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Why is loyalty important?

Why is mobile based loyalty still a complementary tool?

  • as opposed to a stand alone powerful method for building loyalty among customers, rewarding customers and improving retention. Why is it that you either add mobile app to your existing loyalty card, or deliver text messages for your existing point collection and point redemption system. I am still not sold on the "check ins" or "mobile game dynamic" as a comprehensive mobile loyalty program. Someone prove me wrong here

  • Answer:

    This may very well be the result of today's mobile technology developmental stage. Although mobile devices are becoming more popular, smartphone penetration has not reached a high enough level to function as a standalone mechanism for ALL consumers. This latter part is important because a program that excludes consumers simply because of their technology constraint is unlikely to be received well among consumers. One may argue that a mobile loyalty program may not always need a smartphone. But without location mapping and/or some sort of code scanning, loyalty programs through a feature phone would have concerns about fraud detection and prevention.

Yuping Liu-Thompkins at Quora Visit the source

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One of the components you point to in your question, "...why is it a compliment to an existing program" basically answers this matter. Companies and brands that have existing loyalty programs are trying to bridge the mobile gap while still relying heavily on the reinforced behavior of the older program to support the obvious goal of a sales lift. In addition, most brands don't want to reward you for anything besides engaging with said brand (i.e. a purchase, or a facebook post, etc). Are you asking us to consider a brand like Starbucks offering some sort of reinforcement for a check-in at another cafe? I guess I'm not clear, but the idea of "disloyalty" is also interesting to me. Thanks for the post.

Simon Davenport

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