner, who understands this space and the potential it has to positively transform an organization. Getting this right really has the ability to connect more meaningfully with consumers.
The great momentum in customer's security things will change by carrying the physical cards and it will definitely enhance the usability of the loyalty card and usage can be linked to the ins-tore promotional campaigns quickly
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ReplyDelete