Consumers have strong interest in loyalty programs, as evidenced by studies showing that the average person belongs to more than 18 programs, yet they are tired of fumbling with different loyalty cards in their wallets or keychain fobs.
That’s the challenge that LOC Enterprises, LLC, Cincinnati, Ohio, expects to solve with its universal loyalty card system, said Tiena Manypenny, chief marketing officer. The company announced its launch of the program in conjunction with the Loyalty 360 Engagement & Experience Expo.
By using the LOC card, consumers can leave the other cards at home and still receive all of the loyalty rewards they are due, Manypenny said. LOC is negotiating with merchants across different industries to participate in the program. Consumers will be able to obtain the card and key fob free at participating merchants – a smart phone app is also available -- and then enroll in the LOC program through the LOC card Web site. The LOC card is activated when swiped through any participating merchant’s system, automatically enrolling the customer in the merchant’s loyalty program.
Merchants benefit from the easy process and no longer have to manage point-of-sale signups or registration forms, Manypenny said.
LOC is also offering customers alternative IDs, enabling them to use those in the event that they leave the card at home.
Privacy and security are other advantages consumers have through the card, Manypenny added. Since consumers don’t have to fill out additional forms, there is less chance of the personal information from those forms being comprised.
LOC does not share any personal information about the consumers. The company encourages consumers to build a “profile” of high level “generic” information for merchants, further protecting personal information.
Additionally, the LOC card enables consumers to monitor all participating merchant loyalty program points/offers from a single, secure Web site.
With the technology resources of partners Logicalis and VMWare on the back end, the program has the ability to scale quickly and globally, Manypenny said. “It is important in this case that merchants listen to what customers want.”
According to research from Global Association for Marketing at Retail Consume, 52 percent of Americans prefer a single card for all of their loyalty accounts while 32 percent prefer a single key fob and 16 percent want a smart app.
“We’re not a loyalty provider; we’re not taking away from anything that the merchants are doing; we are helping them engage with the customer,” Manypenny said.
Merchants can continue to accept their “branded” cards in addition to the LOC card. The LOC program also allows small businesses with no existing customer loyalty program to start such programs with much less risk and cost.
LOC has also created special cards for certain charities to enable consumers to identify themselves with a specific charity. The card also helps create more awareness for the specific charity. LOC then contributes a percentage of the revenue generated from the individual cards.