Loyalty programs are often allocated a sizeable proportion of a business’s marketing budget. These programs are designed to increase engagement and brand association to ultimately lift retention figures. We all know it’s cheaper to retain an existing customer than it is to acquire a new one.
But as marketers, are we running our loyalty programs as effectively as we should? Unless you’re leveraging mobile in the channel mix, this is questionable. The opportunities that mobile offers for engagement on a personal level and intelligent targeting, make it a must for brands when planning their loyalty program.
Here’s Blue Star Direct’s pick of the top 5 brands using mobile effectively to enhance their loyalty programs:
UK based Supermarket chain Tesco are well known for the success of their loyalty program the Tesco Clubcard. As at June 2013, the program already had approximately 17 million members with Tesco leveraging mobile to acquire new members. Tesco installed tablets in store providing Clubcard information to shoppers and enabling them to sign up there and then. Upon sign-up they received an SMS and email confirming their membership. Tesco also offer the option to SMS to register for the program where traditionally registration had been via in-store paper leaflets. (Source: http://www.mobilecommercedaily.com/tesco-mobilizes-loyalty-program-sign-ups-via-in-store-ipad-implementation)
The Starbucks mobile app allows members to purchase via the app and earn stars as they pay which can be redeemed for treats in any Starbucks (in the US). The app streamlines payment and rewards in one convenient device – the customer’s smart phone.
Also taking one of the top spots is another British supermarket – Sainsbury’s. The Nectar loyalty program mobile app provides members with exclusive offers and opportunities to earn additional points via in-app offers.
In August 2013, leading US based Beauty brand Sephora, launched an in-store campaign to encourage customers to mobilise their loyalty card. The campaign lead customers to a mobile site which prompted them to add their loyalty card to their Apple Passbook, linking the pass to Sephora’s mobile app. The loyalty pass is location triggered to leverage location driven marketing opportunities as customers pass by a Sephora store. (Source: http://www.mobilecommercedaily.com/top-10-mobile-loyalty-programs-from-first-three-quarters)
New York department store Century 21 is launching an app that will ‘bridge in-store and digital shopping experiences through augmented reality’ to acquire new loyalty program customers. The app will allow shoppers to scan the Century 21 logo on a shopping bag, using their smartphones, to launch an interactive wheel that provides an offer. For more information go to source:http://www.mobilecommercedaily.com/century-21-prioritizes-mobile-in-significant-loyalty-program-push)
With these top 5 brands leading the way, mobile is set to revolutionalise loyalty marketing in Australia. At Blue Star Direct we’re excited to be working exclusively with Eagle Eye, world leaders in mobile marketing technology. Based out of the UK, Eagle Eye carry an impressive client list of leading retailers including Tesco (the Tesco Clubcard), Pizza Express, PayPal, Virgin Active and T-Mobile. Blue Star Direct are currently working with a number of Australian blue chip companies to transform their loyalty programs.