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Can Brands Win the Loyalty Game with Mobile?

Although mobile device adoption and usage continues to grow, customer retention is still a major obstacle for retailers, according to a new report, “Loyalty & Mobile: Winning the Loyalty Game with Mobile.”

According to the report, conducted by Key Ring−which is part of G/O Digital, a Gannett company−73% of smartphone and tablet users would like to use their devices to interact with loyalty programs. Yet, 61% of retailers cite customer retention as a major obstacle. The report shows that loyalty can translate into revenue−truly loyal customers generate 55%-70% of retail sales.

Here are some key takeaways from the enlightening report:

·     Weekends are a prime engagement period for mobile shoppers.
·     When a sporting goods retailer sent a push notification 24 hours before the prime shopping period, loyalty
transactions increased by 113%.
·     Discount cards top the list of most frequently used (41%), loyalty program cards followed by fixed rewards
cards (39%), perks loyalty cards (37%), points cards (34 and platinum member cards (31%).
·     51.2% of shoppers reported that an item being on sale influenced them most when making a purchase.
·     Only 5.5% of shoppers reported that receiving extra points influenced them most when making a purchase.

In the report, the question was posed: “Why wouldn’t you join a loyalty program?” The responses are below:

·      “I already have too many cards.”

·      “There is no instant incentive for me to sign up.”

·      “There is no long-term value for me.”

·       “I don’t shop at the store frequently enough to earn rewards.”

“Don’t get caught in “app clutter.” Find utilities to make your program stand out. People don’t want to download an app for every retailer.”

Loyalty can translate into revenue – truly loyal customers generate 55%-70% of retail sales.

Interestingly, the report shows that 54% of loyalty members are inactive after the first year. What’s more, 61% of retailers cite customer retention as their greatest obstacle. Too many loyalty cards, the report says, results in a decline in usage.

Grocery loyalty programs are used most on Sunday at 4 p.m. Sending a push notification reminding them about their shopping list on Sunday morning helps increase transactions.

Sporting Goods cards are typically used Saturday at 3 p.m. When a client sent a push notification 24 hours before the prime shopping period, loyalty transactions increased by 113%.

According to the report, marketers should reward their customers for sharing program offers with friends via social media. What’s more, the report lists the following recommendations: “Don’t get caught in ‘app clutter.’ Find utilities to make your program stand out. People don’t want to download an app for every retailer.

KeyRing-Infographic_Loyalty-Card-Usage

 

By: Jim Tierney Key Ring

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