Mobile may be necessary for loyalty programs
October 31, 2014

As consumers increasingly rely on mobile devices for their shopping experiences, retailers need to make use of them in some way, shape or form. That means creating apps that are capable of developing a relationship with the customer. By creating a way of interacting with people through apps, merchants can develop ways of retaining customers without having exert a considerable amount of effort. In essence, by developing mobile apps in conjunction with integrated payments systems, stores are able to build a strong customer base with an eye on developing a system that caters specifically to the needs of patrons.

Finding the right loyalty
Loyalty programs matter more than ever before because they help create the ideal customer. Loyal consumers have always been important because they offer repeat sales and will recommend a store to others. The problem is that establishing loyalty has become very tricky for many stores, according to PYMNTS. Customers have had changing attitudes about what it means to be loyal to a store. Similar to the rise of omnichannel, people desire more in rewards in order to cater to their needs. More importantly, they don't just want random rewards. They want things to be specific to their actual needs. In other words, the rewards experience has to be personal, not general.

When it comes to answering for this shift in consumer perception, mobile devices can be a great help. Rather than offloading new rewards or employing a one-size fits all approach, stores can use the data customers supply through smartphones and tablets to get a better idea of their needs. For example, a person who frequents a clothing store may only be looking for and purchasing shoes. That patron may seek out rewards related to shoes, so the mobile app in question would present discounts or deals on new footwear. This might inspire them to purchase more as a result.

What can help with this is an integrated payments system. Running the loyalty program off the system can allow stores to collect customer data more efficiently through various transactions. If consumers have a mobile app, the transaction data can be linked to the software to allow retailers and customers to work out an ideal rewards system. Through that mechanism, customers will feel like they're being cared for, and thus become loyal.

Nexus: G-WEBCD5