Say Goodbye to Traditional Loyalty Marketing Programs

In an article from Ad Age, CEO Lars Albright, noted that, "Mobile is shaking up the traditional loyalty model, just as it's shaken up so many other things." He's right.

Think of frequent flyers miles, hotel member rewards, or supermarket fuel incentives as traditional loyalty programs. While it might be harsh to bury them already, many brands are finding out that mobile loyalty programs can be much more effective for all parties involved.

Consider the simplicity of this example pointed out by Albright:

"American Express' new partnership with Uber, for instance, represents a huge milestone for mobile commerce. It's powerful and yet so simple. Under the program, participants pay with AmEx when they ride Uber, earn two times the rewards points and can use those points to pay for future Uber rides."

Does the customer have to go out of their way? Not if they already have an American Express card and are using Uber anyway. This is just one example of how simple mobile rewards can be for consumers.

But brands won't participate if they don't get something out of it. Here's why mobile loyalty programs are better for both parties:

Consumers generally don't have to go out of their way to benefit and many mobile promotions are tailored to their specific preferences.

Brands have consumers at their fingertips. They can reach them at any point with a text message or push notification.

Consumers can essentially use their smartphone (a device they're already attached to at every waking moment) to earn rewards and save money at their favorite retailers, restaurants, and services.

Brands get incredible insights on consumers beyond basic male/female demographic information. This includes contextual data such as where they're located, their shopping habits, and preferences.

When something comes along (smartphones) that consumers bond with and brands can use to market their products and ultimately make more money, it's a win-win and that means it's here to stay.

If your brand needs a mobile app, responsive website, or a mobile marketing plan to better reach your targeted audience, call us at 800-367-2570 or contact us here.