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.”

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.