Mobile popularity behind new m-loyalty platform
Consumers' usage of mobile coupons is forecast to generate nearly US$6 billion globally in terms of retail redemption value by 2014, according to a recent report from Juniper Research.
On the back of these findings, the 'Enterprise Mobility Solutions' division of Motorola has launched a mobile loyalty solution in the form of a managed service that allows retailers to not only build personal relationships with customers but also to digitize store-branded membership cards for storage on each customer's mobile phone.
This service is compatible with the majority of mobile phone handsets currently available in the US market, and was designed to provide customers with a more convenient shopping experience, including access to offers and discounts on products that are likely to interest them.
"Consumer usage of the mobile phone is evolving, and its importance to the shopping experience is increasing," said Dana Warszona, m-commerce global leader for Enterprise Mobility Solutions. "From enabling consumers to search for product information to completing whole transactions, the mobile phone has become a business-critical tool that retailers must incorporate into their strategy to meet the needs of customers, both now and in the future."
The new system can be deployed either as an extension of a retailer's existing loyalty programme, or in the form of a new loyalty programme. It allows retailers to send offers and incentives to each customer's mobile phone, effectively removing much of the need for membership cards and paper coupons (although plastic cards do still benefit from the 'billboard in your wallet' brand awareness argument).
Customers can opt in to the programme online or in-store by sending a text message to a special number. They then receive a mobile application (a small software download) containing a bar code that can be shown on-screen to act as the customer's unique identifier or mobile loyalty card, to be scanned at the point of sale (POS).
While Motorola manages distribution of messages to programme members, retailers can focus on creating relevant marketing messages and determining how frequently coupons and offerings should be sent. As a result, retailer offers can be both timely and relevant, and redemption rates are also accurately tracked.
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