Mobile is the key to future adoption of brand loyalty initiatives, new research shows

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Global experience design agency, Foolproof, has released new research that indicates a decline in consumer appetite for the traditional loyalty card and highlights the future opportunities for mobile loyalty initiatives.

The results of the survey revealed that UK consumers love loyalty but concerns about personal data, value vs. effort and lack of space in the wallet shows that the traditional loyalty card market is in danger of becoming saturated.

In contrast, the survey showed that consumers are ready for a more intuitive approach to loyalty that uses the smartphone as the medium for delivery of offers, reminders and redemption. Consumers would be receptive to participating in even more loyalty initiatives, if they had a better way to manage the many schemes that brands are offering.

The survey conducted with 1000 respondents revealed that:

  • 85% had some kind of loyalty card in their wallet
  • 65% of respondents admitted to turning down additional cards with 35% saying they hadn’t anymore space in their wallet for more schemes
  • 50% of people said that they would be more likely to use loyalty initiatives more if they were all housed on the mobile
  • 48% of people said that they use mobile loyalty apps regularly (at least once a week)
  • 46% of people said that they have used a mobile in-store as part of their shopping experience

Peter Ballard, founding partner of Foolproof, said: “This survey clearly shows that the current state of the loyalty market has some serious issues that need to considered by brands, if they want to build a loyalty initiative that has a chance of standing the test of time. Over the last five years, our research has shown that consumers have adopted multi-channel shopping faster than brands have adapted to to it. Shoppers are already using smartphones in-store, and the fact that 50% said that they would be more like to use loyalty initiatives more if they were all housed on a mobile, shows the opportunity for brands to capitalise on this behaviour.

With new mobile technologies emerging and facilitating smarter and more engaging experiences for consumers, mobile loyalty schemes should be providing incentives – beyond cost saving – to entice consumers to manage their loyalty accounts, facilitate payments and deliver ‘in-the-moment’ messages based on preferences, location and proximity to store.

The smartest schemes will be the ones that can predict our shopping behaviours and patterns, and help deliver loyalty incentives ‘just-in-time’ to be one step ahead of us and enhancing our shopping experience in ways that genuinely serve us and reward us for our loyalty.”