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Short-term approach to mobile threatening loyalty revenues

Short-term approach to mobile threatening loyalty revenues
Friday January 6 2012

Short-term mobile marketing tactics are narrowing marketers’ long-term strategies for customer loyalty, according to research from 2ergo.

According to a YouGov survey commissioned by the mobile business and marketing solutions company, 56% of consumers would use a personalised loyalty scheme on their mobile and just over one fifth (21%) state they would spend more if a brand had a proactive scheme which provided relevant and timely offers.

However, despite this compelling proposition, while many marketers are deploying a mobile tactic such as an app or coupons, just a handful of brands are implementing mobile loyalty schemes. 2ergo’s recent retail research demonstrated that just 6% of High Street retailers currently have a mobile-based loyalty scheme.

2ergo is warning that simply paying lip service to mobile strategies could seriously affect long term profitability and customer engagement. A comprehensive mobile strategy, which includes mobile couponing, targeted offers by location or previous preferences and mobilising loyalty cards will add value to the customer experience and post purchase perceptions.

“We know that smartphones are changing the way people interact with brands. For example in retail mobile is used to provide access to store directions, in-store product reviews and self service m-commerce, which delivers an enhanced customer service,” said Ariya Priyasantha, director of loyalty, 2ergo. “The ability to target via mobile enables marketers across all sectors to establish a proactive and intimate relationship with a customer.”

“Just discounting at this stage does a disservice to both brand and customer. Using mobile as the platform for an integrated, intelligence-based loyalty scheme means marketers can target them effectively either at home, or in real-time when they are within a store, restaurant, or gym, promoting relevant products or rewards based on their purchasing history.”

Tagged as: mobile | mcommerce |