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Top tips for your mobile loyalty

solution
COMPANY
A DMI JERN
MAY

MAGNUS

30,

2014

(http://www.goldengekko.com/wp-content/uploads/2014/06/blogimg02.jpg)Mobile loyalty programs can have an enormous impact on your

business with several projects contributing as much as 5-10% of the
total revenue per year and even more in bottom line prot. Yet, most
companies fail to leverage the full opportunity as they tweak existing
loyalty solutions rather than starting from scratch and designing a
loyalty solution based on the mobile user and experience.

Some examples of companies that got it right include:

O2 Priority Moments* Mobile operator O2 in the UK generated over

1.1 Bn USD (697m GBP) in revenue contribution the rst 2 years with
the O2 Priority Moments loyalty program. Read more

(http://www.mobilemarketinguniverse.com/wpcontent/uploads/2014/05/O2-Priority-Moments-Case-Study-details2012.pdf)
My Starbucks Rewards Starbucks turned from revenue decline to
substantial revenue growth and increase in customer satisfaction with
the help of the Starbucks loyalty apps. The apps drove more than 1 Bn
USD in mobile payment revenue in 2013. Read more

(http://www.businessinsider.com/mobile-payments-at-starbucks-explodein-2013-passing-the-1-billion-mark-2-2014-1)
Walgreens Mobile Loyalty Card Provides points for a wide array of
things outside as well as inside the store with more than 74 million
active members and 7 million weekly visits on mobile alone in 2013.

Read more

(http://www.mobilemarketer.com/cms/lib/20556.pdf)

*Disclaimer: O2 Priority Moments was developed by Golden Gekko and

played a key role in the development of our loyalty platform
MobileEngage

In addition to this, startups such as Belly and Shopkick have proven

that there is an enormous demand from retailers and customers for
better mobile loyalty solutions.

The theory of customer loyalty is simple: a business that keeps its

customers for longer usually makes more money from them at lower
cost than one that is constantly paying to acquire new customers.

So what are the key elements of a great mobile loyalty program?

Customer segmentation & analytics

Customer segmentation & analytics

The rst thing you need to do is understand your customers. Take all
available information about the users and divide into segments to
ensure that the loyalty solution is relevant to your target audience
(people with the potential to spend with the right incentive). Also ensure
that you include analytics as a key part of the platform so that you
continuously learn more and more and can personalise the experience
for each customer over time.

Rewards
Loyalty is about rewarding customers for behaving in the way you want
them to. This means leveraging the mobile device to track customer
behavior (purchases, repeat visits, sharing, brand engagement) and offer
rewards based on the behavior, time and location. The most common
ways of rewarding customers are discounts based on number of
purchases (e.g. every 8th coffee for free), points / gift tokens awarded
based on purchase and that can be used to redeem products and
services, freebies such as ight, car and hotel upgrades and enhanced
service experiences such as lounge access.

Offers & Exclusive offers

Loyalty programs dont necessarily have to give things away for free or
at big discounts (see previous blog

(http://www.mobilemarketinguniverse.com/why-mobile-offers-will-kill-yourbusiness/) about how mobile offers will kill your business). Offers and
especially exclusive offers play an important role though. O2 Priority
Moments offers customers priority on purchasing concert tickets in
partnership with Live Nation and several retailers offer loyal customers
priority access to the latest collections and to sales. Discount offers
can be used to drive footfall and increase basket size as long as it
incentivises the right behavior and increases total customer protability.

Customer communication and promotion

One objection to apps is often that users have to open the app to
engage with the brand. With push notications this is no longer the
case as long as they opt-in, and push notications have proven to

increase response rates by up to 300%.

(http://appdevelopermagazine.com/1477/2014/5/27/New-Study-ShowsTargeting-Push-Notications-Increases-Response-Rates-Up-to-300%2525/)
This is not the only engagement method however. Cross-channel
retargeting ads, e-mail and SMS all play an important role in every
customer communication strategy.

Making payments more accessible

In 2012-2013 one of the biggest drivers to change and improve loyalty
has been mobile payments. Online Brands including Uber,
Bookings.com, Amazon and eBay drive loyalty by making it easy for
repeat customers to pay without having to provide credit card details
every time and retail brands such as Starbucks and Pizza Hut make the
payment process in store smoother than ever as it combines loyalty
with payment.

Personal customer messages and information

Communicating with customer care can often be a painful and
cumbersome activity. Many of the nancial institutions and carriers
provide messaging capabilities within their apps and online experiences
that allow them to better customise the experience. Brands are also
experimenting with using popular messaging solutions such as
Whatsapp to communicate with customers.

Personalising the experience

The more you know, the better you can target and customise the
experience for each customer to surprise them in a positive way and

continue to build loyalty and engagement. Use all data available to you
internally and externally to constantly optimise the experience but
respect peoples privacy and dont make it creepy.

Integrate with in-store experience

Some of the most successful mobile loyalty programs link loyalty to instore experiences such as show-rooming, improving customer care,
product information and more. Best Buy has been working actively to
integrate show-rooming as part of their app to make it into something
positive for the brand whereas Tesco uses iPads to drive loyalty
program sign-ups in-store.

Time sensitive offers

One part of loyalty is re-engaging customers and creating a sense of
urgency. Therefore many brands such as Fab.com and Dominos Pizza

(http://www.xplusone.net/dominos-pizza-makes-limited-time-offers-vitalpart-of-mobile-strategy/) provide a countdown for the offers to drive

purchase now.

Social Responsibility
Another successful loyalty method is to engage with the customers for
a good cause. Great examples of this include Pets at Home and
independent apps such as Blood Donation, Addicaid and Hope. We
havent seen any branded apps successfully leverage social
responsibility as part of their loyalty programs which could be a great
opportunity.

Social Engagement and User Generated Content

The majority of all online social activities are carried out from a mobile
device. Therefore brands can incentivise reviewers, inuencers and
content creators to create content from the mobile and share content
from mobile devices. This has to be carefully managed however as
social engagement does not necessarily come from your target

audience. Cosi is a great example of good execution.

(http://www.mobilecommercedaily.com/cosi-leverages-social-sharing-topromote-sweepstakes-drive-mobile-engagement)

Final tips
Weve said it before and will say it again. User Participatory Design and
Testing is key to success. Design the program together with your
customers. Develop the program based on key use cases that will
improve the customer experience as well as value perception.

Sources:

Magic formula for the best retail loyalty programs

(http://www.capturecode.com/magic-formula-behind-best-retailer-loyaltyprograms-2/)
Top 10 mobile loyalty programs from the rst three quarters
(http://www.mobilecommercedaily.com/top-10-mobile-loyalty-programsfrom-rst-three-quarters)
7 apps to take your customer loyalty program mobile
(http://www.zdnet.com/7-apps-to-take-your-customer-loyalty-programmobile-7000025654/)

Related categories: App Development (http://www.goldengekko.com/?

cat=158), Mobile Engagement (http://www.goldengekko.com/?cat=1100) ,

Mobile Marketing (http://www.goldengekko.com/?cat=157) , Mobile
Payment (http://www.goldengekko.com/?cat=575) , Mobile Strategy
(http://www.goldengekko.com/?cat=414)

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