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Consumer and Mobile Rewards

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If you have ever watched the show Extreme Couponing, you would truly get a chance to witness some consumers’ appreciation of loyalty programs. While it is debatable how loyal these customers become in these extreme couponing situations, it does drive sales at the point of purchase. In fact, loyalty programs have become a huge part of any forward-thinking B2C company’s marketing mix. And if done right, these initiatives can enable a company to maintain and expand its existing customer base, create strong brand advocates and increase the customer lifetime value (CLV). Coupons specifically are also known to improve awareness of products, increase shopping frequency and help drive purchasing preferences.

There is no doubt that companies have reported the benefits of having loyalty programs integrated into their initiatives. For example, large department stores that offer point cards for a chance to save on a future purchase are more likely to see an increase in overall sales and commitment from each customer.

Points-based systems (via loyalty cards) and paper couponing are great to have but in the ever-changing and competitive world of technology, companies who want to stay ahead of the curve should consider how mobile phones can be integrated. Most customers (not including those who are extreme couponers) are more likely to leave their homes with their mobile phones than they are with paper coupons. These days, retail stores have gotten creative in how they get their customers to sign up: cashiers can entice you with mobile coupons and alerts in your email by offering a certain percentage off at the point of purchase just for providing your email to them. Some companies send their customers coupons when they have downloaded their apps as another way to incentivize them. Mobile coupons are also a creative way for companies to build their databases. If you get customers to sign up with their location and email, you can build a database of customers by location, create target customer profiles and predict what products are in demand in certain locations. This information can help you craft loyalty marketing programs based on your findings.

Loyalty marketing programs have so many benefits, and executing them through mobile can give you an extra advantage over your more traditional competitors. If you would like to discuss creative ways on how to implement mobile-based loyalty marketing programs into your current initiatives, send us an email [email protected]

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